In this paper, different encryption methods based on hash function and stream ciphering are proposed and implemented using Field Programmable Gate Array (FPGA). PANAMA module is chosen to be implemented on FPGA technology since it has high amount of parallelism and simple operation. Several modifications on PANAMA are proposed that makes the complexity of the collision increase and the randomness of its output is improved. The two proposed methods are called PANAMA2 and PANAMA3. Characteristics (the diffusion factor, the branch number, the nonlinearity, and the correlation) of the functions used in these methods are evaluated. It is found that the time required for PANAMA2 is 11ns and for PANAMA3 is12ns. The area occupied by each method on FPGA Virtex2 is calculated. It is found that PANAMA2 and PANAMA3 need 81% of the available slices. Randomness test using five basic security tests are performed. It is found that the randomness of all methods is acceptable with PANAMA3 being the best and then PANAMA2. Complexity of collision proposed by Rijmen on PANAMA is also calculated when it is applied to PANAMA2 and PANAMA3. It is found that the complexity of this collision increases. It is also found that PANAMA, PANAMA2 and PANAMA3 have resistance against attacks on stream cipher.