Topic: Dark Souls Online - how does it work?

I played Bloodborne solo and enjoyed it. Dark Souls 2 is online only unless I disconnect the Internet so I figure I'll try some of the online functions. How does it work, exactly? I see lots of white ghosts running around.. Are these real people playing now? Why am I seeing them?

They are real players. Its quite funny, ive seen them running off cliffs attacking npcs all kinds. Theres a way of seeing the last seconds of other players before they die by clicking on something, I cant remember what it was on the floor but I clicked on one and this ghost flew off in to a whole load of skeletons it was well funny. The 2 instances are different though, the ghosts running around are in real time playing at the same time as you. The last few seconds before someone dies is recorded.