Mon Aug 01, 2011 11:38 pm
It's generally not a common practice, and actually a rather stupid one, to store a user password in plain text. The most common method is the user password is hashed with a salted MD5 and compared to the stored hash in the system.
It seems most systems are going to SHA-256 now instead of MD5 because it increases the difficulty of bruteforcing hashes if someone happens to get the database. It still doesn't solve the problem of weak passwords but the increased computation time slows down the process.
An administrator should never be able to see a user password. They should be able to reset it or change it, but never see the value. The human creature is a lazy animal, they'll reuse passwords rather than create new ones for each site. The hashing system protects the users from dishonest administrators.