It's simulation that is at the same rate as reality would be. This, as compared to high speed simulation.
An example of non-realtime would be an astrophysicist who uses a computer simulation to model two stars colliding. They would run the simulation as fast as they can and watch it all occur in a minute or two whereas reality is going to take millions of years.
A realtime example is the Alaskan pipe line. A realtime simulation of the flow is continually running so if 'reality' changes it will be detected and the line can be shut down. A reality change would be a pin hole leak developing somewhere that would cause the actual conditions to change from the predicted simulation.
which allows one to run Matlab/Simulink code fast enough to operate hardware in real-time, i.e., hardware-in-the-loop (HIL) simulation.
Often, real-time systems have peripheral events that can affect system performance that cannot be modeled accurately in a simulation, such as resource contention and interrupt service.
TTFN
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