SHA is the Secure Hash Algorithm, an encryption method that is used in all sorts of things from ssh to vpn's. Hashing is simple enough to understand, but a hash used for cryptography has to have specific characteristics: it needs to be collision free (so that a particular key can't decrypt more than one message) and it needs to be one-way, so that you can't easily recreate the original message from the hashed version. The very first SHA apparently had problems in one of those areas, so it was replaced by SHA-1.
I happened across this recently: http://www.schneier.com/blog/archives/2005/02/cryptanalysis_o.html
But.. yesterday's unimaginable resources are tomorrow's desktops. There's also the somewhat disturbing note that says:
Hash functions are the least-well-understood cryptographic primitive, and hashing techniques are much less developed than encryption techniques. Regularly there are surprising cryptographic results in hashing. I have a paper, written with John Kelsey, that describes an algorithm to find second preimages with SHA-1 -- a technique that generalizes to almost all other hash functions -- in 2106 calculations: much less than the 2160 calculations for brute force. This attack is completely theoretical and not even remotely practical, but it demonstrates that we still have a lot to learn about hashing.
Which might mean that some mathematician may have some sudden surprising insight that makes hashes as transparent as rot-13 cyphers.
As always, security remains a journey and not a destrination.
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