This is yet another method to combat lag in networked games. This entire concept is mathematically based on the concept of perception. The basis of it is that if objects update and render correctly locally to a player, then we can create an illusion of realism, hence the name local perception filter.
In this recipe, we will understand the theoretical concept of how easy it is to implement bullet time. Take a look at the following pseudocode:
Calculate the velocity local to the player.
Accelerate the bullet when it starts and slow it down as it reaches the remote player.
From the remote player's point of view, the bullet should appear to have been shot at a higher speed than normal speed and then slow down to normal.