jason$ PASSWORD="Passw0rD"
Safer: If someone has access to the database, they cannot see the passwords in plaintext and must run them through a hashing algorithm
jason$ echo $PASSWORD | md5
c0e49fa492cf94f8a9eab8b8166f271b
Safer: A unique plaintext salt is added to the end of each user password (and stored in plaintext). This makes hash unique, so an attacker cannot look up accounts using the most frequently occuring hashes and substitute those for obvious passwords
jason$ SALT="ABC"
jason$ echo $PASSWORD$SALT | md5
122ff72ec91f3fd32509f94b5760ce85