diff --git a/CHANGELOG.rdoc b/CHANGELOG.rdoc
index ee00a483..45d681de 100644
--- a/CHANGELOG.rdoc
+++ b/CHANGELOG.rdoc
@@ -1,4 +1,19 @@
-== 1.1.rc1
+== 1.1.0 (to be released)
+
+* enhancements
+  * Allow to set cookie domain for the remember token. (by github.com/mantas)
+  * Added navigational formats to specify when it should return a 302 and when a 401.
+  * Added authenticate(scope) support in routes (by github.com/wildchild)
+  * Added after_update_path_for to registrations controller (by github.com/thedelchop)
+  * Added anybody_signed_in? helper (by github.com/SSDany)
+
+* bug fix
+  * confirmation_required? is properly honored on active? calls. (by github.com/paulrosania)
+
+* deprecations
+  * bcrypt is now the default encryptor
+
+== 1.1.rc
 
 * enhancements
   * Rails 3 compatibility.
@@ -17,10 +32,6 @@
   * Allow :unlock_strategy to be :none and add :lock_strategy which can be :failed_attempts or none. Setting those values to :none means that you want to handle lock and unlocking by yourself.
   * No need to append ?unauthenticated=true in URLs anymore since Flash was moved to a middleware in Rails 3.
   * :activatable is included by default in your models.
-  * Allow to set cookie domain for the remember token. (by github.com/mantas)
-	* Added navigational formats to specify when it should return a 302 and when a 401.
-	* Added authenticate(scope) support in routes (by github.com/wildchild)
-	* Added after_update_path_for to registrations controller (by github.com/thedelchop)
 
 * bug fix
   * Fix a bug with STI.
diff --git a/Rakefile b/Rakefile
index 08c45278..5e793cc8 100644
--- a/Rakefile
+++ b/Rakefile
@@ -46,6 +46,7 @@ begin
     s.files =  FileList["[A-Z]*", "{app,config,lib}/**/*"]
     s.extra_rdoc_files = FileList["[A-Z]*"] - %w(Gemfile Rakefile)
     s.add_dependency("warden", "~> 0.10.5")
+    s.add_dependency("bcrypt-ruby", "~> 2.1.2")
   end
 
   Jeweler::GemcutterTasks.new
diff --git a/lib/devise.rb b/lib/devise.rb
index f6a85439..ebf56a81 100644
--- a/lib/devise.rb
+++ b/lib/devise.rb
@@ -97,7 +97,7 @@ module Devise
 
   # Used to define the password encryption algorithm.
   mattr_accessor :encryptor
-  @@encryptor = :sha1
+  @@encryptor = nil
 
   # Store scopes mappings.
   mattr_accessor :mappings
diff --git a/lib/devise/encryptors/authlogic_sha512.rb b/lib/devise/encryptors/authlogic_sha512.rb
index 9c4be984..c8482974 100644
--- a/lib/devise/encryptors/authlogic_sha512.rb
+++ b/lib/devise/encryptors/authlogic_sha512.rb
@@ -7,7 +7,6 @@ module Devise
     # Warning: it uses Devise's stretches configuration to port Authlogic's one. Should be set to 20 in the initializer to silumate
     #  the default behavior.
     class AuthlogicSha512 < Base
-      
       # Gererates a default password digest based on salt, pepper and the
       # incoming password.
       def self.digest(password, stretches, salt, pepper)
@@ -15,7 +14,6 @@ module Devise
         stretches.times { digest = Digest::SHA512.hexdigest(digest) }
         digest
       end
-
     end
   end
 end
\ No newline at end of file
diff --git a/lib/devise/encryptors/bcrypt.rb b/lib/devise/encryptors/bcrypt.rb
index b8a9a101..46b40136 100644
--- a/lib/devise/encryptors/bcrypt.rb
+++ b/lib/devise/encryptors/bcrypt.rb
@@ -5,7 +5,6 @@ module Devise
     # = BCrypt
     # Uses the BCrypt hash algorithm to encrypt passwords.
     class Bcrypt < Base
-
       # Gererates a default password digest based on stretches, salt, pepper and the
       # incoming password. We don't strech it ourselves since BCrypt does so internally.
       def self.digest(password, stretches, salt, pepper)
@@ -15,7 +14,6 @@ module Devise
       def self.salt
         ::BCrypt::Engine.generate_salt
       end
-
     end
   end
 end
diff --git a/lib/devise/encryptors/clearance_sha1.rb b/lib/devise/encryptors/clearance_sha1.rb
index dbe396b9..33d39fb9 100644
--- a/lib/devise/encryptors/clearance_sha1.rb
+++ b/lib/devise/encryptors/clearance_sha1.rb
@@ -7,13 +7,11 @@ module Devise
     # Warning: it uses Devise's pepper to port the concept of REST_AUTH_SITE_KEY
     # Warning: it uses Devise's stretches configuration to port the concept of REST_AUTH_DIGEST_STRETCHES
     class ClearanceSha1 < Base
-      
       # Gererates a default password digest based on salt, pepper and the
       # incoming password.
       def self.digest(password, stretches, salt, pepper)
         Digest::SHA1.hexdigest("--#{salt}--#{password}--")
       end
-
     end
   end
 end
\ No newline at end of file
diff --git a/lib/devise/encryptors/sha1.rb b/lib/devise/encryptors/sha1.rb
index ecc0968f..3dad6b1b 100644
--- a/lib/devise/encryptors/sha1.rb
+++ b/lib/devise/encryptors/sha1.rb
@@ -5,7 +5,6 @@ module Devise
     # = Sha1
     # Uses the Sha1 hash algorithm to encrypt passwords.
     class Sha1 < Base
-      
       # Gererates a default password digest based on stretches, salt, pepper and the
       # incoming password.
       def self.digest(password, stretches, salt, pepper)
@@ -14,14 +13,13 @@ module Devise
         digest
       end
 
-      private
+    private
 
-        # Generate a SHA1 digest joining args. Generated token is something like
-        #   --arg1--arg2--arg3--argN--
-        def self.secure_digest(*tokens)
-          ::Digest::SHA1.hexdigest('--' << tokens.flatten.join('--') << '--')
-        end        
-      
+      # Generate a SHA1 digest joining args. Generated token is something like
+      #   --arg1--arg2--arg3--argN--
+      def self.secure_digest(*tokens)
+        ::Digest::SHA1.hexdigest('--' << tokens.flatten.join('--') << '--')
+      end
     end
   end
 end
\ No newline at end of file
diff --git a/lib/devise/encryptors/sha512.rb b/lib/devise/encryptors/sha512.rb
index 769389b9..ed8724d7 100644
--- a/lib/devise/encryptors/sha512.rb
+++ b/lib/devise/encryptors/sha512.rb
@@ -5,7 +5,6 @@ module Devise
     # = Sha512
     # Uses the Sha512 hash algorithm to encrypt passwords.
     class Sha512 < Base
-      
       # Gererates a default password digest based on salt, pepper and the
       # incoming password.
       def self.digest(password, stretches, salt, pepper)
@@ -14,14 +13,13 @@ module Devise
         digest
       end
 
-      private
+    private
 
-        # Generate a Sha512 digest joining args. Generated token is something like
-        #   --arg1--arg2--arg3--argN--
-        def self.secure_digest(*tokens)
-          ::Digest::SHA512.hexdigest('--' << tokens.flatten.join('--') << '--')
-        end        
-      
+      # Generate a Sha512 digest joining args. Generated token is something like
+      #   --arg1--arg2--arg3--argN--
+      def self.secure_digest(*tokens)
+        ::Digest::SHA512.hexdigest('--' << tokens.flatten.join('--') << '--')
+      end
     end
   end
 end
\ No newline at end of file
diff --git a/lib/devise/rails.rb b/lib/devise/rails.rb
index 244861a3..3fd90072 100644
--- a/lib/devise/rails.rb
+++ b/lib/devise/rails.rb
@@ -16,24 +16,29 @@ module Devise
     # Force routes to be loaded if we are doing any eager load.
     config.before_eager_load { |app| app.reload_routes! }
 
+    config.after_initialize do
+      Devise.encryptor ||= begin
+        warn "[WARNING] config.encryptor is not set in your config/initializers/devise.rb. " \
+          "Devise will then set it to :bcrypt. If you were using the previous default " \
+          "encryptor, please add config.encryptor = :sha1 to your configuration file."
+        :bcrypt
+      end
+    end
+
     config.after_initialize do
       flash = [:unauthenticated, :unconfirmed, :invalid, :invalid_token, :timeout, :inactive, :locked]
 
       translations = begin
-        I18n.available_locales
-        I18n.backend.send(:translations)
+        I18n.t("devise.sessions", :raise => true).keys
       rescue Exception => e # Do not care if something fails
         {}
       end
 
-      translations.each do |locale, translations|
-        keys = flash & (translations[:devise][:sessions].keys) rescue []
+      keys = flash & translations
 
-        if keys.any?
-          ActiveSupport::Deprecation.warn "The following I18n messages in 'devise.sessions' " <<
-            "for locale '#{locale}' are deprecated: #{keys.to_sentence}. Please move them to " <<
-            "'devise.failure' instead."
-        end
+      if keys.any?
+        ActiveSupport::Deprecation.warn "The following I18n messages in 'devise.sessions' " \
+          "are deprecated: #{keys.to_sentence}. Please move them to 'devise.failure' instead."
       end
     end
   end
diff --git a/lib/generators/devise_install/devise_install_generator.rb b/lib/generators/devise_install/devise_install_generator.rb
index dc0e8b16..597633c8 100644
--- a/lib/generators/devise_install/devise_install_generator.rb
+++ b/lib/generators/devise_install/devise_install_generator.rb
@@ -1,3 +1,5 @@
+require 'active_support/secure_random'
+
 class DeviseInstallGenerator < Rails::Generators::Base
   desc "Creates a Devise initializer and copy locale files to your application."
 
diff --git a/lib/generators/devise_install/templates/devise.rb b/lib/generators/devise_install/templates/devise.rb
index 2f13e4d4..b4f97696 100644
--- a/lib/generators/devise_install/templates/devise.rb
+++ b/lib/generators/devise_install/templates/devise.rb
@@ -27,19 +27,18 @@ Devise.setup do |config|
   # config.http_authentication_realm = "Application"
 
   # ==> Configuration for :database_authenticatable
-  # Invoke `rake secret` and use the printed value to setup a pepper to generate
-  # the encrypted password. By default no pepper is used.
-  # config.pepper = "rake secret output"
+  # For bcrypt, this is the cost for hashing the password and defaults to 10. If
+  # using other encryptors, it sets how many times you want the password re-encrypted.
+  config.stretches = 10
 
-  # Configure how many times you want the password re-encrypted. Default is 10.
-  # config.stretches = 10
-
-  # Define which will be the encryption algorithm. Supported algorithms are :sha1
-  # (default), :sha512 and :bcrypt. Devise also supports encryptors from others
-  # authentication tools as :clearance_sha1, :authlogic_sha512 (then you should set
-  # stretches above to 20 for default behavior) and :restful_authentication_sha1
+  # Define which will be the encryption algorithm. Devise also supports encryptors
+  # from others authentication tools as :clearance_sha1, :authlogic_sha512 (then
+  # you should set stretches above to 20 for default behavior) and :restful_authentication_sha1
   # (then you should set stretches to 10, and copy REST_AUTH_SITE_KEY to pepper)
-  # config.encryptor = :sha1
+  config.encryptor = :bcrypt
+
+  # Setup a pepper to generate the encrypted password.
+  config.pepper = <%= ActiveSupport::SecureRandom.hex(64).inspect %>
 
   # ==> Configuration for :confirmable
   # The time you want to give your user to confirm his account. During this time
diff --git a/test/models/database_authenticatable_test.rb b/test/models/database_authenticatable_test.rb
index 57676ee6..8446931c 100644
--- a/test/models/database_authenticatable_test.rb
+++ b/test/models/database_authenticatable_test.rb
@@ -3,10 +3,22 @@ require 'digest/sha1'
 
 class DatabaseAuthenticatableTest < ActiveSupport::TestCase
 
-  def encrypt_password(user, pepper=User.pepper, stretches=User.stretches, encryptor=::Devise::Encryptors::Sha1)
+  def encrypt_password(user, pepper=User.pepper, stretches=User.stretches, encryptor=User.encryptor_class)
     encryptor.digest('123456', stretches, user.password_salt, pepper)
   end
 
+  def swap_with_encryptor(klass, encryptor, options={})
+    klass.instance_variable_set(:@encryptor_class, nil)
+
+    swap klass, options.merge(:encryptor => encryptor) do
+      begin
+        yield
+      ensure
+        klass.instance_variable_set(:@encryptor_class, nil)
+      end
+    end
+  end
+
   test 'should respond to password and password confirmation' do
     user = new_user
     assert user.respond_to?(:password)
@@ -28,8 +40,10 @@ class DatabaseAuthenticatableTest < ActiveSupport::TestCase
   end
 
   test 'should generate a base64 hash using SecureRandom for password salt' do
-    ActiveSupport::SecureRandom.expects(:base64).with(15).returns('friendly_token')
-    assert_equal 'friendly_token', new_user.password_salt
+    swap_with_encryptor User, :sha1 do
+      ActiveSupport::SecureRandom.expects(:base64).with(15).returns('friendly_token')
+      assert_equal 'friendly_token', new_user.password_salt
+    end
   end
 
   test 'should not generate salt if password is blank' do
@@ -71,24 +85,10 @@ class DatabaseAuthenticatableTest < ActiveSupport::TestCase
     end
   end
 
-  test 'should fallback to devise stretches default configuration' do
-    swap Devise, :stretches => 1 do
-      user = new_user
-      assert_equal encrypt_password(user, nil, 1), user.encrypted_password
-      assert_not_equal encrypt_password(user, nil, 2), user.encrypted_password
-    end
-  end
-
   test 'should respect encryptor configuration' do
-    User.instance_variable_set(:@encryptor_class, nil)
-
-    swap Devise, :encryptor => :sha512 do
-      begin
-        user = create_user
-        assert_equal user.encrypted_password, encrypt_password(user, User.pepper, User.stretches, ::Devise::Encryptors::Sha512)
-      ensure
-        User.instance_variable_set(:@encryptor_class, nil)
-      end
+    swap_with_encryptor User, :sha512 do
+      user = create_user
+      assert_equal user.encrypted_password, encrypt_password(user, User.pepper, User.stretches, ::Devise::Encryptors::Sha512)
     end
   end