Smart fluids are liquids whose properties (typically the viscosity) can be changed by affecting it with an electric or magnetic field. The most common smart fluids are those affected by magnetic fields, referred to as magnetorheological fluid. Magnetorheological fluids work by mixing non-magnetic fluids with magnetic dipoles. When it interacts with a magnetic field the dipoles align changing the viscosity of the fluid. Examples of this can be seen in some modern automobiles, rockets, and even in some washing machines. They use this technology to reduce vibrations by being able to adjust how much viscosity the fluid has at a certain point in time.
Another example of a smart fluid is one where the surface tension can be modified by introducing an electric field. "This has been used to produce very small controllable lenses: a drop of this fluid, captured in a small cylinder and surrounded by oil, serves as a lens whose shape can be changed by applying an electric field (HandWiki)."
As technology advances we can expect to see more breakthroughs with smart fluids and the capabilities that might follow.
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