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Steganography is a process which hides messages inside other messages. For example, a small text message is encrypted by a simple algorithm and the bits are sprinkled into a JPEG file. To the human eye, the finished product is indistinguishable from a normal JPEG image, but the receiver, knowing a message is there, can extract and read it.

Steganography is quite effective at "hiding in plain sight" when one does not want to raise suspicion with ostentatious, encrypted blocks flying over communication channels.