LiquidMoon displays the reflection of a moon in water. The terrain of the moon is generated by “Brownian motion on a sphere”: faults along randomly-oriented great circles raise the altitude on one side and lower it on the other, producing a complex fractal surface after a couple of thousand iterations. The craters are produced by a similar process, shifting the fault plane to produce smaller circles that define the crater walls and peaks.
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Reference: Section 1.1.8 of The Science of Fractal Images, edited by Heinz-Otto Peitgen and Dietmar Saupe, Springer, 1988.