On-Chain Latency

Definition ∞ On-chain latency is the time delay experienced between initiating a transaction on a blockchain and its final confirmation and inclusion in a block. This latency is influenced by factors such as network congestion, block production times, and the number of confirmations required for finality. High on-chain latency can significantly impact the user experience for applications requiring quick interactions, such as decentralized exchanges or gaming. It represents a fundamental performance metric for blockchain networks.
Context ∞ On-chain latency is a critical performance metric for all blockchain networks, with news often reporting on efforts by Layer 1 and Layer 2 solutions to reduce it. Debates surrounding scalability solutions, such as sharding or rollups, frequently address their impact on latency. Developers prioritize minimizing this delay to support real-time decentralized applications.