Difference Blending Option

Question

I saw this cool effect that blends bubbles into each other, and the space that they are overlapping is transparent.

How can I achieve this effect in after effects?

Answer 1

You are interested in blending mode "Difference"

You can use it in "Blending mode" of layer, or on masks.

UPD: Adding screenshot, as asked

Red — Mask Blending

Blue — Layer Blending