Inkscape is a free, open source vector graphics editor that uses SVG formatting, the W3C standard.

Its features are very similar to hose included in other applications that are neither free nor open, like Illustrator, Freehand, or CorelDraw. Strongly based in open source standards, the program permits importing files in JPEG, PNG, TIFF, and Postscript formats.

With just a glance at Inkscape's interface, you get a good idea of the great number of tools that it possesses, but it gets better as you dig deeper. Not only will you find new tools and text effects, but also an instant messenger mini-client designed to facilitate group projects.
How to vectorize images using the free tool Inkscape
When it comes to designing logos or needing certain images for use on web projects, vectorized images tend to be highly preferred over bitmaps given the obvious limitations of the latter when it comes to resizing them without losing resolution. You don’t need to turn to paid software like Adobe Illustrator or Corel Draw for that purpose, however, since there are free alternatives like Inkscape. This tutorial explains the basic concepts surrounding vectorizing an image. 
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