There are two main file formats used in typical graphic design,
they are bitmap graphics and vector graphics.
Bitmap Graphics.
Paint and image-editing software, such as Adobe Photoshop or Corel
Photo Paint, generate bitmap images which use a grid of small squares,
known as pixels, to represent graphics. Each pixel in a bitmap image
has a specific location and colour value assigned to it. For example,
a windmill in a photo is made up of a collection of pixels in that location,
with each pixel part of a mosaic that gives the appearance of a windmill.

When working with bitmap images, you edit pixels rather than objects
or shapes. Bitmap images are the most common electronic medium for
continuous tone images, such as photographs or images created in
painting programs, because they can represent subtle gradations of
shades and colour. Bitmap images are resolution-dependent.
This means that they represent a fixed number of pixels and as a
result they can appear jagged and lose detail if they are scaled
on-screen or if they are printed at a higher resolution than they were
created for.

Vector Graphics.
Drawing programs, such as Adobe Illustrator or Corel Draw, create
vector graphics which are made of lines and curves defined by
mathematical objects called vectors. Vectors describe graphics
according to their geometric characteristics. For example, a windmill
drawn as a vector graphic is made up of a mathematical definition
of shapes drawn with a certain height and width, set at a specific
location, and filled with a specific colour. You can move, resize, or
change a colour of the windmill without losing the quality of the graphic.

A vector graphic is resolution-independent - that is, it can be scaled
to any size and printed on any output device at any resolution without
losing its detail or clarity. As a result, vector graphics are the best
choice for type (especially small type) and bold graphics that must
retain crisp lines when scaled to various sizes.
A typical bitmap image file.Note the subtle gradations of shades and colour. Typical vector image file showing crisp, bold lines and colours.

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