babel.config.js

// Exporting the Babel configuration
module.exports = {
  // Specifies the Babel presets to be used. Presets are a set of plugins used to transform the code.
  presets: ['module:@react-native/babel-preset'],

  // Specifies the Babel plugins to be used. Plugins are individual transformations applied to the code.
  plugins: [
    [
      'module-resolver',
      {
        alias: {
          '@src': './src',
        },
      },
    ],
    [
      // The 'react-native-dotenv' plugin is used to load environment variables from a .env file.
      'module:react-native-dotenv',
      {
        // Ensures that a .env.example file exists and matches the variables in the .env file.
        safe: true,

        // Throws an error if any environment variables are undefined.
        allowUndefined: false,
      },
    ],
    // The 'react-native-reanimated/plugin' plugin is required for React Native Reanimated library.
    ['react-native-reanimated/plugin'],
  ],
};