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The best way to secure a password is to not use a password at all. You may want to investigate the possibility of allowing your application to login to the database using operating system authentication if it is a 3-tier application. If you have a 2-tier application, then you can use database user accounts as the login for each user. While this isn't a popular choice, I don't know why more people continue to bypass the security in the database product that you've already purchased.
As for DML changes to database tables, that's what the auditing subsystem is meant to record. If you're looking for tracking changes to the schema (like ALTER), then you can use a system event trigger on the ALTER statements in the database to create your own audit trail of those changes (and even prevent them if you'd like).
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