Digital images can be categorized as either natural images like photographs that have been digitized, or artificial images like graphics created using computer software. Vector images use mathematical algorithms to create shapes that can be resized without quality loss, while raster images use pixels arranged in grids to represent tones and colors but are resolution dependent. Common image file formats include .jpeg which is best for photos but loses quality with edits, .gif which allows transparency and manipulation without quality loss, and .tif which supports high resolution for printing but not sharing online.