a dissolve is done using software, by interpolating gradually between the RGB values of each pixel of the image. The audio track optionally cross-fades between the soundtracks.

Use

Cuts and dissolves are used differently. A camera cut changes the perspective from which a scene is portrayed. It is as if the viewer suddenly and instantly moved to a different place, and could see the scene from another angle.

Fades and dissolves typically have a duration of 1 to 2 seconds (24-48 frames), though

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