Joshua, who is signed to Matchroom Boxing, stopped Wladimir Klitschko in the 11th round of their Wembley clash to seal his status as the biggest name in boxing on Saturday night.
The 27-year-old now holds the IBF, WBA and IBO belts, and Hearn believes his stunning performances and likeable persona appeal beyond the boundary of normal boxing fans.
“All sports need flag-bearers,” said Hearn. “The Joshua effect is very similar to the Tiger Woods effect in golf, where people who are not so interested suddenly become interested, where young people become aspirational to follow in someone’s footsteps.
"For that they need a role model and Joshua is the finest role model I have seen in sport, period. He's number one."
Joshua made a reported £15million for his latest win, and Hearn believes the former Olympic champion is on his way to becoming the sport's first billionaire.
"I think there's a trickle-down effect of benefit, not just to Joshua who's going to be probably the first boxing billionaire if he carries on for 10 years like this and he may do it, he's probably favourite to do it," added Hearn.
"It can also have an effect on other boxers, on the whole concept of boxing as a sport, of the social benefits and of the opportunity that exists for kids that live the right life.
"On a social level it's a watershed moment in terms of perception for the sport."
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