What are the beads called?
They are called "Perler Beads/Hama Beads/Melty Beads"
What is it made out of?
Plastic
Why do you put tape on it?
Taping it holds it together. It's best to iron it OFF of the pegboard. Ironing on the pegboard could melt/damage the board. By taping it, taking it off the pegboard will be easy. Also, ironing it while it's taped will keep the beads in place so theres less of a chance of the beads falling around or moving.
Why do you poke holes in the tape?
Poking holes in the tape will allow the heat from the iron distribute evenly throughout the perler, so you can have a more even melt.
Where do you get the designs/Templates?
They are free to lookup online. Most designs I do are called "Sprites" from a game. You can find any character from a game online by searching "_____ Sprites".
Do I make my own designs/Templates?
Sometimes. There are free websites online for you to use and create your own pixel-art/sprites/designs and templates.