A hashed password is a password that has been converted into a fixed-length string of characters using a mathematical algorithm called a hash function. This process scrambles the original password so it cannot be easily read or reversed, even by those who access the stored data. Hashed passwords are commonly used by websites and applications to protect users’ login credentials from hackers. When you log in, your password is hashed and compared to the stored hash, ensuring your actual password is never revealed or stored in plain text.