If your code depends on a "tick" (and tests to determine if objects overlap at the tick), then:
when objects are moving "too fast" they skip over each other without colliding
when multiple objects collide in the same tick, the end result (e.g. how they bounce, how much damage they take, ...) depends on the order that you check for collisions and not the order that collisions would/should occur. In rare cases this can cause a game to lock up (e.g. 3 objects collide in the same tick; object1 and object2 are adjusted for their collision, then object2 and object3 are adjusted for their collision causing object2 to be colliding with object1 again, so the collision between object1 and object2 has to be redone but that causes object2 to be colliding with object3 again, so ...).
Note: In theory this second problem can be solved by "recursive tick sub-division" (if more than 2 objects collide, divide the length of the tick in half and retry until only 2 objects are colliding in that "sub-tick"). This can also cause games to lock up and/or crash (when 3 or more objects collide at the exact same instant you end up with a "recurse forever" scenario).
In addition; sometimes when game developers use "ticks" they also say "1 fixed length tick = 1 / variable frame rate", which is absurd because something that is supposed to be a fixed length can't depend on something variable (e.g. when the GPU is failing to achieve 60 frames per second the entire simulation goes in slow motion); and if they don't do this and have "variable length ticks" instead then both of the problems with "ticks" become significantly worse (especially at low frame rates) and the simulation becomes non-deterministic (which can be problematic for multi-player, and can result in different behavior when the player saves, loads or pauses the game).
The only correct way is to add a dimension (time), and give each object a line segment described as "starting coordinates and ending coordinates", plus a "trajectory after ending coordinates". When any object changes its trajectory (either because something unpredicted happened or because it reached its "ending coordinates") you'd find the "soonest" collision by doing a "distance between 2 lines < (object1.radius + object2.radius)" calculation for the object that changed and every other object; then modify the "ending coordinates" and "trajectory after ending coordinates" for both objects.
The outer "game loop" would be something like:
while(running) {
frame_time = estimate_when_frame_will_be_visible(); // Note: Likely to be many milliseconds after you start drawing the frame
while(soonest_object_end_time < frame_time) {
update_path_of_object_with_soonest_end_time();
}
for each object {
calculate_object_position_at_time(frame_time);
}
render();
}
Note that there are multiple ways to optimize this, including:
split the world into "zones" - e.g. so that if you know object1 would be passing through zones 1 and 2 then it can't collide with any other object that doesn't also pass through zone 1 or zone 2
keep objects in "end_time % bucket_size" buckets to minimize time taken to find "next soonest end time"
use multiple threads to do the "calculate_object_position_at_time(frame_time);" for each object in parallel
do all the "advance simulation state up to next frame time" work in parallel with "render()" (especially if most rendering is done by GPU, leaving CPU/s free).
For performance:
When collisions occur infrequently it can be significantly faster than "ticks" (you can do almost no work for relatively long periods of time); and when you have spare time (for whatever reason - e.g. including because the player paused the game) you can opportunistically calculate further into the future (effectively, "smoothing out" the overhead over time to avoid performance spikes).
When collisions occur frequently it will give you the correct results, but can be slower than a broken joke that gives you incorrect results under the same conditions.
It also makes it trivial to have an arbitrary relationship between "simulation time" and "real time" - things like fast forward and slow motion will not cause anything to break (even if the simulation is running as fast as hardware can handle or so slow that its hard to tell if anything is moving at all); and (in the absence of unpredictability) you can calculate ahead to an arbitrary time in the future, and (if you store old "object line segment" information instead of discarding it when it expires) you can skip to an arbitrary time in the past, and (if you only store old information at specific points in time to minimize storage costs) you can skip back to a time described by stored information and then calculate forward to an arbitrary time. These things combined also make it easy to do things like "instant slow motion replay".
Finally; it's also more convenient for multiplayer scenarios, where you don't want to waste a huge amount of bandwidth sending a "new location" for every object to every client at every tick.
Of course the downside is complexity - as soon as you want to deal with things like acceleration/deceleration (gravity, friction, lurching movement), smooth curves (elliptical orbits, splines) or different shaped objects (e.g. arbitrary meshes/polygons and not spheres/circles) the mathematics involved in calculating when the soonest collision will occur becomes significantly harder and more expensive; which is why game developers resort to the inferior "ticks" approach for simulations that are more complex than the case of N spheres or circles with linear motion.
