Why Are Shares Considered “Proof-of-Work” Even Though They Don’t Solve the Block?

Shares are considered proof-of-work because they demonstrate that the miner has performed the necessary computational effort (hashing) to find a hash below the pool's set difficulty target. This process is identical to finding a block, only the difficulty threshold is lower.

The pool accepts this as verifiable evidence of the miner's contribution to the collective effort.

How Does the Target Hash Value Relate to the Mining Difficulty?
How Does the pool’S Target Difficulty for Shares Compare to the Network’s Target Difficulty?
What Is the Difference between a “Share” and a “Valid Block Solution”?
What Is the Primary Role of SHA-256 in Bitcoin’s Proof-of-Work?
How Is the ‘Target’ Hash Value Calculated Based on the Difficulty?
What Is the Difference between Difficulty and the Target Hash?
What Is a “Hash Rate” and How Does It Affect the Difficulty Target?
What Happens If a Miner Submits a Share That Meets the Network Difficulty but Not the Pool’s Target Difficulty?

Glossar