Now here's an interesting technology demonstration. Ever since Carmack revolutionized realtime 3D graphics by pre-computing light sources with BSP (not to mention the many other techniques he and others have developed to make polygons look more shiny and nice), that's the sort of system most people have gone with. There are other systems, like voxels and raytracing (as mentioned in the video), but for various reasons they fell out of popularity. Mostly because polygons have been the best way to represent a world in a first-person-shooter game.
Now this may finally be changing:
I would still like to know what sort of lighting and physics systems are compatible with their tech (and/or maybe new ones may be invented as a result), but it's still a nice tech demo.
The second video on this page is also fairly informative.
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