I want to make a 2D game that is basically a physics driven sandbox / activity game. There is something I really do not understand though. From research, it seems like updates from the server should only be about every 100ms. I can see how this works for a player since they can just concurrently simulate physics and do lag compensation through interpolation.

What I do not understand is how this works for updates from other players. If clients only get notified of player positions every 100ms, I do not see how that works because a lot can happen in 100ms. The player could have changed direction twice or so in that time. I was wondering if anyone would have some insight on this issue.

Basically how does this work for shooting and stuff like that?

Thanks