Understanding lag in a streaming pipeline

New Relic's observability platform handles pipeline latency by attempting to keep data in order, buffering and reordering data, dynamically adapting to latency with strategies like traffic flow, time waves, and external observers. The goal is to design a system where latency has less impact, while also addressing challenges such as blockages in the pipeline and lack of information for uninstrumented paths. By combining these strategies and scoping them appropriately, New Relic aims to dynamically adjust buffering and processing to improve pipeline performance and resilience.