Cosmos Hub is the first blockchain launched on the Cosmos Network and the first in the Cosmos Network Hub. It is the center of the entire Cosmos network and can be seen as the central router for all inter-chain transactions in the Cosmos ecosystem. Cosmos Hub is responsible for managing and tracking activities on each sub-chain (Zone) in the Cosmos ecosystem to ensure the synchronization of information.
Currently, Cosmos Hub is the only Hub in the Cosmos ecosystem. It is a PoS blockchain network that uses a management mechanism to achieve information synchronization within the Cosmos ecosystem. Cosmos Hub, as a decentralized central management organization, connects different Zones within the ecosystem and conducts cross-chain operations of assets with Zones through the IBC cross-chain communication protocol, thereby realizing the flow of assets between blockchains. For example, in the Cosmos network, ETH can be transferred from Evmos to Kava through the Cosmos Hub. In this process, Cosmos Hub acts as a transaction processing center, just like a decentralized world banking system.
The native token of Cosmos Hub is $ATOM. However, Cosmos Hub does not impose its choices on other Zone blockchains. For example, while gas is paid in $ATOM on the Cosmos Hub, each Cosmos Zone can set up its own native token without using $ATOM. While this open design allows each chain in the Cosmos network to be more flexible in terms of economic management, it somewhat prevents $ATOM from benefiting from the growth of the Cosmos ecosystem. Because most of the value of ecological growth will be captured by Zone’s various native tokens instead of $ATOM. For example, assuming that each member state of the European Union still issued its own currency would render the European Central Bank ineffective.