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> the runtime handles synchronization of data for you.

The first implementation probably just synchronizes every single change in state of the worlds database.

I wonder if you can flag things that only the server should know, and somehow calculate what each client can see and know about.

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Ambient CPTO here; Yeah that's pretty much how it works; changes on the server state and replicated to clients, which keeps "mirrors" of that state and can augment it in different ways. And yes you can specify exactly which entities and/or components get replicated to the clients. We're working on adding more details on the networking stack: https://github.com/AmbientRun/Ambient/issues/150

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