How does Boombox work with Stacks?Boombox
is a new generation of NFTs which incorporates Stacks consensus mechanism, Proof-of-Transfer. In a nutshell, Proof-of-Transfer is a new take on consensus, allowing for a Proof-of-Work chain (in this case, Bitcoin) to be leveraged and extended in meaningful new ways. Think of it as an additional utility added to Bitcoin's already well-established Proof-of-Work blockchain. With Proof-of-Transfer, miners are not converting electricity into computing power to earn block rewards. Instead, they transfer Bitcoin to holders of the Stacks Tokens (STX), through a process called Stacking
. This means Stacks NFTs harness Bitcoin’s PoW without increasing its environmental impact. Now, all Stacks transactions settle on Bitcoin, enabling it to benefit from Bitcoin's decentralization and in turn Bitcoin’s security. In other words, NFTs are minted on Stacks but secured by Bitcoin. With every Bitcoin block mined, Stacks transactions are batched, hashed, and recorded on Bitcoin’s blockchain, enabling the receipt of Stacks blocks to be embedded in every Bitcoin block.
Boomboxes allow users to mint an NFT and choose any amount of STX to delegate for a Stacking cycle. At the end of the selected cycle, the STX address holding the Boombox NFT receives the proportional yield from Stacking. We know this might get a little complicated, so here's a quick infographic detailing the entire process: