The news uses it, Hollywood uses it so why not use it yourself in your vlogs? This is how you can do it in Magix Movie Edit Pro Plus or Magix Pro X.
I don't have a green blanket (or sheet) but I have a green T-shirt so bear with me.
The Chroma key feature, in every editing software, makes the green (or blue) color, within the shot, transparent. Then you simply add your background footage or image into the corresponding layer (track).
Play with the Threshold and Fading Range sliders and set the effect as you want it. That's it!
Speaking of Hollywood movies, there are entire scenes shot indoor (on a green screen) which seem to be shot outdoor. Film producers use this technique because it is very cheap compared to actually building an entire movie set on the real site.
Later, in post production, the scene is recreated using compositing methods. We're basically talking about lots of computing power (graphics and animation) used to generate entire worlds where the characters are placed.
Check out the Million Dollar Shot in Titanic:
Chroma key is also used to apply alpha mask effects which is another great tool in video editing.
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