SHA-2 (Secure Hash Algorithm 2) is a set of cryptographic hash functions designed by the NSA. SHA-256 is the most commonly used member of this family and produces a 256-bit hash value. It is widely used for data integrity verification and digital signatures.
Source: Wikipedia
MD5 has long been considered insecure for cryptographic purposes. Practical collision attacks have been known since 2004. MD5 may still be used for non-security purposes such as checksums, but not for passwords or digital signatures.
SHA-1 is also no longer considered secure. In 2017, the first practical collision attack was demonstrated (SHAttered). SHA-256 provides significantly more resistance against such attacks and is the recommended choice for new applications.
<?php
$text = 'This is a text';
$result = hash('sha256', $text);
// $result now contains string:
// 'db4067cec62c81380a9b517e7e68a6e...'
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