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Decals are essentially "stickers" you place over an object to give it the effect of dirt, color, whatever.
You can do achieve this many different ways, depending on the game engine you are using of course.
Essentially, you need to create another texture with an alpha in it, to get the best effect you want to blend or gradient the alpha so that there are no hard cuts when placing your decal on your object.
1. So create a texture with an alpha blend on it.
2. Make a plane
3. Apply the texture to the plane
2. Place that plane over the object you want the decal on.
And your done, let me know if you still have any questions.
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