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It was originally developed back in as a mod for Half-life 2, by Garry Newman. This is where the game gets its name. The base game involves a sandbox physics simulator, where you can spawn in a variety of objects and models. Using a physics gun allows you to manipulate objects in any way you desire. You can build vehicles, construct cities, or make almost anything you want. The only limit is your imagination. There are numerous add-ons and different game modes available to play. The simplest solution if you just want to play with a couple friends is hosting through Steam. To do this, simply start a new game, then invite your friends to join through Steam.