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Dogecoin Developer Explains Moving DOGE to Staking PoSNotable features of Dogecoin, which uses a scrypt algorithm, are its low price and unlimited supply. Key Takeaways. Dogecoin is an open-source. Dogecoin uses a simplified variant of the hashing algorithm, Scrypt. It also uses the �proof-of-work� protocol, enabling it to receive work from. Dogecoin is a cryptocurrency that uses a custom Proof-of-Work consensus algorithm to enable instant payments on its ledger. Dogecoin's coin price depends on.