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In this tutorial, Nick demonstrates how to make a logo background transparent using a web-based tool called Photopea. He opens his logo file in the tool and shows how to remove the background, creating a transparent background for the logo. This process can be done entirely online without any software. Photopea functions similarly to Photoshop and allows for similar editing capabilities. By following the steps outlined in the tutorial, users can easily achieve a transparent background for their logos.