GDI provides abstraction for graphics hardware by allowing calls to Windows API graphics functions without needing to know specifics of the video card. It uses device contexts (DCs) as the main object for drawing. GDI+ builds on GDI by providing a more intuitive object-oriented interface and some performance improvements. The .NET Framework encapsulates GDI+ functionality in the System.Drawing namespace for 2D graphics like drawing lines, shapes, and text without 3D capabilities. Key classes include Graphics for drawing and Pen, Brush, and Image for defining drawing objects. Alpha blending and blending are used for transparency effects and gradients in drawings.