**How Dogecoin works?**

Dogecoin was originally conceptualized as a more accessible and friendly alternative to Bitcoin. It utilizes a proof-of-work (PoW) consensus mechanism, with Scrypt as its hashing algorithm. For those out of the loop, Scrypt is less resource-intensive than Bitcoin’s SHA-256, which helps it facilitate faster and more energy-efficient mining processes.

Unlike deflationary cryptocurrencies such as Bitcoin, Dogecoin was designed with an infinite supply. This was to encourage its use for transactions rather than as a speculative asset. Adding Dogechain as a secondary layer enhances the network by equipping it with smart contract abilities. This allows for the creation of decentralized applications (DApps) and the participation in decentralized finance (DeFi) ecosystems. Needless to say, these additions significantly expand its utility beyond simple transactions.

Additionally, Dogechain’s compatibility with the Ethereum Virtual Machine (EVM) ensures that developers can easily port applications from Ethereum. This results in a vibrant ecosystem around Dogecoin.