What does the JPEG 2000 codec primarily do?

The JPEG 2000 codec is primarily designed for compressing and decompressing image data. It employs advanced compression techniques that allow for significant reductions in file size while maintaining high quality. This codec is especially notable for its ability to handle images with a wide range of qualities and for supporting both lossless and lossy compression.

While encoding and decoding images is part of its function, the emphasis on compression and decompression makes this option the most accurate representation of the core purpose of JPEG 2000. This functionality is vital in various applications, including digital cinema, medical imaging, and archival storage, where the balance of file size and image integrity is critical.

The other possible answers do touch on aspects related to image technology but do not accurately capture the primary role of the JPEG 2000 codec. For instance, enhancing video quality and encoding graphics for web usage are not the main focus of JPEG 2000; rather, they pertain to broader categories of digital imaging and web technologies. Thus, the correct answer clearly highlights the main function of the codec in the realm of digital imaging and data management.