Shadow password packages are used for security of central passwords. Security is the most important aspect of every operating system. When this package is not installed the user information including passwords is stored in the /etc/passwd file. The password is stored in an encoded format. These encoded forms can be easily identified by the System crackers by randomly encoding the passwords from dictionaries. The Shadow Package solves the problem by relocating the passwords to another file (usually /etc/shadow). The /etc/shadow file is set so that it cannot be read by just anyone. Only root will be able to read and write to the /etc/shadow file.