Method and system for a single-chip camera where an image sensor is a single-chip digital color imaging device that incorporates a sensor array that captures still or full-motion video and converts the images to digital data. Moreover, the image sensor employs a built-in correlated double sampler, an internal analog-to-digital converter, and a timing circuitry. Output from the sensor is an 8-bit or more raw data, horizontal sync signals, and vertical sync signals. The output raw data may then be fed into a compression circuit that generates packets of compressed output data. The compressed data is transmitted with a USB transceiver using isochronous packets. The packets are then received, decompressed, and color processed by a host PC.