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The problem with using Steam API for this game is that you solely connect to Steam's IP and Steam does the relaying of information between players FOR you, rather than direct IP between two computers sending data to each other.
Starbound did this for friend join functionality, which might not be bad if you live in a populated area with high speed internet, but if you life in a rural area and use this Steam API, you essentially became a bottleneck and start lagging and rubberbanding everyone on the server with 30 second delayed information.
You need a software to 'trace' your connection on a game to see WHERE it actually jumps from node to node, so you can track it's performance through ping tests and traceroutes.
Me and my friend playing this could end up bad either way, due to Steam API causing a bottleneck in the middle of the route, and that my friend has much slower internet package compared to mine (he lives in rural farmland so he only has like 1Mbps download, etc.).