This paper demonstrates a new approach for terrain representation: multiresolution surfaces based on wavelets and the process of multiresolution analysis. Because they are based on mathematical surfaces, multiresolution surfaces gain the benefits of surfaces (more level of detail control, increased number of possible resolutions, easier updates of a dynamic terrain) that lead to fewer correlation errors both in non-networked and networked simulations. Furthermore, the power of multiple resolutions (at little added cost) reduces network transmission costs and provides a framework for the use of dynamic terrain in shared virtual worlds.
Martin, Glenn A., "A Wavelet-Based Approach to Dynamic Environments" (1998). Link Foundation Modeling, Simulation and Training Fellowship Reports. 8.