I'm kind of curious: Why would we store a password in a database when we can just encrypt a phrase such as "unlock me" using that password and then, at login, seeing if the encrypted phrase can be successfully decrypted with that key? The way I see it, there is one advantage: If someone should hack into a computer network and gain access to your account, if the encrypter uses an algorithm impervious to known-plaintext attacks, they could change the password but would "never" be able to obtain the original password, thus enabling you to use that password on more secure sites.
Come to think of it, we can - and probably do - use a similar technique in password managers.