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Note that there is nothing particularly special about an MD5 PASSWORD. MD5 is a hashing algorithm that can be, and is typically, used on a wide range of data including whole CD ROM images. MD5 was designed as a one way hash, meaning the same text in always gives the same result while being very hard to reconstruct the original text from the hash. You can also add a 'salt' to the hash to increase it's effectiveness which will help to destroy the effectiveness of what are called Rainbow Tables (mappings of words to hashes) by creating a random seed.
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