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Hash Algorithm is used by the software for several purposes, including transformation of password to random binary encryption key.
Secure Hash Algorithm - SHA
In cryptography, the Secure Hash Algorithm - SHA is one of a number of cryptographic hash functions designed by the National Security Agency (NSA) and published in 2001 by the NIST as a U.S. Federal Information Processing Standard.
SHA-2
A family of two similar hash functions, with different block sizes, known as SHA-256 and SHA-512. They differ in the word size; SHA-256 uses 32-byte(256 bits) words where SHA-512 uses 64-byte(512 bits) words.
Message-Digest Algorithm - MD5
MD5 is a widely used cryptographic hash function that produces a 128-bit (16-byte) hash value. MD5 has been utilized in a wide variety of security applications, and is also commonly used to check data integrity. MD5 was designed by Ron Rivest in 1991. However, it has since been shown that MD5 is not collision resistant; as such, MD5 is not suitable for applications like SSL certificates or digital signatures that rely on this property, most U.S. government applications now require the SHA-2 family of hash functions.
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