The disclosure herein relates to devices for compression, decompression or reconstruction of image data for still or moving pictures, such as image data detected with a digital camera. In some embodiments, data channels are compressed using a scalable compression algorithm. The compression algorithm may allow customization of compression parameters, such as a quantization factor, code block size, number of transform levels, reversible or irreversible compression, a desired compression ratio with a variable bit rate output, a desired fixed bit rate output with a variable compression rate, progression order, output format, or visual weighting. A lower quality image or an image with lower resolution may be reconstructed using only some of the compressed data. Use of offsets to various layers and color channels allow reconstruction of the image without requiring decompression of all of the full image data.