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Latency
Capacity and performance

Latency

The time it takes for a transaction to be confirmed and recorded on the blockchain. Low latency means near-instant confirmation. High latency means waiting. A key consideration for any use case where speed of settlement matters.

TradFi equivalent
In traditional finance...
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TradFi equivalent
Settlement time. The time between a trade being executed and it being finally settled. T+2 settlement in equities markets is a form of institutional latency.
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Analogy
In everyday terms...
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Analogy
The delay between ordering at a restaurant and the food arriving. Latency reduction in blockchain is closing the gap between when something is submitted and when it is confirmed.
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