Blood types are classified by the ABO system and the Rh factor, determined by antigens on red blood cells, with eight main blood types. Compatibility is crucial for blood transfusions, as individuals have antibodies against certain antigens; for instance, type AB can receive from all types, while type O is a universal donor. Blood transfusions are necessary for patients who lose blood due to injury or surgery, and blood from donors is rigorously tested before use.