Latency, from a general point of view, is a time delay between the cause and the effect of some physical change in the system being observed. Lag, as it is known in gaming circles, refers to the latency between the input to a simulation and the visual or auditory response, often occurring because of network delay in online games. The original meaning of “latency”, as used widely in psychology, medicine and most other disciplines, derives from “latent”, a word of Latin origin meaning “hidden”. Its different and relatively recent meaning (this topic) of “lateness” or “delay” appears to derive from its superficial similarity to the word “late”, from the old English “laet”.
Latency is physically a consequence of the limited velocity at which any physical interaction can propagate. The magnitude of this velocity is always less than or equal to the speed of light. Therefore, every physical system with any physical separation (distance) between cause and effect will experience some sort of latency, regardless of the nature of the stimulation to which it has been exposed.