The biggest problem in virtual reality is the latency and it appears that Nvidia wants to make it as low as possible with the prototype 1700Hz Zero Latency Display showcased during GTC 2016.
According to a report from Road to VR site, Nvidia had a rather neat preview of the Zero Latency Display running at 1700Hz. Showcased by Nvidia's Vice President of Research David Luebke, the display was mounted on a rail system in order to simulate a user that quickly scans the environment and was shook in order to show that the logo displayed on the screen remains visible, despite all that moving.
According to the same report, Nvidia managed to hit such high refresh rate by overloading the display and driving it with this kind of novel binary delta-sigma encoder kind of approach."
when placed in a VR headset, such display would completely eliminate the latency issues coming from the display.
Bear in mind that currently available VR headsets, Oculus Rift and HTC Vive, both run at 90Hz, which means that display refreshes the screen every 11 milliseconds while a 1700Hz display would do it every 0.59 milliseconds, which is a significant improvement.
Display is not the only thing that has an effect on latency in VR headsets as you still have sensors, GPU, system performance, software and more but pulling displays out of the equation certainly helps.