In computer networks, the term 'latency' refers to the delay experienced in transmitting data from one point to another. It is typically measured in milliseconds and can arise from various factors, such as network congestion, distance, and the processing time of the devices involved. High latency can negatively affect the performance of applications, particularly those requiring real-time communication, like video conferencing and online gaming. Minimizing latency is essential for delivering a smooth and responsive user experience across networked systems.