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Visual effects or VFX are the term given in which images or film frames are created and manipulated for film and video. Visual effects usually involve the integration of live-action footage with computer generated imagery or other elements (such as pyrotechnics or model work) in order to create environments or scenarios which look realistic, but would be dangerous, costly, or simply impossible to capture on film. They have become increasingly common in big-budget films, and have also recently become accessible to the amateur filmmaker with the introduction of affordable animation and compositing software.
Today, matte paintings are done with both paint and with computer generated visual effects. Rather than filmed through glass, the actors are filmed normally and later composted into the matte painting. If the actors are filmed on a partial movie set (without any green screen, etc.) then the effect is a matte painting... even if you use computer generated effects to get the effect.
Compositing is the process of combining various elements, such as 3D imagery, live action film footage and still imagery, to create a finished shot. All visual effects that include live actors will require compositing. As mentioned above, matte paintings are no longer painted onto glass. Rather the live action is composite with matte paintings using a compositing program such as Adobe after Effects or Apple's Shake.
Rotoscoping, or masking, is the basis of compositing. It is the process of drawing a mask around an element in a frame or sequence of frames. The resulting image is a combination of the Red, Green and Blue color channels in addition to an Alpha channel which defines transparency
Tracking is the process of matching a foreground-element's motion to that of the background. Basically you pick a decent (i.e. defined, unique, contrasts) point on your background and tell the computer to follow that point. What you get is the motion-path of your point, which you can then apply to your foreground.