Overview
A hash is a fingerprint of bytes. MD5, SHA 1, SHA 256 and similar turn a file or string into a hex digest so you can check if two downloads match or if a password verifier expects a specific algorithm.
Hashing is one way. You cannot get the original file back from the digest. MD5 and SHA 1 are broken for security collision resistance. Use SHA 256 for integrity checks you care about. MD5 is still common for casual "did this ISO match the site" lists.
Computation is local. Hashing a confidential file here does not upload it. The digest itself is not a secret if the input is guessable (passwords need a proper KDF, not a raw SHA 256 of "password").