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Transubstantiation is the alleged process whereby the bread and wine offered up at the communion service have their substances changed to that of the body, blood, soul, and divinity of Jesus while their accidents remain that of bread and wine. What looks like, tastes like, etc., bread and wine is actually another substance altogether. How this happens is a mystery and defies logic. How it can happen would require a miracle.
In Catholicism, transubstantiation is also known as the doctrine of the real presence, though other Christian traditions mean something different by real presence.