How to use PHP's password_hash to hash and verify passwords

Using password_hash is the recommended way to store passwords. Don't separate them to DB and files.

Let's say we have the following input:

$password = $_POST['password'];

You first hash the password by doing this:

$hashed_password = password_hash($password, PASSWORD_DEFAULT);

Then see the output:

var_dump($hashed_password);

As you can see it's hashed. (I assume you did those steps).

Now you store this hashed password in your database, ensuring your password column is large enough to hold the hashed value (at least 60 characters or longer). When a user asks to log them in, you check the password input with this hash value in the database, by doing this:

// Query the database for username and password
// ...

if(password_verify($password, $hashed_password)) {
    // If the password inputs matched the hashed password in the database
    // Do something, you know... log them in.
} 

// Else, Redirect them back to the login page.

Official Reference

Yes you understood it correctly, the function password_hash() will generate a salt on its own, and includes it in the resulting hash-value. Storing the salt in the database is absolutely correct, it does its job even if known.

// Hash a new password for storing in the database.
// The function automatically generates a cryptographically safe salt.
$hashToStoreInDb = password_hash($_POST['password'], PASSWORD_DEFAULT);

// Check if the hash of the entered login password, matches the stored hash.
// The salt and the cost factor will be extracted from $existingHashFromDb.
$isPasswordCorrect = password_verify($_POST['password'], $existingHashFromDb);

The second salt you mentioned (the one stored in a file), is actually a pepper or a server side key. If you add it before hashing (like the salt), then you add a pepper. There is a better way though, you could first calculate the hash, and afterwards encrypt (two-way) the hash with a server-side key. This gives you the possibility to change the key when necessary.

In contrast to the salt, this key should be kept secret. People often mix it up and try to hide the salt, but it is better to let the salt do its job and add the secret with a key.

Yes, it's true. Why do you doubt the php faq on the function? :)

The result of running password_hash() has has four parts:

1. the algorithm used
2. parameters
3. salt
4. actual password hash

So as you can see, the hash is a part of it.

Sure, you could have an additional salt for an added layer of security, but I honestly think that's overkill in a regular php application. The default bcrypt algorithm is good, and the optional blowfish one is arguably even better.