login/password_hash_algorithm is a SAP Parameter attribute which is used to control encoding and hash algorithm used for new passwords information. This is available within R/3 SAP systems depending on the version and release level.
Below is the standard documentation available and a few details of the attributes values .
Since SAP_BASIS 7.02, password hash values are calculated with a
standardized hash procedure. This is usually the "(random) salted"
hash procedure; with this method, a randomly-generated value
("salt") is also used, in addition to the password, to calculate the
password hash value; the hash value calculation can also be
performed more than once successively (that is, iterated), to make
dictionary and brute force attacks more difficult.
If you are using iterated hash procedures, you need to balance
performance loss and security gain.
This profile parameter is evaluated when calculating new password
hash values (but not, however, when checking password hash values
at logon), to determine the hash procedure and the coding format.
Normally, you should not need to change the value from the default
value specified by the kernel.
In this way, you automatically profit from continual further
development in the area of password hash procedures.
More information: SAP Note 991968.
See SAP Parameter Documentation for full SAP documentation for this profile parameter.