Latency

The time lag between an input and the output that is received in computing is referred to as latency. The IO latency between the user and the computer and the network latency as data and information go from a computer to servers around the world are both examples of intrinsic slowness in computing. Latency in the context of cryptocurrencies can refer to two distinct intervals of time. First, there is latency on a blockchain network, and second, there is latency on an exchange. The length of time it takes for a blockchain network to validate that a transaction has been accepted is known as network latency. The transaction gets more definitive after the first confirmation when additional blocks are added after the original confirmation. Low network latency is crucial for a payments system that wants to be widely used. If it takes too long, the interval between paying at the cashier and receiving the confirmation of the payment can cause user annoyance. A measure of an exchange's capacity to process and carry out substantial amounts of transactions in its order books is its latency. Day traders frequently use bots to automate the majority of their trading activity, which results in the bots placing and canceling a staggeringly high volume of orders every second. These orders can be processed quickly on an exchange with low latency and high throughput, allowing the day trader (via the bot) to benefit more significantly from changes in asset prices. On the other hand, an exchange with high latency will process orders behind the changing asset price, which leads to incorrectly priced orders and missed chances for day traders.