diff --git a/README.md b/README.md
index 381ce08..b913ad5 100644
--- a/README.md
+++ b/README.md
@@ -20,6 +20,156 @@ A real-time multiplayer competitive clicker game built with Colyseus.js and Vue
 - **Real-time**: WebSockets
 - **Styling**: Custom CSS
 
+## System Architecture
+
+### How It Works
+
+The game uses a client-server architecture with WebSocket connections for real-time communication:
+
+#### 1. **Connection Flow**
+```
+Player → Lobby Room → Game Room → Game Session
+```
+
+1. **Initial Connection**: When a player opens the app, they automatically join the `LobbyRoom`
+2. **Name Assignment**: Players receive a unique name (guest, guest-2, etc.) with auto-increment per unique base name
+3. **Matchmaking**: Players click "Quick Play" to find or create a game room
+4. **Room Transition**: Players leave the lobby and join a `GameRoom` (max 2 players)
+5. **Game Start**: When 2 players are in a room, the game automatically starts
+
+#### 2. **Room Management**
+
+**LobbyRoom**:
+- Single shared room for all waiting players
+- Manages unique player names
+- Handles matchmaking requests
+- Shows available game rooms
+- Tracks which players are in games
+
+**GameRoom**:
+- Individual rooms with exactly 2 players maximum
+- Manages game state (waiting, playing, paused, finished)
+- 10-minute countdown timer
+- Click counting and winner determination
+- Auto-restart after game ends
+
+#### 3. **State Synchronization**
+
+The game uses Colyseus Schema for state management:
+
+```typescript
+GameState {
+  players: Map<Player>    // Connected players
+  gameStatus: string       // waiting|playing|paused|finished
+  timeRemaining: number    // Seconds left in game
+  winner: string          // Winner's name
+}
+
+Player {
+  sessionId: string
+  name: string
+  clicks: number
+  connected: boolean
+}
+```
+
+**State Updates**:
+- Server authoritative - only server can modify state
+- Automatic synchronization to all clients
+- Delta compression - only changes are sent
+- 60Hz update rate for real-time feel
+
+#### 4. **Communication Protocol**
+
+**Client → Server Messages**:
+- `setName`: Change player name in lobby
+- `quickPlay`: Request matchmaking
+- `click`: Register a click in game
+- `joinRoom`: Join specific room
+
+**Server → Client Messages**:
+- `gameJoined`: Room ID to join
+- `playerInfo`: Player's session info
+- `gameStart`: Game has started
+- `gameEnd`: Game finished with results
+- `gamePaused`: Game paused
+- `gameRestart`: Game restarting
+
+**State Callbacks**:
+- `onAdd`: Player joined
+- `onRemove`: Player left
+- `onChange`: Property changed
+- `listen`: Specific field updates
+
+#### 5. **Name Management System**
+
+```
+Base: "jose"
+- First jose → "jose"
+- Second jose → "jose-2"
+- Third jose → "jose-3"
+
+Base: "maria"
+- First maria → "maria"
+- Second maria → "maria-2"
+```
+
+- Names are managed by a singleton NameManager
+- Each unique base name has its own counter
+- Names are released when players disconnect
+- Names persist when moving between rooms
+
+#### 6. **Game Flow Sequence**
+
+1. **Lobby Phase**:
+   ```
+   Connect → Assign Name → Show Online Players → Wait for Action
+   ```
+
+2. **Matchmaking**:
+   ```
+   Quick Play → Find Available Room → No Room? Create New → Join Room
+   ```
+
+3. **Waiting Phase**:
+   ```
+   Join Room → Show "Waiting for opponent" → Display Players (1/2)
+   ```
+
+4. **Game Phase**:
+   ```
+   2 Players Connected → Start Timer → Enable Clicking → Count Clicks
+   ```
+
+5. **End Phase**:
+   ```
+   Timer Reaches 0 → Determine Winner → Show Results → Auto-restart in 5s
+   ```
+
+#### 7. **Reconnection Handling**
+
+- 30-second grace period for disconnected players
+- Game pauses if a player disconnects during play
+- Game resumes when player reconnects
+- Maintains click count and game state
+
+#### 8. **Admin Dashboard**
+
+The dashboard connects via HTTP REST API and WebSocket monitoring:
+
+**REST Endpoints** (Port 3000):
+- `GET /api/rooms` - List all active rooms
+- `GET /api/rooms/:id/stats` - Get room statistics
+- `POST /api/rooms/:id/pause` - Pause a game
+- `POST /api/rooms/:id/restart` - Restart a game
+- `POST /api/rooms/:id/kick/:playerId` - Kick a player
+
+**Real-time Monitoring**:
+- Total CCU (Concurrent Users)
+- Active rooms and their status
+- Player statistics per room
+- Live game state updates
+
 ## Installation
 
 ```bash