Raster vs Vector Graphics

There are two fundamental types of digital images:

Raster images (like photos, PNGs, JPEGs) are made of a grid of tiny coloured squares called pixels. When you zoom in far enough, they become blurry and blocky. They are great for photographs.

Vector images are made of mathematical paths and shapes - curves, lines, and fills described by coordinates. Because they are math, not pixels, they can be scaled to any size with no loss of quality. A vector design can be the size of a postage stamp or the side of a building and look equally sharp.

For design work that will be cut on a laser cutter, printed on a vinyl plotter, or screenprinted, you almost always need a vector file. Inkscape creates and edits vector files saved in SVG format.

Tip: If a design will ever be printed larger than the screen you are working on, use vector. If it will only ever live on a screen, raster is fine.