This makes the transaction time of Dogecoin a lot quicker compared to coins it's based on, like Litecoin. It also means Dogecoin is a much faster option for online purchases and worldwide money transfers. As a result, many online platforms use Dogecoin as a tipping mechanism. You can send your favorite content creators quick tips through DOGE tokens. The network uses the Proof-of-Work algorithm, in which miners compete to verify the transactions in a block. They are rewarded with 10,000 DOGE if they are the first to find the correct hash for a transaction in the blockchain. On top of that, Dogecoin uses the Proof of Work PoW algorithm that Bitcoin also uses. It capitalizes on putting in “work.” Any modern computer can quickly calculate a hash. There’s nothing difficult about that, as it takes less than a second to compute a new hash.