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+1 vote

How to make so that transparent materials blend together when overlapping (like in the second example)?

enter image description here

in Engine by (57 points)

In 2D or 3D space?

3D, but would be nice to know for 2D too, if I am not asking much.

To do that in 3D you would need something similar to a Z-buffer so that only the closest transparent pixels are shown, not those behind (which could create issues). I don't know how feasible this is...
You could also do that at geometry level but it would be slower.

In 2D, same story. If there is no Z-buffer, you need a buffer at some point to accumulate those objects in an "unshaded" manner and draw them afterwards using transparency on the whole.

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