What The LinkedIn Hack Taught Us About Storing Passwords

In June 2012, an anonymous hacker posted a list of 6.5 Million encrypted passwords belonging to LinkedIn users on a Russian hacker forum. It was soon discovered that these passwords were hashed using an outdated and vulnerable hashing algorithm - and were also unsalted. The lawsuits followed suit shortly… what is 'hashing' and 'salting', and can we trust big organizations to keep our secrets safe?