The Hub as a Coordination Layer

The Hub is very well positioned to become an Interoperability Hub. Serving as a central point that connects every Cosmos chain to all the other chains and ecosystems in crypto.

Cosmos has had programmability for a long time, but what's been missing is coordination. The Hub will fill that gap.

The Cosmos Hub will be the coordination layer for Cosmos chains, just like the Solana L1 is the coordination layer of all apps building in the Solana ecosystem. @Magmar

IBC v2

Cosmos is the only ecosystem that solved interoperability via IBC, yet IBC only works between Cosmos chains.

That's why we built IBC v2, to expand the IBC network to every chain in the world.

If we want to connect all chains across all ecosystems, we need a Hub at the center of it; this is where the Cosmos Hub comes into play.

Making the Hub a central point that aggregates liquidity, like a superhighway where everything passes through.

This also renders the Hub a good place to build applications on top of in the near future, directly tapping into this vast liquidity and all the connections to other chains.

IBC Eureka

Eureka is the reimagination of interoperability in Cosmos.

- No more relayers,
- No more 1:1 connections to other Cosmos chains.

Instead simply connect to the Hub via Eureka to get all of your interop & bridging needs solved.

- One integration and get interop with ETH, and soon L2s, and Solana.
- And many other services on top like Skip:Go, distribution, liquidity, etc.

Barry on Eureka:

We're trying to build the best possible UX for onboarding users & capital into the Cosmos ecosystem, and for Cosmos chains to get distribution for their tokens everywhere.

Some numbers on Eureka v1:

- Transfer costs from Cosmos to Ethereum will be around $5.
- The best alternative costs ~$60 right now.
- Lowering costs by 12x.
- Transfers will be super fast: <30 seconds.

Future iterations of Eureka will further lower cost and improve speed.

Apps ontop of the Hub

- The Hub is gonna have a permissionless VM very soon.
- It's still a secret which VM it will be. Will it be the EVM or Cosmwasm?
- Devs can build Apps on the Hub without going through governance.
- Some existing teams are gonna migrate their Apps to the Hub.
- External teams that are excited about the new vision will launch their Apps on the Hub as well.

But why build on the Hub?

Apps will have access to:

a) Best Interop platform that exists in crypto.
b) All the liquidity that flows through the Hub (Liquidity Router of the Multichain).
c) Massive distribution across all ecosystems (ETH, SOL, Cosmos).

Fixing the fractured liquidity problem in Cosmos & beyond.

Unlocking new Products like

1) Multichain Lending: Vaults handling yields from various chains.
2) Perps: Using collateral from multiple chains.
3) NFT marketplaces: Mint NFTs wherever, trade them on the Hub.

and many more exciting multichain Apps.

Summary

The Cosmos Hub is morphing into a Liquidity Router and Coordination Layer, making it a true distribution platform and the the best place for developers to build ground-breaking multichain applications.

Thanks for reading folks!

We hope this article helped you stay up-to-date with the latest developments in the Cosmos ecosystem.

Disclaimer

This article is intended to educate readers about certain topics and should not be considered financial advice in any way.