What is hashing in Android?

Can you explain, in simple terms, what hashing in Android entails? I'm curious about how it works and its significance in the realm of mobile security. Specifically, how does hashing help to protect sensitive data on Android devices? Is it a form of encryption, or does it serve a different purpose? And how does the hashing process differ from traditional encryption methods, if at all? I'd appreciate it if you could elaborate on these points and provide some real-world examples to help me better understand the concept.