Hashing is a process that converts a key like a text or number into a hash value using a hash function. This value is used to place the key in a hash table which allows for fast insertion, deletion and search operations. Common hash functions include the division method which divides the key by the table size, the mid square method which squares the key and takes the middle digits, and the digit folding method which splits the key into parts and adds them together. These functions aim to distribute keys uniformly across the hash table.