JPEG is one of the most successful image compression standards used in various applications ranging from digital photography to medical imaging. Despite this, the technology used in JPEG dates back twenty years ago and today as well as tomorrow's applications require features that are either not fully supported by JPEG or if supported do not offer good efficiency. This observation has led to the development of a next generation compression standard called JPEG 2000. JPEG 2000 beside providing an improved efficiency, offers features such as error resiliency, up to lossless compression, and region of interest coding, to name a few. In this seminar, we will overview the theoretical background and the underlying technology benind the JPEG 2000 compression algorithm, and dicsuss the potential applications in which such a standard can be used.