University of Michigan researchers developed the method which involves shining a laser on tiny latex particles to make them assume a 3D crystalline shape or pattern, such as a letter M.
When the laser is switched on or off, the crystals appear or disappear.
"Unlike for chameleons or octopuses, creating man-made materials that change colour on demand is really difficult," said Mike Solomon, a chemical engineer at the University of Michigan in Ann Arbor and senior researcher of the study.
Solomon and his graduate student, Youngri Kim, found a way to achieve shape- and colour-changing effects using latex paint microparticles - tiny particles about 0.001 millimetres in diameter - in a kerosene-like fluid, by shining a laser on them.
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By manipulating these "camouflage crystals," the researchers were able to construct a letter "M," for the University of Michigan. They have also experimented with making optical lenses.
"We can shine the light in a certain region, and the particles create a crystalline region where they all come together and create this crystal structure," Kim said.
The research will be published in the journal Nature Communications.