Collision objects move on the fixed_update loop, while the game renders everything on the update loop.
In Unity, collision objects (rigidbodies) have a setting called “Interpolation”: https://docs.unity3d.com/Manual/rigidbody-interpolation.html
Interpolation moves the visual position of the collision object during the update loop, based on the collision object’s actual position in the fixed_update loop.
What this does is it allows your update framerate to be higher than the fixed_update tickrate, without the collision body stuttering.
Here’s a visual example in Unity: https://www.youtube.com/watch?v=_fsnju4tahQ
This is a very useful feature to have because it allows for a low fixed_update step which is useful for mobile development, while still having everything appear buttery smooth regardless of framerate