The outside cord loop is the framing cord which secures the button and forms the loop. The colored cords are the infill and can be any color or combination you like. This one is a mix of grey and green/blue which is a common color in my resource storage box a.k.a. "scrap box".
The construction technique is shown starting with part one of a seven part tutorial.
A single piece of nylon thread can be used to secure the button and bind the fabric. The infill cords are doubled and the loop end placed inside the loop of the framing cord. In this example there are four cords on each side.
Here's a similar design made with black and blue synthetic materials.
The binding process reduces the layout size about 50%. This example is about 7/8" wide.
See this design and others like it in the fiber art design section of WhatKnotShop on Etsy.
design and photographs © copyright 2012 WhatKnotShop