What does the term 'latency' refer to in digital circuits?

The term 'latency' in digital circuits primarily refers to the delay that occurs before a transfer of data begins. This delay can occur in various contexts, such as when a signal needs to stabilize before it can be read or processed, or when waiting for a device to become ready to handle the data. Latency is a critical factor in digital communication and processing because it affects the overall responsiveness of a system, particularly in applications where timing and speed are essential.

In addition to latency, other parameters like propagation time (which often refers to the time taken for a signal to travel from one point to another within a circuit) and processing speed (which describes how quickly a circuit can handle incoming data) are relevant. However, those terms do not encompass the concept of latency as defined in this question. The impacts of latency can be significant in many digital designs, especially in high-speed systems where even slight delays can lead to inefficiencies or errors.