Abstract: The present invention provides a software system used for transmission of information between multiple users interacting on a distributed computer network such as the Internet. The system comprises a central server computer connected to a plurality of client computers by means of a communication network such as the Internet. The server authoritatively models the state of the virtual environment in which the users interact. To eliminate latency each client predictively models the state of the virtual environment before the client is made aware by the server of commands issued by other users. Each command issued by a user is forwarded to the server. The client does not wait for the server to send back a response. Instead the client updates its own predictive model of the virtual environment to reflect the effects of the command it sent to the server. It displays these effects immediately thereby eliminating the latency in transmission between server and client.