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Terraforming is the process of transforming a planet that was previously uninhabitable, into a inhabitable planet. This is done using nanocrobes and terraforming reactors, that over the periods of several years create an atmosphere, after which basic plant life is formed using algae and micro organisms. After the planet life is capable of performing the basic photosynthetic process of converting carbon dioxide to oxygen, and the atmosphere further stabilizes further planet life, and some forms of animal life are introduced, and the planet is ready for colonization.
Terraforming isn’t perfect, and only has a 20% success rate. Also only planets that are in optimal conditions can even be considered for Terraforming. Only 24 planets to date have successfully been Terraformed, however many more are undergoing Terraforming even now.