Quantum phase transitions are sudden changes in the ground-state wavefunction of a many-body system that can occur as a control parameter such as a concentration or a field strength is varied. They are driven purely by the competition between quantum fluctuations and mutual interactions among constituents of the system, not by thermal fluctuations; hence they can occur even at zero temperature. Examples of quantum phase transitions in many-body physics may be found in systems ranging from high-temperature superconductors to topological insulators. A quantum phase transition usually can be characterized by nonanalyticity/discontinuity in certain order parameters or divergence of the ground state energy eigenvalue and/or its derivatives with respect to certain physical quantities. Here in a circular one-dimensional spin model with Heisenberg XY interaction and no magnetic field, we observe critical phenomena for the \(n_0=1/N\rightarrow0\) Mott insulator caused by a qualitative change of the boundary condition. We demonstrate in the vicinity of the transition point a sudden change in ground-state properties accompanied by an avoided level-crossing between the ground and the first excited states. Notably, our result links conventional quantum phase transitions to microscopic boundary conditions, with significant implications for quantum information, quantum control, and quantum computing.