TL;DR: If you think many guardians are "lagging" all the time than go set up your router properly and use ethernet. We already have dedicated server. Every time you press X (or square) to do an action (eg: deploy ghost to open a door) the physics host(s) contacts the Activity Host which isn't a console or a pc; It's a Bungie server. Peer to peer is used for the rest not only because it's more consistent and FASTER than dedicated servers (unless you live on the same street as the servers and use the same isp) but also because the game couldn't exist with only dedicated servers. The dedicated servers (Activity Hosts) can hold around 10,000 players at any given time. That's just not possible if they have to hold all the physics and mission hosting. Not to mention the insane amount of money they would need to make that happen. Unless you're ready to pay a thousand bucks a year to play this game you're essentially asking Bungie to give you money. If Google made Destiny it would still use the same network configuration. All that said, there are always multiple physics host in any "bubble" (instance), especially in pvp. Meaning that at any given time you are NOT experiencing any more delay than any other guardian you're fighting. Every player during a crucible game eventually becomes the physics "host" (there are more than one, all the time. This is why if someone drops/disconnects you won't be looking at a black screen for 10 minutes). EDIT: Need to mention this is true for Destiny 1 and Destiny 1 only. Destiny 2 basically already uses dedicated servers to an extent. Players with a worse connection will suffer from thanks to the new netcode… Basically, since the hit registration is hitscan, the player who sends the damage numbers first will win the fight all the time. Doesn't matter if you are facing a guy with a sleeper simulant who is lagging out. The shot might go out of his gun on his screen and you won't be hit by it because he's already dead to the server. This wasn't the case before. It means it makes your experience pretty much horrible if you have a shit connection but significantly better if you don't have a bad connection. So please DO use a lagswitch if you're a cheater, it will make you an easier target until you get banned.