Vector Versus Raster Format

Vector Graphics use geometrical elements such as points, lines, curves, and shapes, which are all based on mathematical equations, to represent images in computer graphics.

Raster Graphic images or bitmaps are a data structure representing a generally rectangular grid of pixels, or points of color, such as a photo, viewable via a monitor, paper, or other display medium.

So as an example, Illustrator is a Vector-Based Program, and Photoshop is a Raster-Based Program. 

Most Vector programs can export their designs as a SVG/DXF file which can then be opened in Trace.