Investor's wiki

Latency

Latency

Latency in computing alludes to the time postpone between an information and the received output. It is inherent at all levels of computing, from the IO latency between the client and the computer to the network latency as data and information venture out from a computer to servers around the world. In cryptographic forms of money, latency can allude to two different time delays. The first is the latency in the network of a blockchain, and the second is the latency on an exchange.
Blockchain network latency is the time between presenting a transaction to a network and the primary confirmation of acceptance by the network. After the principal confirmation, the transaction becomes more final as additional blocks are added past the initial confirmation. In a payments system that desires to gain broad adoption, low network latency is fundamental. The time between payment at a cashier and the confirmation of the payment is a point of client friction on the off chance that it becomes too long.
The latency of a exchange is a measure of their ability to process and execute large volumes of transactions in their order books. It is common for informal investors to use bots to robotize a large portion of their trading volume, and that means the bots are setting and dropping a unimaginably high volume of orders consistently. An exchange that has low latency and high throughput can deal with these orders in an ideal fashion, and consequently the informal investor (by means of the bot) can take more significant benefits of swings in asset prices. On the other hand, an exchange that has high latency will handle orders with a delay behind the developing asset price, which brings about wrongly priced orders and opportunities missed for the informal investor.