Where is the next.js image optimization?

[cmsbased]

What is the purpose of using next/image with "srcset" when nothing is optimized? img duplicates same digitalocean image URL 8 times.
https://starter-uploads.nyc3.digitaloceanspaces.com/user_ed78b0e88f.png

Same 1.2Mb image loads on retina macbook and iphone 4 over 3g.

[cmsbased]

I removed loader with hardcoded URL to make use of responsive images.

strapi-starter-next-corporate/starter/components/elements/image.js

Line 23 in 10002a2

loader={loader}

Next.JS figured out the rest and loaded optimized srcset images.