Dogecoin cloud mining is the process by which cloud mining service providers get new Dogecoin rewards by viewing transactions on the Dogecoin blockchain. This seems simple, but it is not easy to do!
Cloud mining service providers process the same batch of transactions through multiple computers at the same time, but only one computer can get new coin rewards. The way to get new coins is when a node adds a new transaction block to an old block. This is done through complex mathematical equations.
The node that solves the math problem first wins! It can then append the newly confirmed block of transactions to the rest of the blockchain.
Most cryptocurrency mining works this way. However, Dogecoin mining differs from other currencies in some important ways. These aspects include:
Algorithms: Each cryptocurrency has a set of rules for mining new coins. These rules are called mining algorithms or hashing algorithms.
Block time: This is the average length of time it takes to check a new block of transactions and add it to the blockchain.
Difficulty: This number represents how difficult it is to mine each new block of the currency. Mining difficulty can go up or down, depending on how many miners there are. The currency protocol also adjusts the difficulty to ensure that the block time remains constant.
Reward: This is the amount of new currency awarded to the miner for each new block.
