A cryptographic hash function takes an input (text, file, etc.) and produces a fixed-size string of bytes that appears random. The same input always produces the same hash (deterministic), but even a tiny change in input produces a completely different hash (avalanche effect). Hashes are used for data integrity verification, password storage, digital signatures, and commit identifiers (Git).
For security purposes, use SHA-256 or SHA-512. MD5 and SHA-1 are considered cryptographically broken and should not be used for security. However, MD5 is still useful for checksums and non-security purposes. SHA-256 offers a good balance of security and output length for most applications.
All hash generation happens entirely in your browser using the Web Crypto API (SubtleCrypto) for SHA algorithms and a JavaScript implementation for MD5. Your input text never leaves your device. You can verify this by disconnecting your internet — the tool continues to work.