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"Researchers at New York University have devised a new scheme called PolyPassHash for storing password hash data so that passwords cannot be individually cracked by an attacker. Instead of a password hash being stored directly in the database, the information is used to encode a share in a Shamir Secret Store (technical details PDF).

 This means that a password cannot be validated without recovering a threshold of shares, thus an attacker must crack groups of passwords together. The solution is fast, easy to implement (with C and Python implementations available), requires no changes to clients, and makes a huge difference in practice.

 To put the security difference into perspective, three random 6 character passwords that are stored using standard salted secure hashes can be cracked by a laptop in an hour. With a PolyPassHash store, it would take every computer on the planet longer to crack these passwords than the universe is estimated to exist. With this new technique, HoneyWords, and hardware solutions all available, does an organization have any excuse if their password database is disclosed and user passwords are cracked?."