JP2 is a graphic format created to replace the discrete cosine transform-based JPEG method used in standard JPEG files with a new wavelet compression algorithm.
Since JP2 pictures can use either lossy or lossless compression methods, users have a lot of liberty when it comes to creating this type of files.
In order to create JP2 files, users need to encode their images to JP2 format using compatible graphic converters.
There is a wide range of graphic applications that support creating JP2 files, and most of them allow the users to apply effects to the source images and to rotate, crop or resize them before converting them to JP2 format.