The New JPEG
Since 1998, DIG (Digital Imaging Group) and the ISO (International Standards Organization) have been designing a file compression format that they hope will last for more than a decade. With backers such Adobe, HP, AGFA, Canon and the original creators of the first JPEG format, it looks like the technology is within two years of becoming a standard. While there are no guarantees, here are some compelling reasons for the push to a new format.

JPEG LIMITATIONS

1. The original JPEG is a 10 year old format built on 20 year old technology. This technology was designed to compress photos before the Internet or digital photography became commonplace.
2. It's a Lossy technology - a poor image can’t be resurrected (the result is artifacting - the blocky imperfections that are visible in a low-quality JPEG).
3. The original format has poor color reproduction. For instance, choosing a green shirt on the web is not always a guarantee that's what you'll be getting color-wise. Another example would be the color gamut in digital cameras and how most flatten out the colors into basic, limited choices.

WHAT THE NEW JPEG TECHNOLOGY OFFERS

1. The new JPEG is a different type of compression altogether. It's a method called wavelet compression as compared to traditional DCT compression. Unlike DCT compression, which uses compression blocks of 8x8 (64 bits), wavelet compression offers non-uniform compression using algorithms to compress some areas more than others. This results in higher compression ratios (20-30% smaller than JPEG).
2. It can contain additional information in the file such as non-image data (like descriptions, dates, and locations) and color information (like meta data) built into the file.
3. It's a lossless technology, making it a suitable replacement for TIFFs
4. The new format streams information. This is due to the way the file format saves data. It starts with lower frequencies and adds higher frequencies as you move into the file. So, a single JPEG file may only be 50k, but the three individual stages of one image could separately add up to 250k. This process is similar to flashpix but it's taken a step further, giving us better compression. This is a definite advantage for ecommerce sites where the user want’s to zoom into more detail.

THE FUTURE
For now, the technology that promises a new JPEG format is incorporated propriety software, but is available as a Photoshop plugin and a Quark Xtension. Although a very powerful tool for designers & producers, I see a more gradual acceptance of the technology as the needs of users grow. Initially, the technology was called JPEG 2000, however missed opportunities and a slow acceptance have hindered its progress. See Lizard Technology for more information and samples.