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SVG Format

SVG stands for Scalable Vector Graphics. It is a vector image format for two-dimensional graphics.
Contrary to raster images, which are made up of pixels, vector images are made up of paths that are defined by geometrical shapes and equations. This means that vector images can be scaled to any size without losing quality.
SVG files are written in XML, a text format that is human-readable and can be edited with a text editor. This makes SVG files easy to work with and customize, and there are many tools available for creating and editing SVG images.
In the open source world, the most used tool for vectors is Inkscape. It is a free and open-source vector graphics editor that can be used to create and edit SVG files.
Does Godot support SVGs assets?
Yes, but Godot will rasterize them (render them) to pixels at import time. If you want them rendered larger, you'll need to change the file's import settings.
There's no big demand to rendering vectors at runtime, because very few games need this kind of extreme scalability. Usually, rendering at 2x or 4x the resolution is enough. Computers are very fast at displaying pixels, but not so much at rendering vectors, so making vectors render at decent speed at runtime would be a big challenge.