⚠️ UNMAINTAINED⚠️ I highly recommend you to check out Blur my Shell (GNOME 3.36+)
Apply a Blur Effect to GNOME Shell UI elements
Overview with a blur intensity of 10:
Overview with a blur intensity of 30:
GNOME Shell 3.26+:
With GNOME Shell version 3.32 the panel transparency was removed. In order to use the blurred panel feature, you can install the Dynamic Panel Transparency extension.
Install blyr using the official repository: extensions.gnome.org
git clone https://github.com/yozoon/gnome-shell-extension-blyr.git
cd gnome-shell-extension-blyr/
make local-install
Now just restart the Shell and enable the extension.
To remove the extension just run:
make local-uninstall
Some Ubuntu users reported that the preferences dialog didn't appear after opening it from the GNOME Tweaks application. To fix the issue install the gtkclutter bindings as follows:
sudo apt install gir1.2-gtkclutter-1.0