A digital camera includes a sensor (205) for sensing an image and producing a first signal. A Bayer pattern producer (210) is coupled to the sensor and structured to produce a Bayer pattern from the first signal. The Bayer pattern is then split (212) into separate color channels. A color interpolator (214) is structured to perform a modification on only one of the color channels produced by the splitter (212). A compressor (220) then compresses the interpolated and non-interpolated color channels into a compressed image. An output interface (226) facilitates remote transmission of the compressed image over a communication channel. This communication may be made over a network to a server that operates in conjunction with the digital camera to perform certain functions, like image processing, manipulation, storage and communication, as directed by a user of the digital camera.
