Hashes are strings or numbers generated from text that are used to store passwords and check file integrity. Popular hashing algorithms include MD5, SHA-1, and SHA-2, with SHA-256 being recommended when security is important. Digital signatures combine hashing with public key infrastructure to validate the authenticity, integrity, and consent of digital communications. They work by hashing the content, encrypting the hash with a private key, and allowing verification with the corresponding public key.