How does the multiplayer in Hill Climb Racing 2 actually work?

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While playing Hill Climb Racing 2, you face a series of races against other online drivers, or at least I think they are, but you can pause the race and they pause too. Am I racing other players' ghosts of their best times? How does the game decide who I should race? How does the ranking system work? Are other players racing against my ghosts?
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how to challenge to our friends in hill climbing racing 2.
Sources: Stack Exchange - This article follows the attribution requirements of Stack Exchange and is licensed under CC BY-SA 3.0.
Images: Flo Maderebner, Stephan Seeber, Pixabay, Karolina