How can server-side lag compensation be implemented for multiplayer games?

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Lag is one of the most frustrating issues for multiplayer gamers, especially in fast-paced or competitive games. Lag occurs when there is a delay or discrepancy between the actions of players on different devices or locations, caused by factors such as network latency, packet loss, or server load. To reduce the impact of lag on gameplay, many multiplayer games use various techniques of lag compensation, which try to synchronize the game state and the player inputs across different clients and servers. In this article, we will explain how server-side lag compensation works, why it is important, and what are some of the challenges and trade-offs involved in implementing it.