Remember, they don't have a client-server model here, and instead are using a client-client system. In order for each client to update itself, it needs all the input information from the other clients so that it can then update the actual game state. Using this method, all any client gets informati...

Let me clarify here, what I'm saying is the CLIENT doesnt need to know whats happening 5 chunks away, just the server. I'm not saying the server shouldnt process the whole world. What I am suggesting is the server be a bit more selective in what it pushes to the client each update. As DaveMcW says, ...

It sounds to me like you need to narrow down what each client needs to know. My client doesnt really need to know the contents of a belt thats 5 chunks offscreen. If I zoom out or go to the map, I start losing detail the farther out I zoom. Maybe update the chunk directly around the player every tic...