Photon 2d game multiplayer lags - unity3d

Question

I have a 2D multiplayer game using Photon where all the movements are made by RigidBody 2d. When both players are connected I can see my opponent movements but they are not smooth. Last Update Time variable is set to 0.25.
using UnityEngine;
using System.Collections;
public class NetworkCharacter : Photon.MonoBehaviour {
Vector3 realPosition = Vector3.zero;
Quaternion realRotation = Quaternion.identity;
public float lastUpdateTime = 0.1f;
// Use this for initialization
void Start () {
}
// Update is called once per frame
void FixedUpdate () {
if(photonView.isMine){
//Do nothing -- we are moving
}
else {
transform.position = Vector3.Lerp(transform.position, realPosition, lastUpdateTime);
transform.rotation = Quaternion.Lerp(transform.rotation, realRotation, lastUpdateTime);
}
}
public void OnPhotonSerializeView(PhotonStream stream, PhotonMessageInfo info){
if(stream.isWriting){
//This is OUR player.We need to send our actual position to the network
stream.SendNext(transform.position);
stream.SendNext(transform.rotation);
}else{
//This is someone else's player.We need to receive their positin (as of a few millisecond ago, and update our version of that player.
realPosition = (Vector3)stream.ReceiveNext();
realRotation = (Quaternion)stream.ReceiveNext();
}
}
}

Answer 1

From the unity script reference
[Lerp] Interpolates between from and to by the fraction t. This is most commonly used to find a point some fraction of the way along a line between two endpoints (eg, to move an object gradually between those points). This fraction is clamped to the range [0...1]. When t = 0 returns from. When t = 1 returns to. When t = 0.5 returns the point midway between from and to.
So basically Vector3.Lerp returns this:
from + ((to - from) * t)
As you can see, by calling Lerp with the same values, it's always returning the same value, what you should use instead are MoveTowards and RotateTowards.
transform.position = Vector3.MoveTowards(transform.position, realPosition, lastUpdateTime * Time.deltaTime);
transform.rotation = Quaternion.RotateTowards(transform.rotation, realRotation, lastUpdateTime * Time.deltaTime);