Definition ∞ Latency Trade-Off describes the balancing act between transaction processing speed and other desirable network properties, such as decentralization or security. Reducing latency often requires compromises in other areas, like increasing centralization or lowering security assurances. This fundamental constraint impacts the design choices of blockchain protocols.
Context ∞ The latency trade-off is a recurring subject in crypto news, particularly when discussing scalability solutions and new blockchain architectures. Protocols aiming for very high transaction speeds often accept some degree of reduced decentralization or a different security model. Understanding this compromise is essential for evaluating the practical utility and risks associated with various digital asset networks.
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