/etc/shadow file stores actual password in encrypted format for user's account with additional properties related to user password i.e. it stores secure user account information. All fields are separated by a colon (:) symbol. It contains one entry per line for each user listed in /etc/passwd file Generally, shadow file entry looks as follows
(Fig.01: /etc/shadow file fields)
The last 6 fields provides password aging and account lockout features (you need to use chage command to setup password aging). According to man page of shadow - the password field must be filled. The encrypted password consists of 13 to 24 characters from the 64 character alphabet a through z, A through Z, 0 through 9, \. and /. Optionally it can start with a "$" character. This means the encrypted password was generated using another (not DES) algorithm. For example if it starts with "$1$" it means the MD5-based algorithm was used.
source: cyberciti
Linux Unix /etc/shadow file