In this paper, we proposed a novel reversible data hiding method in encrypted image (RDHEI), which is based on the compression of pixel differences. In the proposed method, at the content owner’ side the image is divided into non-overlapping blocks, and a block-level image encryption scheme is used to generate the encrypted image, which partially retains spatial correlation in the blocks. Due to the spatial correlation, in each block the pixels are highly likely to be similar. Therefore, the pixel differences in all blocks are concentrated in a small range and can be compressed. By the compression of pixel differences, the data hider can vacate the room to accommodate secret data in the encrypted image without losing information. At the receiver’s side, the receiver can obtain secret data or retrieve the original image using different keys with no error. The experimental results demonstrate that, compared with existing methods, the proposed method can achieve a higher capacity and visual quality.
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