Digital images are a particular type of data. They have numerous applications. Taking into account current challenges and trends, image compression and protection have to be ensured. Data format, which provides fast analysis of the image compressed, is needed. In order to satisfy a combination of these requirements, an appropriate information system should be developed. In this paper, we design such a system based on atomic functions (AF) that are solutions of special functional differential equations and, in terms of function theory, are as good constructive tools as trigonometric polynomials. AF-based image processing system (AFIPS), which satisfies the requirements considered, is developed. A core of this system is discrete atomic transform (DAT). Data protection feature of AFIPS is provided by the possibility to vary a structure of the procedure DAT. Constructive approximation properties of AF ensure high lossy and lossless image compression, as well as good image representation by DAT-coefficients. Software implementation of AFIPS is investigated. The results of test data processing are given.