“The health is not handled by the game client, but the server.”
“There is only so much a hacked client can do.”
“That value is processed server-side and can therefore not be changed.”
“This game uses client-side anti-cheat software.”

client server side applications onlineClient-Side and Server-Side in Online Games and in General
These are terms you will hear or read about in a lot of online applications including online games and especially when trying to cheat in these games. Any online game or application has 2 sides: On one hand you have the ”Client” on your PC and the “Server” that the client connects to.

The Client
The client is usually a piece of software that is being run on your machine (PC, console, mobile phone ect) and that connects to a server using the internet. The main job of the client is to display to you the interface of the application or game you are trying to use. That interface then allows you to use the integrated toolkit in order to access the server within the programmed restrictions. So the client will then send packets of data to the server, telling the server what you are doing and the server will then process the information and send packets back to the client in order to display to you the outcome or effect of you action.

Since the client is run on your own machine, all the functions processed there can be manipulated / hacked or edited, unless the developer of a client has taken countermeasures.

The Server
In an online application the Server is where what all the clients are connected to and where the outcome or effect of their input is processed. The server is a PC that the users of the application or game do not have any access to and are only able to connect to in the ways specified by the developers. The main job of the server is to take the input that is sent by the clients software through the internet and process them according to the internal coding. Such servers make interactions between a lot different clients in real time possible (such as in MMO Games). Another upside of servers is that a developer is able to keep some of their most valuable software in one place by not having to integrate it into the client.

Since the server in not run on the end users machine, it is impossible to manipulate it, unless there are some serious security leaks in the server setup that the developers of an application have chosen.

Client-Side and Server-Side (Game) Hacking Legal Advice
It needs to be pointed out that while you are technically allowed to manipulate any of the processes going on, on your own machine, you are not legally allowed to gain access to servers (PCs owned by other people) in most countries. This kind of hacking is illegal and can get you into a lot of trouble. So if you are trying to cheat in game, please keep it to your own system. 

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