Definition
Scalable Vector Graphics (SVG) is an XML-based vector image format defined by the W3C, describing shapes, paths and text mathematically. It became a W3C Recommendation in 2001.
How it works
An SVG file is plain-text XML that records “which shape to draw, where”. Rendering computes the image from that description on the fly, so the graphic scales to any size without blurring or jagged edges.
Usage
SVG is common for icons, logos, charts and web illustrations: files stay small, scale freely, and can be styled with CSS and manipulated with scripts. In print and responsive design it keeps images sharp at any resolution.
Related and confusable terms
SVG is a vector format while GIF is a bitmap format: GIF stores pixels and turns blurry when enlarged. Both are 2D image formats, representing the vector and bitmap approaches.