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In terms of network latency this can be defined by the time it takes for a request to travel from the sender to the receiver and for the receiver to process that request. In other words, the round trip time from the browser to the server.
That's what the latency is all about. Latency is the number of clock cycles between making one request and the next request. Remember that latency numbers are clock cycles not time. So 2000 Mhz RAM with a latency of 10 has the same latency as 4000 Mhz RAM with a latency of 20, in both cases the latency is 5ns. There are a bunch of steps that have to happen in order to get data out of RAM.