# Proof of Transfer 🔄
This is the community presentation for the recently proposed consensus mechanism, Proof of Transfer, ahead of the launch of the Stacks 2.0 blockchain.
slide: https://hackmd.io/@kf0897riSlaPvlj6tUW5hA/ryzkCnXvU
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## Blockstack History?
Years of deep distributed systems R&D for a solid foundation
- Founded by Princeton Computer Scientists
- 2 scientists with Presidential Career Awards
- 13,000+ research citations among whitepaper authors
- Research published at USENIX ATC, DCCl
- Nominated by Princeton for SIGCOMM dissertation award
Board: Mongo DB (IPO), Twilio (IPO), Etsy (IPO)
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### Initial funding to complete R&D & infrastructure phase
$75M+ raised from industry-leading investors.
* 2017 - R&D and dev platform
* 2018 - Launched Stacks v1 blockchain
* 2019 - 360+ apps on the network + SEC-qualified offering
* 2020 - Stacks 2.0 + further decentralization
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### Blockstack: Software for a User Owned Internet
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## PoX - Proof of Transfer Overview
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- <code class="orange">Bitcoin</code> as Digital Gold and reserve currency.
- You only need to go from electricity to PoW currency only once.
- Can use existing PoW cryptocurrency to secure new blockchains and mint units of new cryptocurrency
- <code class="orange">Proof-of-transfer (PoX)</code> on the base cryptocurrency by miners.
- <code class="orange">Bitcoin is the “king of PoW”</code> and further consolidation might happen.
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## PoX Mining
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## Stacking
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- <code class="blue">Stacks holders (“Stackers”)</code> lock their STX, run full-nodes, and signal useful info on network to participate in the consensus algorithm.
- <code class="blue">STX miners</code> process transactions, Clarity contracts, write new blocks, and mint new STX.
- <code class="blue">Stacks holders</code> earn a payout (roughly) per month for actively participating.
Economics:
- The payout is in BTC (and not STX).
- This is very different from proof-of-stake (PoS).
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### Wrap up
- Cross envornment commnication
- A small library to solve messaging pain
- TypeScript Rocks :tada:
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### For the community. Made by the community :heart:
Get connected to the community through
- :computer: GitHub
- :video_game: Discord
- :mailbox: Telegram
- :bird: Twitter
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