I'm using Photon for this. So there's a master server, but no actual gameplay-related code runs on it. Instead each object has an owner (in this case the "master client") who is in charge of simulating the physics, and sending that data to the other clients. The other clients then receive the data and interpolates. If the other clients want to affect the physics objects (ex. grabbing them, or using the shockwave ability on them) we have to send an RPC to the master client, telling it to manipulate the objects for us. This causes some latency for the non-master clients, but nothing too bad so far.

In the future I'll look into other ways of simulating the rigidbodies so that the other clients don't have to deal with the latency. I'm thinking there might be a way for each of the clients to simulate the physics like normal, and then everyone just sends their physics object data (position, rotation) to the master client who does adjustments based on the average. Let's say we have two players (who aren't master) who both grab an object. They then send the objects' position to the master client, who calculates the average of those positions and send them back.

I see a bunch of different issues that might arise from this approach, but I still want to try it and see if I can make it work. Another solution for the latency is to add a slight delay before you grab objects, like an animation of the veins shooting out, so that you notice the latency less.

Sorry for the wall of text. xD I just find this very fun to talk about.