In a Congested Network, What Is "Transaction Latency" and Why Does It Increase? ⎊ Path

In a Congested Network, What Is “Transaction Latency” and Why Does It Increase?

Transaction latency is the time delay between a transaction being broadcast by a user and its final confirmation on the blockchain. In a congested network, the mempool is full, and block space is scarce.

Since transactions are processed in order of fee priority, users who bid lower fees experience a longer wait time. This increased wait time, or latency, is a direct result of the competitive fee market and limited block production rate.

How Does a Network’s Congestion Level Affect the Block Confirmation Time?

How Does the Fee Market Affect Transaction Confirmation Times?

What Is the Difference between “Confirmation Time” and “Finality” in a Blockchain Transaction?

What Is ‘Transaction Dropping’ and Why Does It Happen in a Congested Mempool?

How Does Network Congestion Affect the Latency of an Arbitrage Transaction?

How Does a Transaction’s “Replace-by-Fee” (RBF) Feature Attempt to Reduce Latency?

How Does the Concept of ‘Liquidity’ in Options Trading Compare to Transaction Flow in a Congested Mempool?

How Can a Pool Operator’s Decision on Transaction Selection Affect Network Congestion?

Glossar

Competitive Fee Market

Market ⎊ The environment where various trading venues compete on the fees charged for executing transactions, influencing overall capital efficiency for high-volume derivatives participants.