The encryption of the password in /etc/shadow file is formatted as follows:
$ <id>
$ <salt>
$ <hashed>
$ y
$ j9T
$ 3QSBB6CbHEu...SNIP...f8Ms
The type (id) is the cryptographic hash method used to encrypt the password. Many different cryptographic hash methods were used in the past and are still used by some systems today.