What are the key functions and variables used in the provided PHP code for adding a watermark to images?

The key functions and variables used in the provided PHP code for adding a watermark to images include imagecreatefrompng(), imagecopy(), imagepng(), and the watermark image file path and coordinates. To add a watermark to an image, you need to load the original image and the watermark image, then copy the watermark onto the original image at the desired coordinates, and finally save the modified image.

<?php
// Load the original image
$originalImage = imagecreatefrompng('original.png');

// Load the watermark image
$watermark = imagecreatefrompng('watermark.png');

// Set the coordinates for the watermark
$watermarkX = 10;
$watermarkY = 10;

// Copy the watermark onto the original image
imagecopy($originalImage, $watermark, $watermarkX, $watermarkY, 0, 0, imagesx($watermark), imagesy($watermark));

// Save the modified image
imagepng($originalImage, 'output.png');

// Free up memory
imagedestroy($originalImage);
imagedestroy($watermark);
?>