Password hashing is a crucial security measure designed to protect sensitive user data by converting passwords into a fixed-length string of characters that cannot be easily reversed back to the original password, unlike encryption which is a two-way function. Hashing helps mitigate the impact of data breaches by making it harder for attackers to retrieve plain text passwords, although methods such as brute force attacks and credential stuffing still pose threats. To enhance security, techniques like salting, which involves adding random data to each password, are employed to ensure that each user has a unique hash. Additionally, slowing down hash checks by increasing computational complexity and enforcing password complexity requirements can further thwart attackers. Hashing algorithms like bcrypt, scrypt, and Argon2 are preferred for their ability to incorporate these security measures, while regular algorithms like sha256 do not offer such features. Despite its effectiveness, password hashing requires careful implementation to prevent vulnerabilities, and resources like OWASP's guide offer comprehensive information for best practices.