How does one make or create new overlays from scratch for kdenlive?

I was watching Nuxttux Creative Studios video

on adding existing overlays. I know a few sites I could go to, to find existing ones… but what about creating my own? I believe he used a png sequence for this video. So would I make it in GIMP or Krita to create the overlay sequence? Would I have to at some point, dive into natron or blender to composite the overlays through the computer? Never really done this before, so I was curious to know more.

Overlays essentially work with an alpha channel - “built in” or via chroma keying. So you can use any image creation software to come up with an overlay. Smoke or fire sparks usually require some sort of particle system to animate it, so Blender is an obvious choice.