how do passwords work?

newbie here. so consider this paradox: let's say you have a pass protected rar file. now the password should be stored somewhere in the file to compare against the inputted password. so if it's there how come you cant just extract it?

>>37
Random noise generated by a PRNG is just as incompressible as ``genuine'' randomness.
That is inherently untrue in principle, with a caveat. Practically speaking, though, bzip isn't going to do the trick.

The caveat being that a system with sufficiently greater resources could generate a sequence that in principle could not be compressed by a system with inferior resources, though abstractly it is still a compressible sequence.