Andrew Podner has posted about the password hashing functionality that's coming with PHP 5.5 - how it will work and some of the benefits of its use.
Recently PHP 5.5 was released into beta, which puts us one step closer to another release of PHP. This week, I thought I would spend a little time explaining a new feature that will be implemented in 5.5 that will hopefully make dealing with passwords easier for developers to grasp and properly implement. I cannot tell you the number of apps, even ones written within the last year or so, that I open up only to find either an md5 hash, or worse, clear text password storage. I keep telling myself that eventually this will come to an end, and people will stop taking the easy way out. Maybe PHP 5.5 will have made it so easy that there is simply no further excuse not to implement solid password hashing.
He includes an example of the four new functions that will come with the hashing functionality: password_get_info, password_hash, password_needs_rehash and password_verify. He includes the parameters that should be included in each call and the details from the call to get the hash's info. If you're not going to be able to move up to PHP 5.5 when it's released, you might consider looking into this compatibility library to have a similar interface and functionality (for 5.3.7 or greater).