A method of simulating physics in a virtual worlds system includes: instantiating a multi-user virtual environment; selecting a plurality of physics hosts from a plurality of client devices based on predefined selection criteria; obtaining a request to modify an object within the multi-user virtual environment; in response to obtaining the request to modify the object, providing the request to the plurality of hosts and instructions to determine a candidate subsequent state of the object; obtaining a plurality of candidate subsequent states of the object, including a respective candidate subsequent state from each of the plurality of physics hosts; determining a subsequent state of the object based on the plurality of candidate subsequent states of the object; and providing the subsequent state of the object to the plurality of client devices and instructions to update their versions of the multi-user virtual environment based on the subsequent state of the object.