What does real-time destruction means?

Just as the question… Does real-time destruction means we can have logic for it or something?

Context: I’m learning to do some vfx and there are many times things coming up like “This is not real-time”, “Real-time is more interactive and real” etc… . When I watch the “real-time” tutorial, I still see all of the fracture areas are done beforehand…
Then when I see the “pre-baked” tutorials, objects with pre-baked animations can still interact with player (like player has to deal damage till object health = 0 for the “fracture animation” to play)…

I mean what is “real-time” destruction or simulation then?.. Really confuses me…

real time, may be means that use Physics engine, that cost many performance than animation…

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