I'm a doctor, not a mechanic
Besides normal static textures, the Unreal engine provides animated textures and a variety of dynamic or procedural textures. Procedural textures are calculated and re-rendered in real-time and provide realistic-looking, non-repeating smooth texture animations that scale well with the player's framerate.
Things to cover
- How to create palettes for fire/wave textures
- Animating Real-time Textures by Erik de Neve (Epic)