This effect pixelates image. A pixelated video is having blocks on the frame image to give it a mosaic effect. Effect allows to adjust settings so it is possible to make images look interesting within video.
It is possible to adjust following settings for this effect:
Horizontal defines how strong pixelation should be for horizontal dimension.
0 means no changes in the image, 100 means absolute pixelization,
image will be split horizontally to 2 parts only.
Vertical makes the same adjustments as horizontal setting but applies to image vertically.
Offset shifts every second row with provided offset value. This makes pixelated image looks fuzzy.
Applied horizontal pixelation only. You can notice that image looks less pixelized vertically in time lapse software preview window.