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Many realtime online games use the same techniques today. For a very understandable walkthrough of the concept, I recommend Gabriel Gambretta's excellent 4 part series: https://gabrielgambetta.com/client-server-game-architecture....

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Interestingly enough, your brain does the similar things, playing games with temporal relationships and fixing it all back up after the fact in a way that you normally can't notice.

https://en.wikipedia.org/wiki/Chronostasis

I was talking to someone about a related topic a couple weeks ago, how the brain "fudges" with the experience of time to compensate for the latency of perception. But I couldn't remember what it was called.

Thanks to the link above, I found the exact phrase: neural antedating/backdating. Ah, it's nice to have resolved that question.

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