The alpha channel defines the transparency or opacity of pixels in a digital image. In addition to color channels like red, green, and blue, the alpha channel provides information about how much a pixel should blend with the background when composited. A higher alpha value makes a pixel more opaque, while a lower value makes it more transparent. The alpha channel allows for smooth transitions between objects and seamless overlaying of images, which is important for tasks like graphic design, video editing, and CGI. It enables complex visual effects by specifying transparency levels on a per-pixel basis and combining multiple images while preserving composition integrity.