Cryptography & Security⏱️ 8 min readUpdated: 2026-08-19

Hashing vs. Encryption: When to Use SHA-256 vs. AES vs. Argon2

Learn the vital differences between cryptographic hashing and encryption. Explore SHA-256 for data integrity, AES for data confidentiality, and Argon2/bcrypt for passwords.

Core Differences at a Glance

FeatureHashing (SHA-256, MD5)Encryption (AES-256, RSA)Password Hashing (Argon2, bcrypt)
PurposeData integrity & checksumsConfidential data storage & transitSecure password storage against GPUs
ReversibilityIrreversible (One-way)Reversible (with decryption key)Irreversible (Slow with work factor)
Output SizeFixed (e.g. 256 bits for SHA-256)Proportional to input sizeFixed string with salt + hash parameters
SpeedFast (Hardware accelerated)Fast (AES-NI accelerated)Intentionally Slow (Resistant to brute force)

Why SHA-256 Should Not Be Used Directly for Passwords

SHA-256 is designed to compute digests extremely quickly (billions of hashes per second on modern GPUs). Fast hashes make brute-force cracking trivially fast. For storing user passwords, always use slow, salted, memory-hard key derivation algorithms such as Argon2id, bcrypt, or PBKDF2.

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