This is correct. QuakeWorld pushed the limits of real-time networking projectile detection by keeping a small history buffer of interpolated data for the server to perform lookups and hit checks. It was never perfect but it was good enough for fast paced QW games.
https://icculus.org/~marco/quakec/csqc/prediction.html
https://fabiensanglard.net/quakeSource/quakeSourcePrediction...