The term latency in networking refers to the time it takes for data to travel from one point to another within a network. This delay can affect the performance of applications, particularly those requiring real-time interaction, like gaming or video conferencing. Latency is influenced by factors such as network congestion, the distance between devices, and the type of connection used (wired or wireless). Monitoring and minimizing latency is critical for ensuring a smooth user experience and optimizing overall network performance.