Latency(Latency) Learning Guide
Latency Refers to the time difference between an input occurring and the system producing the corresponding output. In the cryptocurrency sector, it mainly involves two scenarios: blockchain transaction confirmation and trading platform order processing.
Basic Meaning
Latency Is the time delay between an input and the resulting output, present across system layers such as device interaction and network communication. The lower the latency, the faster the system usually operates and the more promptly it responds; however, the specific experience still depends on the system architecture, current load, and data processing capacity.
Latency in blockchain networks
Blockchain network latency usually refers to the time required from transaction submission to the first confirmation. Factors such as block time, network congestion, and transaction fees may all affect the waiting time. After the first confirmation, as more blocks continue to be added, the transaction generally gains progressively stronger finality.
Latency on trading platforms
Trading platform latency reflects the speed at which it processes a large number of orders in the order book and completes their execution. When latency is high, orders may lag behind market changes and execute at prices different from those expected; for automated or high-frequency strategies that rely on placing large numbers of orders within a short period, even slight latency can have a noticeable impact.
Original Tutorial
https://www.binance.com/en/academy/glossary/latency
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