Network Topology Latency

Network Topology Latency refers to the delays inherent in the physical and logical structure of the network connections between nodes. The physical distance between servers, the number of hops a packet must take, and the quality of the ISP infrastructure all contribute to this delay.

In financial trading, this is a critical factor for market makers who need to minimize the time between seeing a price change and executing a trade. Optimizing topology often involves using private fiber lines or strategic server placement in data centers close to other major nodes.

It is a fundamental physical constraint on how fast consensus can be reached.