[rlidwka]

You can store this hash on the server and use it as a password. If this hash gets stolen, the attacker will be able to log in on YOUR website, but not on other websites user may share passwords with.

After that you can ditch server-side hashing, and use authentication protocol like CRAM-MD5 (I don't remember what the modern alternatives are) to protect against network traffic interception. While still not technically storing your users' passwords in the database.

EDIT: Using asymmetric crypto with a private key derived from the password would probably be better. But still, client-side hashing DOES gain you something.