Locked box versus fingerprint
Encryption is like locking information in a box. Someone with the right key can unlock it. Online services use encryption while information travels across networks, and software may use it for stored data.
Hashing creates a digital fingerprint of data. Comparing hashes can reveal whether a file changed, but a hash cannot restore the original. Passwords need a deliberately slow hashing method and a unique random value, called a salt, mixed in before hashing to make guessing harder.
Choose by purpose
Protect encryption keys and use established methods. Simple encoding or homemade scrambling is not secure encryption.