Champagne, mostly used as a generic term for all sparkling wine, is actually wine that is made from grapes that comes specifically from the Champagne region of France and is made by secondary fermentation in a bottle to induce carbonation.
Other than having it by itself, champagne can also be used to make fabulous cocktails that can perk up any party. For instance, you can mix some cognac, a few dashes of Angostura bitters, some sugar with champagne to get a swanky cocktail that is simple called the Champagne Cocktail.
You can also make the Air Mail by adding some Puerto Rican rum, some lime juice and honey with Champagne or you can try your hand at making the Atomic Champagne Cocktail by mixing, vodka, sherry and some brandy with Champagne.