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The main difference between raster and vector is that raster graphics are composed of pixels, while vector graphics are composed of paths. If you talk about a raster graphic, like a GIF or JPEG, it is an array of pixels of various colors, and combinedly they form a picture. Whereas in vector like .Eps file, it is meant to compose of paths, or lines, that are either straight or curved. As vector graphics are free from pixels, the images can be scaled to a large extent without losing quality. Where as in raster if you increase the image is the picture quality become worse and the picture looks blur
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