decentralized exchanges (DEXs)</strong></strong></a> that allows traders to execute large orders with minimal <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-slippage/">slippage and low <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-gas-price/">gas costs</strong></a> without decreasing the price.</p>\n<p>Traders in <strong>traditional finance </strong>frequently use brokers to execute large orders algorithmically over a set time frame, aiming for the best price. A <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-time-weighted-average-price-twap/">Time-Weighted Average Price (TWAP)</strong></strong></a> order, which is the average price of a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-security/">security over a specified time, is the most straightforward way to do this.&nbsp;The TWAMM attempts to replicate TWAP orders by breaking them down over time into an almost endless number of <strong>small orders</strong> via an <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-automated-market-maker-amm/">automated market maker (AMM)</strong></a>.</p>\n<p>For instance, when major traders want to acquire an item, such as $10 million worth of Solana, they can't just do it in one deal because it will raise the market price by a significant amount. To have a <strong>lower impact on market pricing</strong>, they would typically use a trading desk or an algorithm to break down the $10 million order into smaller orders of $1,000 and spread it out across many hours or days.</p>\n<p>This <strong>form of trading</strong> might cause prices to diverge from the overall crypto market. To address this issue, the TWAMM relies on arbitrageurs to trade against the AMM's price in order to return it to the market price, assuring <strong>effective execution for long-term orders</strong>.</p>\n<p>Manually breaking apart the deals is a time-consuming approach that incurs additional gas fees due to the multiple transactions required. The TWAMM attempts to overcome this problem by automating minor trades and <strong>maximizing the smoothness</strong> of trade execution while reducing gas costs.</p>\n<p>The TWAMM is one of the first algorithms in <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-defi/">DeFi that allows users to specify how much of an asset they want to purchase or sell<strong>&nbsp;over a specific time period</strong> without having to go to a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-centralized-exchange-cex/">CEX or a trading desk.</p>","level":"medium","meta_title":"What is Time-Weighted Automated Market Maker (TWAMM)? Definition & Meaning | Crypto Wiki","meta_description":"Time-Weighted Automated Market Maker (TWAMM) meaning: Time-Weighted Automated Market Maker (TWAMM) - a part of decentralized exchanges (DEXs) that has the goal of making it easier for traders to execute large orders with minimum slippage and low gas expenses without lowering the price.","meta_keywords":null,"language":"en","created_at":"2022-03-31T09:36:13.000000Z","updated_at":"2023-05-16T11:32:14.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-time-weighted-automated-market-maker-twamm"},"prevSection":{"id":754,"original_id":null,"author_id":42,"translator_id":null,"title":"What are Terahashes Per Second?","slug":"what-are-terahashes-per-second","section":"T","keyword":"Terahashes Per Second","status":"published","definition":"a unit that determines the rate of data processing power.","content":"<p><strong>Terahashes per second</strong> (TH/s) is a unit used to determine the rate of data processing power and it is equivalent to 1 trillion hashes per second.&nbsp;</p>\n<p><a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-hash/">Hashes determine the amount of processing power there is (the more hashes there are, the more power you have). <strong>Megahashes</strong>, gigahashes, terahashes, and so on are various hash rate units. The rate of hashes per second is significant for <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-blockchain/">blockchains and <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-mining/">mining since it impacts how long it takes to complete a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-block/">block.

/n

Hash Rate in the World of Cryptocurrencies</h3>\n<p>To validate transactions on a public database known as a blockchain, cryptocurrency <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-miner/">miners use computers to solve complex arithmetic problems. <strong>Mining</strong> is the process of securing, storing, and tracking cryptocurrency. A miner's computational power determines their <strong>chances of winning the race</strong> to verify transactions and earn <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-digital-currency/">digital currencies</strong></a>.</p>\n<p>As mentioned before, a miner's processing power is measured by the hash rate of a cryptocurrency. This value represents the amount of time it takes a single miner to process all of the transactions in a block. Transactions are processed faster when the amount of miners is lower because there are fewer competitors fighting for the same <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-block-reward/">block reward</strong></strong></a>. Though if your hash rate is low, it takes longer to receive your first payment.</p>\n<p>Ordinary desktop PCs were able to mine blocks easily in 2009 when <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-bitcoin-btc/">Bitcoin was only starting out as a currency. As more people began mining, the difficulty of locating new blocks grew to the point where the average time to solve a single block exceeded 10 minutes. Therefore, mining hardware efficiency and <strong>the hash rate of miners&rsquo; processing power had to increase too</strong> (and it still does).</p>\n<p>Though note that the more processing power you have, the more electricity you&rsquo;ll need. Therefore, the lower your electricity costs, the more profitable mining will be.</p>","level":"medium","meta_title":"What are Terahashes Per Second? Definition & Meaning | Crypto Wiki","meta_description":"Terahashes Per Second meaning: Terahashes Per Second - a unit that determines the rate of data processing power.","meta_keywords":null,"language":"en","created_at":"2022-03-31T08:04:27.000000Z","updated_at":"2022-05-13T14:32:24.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-are-terahashes-per-second"},"currentChapter":"T","currentSection":"what-does-think-long-term-tlt-mean","chapterTitle":"T","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-does-think-long-term-tlt-mean","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
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Crypto Terms: Letter T

What does Think Long Term (TLT) mean?

Think Long Term (TLT) MEANING:
Think Long Term (TLT) - a mindset of making long-term investments.
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Let's find out Think Long Term (TLT) meaning, definition in crypto, what does Think Long Term (TLT) mean, and all other detailed facts.

Thinking long term (TLT) is making long-term investments, or in other words, thinking about the future of your investments. How far a person is thinking could go from months to even years.
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