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Network Latency Monitoring Meaning

Network latency monitoring is the proactive practice of tracking the speed and responsiveness of the blockchain connection. Infrastructure providers and professional trading firms use sophisticated software to ping nodes and measure "Round-Trip Time" (RTT).

This monitoring is crucial for DeFi trading bots. If a bot detects that the network latency has spiked (the network is lagging), it might pause its trading strategies because the price data it is seeing is likely "Stale" (outdated).

Executing a trade based on old prices can lead to massive losses. For standard users, latency monitoring is often built into wallets like MetaMask.

If the wallet detects that the network is slow or unresponsive, it will warn the user or suggest a higher gas fee to ensure the transaction pushes through the congestion effectively.

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