SHA-256 vs Argon2id: Why Modern Websites Are Switching to Stronger Password Protection

Every time you create an online account, you trust a website to keep your password safe. But what actually happens after you click "Sign Up"?

The answer lies in a security technique called password hashing—a process that protects your password even if a company's database is compromised. Understanding how it works can help explain why some websites recover quickly from cyberattacks while others expose millions of users to serious risk.

What Is Password Hashing?

Reputable websites should never store your password in plain text. If they did, anyone who gained access to their database could immediately see every user's login credentials.

Instead, your password is processed through a cryptographic hash function, which converts it into a fixed-length string of seemingly random characters known as a hash. Unlike encryption, hashing is designed to be one-way—the original password cannot realistically be reconstructed from the stored hash.

When you log in, the website hashes the password you enter and compares it with the stored hash. If both match, access is granted without the service ever needing to store or reveal your actual password.

Why Stolen Password Hashes Still Matter

Although attackers cannot directly reverse a secure hash, they can attempt to crack it by generating millions or even billions of password guesses, hashing each one, and comparing the results with the stolen database.

How quickly this succeeds depends largely on the hashing algorithm the website uses.

Why SHA-256 Is No Longer Recommended for Password Storage

SHA-256 is one of the world's most trusted cryptographic hash algorithms. It is widely used to verify file integrity, secure digital signatures and support blockchain technologies.

However, cybersecurity experts strongly advise against using SHA-256 by itself for password storage.

The reason is simple: it is designed to be extremely fast. Modern graphics processors (GPUs) can compute billions of SHA-256 hashes every second, allowing attackers to test enormous numbers of password combinations in a short period if password hashes are stolen.

Why Argon2id Offers Stronger Protection

To overcome the weaknesses of traditional hashing algorithms, researchers developed Argon2, which won the Password Hashing Competition in 2015.

Its recommended variant, Argon2id, was specifically designed for storing passwords securely.

Unlike SHA-256, Argon2id deliberately consumes significant memory and processing time every time it creates a password hash. This makes it far more expensive for attackers to perform large-scale password-cracking attempts, even using specialised hardware.

Because the algorithm is intentionally resource-intensive, organisations can also adjust its security settings over time as computing power improves, helping maintain strong protection against future attacks.

Which Algorithm Should Organisations Use?

Security professionals generally agree that Argon2id is the preferred choice for modern password storage.

While SHA-256 remains an excellent cryptographic algorithm for many applications, it was never designed to defend passwords against today's high-speed cracking hardware. Using it alone to store passwords leaves users unnecessarily exposed.

For organisations developing websites, mobile apps or enterprise systems, implementing dedicated password-hashing algorithms such as Argon2id—alongside unique salts and, where appropriate, multi-factor authentication—provides significantly stronger protection against credential theft.

What This Means for Users

Even the strongest password hashing cannot protect weak passwords.

Cybersecurity experts recommend using:

• Long, unique passwords for every online account.

• A reputable password manager to generate and store complex credentials.

• Multi-factor authentication (MFA) whenever available.

Together with modern hashing algorithms such as Argon2id, these measures provide one of the most effective defences against account compromise in an increasingly connected digital world.