How does latency affect application performance?

Latency refers to the time delay between a request for data and the actual delivery of that data. When latency is high, it can lead to delays in data transmission and response times, impacting how quickly users can interact with an application or receive necessary information. For instance, in online gaming or video conferencing, high latency results in noticeable lag, which diminishes user experience and can affect real-time interactions.

In contrast, options that suggest latency has no impact, increases the amount of data being processed, or determines storage capacity do not accurately represent the nature of latency or its effects on application performance. While they may address different aspects of computing, they do not relate directly to the concept of latency as it pertains to response times and user experience in applications.