Perhaps the general public, without technical knowledge or involvement in the technology world, might not be able to define low latency or even confirm if it exists. But they would certainly respond positively to network infrastructures like fibre optics that deliver the data they need in milliseconds. Such is the demanding nature of the current socio-technological context. And it is even more so in areas where speed and reliability are synonymous with success. 

Defining latency: What is it? 

For the segment of the public that is unclear about what latency is, we can sketch a definition: it is the time it takes for a data packet to travel from its source to its destination and vice versa. It is, in essence, the delay in any communication. When we talk about low latency, we mean minimising that delay as much as possible. 

Where is low latency communication important? 

Common sense suggests that any communication system will be much better the faster it responds to the needs of the communicators; that is, the lower the latency. However, low latency is essential in environments where, either due to volatility or intrinsic demand, every fraction of time, even if invisible to human perception, can make a difference. To give some examples: 

    · High-frequency trading: Operations are executed in milliseconds. A minimal delay can mean the loss of an opportunity or an unfavourable transaction. 

    · Online video games: High latency translates into lag, ruining the gaming experience, which can tip the balance towards a sales boom. 

    · Critical applications: From telemedicine to industrial control, instantaneous response is vital for safety and efficiency. 

Fibre optics: the pillar of unprecedented speed 

Fibre optics is the technology that makes large-scale low latency possible. Unlike copper cable, which transmits data via electrical impulses, fibre optics uses light pulses. This allows for a much higher data transmission speed and less signal degradation over long distances. 

The financial sector and fibre optics 

At the heart of the world’s main stock exchanges and financial centres, low-latency fibre optics is a strategic asset. 

    · Algorithmic trading: High-frequency trading algorithms depend on the ability to process and execute orders in fractions of a second. A robust fibre optic infrastructure ensures that signals reach exchanges with maximum speed. 

    · Arbitrage: Arbitrage strategies, which seek to exploit small price differences between markets, are unfeasible without a minimal latency connection. 

    · Instant transactions: In daily life, the ability to process millions of transactions almost instantaneously is a key driver for the global economy. In fact, there are countries like Spain where regulations require banks to make transactions effective immediately, penalising those that do not facilitate them. 

Low latency as the standard in other fields 

Although data transmission speed is crucial in the stock market, banking operations, trading, etc., it is no less important in other contexts where data speed also tips the balance. In ways that even our safety is at stake: 

    · Telesurgery and remote robotics: The ability to control robots and perform surgeries remotely requires real-time response. A delay here could have fatal consequences. Fibre optics ensure that the surgeon’s movements are replicated without delay in the robot, guaranteeing practically human precision. 

    · Industrial machinery control: In automated production environments, instantaneous communication between sensors, controllers, and machines is fundamental for the operational efficiency of factories, as well as for the safety of operators and the entire infrastructure. 

    · Autonomous vehicles: For self-driving cars to be able to make decisions in real time, communication with the ecosystem and with other vehicles must be instantaneous, establishing a basic safety standard without which cars should not circulate. 

It is very gratifying to get an apparently instantaneous response to any click, keystroke, or touch on a screen. But low latency is crucial in areas of our daily lives whose efficiency we blindly trust, and which are important for our development as a technological society.