What is the significance of the anchor point in After Effects?

The significance of the anchor point in After Effects is that it determines the center of rotation for a layer. This means that when you rotate or scale a layer, the transformations will occur around the anchor point. By default, the anchor point is set to the center of the layer, but it can be repositioned to any point within or outside the layer, allowing for a wide range of creative animations. For example, if you move the anchor point to the bottom of a layer and then apply a rotation, the layer will appear to spin around that point, rather than its center. This flexibility makes the anchor point a crucial tool for animators, providing control over how layers transform in relation to their positions.