1. Start out with a new 100x100 image. Fill in the background with any color you want. I am going to use Blue (#0A5DB2). Next copy the background layer by going to Layer > New > Layer via Copy (Ctrl+J).
2. Next add some noise in order to spice up the final product by going to Filter > Noise > Add Noise. Use the default settings as shown below.
3. In order to get the pixel blocks needed, go to Image > Image Size to change the image size. Change pixels to percent and enter 1000. Important: Don't forget to change the Resample Image setting to Nearest Neighbor.
4. Now we need to create space between each of the pixels. A pattern will need to be used. To make this pattern, create a new 10x10 transparent image. Grab the pencil tool with a width of 1px and create the following. Then go to Edit > Define Pattern and give it a name. You can then minimize or close this pattern image to go back to the original image.
5. Back on the original image, create a new layer and go to Edit > Fill and select the pattern that was just created, then click OK.
6. Next select Layer 2 then press Ctrl+click on this layer. Then turn off this layer and select Layer 1. Finally, press the Delete key.
7. Next add the following blending options: Gradient Overlay & Bevel and Emboss.
Optional
8. The image can be left as is, but it can be improved while altering the color of the image. To do this, select Layer 1 then go to Image > Adjustments > Hue/Saturation and select a color. Don't forget to check the colorize box before hand. Then select the Background layer and apply the exact same Hue/Saturation settings. Different variations are shown below.
