Hey somecooldude12. The raspberry pi is a great learning platform and can actually run a server decently. The only draw back is ..... OVERCLOCKING! In order to run a server at a decent speed, I recommend overclocking. There are plenty of tutuorials out there, and I can link you to a seven dollar overclocking kit that got me up to 1450 ghz on the pi 3.
Me and my dad started up a server on a rasberry pi 2 and i experienced lag like one time and we port forwarded the server and my friends joined and they experienced minor lag so i recommend doing this on a rasberry pi 3 or just overclock a rasberry pi 2
I want to know what the specs of a good (lag free mostly) server would be for a raspberry PI 3, or even a pine64 (better video card and double the memory with 2gbs)
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I am using Minecraft on raspberry pi since Rpi 2, and yes it used to lag previously on Rpi 2 but now on RPI 3 with 1 GB ram, for me it wont lag that much. what i did to optimize it is:
Firstly install the Spigot, dont use Bukkit to run minecraft on Rpi, it comes with some added modules. A seemless procedure to install Spigot can be found following this link raspberry pi minecraft page
Second, use some optimizing modules, the two i have used are NoSpawnChunks and clearlag.
Overclock the Rpi to it max. In very rare condition it may cause some damage because of heat, but with heatsinks it can work well.
After all of this it is recommend that there should be not more than 5 players.
It may lag initially when game starts but after that it work well. I didnt feel any lag even in heavy graphics usage while breaking blocks or during explosions. I did setup a permanent arrangement and using the RPI for minecraft only, nothing else is running on rpi.