What is Cosmos Hub? The Complete Guide to Cosmos Hub (2025)

Cosmos Hub is the Core Blockchain of The Cosmos Network

Cosmos is often called “the Internet of Blockchains.” The Cosmos Hub is the blockchain at the heart of the Cosmos ecosystem. With its native token (ATOM), it acts as the cornerstone of the Cosmos network, providing an essential locus of decentralized security and governance. 

What is Cosmos Hub? A High-Level Overview

While Cosmos itself is an ecosystem of multiple interconnected blockchains, the Cosmos Hub is a blockchain network functioning as a key component for developments in the Cosmos ecosystem. By supporting an interoperable and decentralized space of independent blockchains, the Cosmos Hub is carving out new possibilities for the crypto landscape. 

Unlike many blockchains focused on building isolated systems, Cosmos Hub operates to foster seamless and secure cross-chain communication and interoperability. It acts as a meeting point for various other networks, or “zones,” within the Cosmos ecosystem. By allowing distinct blockchain networks to interact efficiently, Cosmos Hub and its technology open up new use cases and opportunities for scalability across chains, making it possible for decentralized finance (DeFi) projects and other blockchain applications to interact without relying on traditional, restrictive bridges. 

Core Technologies of Cosmos Hub

Three main components power Cosmos Hub’s interoperability vision: the Inter-Blockchain Communication (IBC) protocol, Tendermint BFT consensus, and the Cosmos SDK.

• Inter-Blockchain Communication (IBC): IBC is Cosmos’s answer to cross-chain communication, enabling the seamless transfer of data and assets between chains without intermediaries. Any blockchain within the Cosmos ecosystem can connect to another through IBC, with potential interoperability across other major networks, like Ethereum or Bitcoin, in the future.
• Tendermint BFT: Cosmos Hub’s consensus mechanism, Tendermint BFT (Byzantine Fault Tolerant), uses Proof-of-Stake (PoS) to process transactions quickly and with low energy usage. Compared to Proof-of-Work (PoW) systems, Tendermint’s approach supports faster, more reliable consensus, ensuring that Cosmos Hub can handle a high volume of transactions efficiently.
• Cosmos SDK: The Cosmos SDK provides developers with a modular framework to create application-specific blockchains (or “zones”) that maintain interoperability with Cosmos Hub. With pre-built modules for essential functions like staking and token management, developers can build custom chains while ensuring compatibility across Cosmos. Additionally, the Cosmos WebAssembly (CosmWasm) module enables the creation of smart contracts, supporting the development of interconnected applications within Cosmos.

These technologies enable Cosmos Hub’s vision of an interconnected Web3 where data, assets, and applications flow freely across blockchains.

The Role of ATOM

ATOM, Cosmos Hub’s native token, is crucial in maintaining network security, supporting governance, and driving ecosystem functionality. ATOM holders secure the network through staking, earning rewards, and participating in governance, aligning incentives for Cosmos Hub’s growth and resilience.

ATOM’s utility goes beyond staking and governance. Cosmos Hub has implemented several deflationary mechanisms that enhance ATOM’s value for both long-term holders and active network participants:

• Fee Burning: Similar to Ethereum’s EIP-1559, Cosmos Hub burns a portion of transaction fees, permanently removing ATOM from circulation.
• Slashing: Validators risk having a portion of their staked ATOM burned if they fail to meet network standards or engage in malicious behavior.
• Governance Burning: When ATOM holders submit proposals for network changes, tokens are deposited and burned if the proposal is vetoed.

Cosmos Hub’s governance system empowers ATOM holders to vote on crucial network decisions, from upgrades to ecosystem funding, ensuring that the community shapes the network’s evolution. This active governance ensures Cosmos Hub aligns with user needs and ecosystem goals.

Cosmos Hub’s economic model is designed to use ATOM to maintain network security and sustainability. Recent adjustments have stabilized ATOM’s inflation rate around 10%, balancing ecosystem growth with economic sustainability. In Q2 2024, Cosmos Hub’s real yield rate grew by 8.9%, highlighting resilience amid market volatility and reinforcing ATOM’s role as a valuable asset within the ecosystem.

By creating a modular, interconnected network, Cosmos Hub is pushing the boundaries of blockchain technology and aiming to be a pillar of the decentralized internet. 

Expanding Security and Interoperability

One of Cosmos Hub’s defining advancements is its approach to providing security for multiple blockchains. Interchain Security (ICS) aims to secure the Cosmos Hub chain and deliver scalable, shared security options for connected chains. ICS enables Cosmos Hub validators to provide security for other blockchains, or “Consumer Chains,” within Cosmos. Consumer Chains can operate independently and resiliently without building their own validator sets. Over time, ICS has evolved to address the needs of increasingly complex and valuable networks within the Atom Economic Zone (AEZ).

Replicated Security and ICS 2.0

The first version of ICS, Replicated Security, addressed a common challenge in blockchain: securing new networks cost-effectively. In the Replicated Security model, Cosmos Hub’s entire validator set protects Consumer Chains, removing the Consumer Chains’ need for dedicated validators. Cosmos Hub validators earn transaction fees or tokens from these Consumer Chains, making security provisions mutually beneficial. Early adopters of Replicated Security, like Stride and Neutron, have used this model to grow rapidly with greater focus on their unique functions.

ICS 2.0, also known as Partial Set Security (PSS), represents the latest evolution of shared security for Cosmos Hub. PSS enhances flexibility by allowing a subset of Cosmos Hub validators to secure specific Consumer Chains. This opt-in model is valuable for chains with specialized needs and allows validators to choose which Consumer Chains they want to secure. PSS expands Cosmos Hub’s ability to support a broader range of networks with varying security demands without overburdening its validators. Elys Network is an early adopter of PSS, which is being used to build a scalable, DeFi-focused network that can adjust its security as needed.

Bitcoin-Backed Security with Babylon

Another advancement within ICS is a project led by Babylon to incorporate Bitcoin into Cosmos Hub’s security framework. Babylon’s approach allows Cosmos Hub to leverage staked BTC to enhance protection for Consumer Chains (e.g., protecting against threats like long-range attacks), adding resilience by drawing on Bitcoin’s robust network. This proposal would also use Bitcoin for timestamping and data availability, solidifying Cosmos Hub’s reputation as a secure base for cross-chain applications.

Notable Projects and Use Cases in Cosmos Hub

The Cosmos Hub has made possible diverse projects that showcase the network’s security and interoperability capabilities. Through these projects, Cosmos Hub illustrates its role in building a resilient and adaptable blockchain ecosystem: 

• Neutron: A center of DeFi within Cosmos, Neutron relies on Interchain Security to protect its financial applications. With Astroport as its core automated market maker (AMM), Neutron facilitates cross-chain liquidity and programmable finance. Cosmos Hub’s Proposal 819 allocated funds to the Neutron Foundation to foster the application’s growth.
• Stride: Stride specializes in liquid staking, enabling users to stake assets like ATOM while retaining liquidity. Through Interchain Security, Stride aligns with the AEZ and provides a flexible way for the staking community to access liquidity without giving up staking rewards. This has made it a central player in the staking landscape of Cosmos Hub and the broader ecosystem.
• Osmosis: Known for its automated market maker (AMM) DEX, Osmosis integrates with Cosmos Hub and facilitates flexible fee payments in ATOM. Its ATOM/OSMO liquidity pool helps stabilize the Cosmos economy and Cosmos Hub’s gas fee structure allows users to pay fees in any token on the Osmosis DEX. This has made Osmosis essential for liquidity and powering DeFi in Cosmos.
• Elys Network: Elys is the first to use Partial Set Security to adjust its security needs based on network activity and user base. It features noncustodial decentralized asset management, perpetual trading, and other DeFi applications. Elys exemplifies the flexibility and scalability Cosmos Hub’s shared security model can provide, underscoring its value for rapidly growing networks.
• Valence Protocol: Valence, introduced in 2024, builds upon IBC by enabling more complex cross-chain financial operations, expanding beyond simple asset transfers. It enables Cosmos-based applications to engage in decentralized, programmatic liquidity arrangements. One example is a recent protocol-owned liquidity deal on Astroport between Neutron and Stargaze. Valence can even connect Cosmos-based applications with entities outside the Cosmos ecosystem such as Ethereum protocols, Solana DAOs, or Bitcoin Layer 2 solutions.

Governance, Community, and Long-Term Vision

A Community-Driven Governance Model

Cosmos Hub’s governance model puts its community at the center, combining off-chain discussions with on-chain voting to ensure that stakeholders guide the network’s evolution. Community members propose and debate ideas in the Cosmos governance forum before formalizing them into on-chain proposals. Any ATOM holder can submit a proposal by depositing a minimum of 250 ATOM. Once on-chain, ATOM holders vote with their staked tokens, giving weight to the network’s most active contributors. For example, in Q2 2024, 11 out of 14 proposals passed, covering key upgrades, security models, and funding.

Several recent proposals have helped shape Cosmos Hub’s development. Proposal 897 introduced Partial Set Security (PSS), which we’ve discussed above. Proposal 924, a critical software upgrade, fully integrated PSS into the network. Proposal 926 established expedited voting for urgent changes to speed up decision-making when necessary, illustrating Cosmos Hub’s commitment to adaptability.

Funding Initiatives to Fuel Ecosystem Growth

Cosmos Hub also prioritizes growth through funding programs managed by the Atom Accelerator DAO (AADAO). In Q2 2024, AADAO allocated $395,000 across key projects: Pro Delegators for educating validators, La Multisig to improve developer onboarding in Latin America, and Hypha Workers Co-Op to strengthen validator engagement. Cosmos also recently passed Proposal 917 to provide 80,000 ATOM to support public goods funding and developer grants, underscoring a commitment to innovation and ecosystem growth. 

An Interchain Vision for Secure Decentralization

Cosmos Hub’s long-term strategy is to build a flourishing “Internet of Blockchains.” With modular architecture and Interchain Security, there is a solid foundation for further advancements in scalability, security, and interoperability. Cosmos Hub’s roadmap could even include a new implementation of shared security called Mesh Security.

Mesh Security envisions economic alignment between Cosmos chains by introducing cross-chain staking, where token holders can stake assets across different chains for mutual rewards. Instead of Cosmos Hub being the center for shared security, every chain could become an active player offering validator security in a fully decentralized interchain security scheme. 

Cosmos Hub’s governance model and economic framework demonstrate its role as an innovator and supporter of a decentralized security economy, where security is seen as a dynamic, competitive marketplace rather than a monolithic service. This long-term vision reinforces Cosmos Hub’s position as a pioneer in securely decentralized technology. 

With unique technology and governance-based community empowerment, the Cosmos Hub helps lead the Cosmos ecosystem as it forges a sustainable and collaborative blockchain ecosystem responsive to Web3’s evolving needs.