Images require substantial storage and transmission resources, thus image compression is advantageous to overcome these difficulties. This paper presents Application of DWT for image processing. The main objectives of this paper are image compression, reconstruction, pattern recognition and image data hiding. First, in compression of two-dimensional image data is divided an image into blocks of size N x M and then computed the DWT of each block at the finest spatial resolution. The blocks of transformed coefficients were classified into type HH, HL, LH and LL. Again, block LL can be used to classify four more blocks in second level. Each class consisted of group of blocks of size (N/2) x (M/2) of similar type. Then these blocks are quantized using SPIHT (Set Partitioning in Hierarchical Trees) Algorithm to get a compressed image (i.e. bit stream). Reconstruction of image follows exactly reverse process i.e. inverse SPIHT and inverse DWT. The reconstructed image will be equivalent to original image. New algorithms are developed for pattern recognition and image data hiding, Secondly DWT based feature for pattern recognition. This algorithm is based on binary comparison using X-OR operation and Hamming distance algorithms. Since here binary comparison is done, the DWT is used to enable better recognition accuracy. Finally, this paper presents image data hiding. In this, compressed image (bit stream image or called signature image) is embedded into a dummy image (or called host image). This is done using bit replacement technique. The quality of embedded image cannot be identified by human visual system.
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