I would like to use the best algorithm to hide 1024-bits inside an image. What is the best option to implement this? Is it by using Steganoraphy (i.e. LSB) or Digital water marking?
closed as primarily opinion-based by Lucas Kauffman, TildalWave, NULLZ, Scott Pack, Adi Jul 3 '13 at 22:51
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There is no single answer to that. It depends on what you are trying to do.
Steganography is about hiding some data into a medium file (say, a picture) such that outsiders won't notice that the picture is more than a picture, and contains a hidden message.
Watermarking is about hiding some kind of mark into a medium file (say, a picture) such that outsiders won't be able to disassociate the mark from the image: if they reuse the image, or part of it, in another context, then they will transport the mark as well.
So they are not the same thing, and don't do the same thing, and neither is "better" than the other in any sense, no more than an orange is better than an apple (or vice versa). It depends on the context. A message hidden in a picture through steganography can often be removed quite easily. A digital watermark is rarely inconspicuous, and its presence is often easy to detect. Steganography is mostly associated with spies and other covert agents, while watermarking is more about trying to enforce intellectual property rights.
They are 2 totally different things. Watermarking is marking an image so if someone steals it and puts it on their site you can look at the watermark to prove it's yours.
Stenography is hiding a message or data inside the image to be recovered by someone else.
What are you trying to protect?