Password hashing on the client side will help prevent detection of the password itself during eavesdropping, but it really does not provide any security on its own, since the credentials then become a hashed version of the password, and not the original password itself. A listening device can simply grab the hashed version and then send the hash itself.
The easiest solution is to simply use SSL / TLS. Since you mentioned the βmessageβ, this means that you are probably using HTTP. Instead, you can simply connect via HTTPS and publish the data, just like you. As long as the certificate is verified for validity (I believe that the iOS infrastructure already does this by default), then the connection should be largely provided.
This should be good enough for most situations. There are several more complex and attractive methods that you can use to simplify, but SSL / TLS does a huge amount on its own.
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