Liquid gears could challenge 5,000 years of mechanical engineering

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Absolutely.

However, energy efficiency isn't the only type of efficiency metric, and may not be the most important.

Cost efficiency may be a more important metric. If, despite the cost to provide extra power due to lower energy efficiency, the overall cost is less (maintenance due to less friction wear-and-tear, cheaper to make, more flexibility,etc.) then the loss of energy efficiency may be more than offset.

Bloody big "if" though.
 
A viscous liquid has almost zero torque. Can't see how these gears would not be stopped by the slight pressure of a finger.
 
We already have hydraulic couplings like torque converters as well as hydraulic systems that can produce linear and rotational motion, not really sure where the breakthrough is.
You are comparing pressurized liquid systems to the free liquid flow. Their breakthrough is in using free liquid flow to control rotation, without using any pressure.
 
What is the lifespan of the liquid? Would it need draining and replenishing at intervals such as we now do with automobile oil changes? How would temperature affect it? Temperature induced viscosity changes would probably change ratios.
 
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