Low-Latency Execution

Definition ∞ Low-latency execution refers to the rapid completion of computational tasks or transactions with minimal delay. It is a measure of how quickly a system responds to input or processes an operation. Achieving low latency is crucial for applications requiring real-time interaction and immediate feedback. In financial markets and digital asset trading, low latency is a key performance indicator.
Context ∞ The demand for low-latency execution is a significant driver in the evolution of blockchain technology, particularly for decentralized exchanges, high-frequency trading, and real-time payment systems. Efforts are underway to optimize consensus protocols, network architecture, and layer-2 solutions to reduce transaction finality times. Future advancements will aim to bring blockchain transaction speeds closer to those of traditional financial infrastructure, enabling broader adoption for time-sensitive applications.