In more detail
Hashes verify that data has not changed, identify duplicate files and are the building block of signatures and password storage. SHA-256 is the usual secure choice; MD5 and SHA-1 are broken for security use. A hash is not encryption: there is no key and no way back.
Example
The SHA-256 hash of hello is 2cf24dba5fb0a30e26e83b2ac5b9e29e1b161e5c1fa7425e73043362938b9824. Make your own with the Hash Generator.