Many of today's virtual environment applications, such as massively multi-player online games, involve a large and rapidly changing set of users. The server-based architecture of these applications makes its hard for them to support the dynamic userbase and provide a scalable solution. Badumna, a scalable network engine for largescale virtual environments, was developed to address these issues. The approach is based on a decentralised architecture using a structured peer-to-peer network. In order to ensure a highly scalable and efficient design, Badumna uses techniques that include