What is Cosmos Hub?

Cosmos Hub is part of the Cosmos network, which features independent, parallel blockchains known as zones. These zones utilize Byzantine fault-tolerant consensus protocols, particularly Tendermint, and employ Proof-of-Stake algorithms instead of Proof-of-Work. Zones can interoperate through shared hubs, enabling the transfer of tokens across different blockchains without intermediary involvement.

The native token of Cosmos Hub is called ATOM, which serves three main functions: it acts as a spam-prevention mechanism by paying transaction fees, it can be bonded for earning block rewards, and it is used in governance where holders vote on proposals using their staked tokens. The economic security of the Cosmos Hub relies on the quantity of ATOM staked; higher stakes increase the cost of potential attacks on the network.