I\'m working on Steganography application. I need to hide a message inside an image file and secure it with a password, with not much difference in the file size. I am using
Least Significant Bit approach does not work with JPEG and GIF images because you are using the pixel data (raw image) to store hidden information before compression. A pixel p, with data 0x123456 will probably not have this value after compression because its value depends on the compression rate and neighbour pixels. In this case we are talking about algorithms that does not only compact the image (like a ZIP, that keeps the content), but changes the color distribution, texture, and quality in order to decrease the number of bits to represent it.
However, PNG can be used just to compact the image in the same sense of ZIP file, keeping the content. Therefore, you can use the Least Significant Bit for PNG images, so that Wikipedia Steganography page shows example in this format.