SVG stands for Scalable Vector Graphic. The lines in SVGs are very accurate. When we zoom in on a JPG it will get pixelated. But SVG file, the lines stay precise. So SVGs are the ideal file for cutting machines. You can create SVG graphics with various software, but most prominent, used by professionals is Adobe Illustrator. The most renowned software for creating SVG files is Adobe Illustrator. The task to make SVG files out of bitmap images is “Image Trace”.

To export a design as an SVG file with Illustrator, select File then Save As and choose SVG from the format dropdown menu. But it is paid and free option is Inkscape and you can definitely create SVG cut files with Inkscape and might be a decent option if you don't have access to Illustrator or Sketch.

You can easily convert your jpg or a png image into svg format and use the image for your any project. If you did double click on a SVG file it can open in your web browser or a program that you don't intend to use so you should avoid that. One of the most important things about SVG is that you can generate them in a variety of graphics programs. You can also make and edit SVG files by just opening a text editor and making the files.