Now-a-days data authentication plays a major for the secrete transmission of the data respectively. Here in this data oriented authentication involves encryption followed by the respective decryption. Where in the encryption process takes place in the transmitter end while decryption takes place or handled at the receiver end respectively. Here an algorithm is designed based on the above strategy where complete privacy is maintained by the system. This one of the data hiding technique. Some of the data hiding techniques include cryptography, stenography and watermarking.