This example shows how PHP's password_hash function takes a plain password and creates a secure hashed string. The password variable is set first, then password_hash is called with PASSWORD_DEFAULT to generate a hash. This hash looks like random characters and is printed. The hash cannot be reversed to get the original password. Instead, password_verify is used later to check passwords. Using PASSWORD_DEFAULT ensures the best algorithm is used automatically. This process keeps passwords safe by storing only hashes, not plain text.