An SVG or “Scalable Vector Graphic” is a XML based vector image file. When working with vector graphics like SVG files, they can be scaled without losing quality. In comparison, when working with raster images like .jpg for example, you lose quality when scaling or zooming in on the image. With .svg images you do not lose quality no matter how large you zoom or scale.
SVG files are easy to use because of the editing availability. These files can be opened in a web browser, Adobe illustrator, Coral Draw or virtually any vector editing software. Don’t have a vector editor? They also can be edited in a text editor or easily converted to other file formats if needed These other formats include .jpg and .png to name a few. Also, there are free open source image editors like GIMP. This is a free download and very similar to Photoshop.
With the introduction of devices like Cricut or other similar personal vinyl cutting machines, SVG has become a very popular form of graphic format. Almost any SVG file can be uploaded directly to the cutter software for immediate use.
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Learn more about svg files on Wikipedia.