hashing functions

ok

so just say we have 3 sequential letters
abc

in binary radix 2 that is : 110000111000101100011
in radix 256 (ascii) that is: 96, 97, 98
in radix 256 symbols it is: abc

that means to further compress the file, you would have to come up with symbols for every 2 bytes of information ie 65536 unique different symbols which would reduce the number of characters only by half.

theoretically you could keep on adding unique symbols to further reduce the file "hash", who came up with that name????

and then the hash has to be encrypted.

the whole concept of hashing seems flawed to me, just send the file encrypted to the other party and that solves the whole problem.