An early and fast method of producing transparent surfaces by stippling the surface.Such as by creating a checkerboard type pattern of opaque and fully transparent pixels (checkerboard binary transparency).
Alternate names: Stipple binary transparency
Name variations: stipple alpha, texture stippling
The first video game about Stipple transparency was released in 1989.
Mostly interesting when done on software dynamically, but this can easily be done on the textures/sprites themselves because it's just a specific way of using binary transparency or mimicking binary transparency with alpha channel based transparency.