This is a breakdown of the material effect used in my demo reel.

It shows the material node network that utilizes animated cloud textures to randomize the pattern of the dissolve effect and to achieve the glow along the leading/trailing edge of the dissolve.

It shows the material instance interface where the externalized variables in the material can be altered on a per instance basis so that a level artist can modify the effect to be used with any asset simply by supplying a base texture and a few values to the material instance.

It also shows the Kismet script setup that allows the effect to react differently based on the DamageType variable supplied by the engine.