Multiplayer lag

Some of my friends and I have a server and we had it in 1.17 but when we updated it to 1.18 and it was been super laggy and we can't pick up items or use entities. We are using paper to host the server so I am not sure if it is a problem with Mojang or with them but I thought I would just report this to be safe. Thanks so much for your time and consideration while making such a great update.