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What is meant by Vector artwork and why is it necessary?

Raster vs Vector

Raster images are created with pixel-based programs or captured with a camera or scanner. Common examples have the file extensions of: .bmp, .jpg, .gif, .png, and are widely used on the web. Individual components cannot be altered or separated and resolution will distort when the size is increased.

Vector graphics are created with vector/graphic software such as Adobe Illustrator or Corel Draw. Common examples have the file extensions of: .eps, .ai, .cdr, and .pdf. Individual components can be separated, colors can be changed, and the size can be increased with no loss of resolution.

Example:

Image result for raster vs vector image

Raster images are made of pixels. A pixel is a single point or the smallest single element in a display device. If you zoom in to a raster image you may start to see a lot of little tiny squares.

Vector images are mathematical calculations from one point to another that form lines and shapes. If you zoom into a vector graphic it will always look the same.