In modern fighter games, the industry seems to be tending toward predictive lockstep networking. This is a type of networking where if the client doesn't receive the inputs of other clients from the server, it will "predict" those inputs (usually by replaying the last received input) to give the illusion of zero latency gameplay. The drawback being that you need to implement rollback in the case where the predicted input doesn't match the real received input. When poorly executed, this could look like jittery player movement with entities rubber banding and teleporting and cause artifacts, but when done properly is mostly unnoticeable.
If you're interested in this domain, I recommend checking out https://www.ggpo.net/ which is the library used in many of the modern fighter games (notably Skullgirls). It also comes with an in depth explanation of how to implement predictive networking with rollback on your own https://drive.google.com/file/d/1cV0fY8e_SC1hIFF5E1rT8XRVRzP...