The explosion of the digitized media introduces a demanding problem of security in multimedia data communication in the network environment. Accordingly, digital watermarking technique needs to be integrated in a digital rights management framework to address different features of the content management. The purpose is to build up low power, real time, reliable and secure data hiding system that can be obtained all the way through hardware implementation. As an effort towards the power efficient system, here we present an oblivious, spatial domain watermarking based authentication algorithm and its VLSI/ULSI architecture. It is realized with the help of "spintronics" or "spin based electronics" where classical binary bit '1' and '0' are encoded in orthogonal spin polarization of single electron confined in a quantum dot and placed in magnetic field. The benefit of the spintronic devices is that it needs much less power than conventional technologies whilst operating at much higher speed. The projected scheme utilizes the lower bit plane modulation for hiding a binary image like information within a gray scale image. All the modules of the watermarking algorithm are implemented in Single Spin Logic along with its computer simulation. It is shown that the low cost data embedding algorithm can hide watermark into original cover image coming from a sensor much quicker than software implementation and the embedded image is easily conveyed to PC by using proper interface. The quality of the transmitted image is also analogous to that of the implemented by software algorithm.