Any ideas on implementation of a certain image process?
The first effect that appears at the video is a hue change. Later this is morphing, which is a feature based operation.

It seems like some similarity between images is used to set the morphing points (looking at the consecutive changes the points that do not move are chosen separately per transition).

The part of comparing two images (your last sentence) is used to make transition smoother, otherwise it would resemble warp. This is known as the Temporal Coherence, another technique includes Structural Similarity. Techniques yielding the best results are semi-automatic or manual due to a big complexity involved in finding smooth, minimal transition well perceived by people and also lack of good formula evaluating "how natural" transition looks like. The optimal transition calculated as minimal sum of changes does not yield nice looking morphing.

Sometimes a motion blur is added on top of the morphing (between patches) to make transition look better.