Dogecoin is derived from the cryptocurrency Litecoin and was originally intended as a parody of Bitcoin. Unlike there, the number of digital coins that can be generated by “mining” is not limited.
Users provide computing capacity for encrypting transactions and are rewarded in the corresponding crypto currency. Since the encryption of Dogecoin is simpler, transactions can be processed faster than with Bitcoin or Litecoin.
More on the subject: The man who popped the Dot.com bubble served Elon Musk as an advisor on Tesla’s billion dollar investment in Bitcoin. Is this speculation bursting too, as shortseller Jim Chanos warns?