Encryption is a reversible process, whereas hashing is one-way only. Data that has been encrypted can be decrypted back to the original value. Data that has been hashed cannot be transformed back to its original value.
Encryption is used to protect sensitive information like Social Security Numbers, credit card numbers or other sensitive information that may need to be accessed at some point.
Hashing is used to create data signatures or comparison only features. For example, user passwords used for login should be hashed because the program doesn’t need to store the actual password. When the user attempts to log in, the system will generate a hash of the supplied password using the same technique as the one stored and compare them. If they match, the passwords are the same. Another example scenario with hashing is with file downloads to verify integrity. The supplier of the file will create a hash of the file on the server so when you download the file you can then generate the hash locally and compare them to make sure the file is correct.