Latency , Bandwidth and Throughput
Latency is the time taken for a network packet to go from source to destination and come back.
bandwidth is the width of the (network) band. bandwidth measures how much data that can be transferred from source to destination.
bandwidth is how big is the highway whereas latency is the quality of the road. is it a local city way or high way ? does it have speed breakers ? traffic signals ? lot of hops ?
A (Network) highway with less speed breakers , less traffic signals (network hops) will have low latency.
Throughput and bandwidth are closely related concepts. Bandwidth is hypothetical measure of total data that can be transferred from source to destination and throughput is actual measure of total data that can be successfully transferred from source to destination.
Lower latency and high bandwidth is needed for higher throughput.
For online games, video chatting or high frequency trading apps latency will be more useful than bandwidth.
To transfer large amount of data or for multi user system sending large information from point a to b , bandwidth and latency both will be important as this will increase the total throughput resulting in higher tps and scalability of the application.