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Essentially anytime any of the authorized players wants to play, he will host the world that will sync to all players when they join or chose to rehost it down the line. The progress will be there as if it was made on a dedicated.
It makes the need for a dedicated useless. And it's technologically pretty rad if you ask me :)
So if me and a friend play together and it's time for me to sleep or go to work, my mate can carry on... then when I get up hours after my mate has gone to sleep, I can continue the game with the progress he made despite my PC being off?
That's one of the main uses of a dedicated.... its why I have a server pc, we're not always about at the same time. I don't get how it could work with out a dedi.
Exactly.
Think of it as a cloud save that you both have access to. If one makes progress it'll sync to the other player.
Trust me in all intents and purposes it is a dedicated that starts on demand ^^
There is a bug where Nintendo Switch Users do not Automatically update their Friend's Save Files of a Shared World- unless they join while the Nintendo Switch is hosting- and allow the Switch to manually save the world and exit with them connected.