To understand the benefit of virtual threads, I think it's helpful to think of it as a "best of both worlds" situation between blocking IO and async IO. In summary, virtual threads give you the scalability (not simply "performance") benefits of async IO code while keeping the simplified developer experience of normal threads and blocking IO.

First, it's best to understand the benefit of virtual threads from a webserver. Usually, a webserver maps 1 request to 1 thread. However, most of the time the webserver actually doesn't run much code itself: it calls out to make DB requests, pulls files from disk, makes remote API requests, etc. With blocking IO, when a thread makes one of these remote calls, it just sits there and waits for the remote call to return. In the meantime, it holds on to a bunch of resources (e.g. memory) while it's sitting doing nothing. For something like HFT, that's normally not much of a problem because the goal isn't to server tons of independent incoming requests (sometimes, obviously the usage pattern can differ), but for a webserver, it can have a huge limiting effect on the number of concurrent requests that can be processed, hurting scalability.

Compare that to how NodeJS processes incoming web requests. With Node (and JS in general), there is just a single thread that processes incoming requests. However, with async IO in Node (which is really just syntactic sugar around promises and generators), when a request calls out to something like a DB, it doesn't block. Instead, the thread is then free to handle another incoming web request. When the original DB request returns, the underlying engine in Node essentially starts up that request from where it left off (if you want more info just search for "Node event loop"). Folks found that in real world scenarios that Node can actually scale extremely well to the number of incoming request, because lots of webserver code is essentially waiting around for remote IO requests to complete.

However, there are a couple of downsides to the async IO approach:

1. In Node, the main event loop is single threaded. So if you want to do some work that is heavily CPU intensive, until you make an IO call, the Node server isn't free to handle another incoming request. You can test this out with a busy wait loop in a Node request handler. If you have that loop run for, say, 10 seconds, then no other incoming requests can be dispatched for 10 seconds. In other words, Node doesn't allow for preemptive interruption.

2. While I generally like the async IO style of programming and I find it easy to reason about, some folks don't like it. In particular, it creates a "function coloring" problem: https://journal.stuffwithstuff.com/2015/02/01/what-color-is-... . Async functions can basically only be called from other async functions if you want to do something with the return value.

Virtual threads then basically can provide the best features from both of these approaches:

1. From a programming perspective, it "feels" pretty much like you're just writing normal, blocking IO code. However, under the covers, when you make a remote call, the Java schedule will reuse that thread to do other useful work while the remote call is executing. Thus, you get greatly increased scalability for this type of code.

2. You don't have to worry about the function coloring problem. A "synchronous" function can call out to a remote function, and it doesn't need to change anything about its own function signature.

3. Virtual threads can be preemptively interrupted by the underlying scheduler, preventing a misbehaving piece of code from starving resources (I'm actually less sure of the details on this piece for Java).

Hope that helps!