I was thinking steganography too initially, but that's strictly information hiding. This "encrypts" it by XOR-ing it with random data. Without the "key" image, there is no information in the actual "data" image because it's literally just random data. In steganography the data is "discoverable", it's just hard to find; in this, it's impossible to derive the data without the key.
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How is this different from a combination of one time pads and steganography?
I think that's what it is. One could use this with the least significant bit of an image to do a watermark.
I was thinking steganography too initially, but that's strictly information hiding. This "encrypts" it by XOR-ing it with random data. Without the "key" image, there is no information in the actual "data" image because it's literally just random data. In steganography the data is "discoverable", it's just hard to find; in this, it's impossible to derive the data without the key.