When you create an account online, you usually type in your email, a username, and — the most critical part — a password. But have you ever wondered what happens to that password once you hit “Sign Up”? Does the website keep a copy of it somewhere? Could a hacker see it if they stole the database?
This question is more important today than ever. With data breaches happening every week, understanding how websites store passwords — and what “hashing” and “salting” mean — can help you make smarter, safer choices online.
Let’s explore this step by step, starting with the worst practices (which, shockingly, some websites still use), then move toward the right and secure methods used by well-designed systems.
The Worst Approach: Storing Plaintext Passwords
Let’s start with what should never happen. Unfortunately, it still does.
Some careless websites store your password exactly as you type it, known as plaintext storage.
For example, if your password is password123, somewhere inside that company’s user database, your password field literally contains:
password123
Now imagine that database being stolen. Whoever gets it instantly has your password — not just for that website, but potentially for other accounts too, if you reuse passwords (which you shouldn’t).
It’s like writing your ATM PIN on a sticky note and leaving it on your card. It’s absurd, but it happens.
Bottom line: If a company stores plaintext passwords, they’re offering you zero protection.
The Better Approach: Hashing Passwords
So far, so bad. But most decent websites have moved beyond this. Instead of saving your actual password, they save something called a hash.
What is Hashing?
A hash is a one-way mathematical conversion that turns your password into a long string of numbers and letters — impossible to reverse.
For example:
- Password:
password - Hashed (using SHA-256):
5e884898da28047151d0e56f8dc6292773603d0d6aabbdd62a11ef721d1542d8
Every time someone enters password and applies the same algorithm (SHA-256, in this case), they’ll get this exact same result. But if you type even a single different character — like Password (with a capital P) — the hash will be completely different.
When you log in, the system doesn’t check your actual password. Instead, it hashes what you typed and compares it with the stored hash. If both hashes match, it knows you entered the same password.
That’s clever — but not perfect.
The Problem with Simple Hashing
Let’s pause for a moment and think about what could go wrong.
If two different users have the same password (say both use password123), their hashes will be identical. This means if a hacker steals the database, they can group accounts by identical hashes and guess what those people’s passwords might be.
Even worse, hackers don’t need to “crack” each password individually. They use massive precomputed databases called rainbow tables — lists of common passwords and their hashes.
For example:
| Password | SHA-256 Hash |
|---|---|
| password | 5e884898da28047151d0e56f8dc6292773603d0d6aabbdd62a11ef721d1542d8 |
| 123456 | 8d969eef6ecad3c29a3a629280e686cff8fab1c3b3… |
| qwerty | d8578edf8458ce06fbc5bb76a58c5ca4a… |
Hackers simply compare the hashes from a stolen database against these known lists. If they match, they instantly know the password.
That’s why hashing alone is not enough.
The Secure Approach: Adding “Salt” to the Hash
Now we get to the good part — salting.
Salting is an extra layer of protection added before hashing. Think of it as sprinkling something unique on your password before locking it away.
When a website uses salting, it adds a random string of characters (the “salt”) to your password before hashing it.
For example:
- Password:
password123 - Salt:
9xZ$1@k - Combined:
password1239xZ$1@k - Hashed result:
c2a846b24a35b5f0d1f3...
Now, even if someone else uses the same password, their hash will be completely different because the salt is unique per account.
Salting ensures:
- Two identical passwords will never produce the same hash.
- Precomputed rainbow tables become useless since every password has its own salt.
Each time you log in, the website adds the same stored salt to your input, re-hashes it, and compares the result.
Why Salting Works
The key is that hashing is deterministic — meaning the same input always gives the same output — but salting introduces randomness.
This means hackers can’t build a universal “password-to-hash” lookup table anymore. They’d need to generate a new table for every unique salt, which is computationally impractical.
A properly salted hash looks something like this:
$6$9xZ$1@k$QXJ4N5w9p3nA9Uz6O9vT...
The salt and hash are usually stored together, but that’s fine — because knowing the salt doesn’t help unless you can guess the original password and re-hash it perfectly.
When Password Storage Goes Wrong
When you hear about major data breaches, one of the first questions experts ask is:
“Were the passwords stored as unencrypted, unsalted hashes, or salted hashes?”
Each phrase tells you something important about the risk level.
Let’s break it down.
1. Unencrypted Passwords
This means the company stored your password in plaintext — absolutely no protection.
If you were affected, you must change your password immediately.
2. Unsalted Hashes
This means the company at least hashed your password but didn’t use a salt.
Attackers can still use rainbow tables to recover many passwords quickly.
If you see this term, it’s still risky — change your password.
3. Salted Hashes
This is what good systems use. Even if the database is leaked, cracking passwords becomes extremely difficult.
You should still update your password eventually, but you don’t need to panic.
Beyond Salting: Modern Security Enhancements
Salting alone is good, but advanced systems go further. Let’s look at how modern web applications harden their password storage even more.
1. Peppering
In addition to salting, some systems add a secret global key (called a pepper) stored outside the database — for example, in server configuration files.
This adds another layer, making it impossible for hackers to crack passwords even if they steal the user database.
2. Iterative Hashing (Key Stretching)
Instead of hashing a password once, systems use algorithms like bcrypt, scrypt, or Argon2 that hash the password thousands (or millions) of times.
This slows down brute-force attacks dramatically, since every guess requires heavy computation.
3. Hardware Security Modules (HSMs)
High-security applications (like banks) store password keys in dedicated secure chips, not in regular servers. These modules are tamper-proof and tightly controlled.
So, Why Do Breaches Still Happen?
If all these methods exist, why are we still hearing about stolen passwords? The reality is that many developers cut corners.
Security is often an afterthought until it’s too late. Some systems still use outdated algorithms like MD5 or SHA-1, or fail to salt properly. Others misconfigure encryption libraries or use weak default settings.
The most secure setup can still be compromised if implemented carelessly.
How You Can Protect Yourself
While you can’t control how a website stores passwords, you can control your own password habits.
Here’s what every user should do:
- Use a unique password for every website.
This ensures a breach on one platform doesn’t expose your other accounts. - Use a password manager.
Tools like Bitwarden, 1Password, or KeePass store your passwords securely and generate complex ones automatically. - Enable two-factor authentication (2FA).
Even if someone steals your password, they won’t get in without your phone or security key. - Change passwords regularly — especially after a breach is reported.
Common Questions
Q1: Can a hacker reverse a hash to get my password?
No. Hashing is one-way. The only way to find your password is to guess it and compare hashes — which is why strong, unique passwords are crucial.
Q2: What if my password database was “salted” but still got hacked?
Even salted databases can be cracked eventually if passwords are weak or salts are poorly implemented. But it’s exponentially harder.
Q3: How do I know if a website stores passwords securely?
Unfortunately, you can’t. That’s why you must assume no website is perfectly safe and use unique passwords for every service.
Final Thoughts
Proper password storage is one of the cornerstones of digital security, but not all websites get it right.
The safest approach involves salting, iterative hashing, and secure algorithms like bcrypt or Argon2. When combined with good user practices — like unique passwords and two-factor authentication — this forms a solid defense against most modern attacks.
So next time you hear about a “data breach,” don’t panic — but do act wisely. Change your password, understand what kind of security the website used, and continue to build safe habits that protect your digital life.
Official Resources:
- Learn more about bcrypt and Argon2: https://en.wikipedia.org/wiki/Bcrypt
- Microsoft Security Guidelines: https://learn.microsoft.com/en-us/windows/security/
Disclaimer:
This article is for educational purposes only. While it provides insight into standard password security practices, always follow the latest recommendations from trusted cybersecurity experts and use reputable password management tools.
#CyberSecurity #PasswordSecurity #Hashing #Salting #Encryption #OnlineSafety #DataProtection #WebSecurity
