The pencil tool, fill bucket tool and eraser tool all have an opacity setting which you can use to add some transparency to your colors. The engine works fully offline, but it also does include a few links to features that can only exist online, such as the Community (user forum) and the Explore section (view projects published by other users).
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Thank you! I must not have realized I started doing some sprite you see and then I was like ooh I have to have it as block somehow