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In this paper, an efficient hardware implementation of modified RC4 stream-cipher is proposed. In contrary to previous design, which requires four memories each of size 256 X 8, the proposed system can be implemented by using only two memories each of size 128 X 7. Due to the reduction in the memory size the strength of encryption can be increased. Design of RC4 stream cipher for data Security; RC4 uses a variable length key from 1 to128 bytes to initialize a128-byte array. The array is used for subsequent generation of pseudo-random bytes and then generates a pseudorandom stream, which is XORed with the plaintext/cipher text to give the cipher text/plaintext.
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