What enables optimized network performance by using low-latency, high-bandwidth links of LANs?

Peering is the process that enables optimized network performance by utilizing low-latency, high-bandwidth links found in Local Area Networks (LANs). This practice involves directly connecting networks to facilitate high-speed data transfer and communication between them, which drastically reduces the latency that can occur when data needs to travel through multiple routing points or different networks.

By establishing peering arrangements, networks can exchange traffic locally, leveraging the reduced distance and increased speeds, thus improving overall efficiency and performance. This direct connection allows for better management of bandwidth and resources, catering to the needs of both networks without the delays associated with standard internet routes.

The other options relate to different networking concepts, such as managing boundaries or isolating parts of the network, but they do not focus on the direct network connectivity and efficiency gains that peering provides.