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https://github.com/yshui/picom, build from the latest git commit and `dual-kawase` blur enabled in the config. As a starting point, you may want to try my picom config (which tries to balance effects while not being annoying or overly distracting).
As for making the background transparent: GTK (the toolkit and "theming standard" used for all apps shown in your screenshot) supports transparency natively, though most themes aren't designed to take advantage of that. The easiest way I found was to use something like Gradience, where you can just set an RGBA value for the background with the desired transparency.