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Encryption is basically conversion of one form into other , also know as ciphered text. The encryption is basically done to hide meaning from other person except the one for which it has been written. Encryption is used to protect the confidentiality of data.

Hashing is basically conversion of string or data into shorter fixed value or key which represent the original string or data. Hashing is used in many encryption algorithms.

A hash function could be considered the same as baking a loaf of bread. You start out with inputs (flour, water, yeast, etc...) and after applying the hash function (mixing + baking), you end up with an output: a loaf of bread.