Password storage refers to the methods used to keep user passwords safe and secure. Instead of saving passwords in plain text, which can be easily accessed by unauthorized users, secure systems use techniques like hashing and salting. Hashing transforms the password into a fixed-length string of characters, while salting adds random data to the password before hashing, making it harder for attackers to crack. When a user logs in, the system hashes the entered password and compares it to the stored hash. If they match, access is granted. This process helps protect sensitive information and is crucial for maintaining the security of online accounts and services.