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Reaction Equations:
$$\begin{aligned}\text{Na}_2\text{B}_4\text{O}_7 \cdot 10\text{H}_2\text{O} \xrightarrow{\Delta} \text{Na}_2\text{B}_4\text{O}_7 \xrightarrow{\Delta, \, \text{Swell}} 2\text{NaBO}_2 + \text{B}_2\text{O}_3 \quad \text{(Glassy Bead)}\end{aligned}$$
$$\begin{aligned}\text{B}_2\text{O}_3 + \text{CoO} \xrightarrow{\Delta} \text{Co(BO}_2)_2 \quad \text{(Cobalt Metaborate - Blue Bead)}\end{aligned}$$
Concept: On heating, borax loses water of crystallization and swells, melting into a transparent glassy bead of sodium metaborate ($$\text{NaBO}_2$$) and boric anhydride ($$\text{B}_2\text{O}_3$$). When heated with transition metal salts, characteristic colored metaborate beads are formed.
