I’ve written several posts about securely storing passwords (this one for instance). Here’s a video from Stormpath featuring their CTO Les Hazlewood that covers the same material for those who prefer a visual presentation.
Hazlewood covers various levels of password storage security from storing passwords in plain text, to systems such as bcrypt, to encrypting the bcrypt output and distributing the results to several different servers. If you want to know how to store passwords correctly, this is an excellent video and well worth a half hour of your time.