Systems and methods for providing a shared augmented reality environment are provided. In particular, the latency of communication is reduced by using a peer-to-peer protocol to determine where to send datagrams. Datagrams describe actions that occur within the shared augmented reality environment, and the processing of datagrams is split between an intermediary node of a communications network (e.g., a cell tower) and a server. As a result, the intermediary node may provide updates to a local state of a client device when a datagram is labelled peer-to-peer, and otherwise provides updates to the master state on the server. This may reduce the latency of communication and allow users of the location-based parallel reality game to see actions occur more quickly in the shared augmented reality environment.