Sigh. Those are called instance servers in MMO's yes.
But all it does is host the multiplayer part. Sync enemy NPC and player locations for everyone in the instance, sync combat logs and status, handle instance chat, etc. NOT content aka Assets!
It doesn't stream any assets! Those are all loaded on the Client itself!
A ton of People would be screaming hell on Earth, if they constantly had to download/stream all assets to their client, blowing away their bandwith.
The game Client would otherwise be nothing more than a launcher of a couple MB. That's it. Not 20GB to 40GB in size. /sigh
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I know what your talking about, it's how people find deleted content. I'm aware none of it is streamed. But often you will find things like placement markers (IE enemy spawns and locations) Are handled server side. So the disk content is essentially the chess pieces and the server is the person placing them. In a game like this where many assets are a few smaller reused items/models you many know WHAT is in the level but not WHERE they are and to see that you need to find a server to properly place everything. Meaning that we are unlikely to get a good look at things till update or release to a point where we can "see" it without getting banned or quickly kicked from that server. It's also how they can quickly change things like spawn speeds and locations without pushing a patch to your device.
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That last one was actually a patch, where they fixed the loot Cave and adjusted the spawn timers. It was a very small patch. Couple MB's or so.
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Other things in the patch could also have added to the patch would be the changes to queens wrath gear and other miscellaneous stuff.