Approaches
There are several competing techniques for liquid simulation with a variety of trade-offs. The most common are Eulerian grid-based methods, smoothed particle hydrodynamics (SPH) methods, vorticity-based methods, and Lattice Boltzmann methods. These methods originated in the computational fluid dynamics community, and have steadily been adopted by graphics practitioners. The key difference in the graphics setting is that the results need only be plausible. That is, if a human observer is unable to identify by inspection whether a given animation is physically correct, the results are sufficient, whereas in physics, engineering, or mathematics, more rigorous error metrics are necessary.
Read more about this topic: Fluid Simulation
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