The program known as thelounge is a browser interface for IRC. You can find it on the chat.kohlrak.net subdomain under the /webchat folder. It's use here is for people who use cellphones in addition to their computers. The settings have been set to restrict use of this client only on this server's IRC services, to prevent abuse resulting in me getting banned from other IRC servers (this is a home network after all).
The passwords are hashed, but passwords sent to the IRC server is not stored hashed or encrypted, which means this information is insecure. If you're going to use thelounge, when authenticating with nickserv (not necessary for your thelounge password), pick a strong password, but ensure that it's not one you use fo other services.
Keep in mind that since thelounge is a frontend to IRC, you will have a separate IRC account to thelounge account. Accounts for the lounge are provided by me upon request, however accounts for nickserv (to protect nicknames) are provided automatically by nickserv.