Generalized Watercooling Theory
Watercooling is based on the set of principles that water is proportionally better than air to conduct heat away from a heat source based on conduction, or the direct contact of a heated source and a cooling source to transfer heat energy rather than convection, otherwise known as thermal conductivity. The ability of a substance to directly absorb heat energy is considered it's specific heat; in this case, the ability of heat directly absorbed by water and the required energy to raise overall temperatures by 1°C. While convection takes place with normal air coolers to provide the ability for air to absorb dissipated heat from the cooler, watercooling also employs this concept to some degree. Once the water absorbs heat energy via conduction from the blocks, it then transfers that through tubing to radiators cooled by fans. The difference is that a larger amount of heat energy is able to be absorbed and moved at any given time with a water loop due to pump flow forcing turbulent water through the radiator tubes while the radiator provides greater surface area to conduct heat energy from the water to the radiator and then into the air. The process is more efficient at transferring, displacing and dissipating excess heat energy based on the delta-T of the loop design. In short, the ability of water's excellent specific heat allow it to absorb heat much more quickly and efficiently from a source of heat (as well as also dissipating that heat back to a cooling source for dissipation) so it can also transport far more of that absorbed energy due to the thermal capacity of it as a medium away from heat sources to be expelled elsewhere.
Thermal Conductivity of Common Cooling Mediums (@~20°C; W/mK)
Higher values are better
Water...............................................0.610
Mineral Oil........................................0.162
Alcohol(Ethyl, Isopropyl, Buytl)...........0.161-0.200
Ethylene Glycol..................................0.258
Air...................................................0.0257
Specific Heat of Common Cooling Mediums (@~20°C;kJ/kg.K)
Higher values are better
Water...............................................4.19
Air...................................................1.00
Mineral Oil........................................1.67
Copper.............................................0.093
Ethylene glycol..................................2.36
There are a lot of discussions around mineral oil submersion cooling, and while this is a watercooling forum, it often gets brought up as a topic. That being said, here is a link to a maintained index of mineral oil discussions that either have originated in this forum or referenced as one of those discussions.