About Cosmos Hub

The Cosmos network is designed as an ecosystem of independent, parallel blockchains known as zones, which utilize Byzantine fault-tolerant (BFT) consensus protocols, particularly Tendermint. This architecture allows for seamless interoperability among various zones through designated hubs, facilitating the transfer of tokens and data without the need for intermediaries. Unlike traditional blockchains that rely on Proof-of-Work mechanisms, Cosmos employs BFT and Proof-of-Stake algorithms, enabling efficient communication and interaction between diverse blockchain systems and applications. The native token of the Cosmos Hub, known as ATOM, serves multiple functions within the network. It acts as a mechanism for preventing spam by requiring users to pay transaction fees, which are proportional to the computational resources utilized. Additionally, ATOM can be staked to earn block rewards, enhancing the economic security of the Cosmos Hub by increasing the collateral at stake. Furthermore, ATOM holders are granted governance rights, allowing them to participate in decision-making processes by voting on proposals using their staked tokens. This multifaceted utility positions ATOM as a crucial component of the Cosmos ecosystem.