PHP Password Security

If you build websites that require users to register it’s your responsibility to keep their passwords safe. And if you’re storing the passwords in plain text then you’re not doing your job properly. It may be that, like Reddit, you think that storing passwords in plain text leads to a better user experience. I happen to agree with you. But then, like Reddit, what happens if your database is stolen? It’s not just your site that is compromised. Since most users use the same password on multiple sites, all those sites have also been compromised.

More: http://www.bigroom.co.uk/blog/php-password-security