Ok, so the whole problem with hashes is that users don't enter passwords over 15 characters long. Most only use 4-8 characters making them easy for attackers to crack with a rainbow table.
Solution, use a user salt to make hash input more complex and over 50chars so that they will never be able to generate a table (way to big for strings that size). plus, they will have to create a new table for each user. Problem: if they download the db they will get the user salt so you are back to square one if they care enough.
Solution, use a site "pepper" plus the user salt, then even if they get the DB they will still have to know the config file. Problem: if they can get into your DB chances are they might also get into your filesystem and discover your site pepper.
So, with all of this known - lets assume that an attacker makes it into your site and gets everything, EVERYTHING. So what do you do now?
At this point in the discussion, most people reply with "who cares at this point?". But that is just a cheap way of saying "I don't know what to do next so it can't be that important". Sadly, everywhere else I have asked this question that has been the reply. Which shows that most programmers miss a very important point.
Lets image that your site is like the other 95% of sites out there and the user data - or even full sever access - isn't worth squat. The attacker happens to be after one of your users "Bob" because he knows that "Bob" uses the same password on your site as he does on the banks site. He also happens to know Bob has his life savings in there. Now, if the attacker can just crack our sites hashes the rest will be a piece of cake.
So here is my question - How do you extend the length of the password without any traceable path? Or how do you make the hashing process to complex to duplicate in a timely manner? The only thing that I have come up with is that you can re-hash a hash several thousand times and increase the time it would take to create the final rainbowtable by a factor of 1,000. This is because the attacker must follow that same path when creating his tables.
Any other ideas?