The term steganography comes from the Greek words meaning "to cover tightly" and "writing." It refers to the practice or art of concealing a message in any medium. Digital steganography refers to concealing a message in a digital format. Digital Steganography makes use of the fact that in a number of file formats, data is reduplicated or some data is of little importance, and the hidden message does not cause noticable changes to the file. It is used in graphics files, HTML, sound files, video, and text files, for example, but image files are favored and referred to as stego-images.
Digital steganography is related to hidden digital watermarking, but watermarking often uses smaller messages and has different purposes — often copyright, although to a certain extent, they are interchangeable. There is special software to enable the practice of digital steganography, and it may enable hiding a message within a digital watermark, although other methods may be more common. Some digital steganography software is better than others at effectively concealing messages. http://www.wisegeek.com/what-is-digital-steganography.htm
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