The latency problem depends on what style of music you're doing. If you're doing up tempo funky groove stuff where the drummer and bass player have to be tightly locked together, the guitar is doing sharp funky chords that will not work over the internet. But if you're doing slower fairly basic rhythm strumming guitar with a standard drum beat, then "maybe" it's ok but 40 ms latency is a lot of loose timing when it's 5 people in a live band.

If you've done any live playing of a softsynth in your computer you know that 10-15 ms latency is about all you can tolerate for anything other than a slow ballad. Slower, easier music maybe you can tolerate 25-30 ms but that's about it. I've read articles where they have done precise testing of latency over the internet and it starts at about 40ms and can go much higher. It has nothing to do with what software you or the host site is using, this is simple speed of light physics built into the internet itself and there is nothing that can be done about it. Yes, that can mean if your group is in the same city within say 20 miles of each other, everybody has good high speed internet it may work well. Or not.

The internet doesn't work how we think it logically should. Just because everybody is within 20 miles of each other that still doesn't mean the internet pipeline won't route some packets of information through a server in Europe or something. Why that happens is highly technical but basically the information gets routed to the first available connection regardless of where it's located and that's where the speed of light becomes a factor. Lightspeed is incredibly fast but it's not instant, it takes time to travel back and forth over 4,000 miles even if it's "only" milliseconds and then a few more ms to get processed in everybody's computers and software. Nobody notices that in regular internet usage but it's a big deal when you're practicing your instrument to a metronome.

Bob


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