1. A method for reducing artifacts in an image comprising: selecting a block size of pixels of the image; adding a masking signal to the image; truncating each pixel in the at least one block; determining a quantization error for each pixel; summing the quantization error of each pixel in the at least one block; and distributing the quantization error to neighboring blocks in the image to mask artifacts in the image; wherein the same masking signal is used for each pixel inside a selected block of the image, and the masking signal is a noise signal.