MD5 is Message Digest algorithm 5 used for cryptographic hash function. The tool takes the data from any given text and convert it into a 32 digit hexadecimal number format. Regardless of the length of the text you enter the output will always be a 32 digit hexadecimal number.
The MD5 hash is generally used to compare the difference between the two files or text content. For example, you can generate the hash for two text blocks and find any difference in the generated hash output. If there is no difference the content is same or else there are differences between the two test blocks.