Hashing is the process of running data through a one-way function that produces a fixed-length fingerprint, called a hash. The same input always gives the same hash, but you cannot work backwards from the hash to recover the input. It is a checksum and a sealed envelope rolled into one: you can verify a match without ever seeing the original.
A good analogy is a meat grinder. You can turn a steak into mince, but you can never reassemble the mince back into a steak. That is the point of hashing, and it is why passwords are hashed rather than encrypted. When you log in, the site hashes what you typed and checks it against the stored hash. If the database leaks in a data breach, attackers find hashes instead of real passwords, which is far less useful to them. This is different from data encryption, which is meant to be reversed by the right person.
Modern hashing for passwords adds a salt, random data mixed in before hashing, so identical passwords still produce different hashes. Algorithms like bcrypt and Argon2 are built to be deliberately slow, which makes mass guessing impractical. Hashing also has a second job beyond passwords. The same fingerprint trick lets you confirm a downloaded file has not been tampered with. If one byte changes, the hash changes completely, so a published hash acts as a quick integrity check anyone can run.
At TopDevs we hash and salt passwords with proven algorithms and never store them in readable form, so that even if a database is exposed, the credentials inside it stay useless to whoever took them.