diff --git a/_config/PasswordEncryptor.yml b/_config/PasswordEncryptor.yml
index 662d22732..6ffe30dad 100644
--- a/_config/PasswordEncryptor.yml
+++ b/_config/PasswordEncryptor.yml
@@ -11,4 +11,6 @@ PasswordEncryptor:
     md5_v2.4:
       PasswordEncryptor_PHPHash: md5
     sha1_v2.4:
-      PasswordEncryptor_PHPHash: sha1
\ No newline at end of file
+      PasswordEncryptor_PHPHash: sha1
+    blowfish:
+      PasswordEncryptor_Blowfish:
\ No newline at end of file
diff --git a/dev/Backtrace.php b/dev/Backtrace.php
index 04b7d169e..de032e37c 100644
--- a/dev/Backtrace.php
+++ b/dev/Backtrace.php
@@ -33,6 +33,8 @@ class SS_Backtrace {
 		array('PasswordEncryptor_MySQLPassword', 'salt'),
 		array('PasswordEncryptor_MySQLOldPassword', 'encrypt'),
 		array('PasswordEncryptor_MySQLOldPassword', 'salt'),
+		array('PasswordEncryptor_Blowfish', 'encrypt'),
+		array('PasswordEncryptor_Blowfish', 'salt'),
 	);
 	
 	/**
diff --git a/security/PasswordEncryptor.php b/security/PasswordEncryptor.php
index 90874aa2b..d8869e3b4 100644
--- a/security/PasswordEncryptor.php
+++ b/security/PasswordEncryptor.php
@@ -116,7 +116,44 @@ abstract class PasswordEncryptor {
 }
 
 /**
- * This is the default class used for built-in hash types in PHP.
+ * Blowfish encryption - this is the default from SilverStripe 3.
+ * PHP 5.3+ will provide a php implementation if there is no system
+ * version available.
+ * 
+ * @package framework
+ * @subpackage security
+ */
+class PasswordEncryptor_Blowfish extends PasswordEncryptor {
+	/**
+	 * Cost of encryption.
+	 * Higher costs will increase security, but also increase server load.
+	 * If you are using basic auth, you may need to decrease this as encryption
+	 * will be run on every request.
+	 * Must be between 4 and 31.
+	 */
+	protected static $cost = 10;
+
+	function encrypt($password, $salt = null, $member = null) {
+		$method_and_salt = '$2y$' . $salt;
+		$encrypted_password = crypt($password, $method_and_salt);
+		// We *never* want to generate blank passwords. If something
+		// goes wrong, throw an exception.
+		if(strpos($encrypted_password, $method_and_salt) === false)
+			throw new PasswordEncryptor_EncryptionFailed('Blowfish password encryption failed.');
+
+		// Remove the method and salt from the password, as the salt
+		// is stored in a separate column.
+		return substr($encrypted_password, strlen($method_and_salt));
+	}
+
+	function salt($password, $memeber = null) {
+		$generator = new RandomGenerator();
+		return self::$cost . '$' . substr($generator->generateHash('sha1'), 0, 21);
+	}
+}
+
+/**
+ * Encryption using built-in hash types in PHP.
  * Please note that the implemented algorithms depend on the PHP
  * distribution and architecture.
  * 
@@ -240,3 +277,9 @@ class PasswordEncryptor_None extends PasswordEncryptor {
  * @subpackage security
  */
 class PasswordEncryptor_NotFoundException extends Exception {}
+
+/**
+ * @package framework
+ * @subpackage security
+ */
+class PasswordEncryptor_EncryptionFailed extends Exception {}
diff --git a/security/Security.php b/security/Security.php
index c28999126..29765ec96 100644
--- a/security/Security.php
+++ b/security/Security.php
@@ -50,7 +50,7 @@ class Security extends Controller {
 	 *
 	 * @var string
 	 */
-	protected static $encryptionAlgorithm = 'sha1_v2.4';
+	protected static $encryptionAlgorithm = 'blowfish';
 
 	/**
 	 * Showing "Remember me"-checkbox 
diff --git a/tests/security/PasswordEncryptorTest.php b/tests/security/PasswordEncryptorTest.php
index 5cdff1c80..0a5096b80 100644
--- a/tests/security/PasswordEncryptorTest.php
+++ b/tests/security/PasswordEncryptorTest.php
@@ -44,13 +44,13 @@ class PasswordEncryptorTest extends SapphireTest {
 		$this->assertNotContains('test', array_keys(PasswordEncryptor::get_encryptors()));
 	}
 	
-	function testEncrytorPHPHashWithArguments() {
+	function testEncryptorPHPHashWithArguments() {
 		Config::inst()->update('PasswordEncryptor', 'encryptors', array('test_md5'=>array('PasswordEncryptor_PHPHash'=>'md5')));
 		$e = PasswordEncryptor::create_for_algorithm('test_md5');
 		$this->assertEquals('md5', $e->getAlgorithm());
 	}
 	
-	function testEncrytorPHPHash() {
+	function testEncryptorPHPHash() {
 		Config::inst()->update('PasswordEncryptor', 'encryptors', array('test_sha1'=>array('PasswordEncryptor_PHPHash'=>'sha1')));
 		$e = PasswordEncryptor::create_for_algorithm('test_sha1');
 		$password = 'mypassword';
@@ -60,8 +60,19 @@ class PasswordEncryptorTest extends SapphireTest {
 			$e->encrypt($password, $salt)
 		);
 	}
+
+	function testEncryptorBlowfish() {
+		Config::inst()->update('PasswordEncryptor', 'encryptors', array('test_blowfish'=>array('PasswordEncryptor_Blowfish'=>'')));
+		$e = PasswordEncryptor::create_for_algorithm('test_blowfish');
+		$password = 'mypassword';
+		$salt = '10$mysaltmustbetwen2char';
+		$this->assertEquals(
+			crypt($password, '$2y$' . $salt), 
+			'$2y$' . $salt . $e->encrypt($password, $salt)
+		);
+	}
 	
-	function testEncrytorPHPHashCompare() {
+	function testEncryptorPHPHashCompare() {
 		Config::inst()->update('PasswordEncryptor', 'encryptors', array('test_sha1'=>array('PasswordEncryptor_PHPHash'=>'sha1')));
 		$e = PasswordEncryptor::create_for_algorithm('test_sha1');
 		$this->assertTrue($e->compare(sha1('mypassword'), sha1('mypassword')));
@@ -74,7 +85,7 @@ class PasswordEncryptorTest extends SapphireTest {
 	 * Handy command for reproducing via CLI on different architectures:
 	 * 	php -r "echo(base_convert(sha1('mypassword'), 16, 36));"
 	 */
-	function testEncrytorLegacyPHPHashCompare() {
+	function testEncryptorLegacyPHPHashCompare() {
 		Config::inst()->update('PasswordEncryptor', 'encryptors', array('test_sha1legacy'=>array('PasswordEncryptor_LegacyPHPHash'=>'sha1')));
 		$e = PasswordEncryptor::create_for_algorithm('test_sha1legacy');
 		// precomputed hashes for 'mypassword' from different architectures
diff --git a/tests/tasks/EncryptAllPasswordsTaskTest.php b/tests/tasks/EncryptAllPasswordsTaskTest.php
index 430efba0c..508845bc5 100644
--- a/tests/tasks/EncryptAllPasswordsTaskTest.php
+++ b/tests/tasks/EncryptAllPasswordsTaskTest.php
@@ -14,7 +14,7 @@ class EncryptAllPasswordsTaskTest extends SapphireTest {
 		$t->run(null);
 		
 		$m = DataObject::get_by_id('Member', $m->ID);
-		$this->assertEquals($m->PasswordEncryption, 'sha1_v2.4');
+		$this->assertEquals($m->PasswordEncryption, 'blowfish');
 		$this->assertNotEquals($m->Password, 'plain');
 		$result = $m->checkPassword('plain');
 		$this->assertTrue($result->valid());