Dogecoin is mined using the Proof of Work method. To mine cryptocurrency, miners compete to solve difficult mathematical puzzles. They will receive new cryptocurrency in return for validating each block.
Dogecoin was created by a hard fork between Luckycoin and Litecoin. Both were hard forks from Bitcoin, the original cryptocurrency. Dogecoin uses the Proof-of Work mining technique in order to allow miners to agree. Dogecoin, and other cryptocurrencies, use a different algorithm for hashing than Bitcoin.