Problem with overlapping objects and transparency

[bgolus]

Unfortunately there’s not really a great solution for this. Read the first part of this post:

Render Mode - Transparent doesn't work see video

This is working as expected. Efficient, and correct sorting of 3d transparency in real time rendering is still an unsolved problem. There have been a number of attempts to fix this or mitigate it, but they all come with a fairly significant performance hit. The way any single model is rendered is each polygon of a model is rendered in the order they exist in the model's definition. In the case of opaque or cutout each polygon writes to the depth buffer. Each new polygon drawn will test again…

Then this post:

Is it possible to fix the Transparency + Depth sorting issue?

Order Independent Transparency (OIT) is the search term you're looking for. To do accurate per pixel transparency sorting is extremely expensive to do on modern graphics cards, though it is possible. To do it in Unity would require essentially not using any of Unity's built in shaders, and possible not use any of Unity's built in renderer components. Pretty much no one does this outside of some tech demos and specific applications, these days it's probably cheaper to "just" do GPU based raytra…

Note transitioning from opaque to transparent is one area that the weighted blending technique mentioned in that second post fails spectacularly.