Their system employs peer-to-peer networking, meaning it communicates without the need for a central server. This is faster since the software used by each haptic device does not have to wait for a response from the server when a movement is made.
Crucially, it also uses a technique dubbed “rollback” to deal with communication delays. When a delayed message is received, the software calculates how things would have turned out if it had arrived on time. It then alters the virtual world as subtly as possible so that these effects are expressed in the “true”, real-time situation.
Read this item from New Scientist