Network Latency

Definition ∞ Network latency is the time delay experienced in data transfer across a communication network. In the context of blockchain technology, it refers to the time it takes for a transaction or block to propagate from one node to others in the network. High network latency can negatively impact the performance of decentralized applications, slow down transaction confirmation times, and potentially create opportunities for exploits like front-running. Minimizing latency is crucial for ensuring a responsive and efficient blockchain ecosystem.
Context ∞ Network latency is a critical factor influencing the performance and user experience of blockchain networks and decentralized applications. News often discusses the impact of latency on high-frequency trading in DeFi, the scalability challenges faced by certain blockchains, and the development of solutions to reduce propagation delays. The geographical distribution of nodes and the efficiency of network protocols are key elements in managing and improving network latency.