Intersection Fading

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Intersection Fading is a technique commonly used with Soft Particles, in order to reduce the harsh edges you usually get when sprites intersect with solid geometry.

The idea is to make it more and more transparent, the closer the current fragment is to its background.

In this example, we can simply multiply the color with the Depth Blend node, which will make the colors that are closest to the background geometry, multiply towards 0, which is completely invisible when rendering additively.

In this example, it's used in an additive shader meant for particles