In a network based on packet switching, processing delay is the time it takes routers to process

the packet header. Processing delay is a key component in network delay.

During processing of a packet, routers may check for bit-level errors in the packet that occurred
during transmission as well as determining where the packet's next destination is. Processing delays
in high-speed routers are typically on the order of microseconds or less. After this nodal processing,
the router directs the packet to the queue where further delay can happen (queuing delay).

In the past, the processing delay has been ignored as insignificant compared to the other forms of
network delay. However, in some systems, the processing delay can be quite large especially where
routers are performing complex encryption algorithms and examining or modifying packet content.
[1]
Deep packet inspection done by some networks examine packet content for security, legal, or
other reasons, which can cause very large delay and thus is only done at selected inspection points.
Routers performing network address translation also have higher than normal processing delay
because those routers need to examine and modify both incoming and outgoing packets.

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.

The precise definition of latency depends on the system being observed or the nature of the
simulation. In communications, the lower limit of latency is determined by the medium being used to
transfer information. In reliable two-way communication systems, latency limits the maximum rate at
which information can be transmitted, as there is often a limit on the amount of information that is in-
flight at any given moment. Perceptible latency has a strong effect on user
satisfaction and usability in the field of human–machine interaction. [2]