New types of computer simulation are being used to investigate matter
on the atomic scale. Unlike older simulation methods, the new techniqu
es represent a solid or a liquid as a collection of nuclei and electro
ns, and the laws of quantum mechanics are used to calculate the energy
and the forces from first principles. The most successful method so f
ar for doing first-principles simulation is based on density functiona
l theory and the pseudopotential approximation. I describe the main id
eas of these techniques and explain how they can be used to perform si
mulations in which chemical bonds are made and broken. I give illustra
tions of current work in two areas: the atomic-scale behaviour of wate
r and other liquids; and molecular processes at surfaces. I stress tha
t the new methods are still evolving rapidly and I point to likely dev
elopments in the next few years.