Plenty of companies are working on holographic systems and other technologies to merge digital and physical worlds. The DynaFlash v2 seems pretty special though. It is all about manipulating light at a speed exceeding the perceptual range. A high speed projector capable of switching 8bit color images at 947fps was used to pull this off.
As the researchers at Ishikawa Watanabe Laboratory explain:
We also developed a new tracking system capable of recognizing non-rigid deformation three-dimensionally at high speed and in wide range by using 10 cameras. The capacity of the dynamic projection mapping linking these components is not limited to fusing colorful unrealistic texture to reality. It can freely reproduce gloss and unevenness of non-existing materials by adaptively controlling the projected image based on the three-dimensional structure and motion of the applicable surface.
The above video shows how this set up can be used to put on trippy projections.