Latency results from the methods used to encode and decode the data. Some codecs will analyze a longer segment of the data to optimize efficiency, and then code it in a manner that requires a larger segment of data at one time to decode. (Often codecs create segments called a "frame" to create discrete data segments for encoding and decoding.) The inherent latency of the coding algorithm can be critical; for example, when there is a two-way transmission of data, such as with a telephone conversation, significant delays may seriously degrade the perceived quality.

What results from methods used to encode and decode data?