Right now the best possible solution to use in PHP for password hashing is to use the bcrypt (blowfish) implementation. Why? There are several reasons:
- variable 'work' parameter
- built-in salt
Keep in mind that if you are not running php 5.3, then crypt_blowfish may not be available on your system.
Work Parameter
Blowfish/crypt is already has an expensive setup time but by setting the work factor you can increase the amount of time it takes to calculate a hash. In addition, you could easily change that work factor in the future as computers get faster and are able to compute hashes more easily. This makes the particular hashing method scale.
Built-in Salt
For me this is just laziness but I like that the salt & pass are stored together.
Implementation
To use blowfish you'd create a hash as follows
// salts must be 22 characters
$salt = "ejv8f0w34903mfsklviwos";
// work factor: 04-31 (string), each increase doubles the processing time.
// 12 takes my current home computer about .3 sec to hash a short string
$work = '12';
// $2a$ tells php to use blowfish
// you end up with a string like '$2a$12$mysalthere22charslong'
$options = '$2a$' . $work . '$' . $salt;
$hashedPass = crypt($plaintext, $options);
To verify a hashed password is simplicity:
if(crypt($user_input, $stored_password) == $stored_password) { echo "valid!"; }
Now, if at any given time you want to increase the work factor you could take the submitted pass after a successfull login, and rehash and save it. Because the work factor is saved along with the salt & password, the change is transparent to the rest of the system.
Edit
There seems to be some confusion in the comments about blowfish being a two way encryption cypher. It is not implemented as such in crypt. bcrypt is an adaptive password hashing algorithm which uses the Blowfish keying schedule, not a symmetric encryption algorithm.
you can read all about it here: http://www.usenix.org/events/usenix99/provos.html
or you can read even more about using bcrypt (the hashing implementation of blowfish) here: http://codahale.com/how-to-safely-store-a-password/