LÖVE

it's a beginning. it has sand,water,oil, and air ofcours xD

(if you ask why the left is 'high' and the right is 'low' is because math.random fails choosing with 0 and 1)

Mmm... I've always had a soft spot for these things. If this goes anywhere, I'd be willing to help out with different materials and their interactions.

Is this trying to be something like http://dan-ball.jp/en/javagame/dust/ ?

Yes, that is the powder game . More so, it should be like powdertoy! (http://www.powdertoy.co.uk)

When I first read this, I thought you were doing a clone of POWDER, the roguelike (which by the way, is very good)

I always knew this as the sand game.

Yeah, the one that started the (brief, but bright) trend of these was called 'Falling Sand'. My personal favorite so far is 'Burning Sand', since you could mod it. But I could easily see this beating it out.