This technique makes it impossible to receive damage from physical attacks. From a single hair, to the skin and muscles, everything can be liquefied and solidified at will. Be it to evade an enemy's attack during a short range battle, to infiltrate a structure, or to launch a surprise attack in a liquefied state, this technique boasts a high strategic value. Applying this technique, the user can also modify their body parts for suitable situations or even use the liquid as projectiles.
Boasting high strategic value, a way to contain a user of this technique is to lock them up in an airtight container so they cannot move about. When the user passes out, they turn into a jelly-like state. Since this technique turns the body into water, the Hōzuki are extremely vulnerable to Lightning Release techniques, as noted by Suigetsu when he was pinned down by Darui's sword, which was imbued with lightning.
This technique's name is intended to be a pun. "Suika" (水化) is the Japanese term for "hydration", but separately, the kanji mean "water" (水) and "to become" (化) respectively, translating to something more similar to "hydrification" ("to become water"). This explains the effect of this technique more precisely.
Gengetsu Hōzuki uses a mixture of both oil and water which was able to seep into Gaara's sand and nullify it. It is unknown whether the water used by other clan members share the same, or similar properties.
Kabuto Yakushi was able to use his research on Suigetsu to develop a similar technique, which uses his body fluids instead of actually transforming his body into water.