if the password is encrypted with 128 bit encryption than during the login when a user enters password it also encrypted with 128 bit encryption. then the encrypted entered password string is compared to stored encrypted string. if it matches then user gets login.
the 128 bit encryption is not actually cracked. but some people have large database of already encrypted password. and with some skills, they directly compare their password list with the stored encrypted password.
hacking is not one thing, it differs from OS to OS, programming language used networking design and other lot more factors.



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