  As the complexity of current data flow systems and according infrastructure
networks increases, the security of data transition through such platforms
becomes more important. Thus, different areas of steganography turn to one of
the most challengeable topics of current researches. In this paper a novel
method is presented to hide an image into the host image and Hardware/Software
design is proposed to implement our stagenography system on FPGA- DE2 70 Altera
board. The size of the secret image is quadrant of the host image. Host image
works as a cipher key to completely distort and encrypt the secret image using
XOR operand. Each pixel of the secret image is composed of 8 bits (4 bit-pair)
in which each bit-pair is distorted by XORing it with two LSB bits of the host
image and putting the results in the location of two LSB bits of host image.
The experimental results show the effectiveness of the proposed method compared
to the most recently proposed algorithms by considering that the obtained
information entropy for encrypt image is approximately equal to 8.
