Low Latency

Definition ∞ Low latency refers to a system’s ability to process and transmit data with minimal delay. This characteristic indicates a rapid response time between an input and its corresponding output, crucial for applications requiring near-instantaneous operations. In blockchain technology, low latency is highly sought after for achieving fast transaction finality and improving the responsiveness of decentralized applications. It directly impacts user experience and the feasibility of high-frequency trading in digital asset markets.
Context ∞ Achieving low latency is a primary goal for many next-generation blockchain protocols, often featured in news discussions about scalability solutions and network upgrades. Projects aim to reduce block times and transaction confirmation delays to compete with traditional financial systems. The pursuit of low latency often involves trade-offs with decentralization or security, leading to ongoing engineering challenges.