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Digital watermarking is the process of embedding a piece of information into a digital image. Our proposed method is a semi-fragile watermarking algorithm that can be used for identification systems. The algorithm is using Discrete Wavelet Transform (DWT) and calculates the coefficients of the image to be watermarked. Hand gesture image is used as watermark image and is embedded in the coefficients of the original image. Later in the authentication phase, user is authenticated through a comparison between the embedded hand gesture and user hand gesture. Experiments demonstrate that this method is immune to JPEG lossy compression. However it cannot survive major changes.