Merge branch 'release/0.5.13'

27 files changed, 1271 insertions, 352 deletions

diff --git a/README.md b/README.md
index b10a04c25..4a835afbf 100644
--- a/README.md
+++ b/README.md
@@ -6,7 +6,7 @@ Ethereum
 Ethereum Go Development package (C) Jeffrey Wilcke
 
 Ethereum is currently in its testing phase. The current state is "Proof
-of Concept 5.0 RC12". For build instructions see the [Wiki](https://github.com/ethereum/go-ethereum/wiki/Building-Ethereum(Go)).
+of Concept 5.0 RC13". For build instructions see the [Wiki](https://github.com/ethereum/go-ethereum/wiki/Building-Ethereum(Go)).
 
 Ethereum Go is split up in several sub packages Please refer to each
 individual package for more information.
diff --git a/ethchain/asm.go b/ethchain/asm.go
index 430a89450..c267f9b55 100644
--- a/ethchain/asm.go
+++ b/ethchain/asm.go
@@ -25,16 +25,10 @@ func Disassemble(script []byte) (asm []string) {
 			pc.Add(pc, ethutil.Big1)
 			a := int64(op) - int64(PUSH1) + 1
 			data := script[pc.Int64() : pc.Int64()+a]
-			val := ethutil.BigD(data)
-
-			var b []byte
-			if val.Int64() == 0 {
-				b = []byte{0}
-			} else {
-				b = val.Bytes()
+			if len(data) == 0 {
+				data = []byte{0}
 			}
-
-			asm = append(asm, fmt.Sprintf("0x%x", b))
+			asm = append(asm, fmt.Sprintf("%#x", data))
 
 			pc.Add(pc, big.NewInt(a-1))
 		}
diff --git a/ethchain/block.go b/ethchain/block.go
index 73e29f878..fee4a2d59 100644
--- a/ethchain/block.go
+++ b/ethchain/block.go
@@ -154,6 +154,36 @@ func (block *Block) PayFee(addr []byte, fee *big.Int) bool {
 	return true
 }
 
+func (block *Block) CalcGasLimit(parent *Block) *big.Int {
+	if block.Number.Cmp(big.NewInt(0)) == 0 {
+		return ethutil.BigPow(10, 6)
+	}
+
+	previous := new(big.Int).Mul(big.NewInt(1023), parent.GasLimit)
+	current := new(big.Rat).Mul(new(big.Rat).SetInt(block.GasUsed), big.NewRat(6, 5))
+	curInt := new(big.Int).Div(current.Num(), current.Denom())
+
+	result := new(big.Int).Add(previous, curInt)
+	result.Div(result, big.NewInt(1024))
+
+	min := ethutil.BigPow(10, 4)
+
+	return ethutil.BigMax(min, result)
+	/*
+		base := new(big.Int)
+		base2 := new(big.Int)
+		parentGL := bc.CurrentBlock.GasLimit
+		parentUsed := bc.CurrentBlock.GasUsed
+
+		base.Mul(parentGL, big.NewInt(1024-1))
+		base2.Mul(parentUsed, big.NewInt(6))
+		base2.Div(base2, big.NewInt(5))
+		base.Add(base, base2)
+		base.Div(base, big.NewInt(1024))
+	*/
+
+}
+
 func (block *Block) BlockInfo() BlockInfo {
 	bi := BlockInfo{}
 	data, _ := ethutil.Config.Db.Get(append(block.Hash(), []byte("Info")...))
diff --git a/ethchain/block_chain.go b/ethchain/block_chain.go
index b45d254b5..19b5248d7 100644
--- a/ethchain/block_chain.go
+++ b/ethchain/block_chain.go
@@ -55,6 +55,8 @@ func (bc *BlockChain) NewBlock(coinbase []byte) *Block {
 		nil,
 		"")
 
+	block.MinGasPrice = big.NewInt(10000000000000)
+
 	if bc.CurrentBlock != nil {
 		var mul *big.Int
 		if block.Time < lastBlockTime+42 {
@@ -72,19 +74,7 @@ func (bc *BlockChain) NewBlock(coinbase []byte) *Block {
 
 		block.Number = new(big.Int).Add(bc.CurrentBlock.Number, ethutil.Big1)
 
-		// max(10000, (parent gas limit * (1024 - 1) + (parent gas used * 6 / 5)) / 1024)
-		base := new(big.Int)
-		base2 := new(big.Int)
-		parentGL := bc.CurrentBlock.GasLimit
-		parentUsed := bc.CurrentBlock.GasUsed
-
-		base.Mul(parentGL, big.NewInt(1024-1))
-		base2.Mul(parentUsed, big.NewInt(6))
-		base2.Div(base2, big.NewInt(5))
-		base.Add(base, base2)
-		base.Div(base, big.NewInt(1024))
-
-		block.GasLimit = ethutil.BigMax(big.NewInt(10000), base)
+		block.GasLimit = block.CalcGasLimit(bc.CurrentBlock)
 	}
 
 	return block
@@ -271,7 +261,7 @@ func (bc *BlockChain) GetChain(hash []byte, amount int) []*Block {
 
 func AddTestNetFunds(block *Block) {
 	for _, addr := range []string{
-		"8a40bfaa73256b60764c1bf40675a99083efb075",
+		"51ba59315b3a95761d0863b05ccc7a7f54703d99",
 		"e4157b34ea9615cfbde6b4fda419828124b70c78",
 		"1e12515ce3e0f817a4ddef9ca55788a1d66bd2df",
 		"6c386a4b26f73c802f34673f7248bb118f97424a",
@@ -285,7 +275,6 @@ func AddTestNetFunds(block *Block) {
 		account.Amount = ethutil.Big("1606938044258990275541962092341162602522202993782792835301376") //ethutil.BigPow(2, 200)
 		block.state.UpdateStateObject(account)
 	}
-	log.Printf("%x\n", block.RlpEncode())
 }
 
 func (bc *BlockChain) setLastBlock() {
diff --git a/ethchain/closure.go b/ethchain/closure.go
index 5c9c3e47c..32b297e90 100644
--- a/ethchain/closure.go
+++ b/ethchain/closure.go
@@ -17,7 +17,7 @@ type ClosureRef interface {
 
 // Basic inline closure object which implement the 'closure' interface
 type Closure struct {
-	callee ClosureRef
+	caller ClosureRef
 	object *StateObject
 	Script []byte
 	State  *State
@@ -28,12 +28,14 @@ type Closure struct {
 }
 
 // Create a new closure for the given data items
-func NewClosure(callee ClosureRef, object *StateObject, script []byte, state *State, gas, price *big.Int) *Closure {
-	c := &Closure{callee: callee, object: object, Script: script, State: state, Args: nil}
+func NewClosure(caller ClosureRef, object *StateObject, script []byte, state *State, gas, price *big.Int) *Closure {
+	c := &Closure{caller: caller, object: object, Script: script, State: state, Args: nil}
 
-	// In most cases gas, price and value are pointers to transaction objects
+	// Gas should be a pointer so it can safely be reduced through the run
+	// This pointer will be off the state transition
+	c.Gas = gas //new(big.Int).Set(gas)
+	// In most cases price and value are pointers to transaction objects
 	// and we don't want the transaction's values to change.
-	c.Gas = new(big.Int).Set(gas)
 	c.Price = new(big.Int).Set(price)
 	c.UsedGas = new(big.Int)
 
@@ -83,11 +85,11 @@ func (c *Closure) Call(vm *Vm, args []byte, hook DebugHook) ([]byte, *big.Int, e
 }
 
 func (c *Closure) Return(ret []byte) []byte {
-	// Return the remaining gas to the callee
-	// If no callee is present return it to
+	// Return the remaining gas to the caller
+	// If no caller is present return it to
 	// the origin (i.e. contract or tx)
-	if c.callee != nil {
-		c.callee.ReturnGas(c.Gas, c.Price, c.State)
+	if c.caller != nil {
+		c.caller.ReturnGas(c.Gas, c.Price, c.State)
 	} else {
 		c.object.ReturnGas(c.Gas, c.Price, c.State)
 	}
@@ -107,7 +109,7 @@ func (c *Closure) UseGas(gas *big.Int) bool {
 	return true
 }
 
-// Implement the Callee interface
+// Implement the caller interface
 func (c *Closure) ReturnGas(gas, price *big.Int, state *State) {
 	// Return the gas to the closure
 	c.Gas.Add(c.Gas, gas)
@@ -118,8 +120,8 @@ func (c *Closure) Object() *StateObject {
 	return c.object
 }
 
-func (c *Closure) Callee() ClosureRef {
-	return c.callee
+func (c *Closure) Caller() ClosureRef {
+	return c.caller
 }
 
 func (c *Closure) N() *big.Int {
diff --git a/ethchain/deprecated.go b/ethchain/deprecated.go
new file mode 100644
index 000000000..0985fa25d
--- /dev/null
+++ b/ethchain/deprecated.go
@@ -0,0 +1,236 @@
+package ethchain
+
+import (
+	"bytes"
+	"fmt"
+	"github.com/ethereum/eth-go/ethutil"
+	"math/big"
+)
+
+func (sm *StateManager) MakeStateObject(state *State, tx *Transaction) *StateObject {
+	contract := MakeContract(tx, state)
+	if contract != nil {
+		state.states[string(tx.CreationAddress())] = contract.state
+
+		return contract
+	}
+
+	return nil
+}
+
+func (sm *StateManager) EvalScript(state *State, script []byte, object *StateObject, tx *Transaction, block *Block) (ret []byte, gas *big.Int, err error) {
+	account := state.GetAccount(tx.Sender())
+
+	err = account.ConvertGas(tx.Gas, tx.GasPrice)
+	if err != nil {
+		ethutil.Config.Log.Debugln(err)
+		return
+	}
+
+	closure := NewClosure(account, object, script, state, tx.Gas, tx.GasPrice)
+	vm := NewVm(state, sm, RuntimeVars{
+		Origin:      account.Address(),
+		BlockNumber: block.BlockInfo().Number,
+		PrevHash:    block.PrevHash,
+		Coinbase:    block.Coinbase,
+		Time:        block.Time,
+		Diff:        block.Difficulty,
+		Value:       tx.Value,
+		//Price:       tx.GasPrice,
+	})
+	ret, gas, err = closure.Call(vm, tx.Data, nil)
+
+	// Update the account (refunds)
+	state.UpdateStateObject(account)
+	state.UpdateStateObject(object)
+
+	return
+}
+
+func (self *StateManager) ProcessTransaction(tx *Transaction, coinbase *StateObject, state *State, toContract bool) (gas *big.Int, err error) {
+	fmt.Printf("state root before update %x\n", state.Root())
+	defer func() {
+		if r := recover(); r != nil {
+			ethutil.Config.Log.Infoln(r)
+			err = fmt.Errorf("%v", r)
+		}
+	}()
+
+	gas = new(big.Int)
+	addGas := func(g *big.Int) { gas.Add(gas, g) }
+	addGas(GasTx)
+
+	// Get the sender
+	sender := state.GetAccount(tx.Sender())
+
+	if sender.Nonce != tx.Nonce {
+		err = NonceError(tx.Nonce, sender.Nonce)
+		return
+	}
+
+	sender.Nonce += 1
+	defer func() {
+		//state.UpdateStateObject(sender)
+		// Notify all subscribers
+		self.Ethereum.Reactor().Post("newTx:post", tx)
+	}()
+
+	txTotalBytes := big.NewInt(int64(len(tx.Data)))
+	//fmt.Println("txTotalBytes", txTotalBytes)
+	//txTotalBytes.Div(txTotalBytes, ethutil.Big32)
+	addGas(new(big.Int).Mul(txTotalBytes, GasData))
+
+	rGas := new(big.Int).Set(gas)
+	rGas.Mul(gas, tx.GasPrice)
+
+	// Make sure there's enough in the sender's account. Having insufficient
+	// funds won't invalidate this transaction but simple ignores it.
+	totAmount := new(big.Int).Add(tx.Value, rGas)
+	if sender.Amount.Cmp(totAmount) < 0 {
+		state.UpdateStateObject(sender)
+		err = fmt.Errorf("[TXPL] Insufficient amount in sender's (%x) account", tx.Sender())
+		return
+	}
+
+	coinbase.BuyGas(gas, tx.GasPrice)
+	state.UpdateStateObject(coinbase)
+	fmt.Printf("1. root %x\n", state.Root())
+
+	// Get the receiver
+	receiver := state.GetAccount(tx.Recipient)
+
+	// Send Tx to self
+	if bytes.Compare(tx.Recipient, tx.Sender()) == 0 {
+		// Subtract the fee
+		sender.SubAmount(rGas)
+	} else {
+		// Subtract the amount from the senders account
+		sender.SubAmount(totAmount)
+		state.UpdateStateObject(sender)
+		fmt.Printf("3. root %x\n", state.Root())
+
+		// Add the amount to receivers account which should conclude this transaction
+		receiver.AddAmount(tx.Value)
+		state.UpdateStateObject(receiver)
+		fmt.Printf("2. root %x\n", state.Root())
+	}
+
+	ethutil.Config.Log.Infof("[TXPL] Processed Tx %x\n", tx.Hash())
+
+	return
+}
+
+func (sm *StateManager) ApplyTransaction(coinbase []byte, state *State, block *Block, tx *Transaction) (totalGasUsed *big.Int, err error) {
+	/*
+		Applies transactions to the given state and creates new
+		state objects where needed.
+
+		If said objects needs to be created
+		run the initialization script provided by the transaction and
+		assume there's a return value. The return value will be set to
+		the script section of the state object.
+	*/
+	var (
+		addTotalGas = func(gas *big.Int) { totalGasUsed.Add(totalGasUsed, gas) }
+		gas         = new(big.Int)
+		script      []byte
+	)
+	totalGasUsed = big.NewInt(0)
+	snapshot := state.Snapshot()
+
+	ca := state.GetAccount(coinbase)
+	// Apply the transaction to the current state
+	gas, err = sm.ProcessTransaction(tx, ca, state, false)
+	addTotalGas(gas)
+	fmt.Println("gas used by tx", gas)
+
+	if tx.CreatesContract() {
+		if err == nil {
+			// Create a new state object and the transaction
+			// as it's data provider.
+			contract := sm.MakeStateObject(state, tx)
+			if contract != nil {
+				fmt.Println(Disassemble(contract.Init()))
+				// Evaluate the initialization script
+				// and use the return value as the
+				// script section for the state object.
+				script, gas, err = sm.EvalScript(state, contract.Init(), contract, tx, block)
+				fmt.Println("gas used by eval", gas)
+				addTotalGas(gas)
+				fmt.Println("total =", totalGasUsed)
+
+				fmt.Println("script len =", len(script))
+
+				if err != nil {
+					err = fmt.Errorf("[STATE] Error during init script run %v", err)
+					return
+				}
+				contract.script = script
+				state.UpdateStateObject(contract)
+			} else {
+				err = fmt.Errorf("[STATE] Unable to create contract")
+			}
+		} else {
+			err = fmt.Errorf("[STATE] contract creation tx: %v for sender %x", err, tx.Sender())
+		}
+	} else {
+		// Find the state object at the "recipient" address. If
+		// there's an object attempt to run the script.
+		stateObject := state.GetStateObject(tx.Recipient)
+		if err == nil && stateObject != nil && len(stateObject.Script()) > 0 {
+			_, gas, err = sm.EvalScript(state, stateObject.Script(), stateObject, tx, block)
+			addTotalGas(gas)
+		}
+	}
+
+	parent := sm.bc.GetBlock(block.PrevHash)
+	total := new(big.Int).Add(block.GasUsed, totalGasUsed)
+	limit := block.CalcGasLimit(parent)
+	if total.Cmp(limit) > 0 {
+		state.Revert(snapshot)
+		err = GasLimitError(total, limit)
+	}
+
+	return
+}
+
+// Apply transactions uses the transaction passed to it and applies them onto
+// the current processing state.
+func (sm *StateManager) ApplyTransactions(coinbase []byte, state *State, block *Block, txs []*Transaction) ([]*Receipt, []*Transaction) {
+	// Process each transaction/contract
+	var receipts []*Receipt
+	var validTxs []*Transaction
+	var ignoredTxs []*Transaction // Transactions which go over the gasLimit
+
+	totalUsedGas := big.NewInt(0)
+
+	for _, tx := range txs {
+		usedGas, err := sm.ApplyTransaction(coinbase, state, block, tx)
+		if err != nil {
+			if IsNonceErr(err) {
+				continue
+			}
+			if IsGasLimitErr(err) {
+				ignoredTxs = append(ignoredTxs, tx)
+				// We need to figure out if we want to do something with thse txes
+				ethutil.Config.Log.Debugln("Gastlimit:", err)
+				continue
+			}
+
+			ethutil.Config.Log.Infoln(err)
+		}
+
+		accumelative := new(big.Int).Set(totalUsedGas.Add(totalUsedGas, usedGas))
+		receipt := &Receipt{tx, ethutil.CopyBytes(state.Root().([]byte)), accumelative}
+
+		receipts = append(receipts, receipt)
+		validTxs = append(validTxs, tx)
+	}
+
+	fmt.Println("################# MADE\n", receipts, "\n############################")
+
+	// Update the total gas used for the block (to be mined)
+	block.GasUsed = totalUsedGas
+
+	return receipts, validTxs
+}
diff --git a/ethchain/error.go b/ethchain/error.go
index 8d37b0208..2cf09a1ec 100644
--- a/ethchain/error.go
+++ b/ethchain/error.go
@@ -2,6 +2,7 @@ package ethchain
 
 import (
 	"fmt"
+	"math/big"
 )
 
 // Parent error. In case a parent is unknown this error will be thrown
@@ -43,6 +44,23 @@ func IsValidationErr(err error) bool {
 	return ok
 }
 
+type GasLimitErr struct {
+	Message string
+	Is, Max *big.Int
+}
+
+func IsGasLimitErr(err error) bool {
+	_, ok := err.(*GasLimitErr)
+
+	return ok
+}
+func (err *GasLimitErr) Error() string {
+	return err.Message
+}
+func GasLimitError(is, max *big.Int) *GasLimitErr {
+	return &GasLimitErr{Message: fmt.Sprintf("GasLimit error. Max %s, transaction would take it to %s", max, is), Is: is, Max: max}
+}
+
 type NonceErr struct {
 	Message string
 	Is, Exp uint64
@@ -61,3 +79,20 @@ func IsNonceErr(err error) bool {
 
 	return ok
 }
+
+type OutOfGasErr struct {
+	Message string
+}
+
+func OutOfGasError() *OutOfGasErr {
+	return &OutOfGasErr{Message: "Out of gas"}
+}
+func (self *OutOfGasErr) Error() string {
+	return self.Message
+}
+
+func IsOutOfGasErr(err error) bool {
+	_, ok := err.(*OutOfGasErr)
+
+	return ok
+}
diff --git a/ethchain/fees.go b/ethchain/fees.go
index c0a5d2d88..743be86a2 100644
--- a/ethchain/fees.go
+++ b/ethchain/fees.go
@@ -4,30 +4,6 @@ import (
 	"math/big"
 )
 
-var TxFeeRat *big.Int = big.NewInt(100000000000000)
-
-var TxFee *big.Int = big.NewInt(100)
-var StepFee *big.Int = big.NewInt(1)
-var StoreFee *big.Int = big.NewInt(5)
-var DataFee *big.Int = big.NewInt(20)
-var ExtroFee *big.Int = big.NewInt(40)
-var CryptoFee *big.Int = big.NewInt(20)
-var ContractFee *big.Int = big.NewInt(100)
-
 var BlockReward *big.Int = big.NewInt(1.5e+18)
 var UncleReward *big.Int = big.NewInt(1.125e+18)
 var UncleInclusionReward *big.Int = big.NewInt(1.875e+17)
-
-var Period1Reward *big.Int = new(big.Int)
-var Period2Reward *big.Int = new(big.Int)
-var Period3Reward *big.Int = new(big.Int)
-var Period4Reward *big.Int = new(big.Int)
-
-func InitFees() {
-	StepFee.Mul(StepFee, TxFeeRat)
-	StoreFee.Mul(StoreFee, TxFeeRat)
-	DataFee.Mul(DataFee, TxFeeRat)
-	ExtroFee.Mul(ExtroFee, TxFeeRat)
-	CryptoFee.Mul(CryptoFee, TxFeeRat)
-	ContractFee.Mul(ContractFee, TxFeeRat)
-}
diff --git a/ethchain/stack.go b/ethchain/stack.go
index bf34e6ea9..37d1f84b9 100644
--- a/ethchain/stack.go
+++ b/ethchain/stack.go
@@ -111,6 +111,12 @@ func (m *Memory) Set(offset, size int64, value []byte) {
 	copy(m.store[offset:offset+size], value)
 }
 
+func (m *Memory) Resize(size uint64) {
+	if uint64(m.Len()) < size {
+		m.store = append(m.store, make([]byte, size-uint64(m.Len()))...)
+	}
+}
+
 func (m *Memory) Get(offset, size int64) []byte {
 	return m.store[offset : offset+size]
 }
diff --git a/ethchain/state.go b/ethchain/state.go
index 5af748e00..9a9d0a278 100644
--- a/ethchain/state.go
+++ b/ethchain/state.go
@@ -16,12 +16,14 @@ type State struct {
 	// Nested states
 	states map[string]*State
 
+	stateObjects map[string]*StateObject
+
 	manifest *Manifest
 }
 
 // Create a new state from a given trie
 func NewState(trie *ethutil.Trie) *State {
-	return &State{trie: trie, states: make(map[string]*State), manifest: NewManifest()}
+	return &State{trie: trie, states: make(map[string]*State), stateObjects: make(map[string]*StateObject), manifest: NewManifest()}
 }
 
 // Resets the trie and all siblings
@@ -29,16 +31,24 @@ func (s *State) Reset() {
 	s.trie.Undo()
 
 	// Reset all nested states
-	for _, state := range s.states {
-		state.Reset()
+	for _, stateObject := range s.stateObjects {
+		if stateObject.state == nil {
+			continue
+		}
+
+		stateObject.state.Reset()
 	}
 }
 
 // Syncs the trie and all siblings
 func (s *State) Sync() {
 	// Sync all nested states
-	for _, state := range s.states {
-		state.Sync()
+	for _, stateObject := range s.stateObjects {
+		if stateObject.state == nil {
+			continue
+		}
+
+		stateObject.state.Sync()
 	}
 
 	s.trie.Sync()
@@ -54,62 +64,66 @@ func (s *State) EachStorage(cb ethutil.EachCallback) {
 	it.Each(cb)
 }
 
-func (s *State) GetStateObject(addr []byte) *StateObject {
-	data := s.trie.Get(string(addr))
-	if data == "" {
-		return nil
+func (self *State) UpdateStateObject(stateObject *StateObject) {
+	addr := stateObject.Address()
+
+	if self.stateObjects[string(addr)] == nil {
+		self.stateObjects[string(addr)] = stateObject
 	}
 
-	stateObject := NewStateObjectFromBytes(addr, []byte(data))
+	ethutil.Config.Db.Put(ethutil.Sha3Bin(stateObject.Script()), stateObject.Script())
 
-	// Check if there's a cached state for this contract
-	cachedStateObject := s.states[string(addr)]
-	if cachedStateObject != nil {
-		//fmt.Printf("get cached #%d %x addr: %x\n", cachedStateObject.trie.Cache().Len(), cachedStateObject.Root(), addr[0:4])
-		stateObject.state = cachedStateObject
-	}
+	self.trie.Update(string(addr), string(stateObject.RlpEncode()))
 
-	return stateObject
+	self.manifest.AddObjectChange(stateObject)
 }
 
-// Updates any given state object
-func (s *State) UpdateStateObject(object *StateObject) {
-	addr := object.Address()
-
-	if object.state != nil && s.states[string(addr)] == nil {
-		s.states[string(addr)] = object.state
-		//fmt.Printf("update cached #%d %x addr: %x\n", object.state.trie.Cache().Len(), object.state.Root(), addr[0:4])
+func (self *State) GetStateObject(addr []byte) *StateObject {
+	stateObject := self.stateObjects[string(addr)]
+	if stateObject != nil {
+		return stateObject
 	}
 
-	ethutil.Config.Db.Put(ethutil.Sha3Bin(object.Script()), object.Script())
+	data := self.trie.Get(string(addr))
+	if len(data) == 0 {
+		return nil
+	}
 
-	s.trie.Update(string(addr), string(object.RlpEncode()))
+	stateObject = NewStateObjectFromBytes(addr, []byte(data))
+	self.stateObjects[string(addr)] = stateObject
 
-	s.manifest.AddObjectChange(object)
+	return stateObject
 }
 
-func (s *State) GetAccount(addr []byte) (account *StateObject) {
-	data := s.trie.Get(string(addr))
-	if data == "" {
-		account = NewAccount(addr, big.NewInt(0))
-	} else {
-		account = NewStateObjectFromBytes(addr, []byte(data))
+func (self *State) GetOrNewStateObject(addr []byte) *StateObject {
+	stateObject := self.GetStateObject(addr)
+	if stateObject == nil {
+		stateObject = NewStateObject(addr)
+		self.stateObjects[string(addr)] = stateObject
 	}
 
-	return
+	return stateObject
+}
+
+func (self *State) GetAccount(addr []byte) *StateObject {
+	return self.GetOrNewStateObject(addr)
 }
 
 func (s *State) Cmp(other *State) bool {
 	return s.trie.Cmp(other.trie)
 }
 
-func (s *State) Copy() *State {
-	state := NewState(s.trie.Copy())
-	for k, subState := range s.states {
-		state.states[k] = subState.Copy()
+func (self *State) Copy() *State {
+	if self.trie != nil {
+		state := NewState(self.trie.Copy())
+		for k, stateObject := range self.stateObjects {
+			state.stateObjects[k] = stateObject.Copy()
+		}
+
+		return state
 	}
 
-	return state
+	return nil
 }
 
 func (s *State) Snapshot() *State {
@@ -165,3 +179,84 @@ func (m *Manifest) AddStorageChange(stateObject *StateObject, storageAddr []byte
 
 	m.storageChanges[string(stateObject.Address())][string(storageAddr)] = storage
 }
+
+/*
+
+// Resets the trie and all siblings
+func (s *State) Reset() {
+	s.trie.Undo()
+
+	// Reset all nested states
+	for _, state := range s.states {
+		state.Reset()
+	}
+}
+
+// Syncs the trie and all siblings
+func (s *State) Sync() {
+	// Sync all nested states
+	for _, state := range s.states {
+		state.Sync()
+	}
+
+	s.trie.Sync()
+}
+func (s *State) GetStateObject(addr []byte) *StateObject {
+	data := s.trie.Get(string(addr))
+	if data == "" {
+		return nil
+	}
+
+	stateObject := NewStateObjectFromBytes(addr, []byte(data))
+
+	// Check if there's a cached state for this contract
+	cachedStateObject := s.states[string(addr)]
+	if cachedStateObject != nil {
+		//fmt.Printf("get cached #%d %x addr: %x\n", cachedStateObject.trie.Cache().Len(), cachedStateObject.Root(), addr[0:4])
+		stateObject.state = cachedStateObject
+	}
+
+	return stateObject
+}
+
+// Updates any given state object
+func (s *State) UpdateStateObject(object *StateObject) {
+	addr := object.Address()
+
+	if object.state != nil && s.states[string(addr)] == nil {
+		s.states[string(addr)] = object.state
+	}
+
+	ethutil.Config.Db.Put(ethutil.Sha3Bin(object.Script()), object.Script())
+
+	s.trie.Update(string(addr), string(object.RlpEncode()))
+
+	s.manifest.AddObjectChange(object)
+}
+
+func (s *State) GetAccount(addr []byte) (account *StateObject) {
+	data := s.trie.Get(string(addr))
+	if data == "" {
+		account = NewAccount(addr, big.NewInt(0))
+	} else {
+		account = NewStateObjectFromBytes(addr, []byte(data))
+	}
+
+	// Check if there's a cached state for this contract
+	cachedStateObject := s.states[string(addr)]
+	if cachedStateObject != nil {
+		account.state = cachedStateObject
+	}
+
+	return
+}
+
+func (s *State) Copy() *State {
+	state := NewState(s.trie.Copy())
+	for k, subState := range s.states {
+		state.states[k] = subState.Copy()
+	}
+
+	return state
+}
+*/
diff --git a/ethchain/state_manager.go b/ethchain/state_manager.go
index f1c09b819..36bb14846 100644
--- a/ethchain/state_manager.go
+++ b/ethchain/state_manager.go
@@ -97,100 +97,49 @@ func (sm *StateManager) BlockChain() *BlockChain {
 	return sm.bc
 }
 
-func (sm *StateManager) MakeStateObject(state *State, tx *Transaction) *StateObject {
-	contract := MakeContract(tx, state)
-	if contract != nil {
-		state.states[string(tx.CreationAddress())] = contract.state
-
-		return contract
-	}
-
-	return nil
-}
+func (self *StateManager) ProcessTransactions(coinbase *StateObject, state *State, block, parent *Block, txs Transactions) (Receipts, Transactions, Transactions, error) {
+	var (
+		receipts           Receipts
+		handled, unhandled Transactions
+		totalUsedGas       = big.NewInt(0)
+		err                error
+	)
 
-// Apply transactions uses the transaction passed to it and applies them onto
-// the current processing state.
-func (sm *StateManager) ApplyTransactions(state *State, block *Block, txs []*Transaction) ([]*Receipt, []*Transaction) {
-	// Process each transaction/contract
-	var receipts []*Receipt
-	var validTxs []*Transaction
-	totalUsedGas := big.NewInt(0)
-	for _, tx := range txs {
-		usedGas, err := sm.ApplyTransaction(state, block, tx)
+done:
+	for i, tx := range txs {
+		txGas := new(big.Int).Set(tx.Gas)
+		st := NewStateTransition(coinbase, tx, state, block)
+		err = st.TransitionState()
 		if err != nil {
-			if IsNonceErr(err) {
+			switch {
+			case IsNonceErr(err):
+				err = nil // ignore error
 				continue
-			}
+			case IsGasLimitErr(err):
+				unhandled = txs[i:]
 
-			ethutil.Config.Log.Infoln(err)
+				break done
+			default:
+				ethutil.Config.Log.Infoln(err)
+			}
 		}
 
-		accumelative := new(big.Int).Set(totalUsedGas.Add(totalUsedGas, usedGas))
+		// Notify all subscribers
+		self.Ethereum.Reactor().Post("newTx:post", tx)
+
+		txGas.Sub(txGas, st.gas)
+		accumelative := new(big.Int).Set(totalUsedGas.Add(totalUsedGas, txGas))
 		receipt := &Receipt{tx, ethutil.CopyBytes(state.Root().([]byte)), accumelative}
 
 		receipts = append(receipts, receipt)
-		validTxs = append(validTxs, tx)
+		handled = append(handled, tx)
 	}
 
-	return receipts, validTxs
-}
+	fmt.Println("################# MADE\n", receipts, "\n############################")
 
-func (sm *StateManager) ApplyTransaction(state *State, block *Block, tx *Transaction) (totalGasUsed *big.Int, err error) {
-	/*
-		Applies transactions to the given state and creates new
-		state objects where needed.
+	parent.GasUsed = totalUsedGas
 
-		If said objects needs to be created
-		run the initialization script provided by the transaction and
-		assume there's a return value. The return value will be set to
-		the script section of the state object.
-	*/
-	var (
-		addTotalGas = func(gas *big.Int) { totalGasUsed.Add(totalGasUsed, gas) }
-		gas         = new(big.Int)
-		script      []byte
-	)
-	totalGasUsed = big.NewInt(0)
-
-	// Apply the transaction to the current state
-	gas, err = sm.Ethereum.TxPool().ProcessTransaction(tx, state, false)
-	addTotalGas(gas)
-
-	if tx.CreatesContract() {
-		if err == nil {
-			// Create a new state object and the transaction
-			// as it's data provider.
-			contract := sm.MakeStateObject(state, tx)
-			if contract != nil {
-				// Evaluate the initialization script
-				// and use the return value as the
-				// script section for the state object.
-				script, gas, err = sm.EvalScript(state, contract.Init(), contract, tx, block)
-				addTotalGas(gas)
-
-				if err != nil {
-					err = fmt.Errorf("[STATE] Error during init script run %v", err)
-					return
-				}
-				contract.script = script
-				state.UpdateStateObject(contract)
-			} else {
-				err = fmt.Errorf("[STATE] Unable to create contract")
-			}
-		} else {
-			err = fmt.Errorf("[STATE] contract creation tx: %v for sender %x", err, tx.Sender())
-		}
-	} else {
-		// Find the state object at the "recipient" address. If
-		// there's an object attempt to run the script.
-		stateObject := state.GetStateObject(tx.Recipient)
-		if err == nil && stateObject != nil && len(stateObject.Script()) > 0 {
-			_, gas, err = sm.EvalScript(state, stateObject.Script(), stateObject, tx, block)
-			addTotalGas(gas)
-		}
-	}
-
-	return
+	return receipts, handled, unhandled, err
 }
 
 func (sm *StateManager) Process(block *Block, dontReact bool) error {
@@ -212,7 +161,6 @@ func (sm *StateManager) ProcessBlock(state *State, parent, block *Block, dontRea
 	hash := block.Hash()
 
 	if sm.bc.HasBlock(hash) {
-		//fmt.Println("[STATE] We already have this block, ignoring")
 		return nil
 	}
 
@@ -227,9 +175,14 @@ func (sm *StateManager) ProcessBlock(state *State, parent, block *Block, dontRea
 	if !sm.bc.HasBlock(block.PrevHash) && sm.bc.CurrentBlock != nil {
 		return ParentError(block.PrevHash)
 	}
+	fmt.Println(block.Receipts())
+
+	coinbase := state.GetOrNewStateObject(block.Coinbase)
+	coinbase.SetGasPool(block.CalcGasLimit(parent))
 
 	// Process the transactions on to current block
-	sm.ApplyTransactions(state, parent, block.Transactions())
+	//sm.ApplyTransactions(block.Coinbase, state, parent, block.Transactions())
+	sm.ProcessTransactions(coinbase, state, block, parent, block.Transactions())
 
 	// Block validation
 	if err := sm.ValidateBlock(block); err != nil {
@@ -244,7 +197,6 @@ func (sm *StateManager) ProcessBlock(state *State, parent, block *Block, dontRea
 		return err
 	}
 
-	//if !sm.compState.Cmp(state) {
 	if !block.State().Cmp(state) {
 		return fmt.Errorf("Invalid merkle root.\nrec: %x\nis:  %x", block.State().trie.Root, state.trie.Root)
 	}
@@ -337,13 +289,6 @@ func CalculateBlockReward(block *Block, uncleLength int) *big.Int {
 		base.Add(base, UncleInclusionReward)
 	}
 
-	lastCumulGasUsed := big.NewInt(0)
-	for _, r := range block.Receipts() {
-		usedGas := new(big.Int).Sub(r.CumulativeGasUsed, lastCumulGasUsed)
-		usedGas.Add(usedGas, r.Tx.GasPrice)
-		base.Add(base, usedGas)
-	}
-
 	return base.Add(base, BlockReward)
 }
 
@@ -375,35 +320,6 @@ func (sm *StateManager) Stop() {
 	sm.bc.Stop()
 }
 
-func (sm *StateManager) EvalScript(state *State, script []byte, object *StateObject, tx *Transaction, block *Block) (ret []byte, gas *big.Int, err error) {
-	account := state.GetAccount(tx.Sender())
-
-	err = account.ConvertGas(tx.Gas, tx.GasPrice)
-	if err != nil {
-		ethutil.Config.Log.Debugln(err)
-		return
-	}
-
-	closure := NewClosure(account, object, script, state, tx.Gas, tx.GasPrice)
-	vm := NewVm(state, sm, RuntimeVars{
-		Origin:      account.Address(),
-		BlockNumber: block.BlockInfo().Number,
-		PrevHash:    block.PrevHash,
-		Coinbase:    block.Coinbase,
-		Time:        block.Time,
-		Diff:        block.Difficulty,
-		Value:       tx.Value,
-		//Price:       tx.GasPrice,
-	})
-	ret, gas, err = closure.Call(vm, tx.Data, nil)
-
-	// Update the account (refunds)
-	state.UpdateStateObject(account)
-	state.UpdateStateObject(object)
-
-	return
-}
-
 func (sm *StateManager) notifyChanges(state *State) {
 	for addr, stateObject := range state.manifest.objectChanges {
 		sm.Ethereum.Reactor().Post("object:"+addr, stateObject)
diff --git a/ethchain/state_object.go b/ethchain/state_object.go
index 3e9c6df40..1445bcd82 100644
--- a/ethchain/state_object.go
+++ b/ethchain/state_object.go
@@ -17,6 +17,11 @@ type StateObject struct {
 	state      *State
 	script     []byte
 	initScript []byte
+
+	// Total gas pool is the total amount of gas currently
+	// left if this object is the coinbase. Gas is directly
+	// purchased of the coinbase.
+	gasPool *big.Int
 }
 
 // Converts an transaction in to a state object
@@ -38,6 +43,10 @@ func MakeContract(tx *Transaction, state *State) *StateObject {
 	return nil
 }
 
+func NewStateObject(addr []byte) *StateObject {
+	return &StateObject{address: addr, Amount: new(big.Int)}
+}
+
 func NewContract(address []byte, Amount *big.Int, root []byte) *StateObject {
 	contract := &StateObject{address: address, Amount: Amount, Nonce: 0}
 	contract.state = NewState(ethutil.NewTrie(ethutil.Config.Db, string(root)))
@@ -77,7 +86,7 @@ func (c *StateObject) SetAddr(addr []byte, value interface{}) {
 
 func (c *StateObject) SetStorage(num *big.Int, val *ethutil.Value) {
 	addr := ethutil.BigToBytes(num, 256)
-	//fmt.Println("storing", val.BigInt(), "@", num)
+	//fmt.Printf("sstore %x => %v\n", addr, val)
 	c.SetAddr(addr, val)
 }
 
@@ -102,16 +111,22 @@ func (c *StateObject) GetInstr(pc *big.Int) *ethutil.Value {
 
 // Return the gas back to the origin. Used by the Virtual machine or Closures
 func (c *StateObject) ReturnGas(gas, price *big.Int, state *State) {
-	remainder := new(big.Int).Mul(gas, price)
-	c.AddAmount(remainder)
+	/*
+		remainder := new(big.Int).Mul(gas, price)
+		c.AddAmount(remainder)
+	*/
 }
 
 func (c *StateObject) AddAmount(amount *big.Int) {
 	c.SetAmount(new(big.Int).Add(c.Amount, amount))
+
+	ethutil.Config.Log.Printf(ethutil.LogLevelSystem, "%x: #%d %v (+ %v)\n", c.Address(), c.Nonce, c.Amount, amount)
 }
 
 func (c *StateObject) SubAmount(amount *big.Int) {
 	c.SetAmount(new(big.Int).Sub(c.Amount, amount))
+
+	ethutil.Config.Log.Printf(ethutil.LogLevelSystem, "%x: #%d %v (- %v)\n", c.Address(), c.Nonce, c.Amount, amount)
 }
 
 func (c *StateObject) SetAmount(amount *big.Int) {
@@ -129,6 +144,53 @@ func (c *StateObject) ConvertGas(gas, price *big.Int) error {
 	return nil
 }
 
+func (self *StateObject) SetGasPool(gasLimit *big.Int) {
+	self.gasPool = new(big.Int).Set(gasLimit)
+
+	ethutil.Config.Log.Printf(ethutil.LogLevelSystem, "%x: fuel (+ %v)", self.Address(), self.gasPool)
+}
+
+func (self *StateObject) BuyGas(gas, price *big.Int) error {
+	if self.gasPool.Cmp(gas) < 0 {
+		return GasLimitError(self.gasPool, gas)
+	}
+
+	rGas := new(big.Int).Set(gas)
+	rGas.Mul(rGas, price)
+
+	self.AddAmount(rGas)
+
+	return nil
+}
+
+func (self *StateObject) RefundGas(gas, price *big.Int) {
+	self.gasPool.Add(self.gasPool, gas)
+
+	rGas := new(big.Int).Set(gas)
+	rGas.Mul(rGas, price)
+
+	self.Amount.Sub(self.Amount, rGas)
+}
+
+func (self *StateObject) Copy() *StateObject {
+	stCopy := &StateObject{}
+	stCopy.address = make([]byte, len(self.address))
+	copy(stCopy.address, self.address)
+	stCopy.Amount = new(big.Int).Set(self.Amount)
+	stCopy.ScriptHash = make([]byte, len(self.ScriptHash))
+	copy(stCopy.ScriptHash, self.ScriptHash)
+	stCopy.Nonce = self.Nonce
+	if self.state != nil {
+		stCopy.state = self.state.Copy()
+	}
+	stCopy.script = make([]byte, len(self.script))
+	copy(stCopy.script, self.script)
+	stCopy.initScript = make([]byte, len(self.initScript))
+	copy(stCopy.initScript, self.initScript)
+
+	return stCopy
+}
+
 // Returns the address of the contract/account
 func (c *StateObject) Address() []byte {
 	return c.address
@@ -153,14 +215,14 @@ func (c *StateObject) RlpEncode() []byte {
 		root = ""
 	}
 
-	return ethutil.Encode([]interface{}{c.Amount, c.Nonce, root, ethutil.Sha3Bin(c.script)})
+	return ethutil.Encode([]interface{}{c.Nonce, c.Amount, root, ethutil.Sha3Bin(c.script)})
 }
 
 func (c *StateObject) RlpDecode(data []byte) {
 	decoder := ethutil.NewValueFromBytes(data)
 
-	c.Amount = decoder.Get(0).BigInt()
-	c.Nonce = decoder.Get(1).Uint()
+	c.Nonce = decoder.Get(0).Uint()
+	c.Amount = decoder.Get(1).BigInt()
 	c.state = NewState(ethutil.NewTrie(ethutil.Config.Db, decoder.Get(2).Interface()))
 
 	c.ScriptHash = decoder.Get(3).Bytes()
diff --git a/ethchain/state_transition.go b/ethchain/state_transition.go
new file mode 100644
index 000000000..25efd64cc
--- /dev/null
+++ b/ethchain/state_transition.go
@@ -0,0 +1,260 @@
+package ethchain
+
+import (
+	"fmt"
+	"github.com/ethereum/eth-go/ethutil"
+	"math/big"
+)
+
+/*
+ * The State transitioning model
+ *
+ * A state transition is a change made when a transaction is applied to the current world state
+ * The state transitioning model does all all the necessary work to work out a valid new state root.
+ * 1) Nonce handling
+ * 2) Pre pay / buy gas of the coinbase (miner)
+ * 3) Create a new state object if the recipient is \0*32
+ * 4) Value transfer
+ * == If contract creation ==
+ * 4a) Attempt to run transaction data
+ * 4b) If valid, use result as code for the new state object
+ * == end ==
+ * 5) Run Script section
+ * 6) Derive new state root
+ */
+type StateTransition struct {
+	coinbase []byte
+	tx       *Transaction
+	gas      *big.Int
+	state    *State
+	block    *Block
+
+	cb, rec, sen *StateObject
+}
+
+func NewStateTransition(coinbase *StateObject, tx *Transaction, state *State, block *Block) *StateTransition {
+	return &StateTransition{coinbase.Address(), tx, new(big.Int), state, block, coinbase, nil, nil}
+}
+
+func (self *StateTransition) Coinbase() *StateObject {
+	if self.cb != nil {
+		return self.cb
+	}
+
+	self.cb = self.state.GetAccount(self.coinbase)
+	return self.cb
+}
+func (self *StateTransition) Sender() *StateObject {
+	if self.sen != nil {
+		return self.sen
+	}
+
+	self.sen = self.state.GetAccount(self.tx.Sender())
+	return self.sen
+}
+func (self *StateTransition) Receiver() *StateObject {
+	if self.tx.CreatesContract() {
+		return nil
+	}
+
+	if self.rec != nil {
+		return self.rec
+	}
+
+	self.rec = self.state.GetAccount(self.tx.Recipient)
+	return self.rec
+}
+
+func (self *StateTransition) MakeStateObject(state *State, tx *Transaction) *StateObject {
+	contract := MakeContract(tx, state)
+	if contract != nil {
+		state.states[string(tx.CreationAddress())] = contract.state
+
+		return contract
+	}
+
+	return nil
+}
+
+func (self *StateTransition) UseGas(amount *big.Int) error {
+	if self.gas.Cmp(amount) < 0 {
+		return OutOfGasError()
+	}
+	self.gas.Sub(self.gas, amount)
+
+	return nil
+}
+
+func (self *StateTransition) AddGas(amount *big.Int) {
+	self.gas.Add(self.gas, amount)
+}
+
+func (self *StateTransition) BuyGas() error {
+	var err error
+
+	sender := self.Sender()
+	if sender.Amount.Cmp(self.tx.GasValue()) < 0 {
+		return fmt.Errorf("Insufficient funds to pre-pay gas. Req %v, has %v", self.tx.GasValue(), self.tx.Value)
+	}
+
+	coinbase := self.Coinbase()
+	err = coinbase.BuyGas(self.tx.Gas, self.tx.GasPrice)
+	if err != nil {
+		return err
+	}
+	//self.state.UpdateStateObject(coinbase)
+
+	self.AddGas(self.tx.Gas)
+	sender.SubAmount(self.tx.GasValue())
+
+	return nil
+}
+
+func (self *StateTransition) RefundGas() {
+	coinbase, sender := self.Coinbase(), self.Sender()
+	coinbase.RefundGas(self.gas, self.tx.GasPrice)
+
+	// Return remaining gas
+	remaining := new(big.Int).Mul(self.gas, self.tx.GasPrice)
+	sender.AddAmount(remaining)
+}
+
+func (self *StateTransition) TransitionState() (err error) {
+	//snapshot := st.state.Snapshot()
+
+	/*
+		defer func() {
+			if r := recover(); r != nil {
+				ethutil.Config.Log.Infoln(r)
+				err = fmt.Errorf("state transition err %v", r)
+			}
+		}()
+	*/
+
+	var (
+		tx       = self.tx
+		sender   = self.Sender()
+		receiver *StateObject
+	)
+
+	// Make sure this transaction's nonce is correct
+	if sender.Nonce != tx.Nonce {
+		return NonceError(tx.Nonce, sender.Nonce)
+	}
+
+	// Pre-pay gas / Buy gas of the coinbase account
+	if err = self.BuyGas(); err != nil {
+		return err
+	}
+
+	// XXX Transactions after this point are considered valid.
+
+	defer func() {
+		self.RefundGas()
+
+		if sender != nil {
+			self.state.UpdateStateObject(sender)
+		}
+
+		if receiver != nil {
+			self.state.UpdateStateObject(receiver)
+		}
+
+		self.state.UpdateStateObject(self.Coinbase())
+	}()
+
+	// Increment the nonce for the next transaction
+	sender.Nonce += 1
+
+	// Get the receiver (TODO fix this, if coinbase is the receiver we need to save/retrieve)
+	receiver = self.Receiver()
+
+	// Transaction gas
+	if err = self.UseGas(GasTx); err != nil {
+		return err
+	}
+
+	// Pay data gas
+	dataPrice := big.NewInt(int64(len(tx.Data)))
+	dataPrice.Mul(dataPrice, GasData)
+	if err = self.UseGas(dataPrice); err != nil {
+		return err
+	}
+
+	// If the receiver is nil it's a contract (\0*32).
+	if receiver == nil {
+		// Create a new state object for the contract
+		receiver = self.MakeStateObject(self.state, tx)
+		if receiver == nil {
+			return fmt.Errorf("ERR. Unable to create contract with transaction %v", tx)
+		}
+	}
+
+	// Transfer value from sender to receiver
+	if err = self.transferValue(sender, receiver); err != nil {
+		return err
+	}
+
+	// Process the init code and create 'valid' contract
+	if tx.CreatesContract() {
+		// Evaluate the initialization script
+		// and use the return value as the
+		// script section for the state object.
+		//script, gas, err = sm.Eval(state, contract.Init(), contract, tx, block)
+		code, err := self.Eval(receiver.Init(), receiver)
+		if err != nil {
+			return fmt.Errorf("Error during init script run %v", err)
+		}
+
+		receiver.script = code
+	} else {
+		if len(receiver.Script()) > 0 {
+			_, err := self.Eval(receiver.Script(), receiver)
+			if err != nil {
+				return fmt.Errorf("Error during code execution %v", err)
+			}
+		}
+	}
+
+	return nil
+}
+
+func (self *StateTransition) transferValue(sender, receiver *StateObject) error {
+	if sender.Amount.Cmp(self.tx.Value) < 0 {
+		return fmt.Errorf("Insufficient funds to transfer value. Req %v, has %v", self.tx.Value, sender.Amount)
+	}
+
+	if self.tx.Value.Cmp(ethutil.Big0) > 0 {
+		// Subtract the amount from the senders account
+		sender.SubAmount(self.tx.Value)
+		// Add the amount to receivers account which should conclude this transaction
+		receiver.AddAmount(self.tx.Value)
+
+		ethutil.Config.Log.Debugf("%x => %x (%v) %x\n", sender.Address()[:4], receiver.Address()[:4], self.tx.Value, self.tx.Hash())
+	}
+
+	return nil
+}
+
+func (self *StateTransition) Eval(script []byte, context *StateObject) (ret []byte, err error) {
+	var (
+		tx        = self.tx
+		block     = self.block
+		initiator = self.Sender()
+		state     = self.state
+	)
+
+	closure := NewClosure(initiator, context, script, state, self.gas, tx.GasPrice)
+	vm := NewVm(state, nil, RuntimeVars{
+		Origin:      initiator.Address(),
+		BlockNumber: block.BlockInfo().Number,
+		PrevHash:    block.PrevHash,
+		Coinbase:    block.Coinbase,
+		Time:        block.Time,
+		Diff:        block.Difficulty,
+		Value:       tx.Value,
+	})
+	ret, _, err = closure.Call(vm, tx.Data, nil)
+
+	return
+}
diff --git a/ethchain/transaction.go b/ethchain/transaction.go
index 2cb946b3b..3d52e4f73 100644
--- a/ethchain/transaction.go
+++ b/ethchain/transaction.go
@@ -1,6 +1,7 @@
 package ethchain
 
 import (
+	"bytes"
 	"fmt"
 	"github.com/ethereum/eth-go/ethutil"
 	"github.com/obscuren/secp256k1-go"
@@ -24,7 +25,7 @@ type Transaction struct {
 }
 
 func NewContractCreationTx(value, gas, gasPrice *big.Int, script []byte) *Transaction {
-	return &Transaction{Value: value, Gas: gas, GasPrice: gasPrice, Data: script, contractCreation: true}
+	return &Transaction{Recipient: ContractAddr, Value: value, Gas: gas, GasPrice: gasPrice, Data: script, contractCreation: true}
 }
 
 func NewTransactionMessage(to []byte, value, gas, gasPrice *big.Int, data []byte) *Transaction {
@@ -45,15 +46,18 @@ func NewTransactionFromValue(val *ethutil.Value) *Transaction {
 	return tx
 }
 
+func (self *Transaction) GasValue() *big.Int {
+	return new(big.Int).Mul(self.Gas, self.GasPrice)
+}
+
+func (self *Transaction) TotalValue() *big.Int {
+	v := self.GasValue()
+	return v.Add(v, self.Value)
+}
+
 func (tx *Transaction) Hash() []byte {
 	data := []interface{}{tx.Nonce, tx.GasPrice, tx.Gas, tx.Recipient, tx.Value, tx.Data}
 
-	/*
-		if tx.contractCreation {
-			data = append(data, tx.Init)
-		}
-	*/
-
 	return ethutil.Sha3Bin(ethutil.NewValue(data).Encode())
 }
 
@@ -144,7 +148,8 @@ func (tx *Transaction) RlpValueDecode(decoder *ethutil.Value) {
 	tx.v = byte(decoder.Get(6).Uint())
 	tx.r = decoder.Get(7).Bytes()
 	tx.s = decoder.Get(8).Bytes()
-	if len(tx.Recipient) == 0 {
+
+	if bytes.Compare(tx.Recipient, ContractAddr) == 0 {
 		tx.contractCreation = true
 	}
 }
@@ -183,6 +188,7 @@ type Receipt struct {
 	PostState         []byte
 	CumulativeGasUsed *big.Int
 }
+type Receipts []*Receipt
 
 func NewRecieptFromValue(val *ethutil.Value) *Receipt {
 	r := &Receipt{}
diff --git a/ethchain/transaction_pool.go b/ethchain/transaction_pool.go
index ba2ffcef5..24836222a 100644
--- a/ethchain/transaction_pool.go
+++ b/ethchain/transaction_pool.go
@@ -22,6 +22,7 @@ type TxMsgTy byte
 const (
 	TxPre = iota
 	TxPost
+	minGasPrice = 1000000
 )
 
 type TxMsg struct {
@@ -89,9 +90,11 @@ func (pool *TxPool) addTransaction(tx *Transaction) {
 	pool.Ethereum.Broadcast(ethwire.MsgTxTy, []interface{}{tx.RlpData()})
 }
 
+/*
 // Process transaction validates the Tx and processes funds from the
 // sender to the recipient.
 func (pool *TxPool) ProcessTransaction(tx *Transaction, state *State, toContract bool) (gas *big.Int, err error) {
+	fmt.Printf("state root before update %x\n", state.Root())
 	defer func() {
 		if r := recover(); r != nil {
 			ethutil.Config.Log.Infoln(r)
@@ -101,6 +104,7 @@ func (pool *TxPool) ProcessTransaction(tx *Transaction, state *State, toContract
 
 	gas = new(big.Int)
 	addGas := func(g *big.Int) { gas.Add(gas, g) }
+	addGas(GasTx)
 
 	// Get the sender
 	sender := state.GetAccount(tx.Sender())
@@ -110,28 +114,37 @@ func (pool *TxPool) ProcessTransaction(tx *Transaction, state *State, toContract
 		return
 	}
 
+	sender.Nonce += 1
+	defer func() {
+		//state.UpdateStateObject(sender)
+		// Notify all subscribers
+		pool.Ethereum.Reactor().Post("newTx:post", tx)
+	}()
+
 	txTotalBytes := big.NewInt(int64(len(tx.Data)))
 	txTotalBytes.Div(txTotalBytes, ethutil.Big32)
 	addGas(new(big.Int).Mul(txTotalBytes, GasSStore))
 
+	rGas := new(big.Int).Set(gas)
+	rGas.Mul(gas, tx.GasPrice)
+
 	// Make sure there's enough in the sender's account. Having insufficient
 	// funds won't invalidate this transaction but simple ignores it.
-	//totAmount := new(big.Int).Add(tx.Value, new(big.Int).Mul(TxFee, TxFeeRat))
-	totAmount := new(big.Int).Add(tx.Value, new(big.Int).Mul(tx.Gas, tx.GasPrice))
+	totAmount := new(big.Int).Add(tx.Value, rGas)
 	if sender.Amount.Cmp(totAmount) < 0 {
 		err = fmt.Errorf("[TXPL] Insufficient amount in sender's (%x) account", tx.Sender())
 		return
 	}
+	state.UpdateStateObject(sender)
+	fmt.Printf("state root after sender update %x\n", state.Root())
 
 	// Get the receiver
 	receiver := state.GetAccount(tx.Recipient)
-	sender.Nonce += 1
 
 	// Send Tx to self
 	if bytes.Compare(tx.Recipient, tx.Sender()) == 0 {
-		addGas(GasTx)
 		// Subtract the fee
-		sender.SubAmount(new(big.Int).Mul(GasTx, tx.GasPrice))
+		sender.SubAmount(rGas)
 	} else {
 		// Subtract the amount from the senders account
 		sender.SubAmount(totAmount)
@@ -140,17 +153,14 @@ func (pool *TxPool) ProcessTransaction(tx *Transaction, state *State, toContract
 		receiver.AddAmount(tx.Value)
 
 		state.UpdateStateObject(receiver)
+		fmt.Printf("state root after receiver update %x\n", state.Root())
 	}
 
-	state.UpdateStateObject(sender)
-
 	ethutil.Config.Log.Infof("[TXPL] Processed Tx %x\n", tx.Hash())
 
-	// Notify all subscribers
-	pool.Ethereum.Reactor().Post("newTx:post", tx)
-
 	return
 }
+*/
 
 func (pool *TxPool) ValidateTransaction(tx *Transaction) error {
 	// Get the last block so we can retrieve the sender and receiver from
@@ -161,17 +171,27 @@ func (pool *TxPool) ValidateTransaction(tx *Transaction) error {
 		return errors.New("[TXPL] No last block on the block chain")
 	}
 
+	if len(tx.Recipient) != 20 {
+		return fmt.Errorf("[TXPL] Invalid recipient. len = %d", len(tx.Recipient))
+	}
+
 	// Get the sender
 	//sender := pool.Ethereum.StateManager().procState.GetAccount(tx.Sender())
 	sender := pool.Ethereum.StateManager().CurrentState().GetAccount(tx.Sender())
 
-	totAmount := new(big.Int).Add(tx.Value, new(big.Int).Mul(TxFee, TxFeeRat))
+	totAmount := new(big.Int).Set(tx.Value)
 	// Make sure there's enough in the sender's account. Having insufficient
 	// funds won't invalidate this transaction but simple ignores it.
 	if sender.Amount.Cmp(totAmount) < 0 {
 		return fmt.Errorf("[TXPL] Insufficient amount in sender's (%x) account", tx.Sender())
 	}
 
+	if tx.IsContract() {
+		if tx.GasPrice.Cmp(big.NewInt(minGasPrice)) < 0 {
+			return fmt.Errorf("[TXPL] Gasprice to low, %s given should be at least %d.", tx.GasPrice, minGasPrice)
+		}
+	}
+
 	// Increment the nonce making each tx valid only once to prevent replay
 	// attacks
 
@@ -200,6 +220,8 @@ out:
 				// Call blocking version.
 				pool.addTransaction(tx)
 
+				ethutil.Config.Log.Debugf("(t) %x => %x (%v) %x\n", tx.Sender()[:4], tx.Recipient[:4], tx.Value, tx.Hash())
+
 				// Notify the subscribers
 				pool.Ethereum.Reactor().Post("newTx:pre", tx)
 			}
diff --git a/ethchain/types.go b/ethchain/types.go
index 293871143..d89fad147 100644
--- a/ethchain/types.go
+++ b/ethchain/types.go
@@ -1,5 +1,9 @@
 package ethchain
 
+import (
+	"fmt"
+)
+
 type OpCode int
 
 // Op codes
@@ -17,8 +21,10 @@ const (
 	NEG  = 0x09
 	LT   = 0x0a
 	GT   = 0x0b
-	EQ   = 0x0c
-	NOT  = 0x0d
+	SLT  = 0x0c
+	SGT  = 0x0d
+	EQ   = 0x0e
+	NOT  = 0x0f
 
 	// 0x10 range - bit ops
 	AND  = 0x10
@@ -37,7 +43,10 @@ const (
 	CALLVALUE    = 0x34
 	CALLDATALOAD = 0x35
 	CALLDATASIZE = 0x36
-	GASPRICE     = 0x37
+	CALLDATACOPY = 0x37
+	CODESIZE     = 0x38
+	CODECOPY     = 0x39
+	GASPRICE     = 0x3a
 
 	// 0x40 range - block operations
 	PREVHASH   = 0x40
@@ -48,18 +57,19 @@ const (
 	GASLIMIT   = 0x45
 
 	// 0x50 range - 'storage' and execution
-	POP     = 0x51
-	DUP     = 0x52
-	SWAP    = 0x53
-	MLOAD   = 0x54
-	MSTORE  = 0x55
-	MSTORE8 = 0x56
-	SLOAD   = 0x57
-	SSTORE  = 0x58
-	JUMP    = 0x59
-	JUMPI   = 0x5a
-	PC      = 0x5b
-	MSIZE   = 0x5c
+	POP     = 0x50
+	DUP     = 0x51
+	SWAP    = 0x52
+	MLOAD   = 0x53
+	MSTORE  = 0x54
+	MSTORE8 = 0x55
+	SLOAD   = 0x56
+	SSTORE  = 0x57
+	JUMP    = 0x58
+	JUMPI   = 0x59
+	PC      = 0x5a
+	MSIZE   = 0x5b
+	GAS     = 0x5c
 
 	// 0x60 range
 	PUSH1  = 0x60
@@ -120,6 +130,8 @@ var opCodeToString = map[OpCode]string{
 	NEG:  "NEG",
 	LT:   "LT",
 	GT:   "GT",
+	SLT:  "SLT",
+	SGT:  "SGT",
 	EQ:   "EQ",
 	NOT:  "NOT",
 
@@ -140,6 +152,9 @@ var opCodeToString = map[OpCode]string{
 	CALLVALUE:    "CALLVALUE",
 	CALLDATALOAD: "CALLDATALOAD",
 	CALLDATASIZE: "CALLDATASIZE",
+	CALLDATACOPY: "CALLDATACOPY",
+	CODESIZE:     "CODESIZE",
+	CODECOPY:     "CODECOPY",
 	GASPRICE:     "TXGASPRICE",
 
 	// 0x40 range - block operations
@@ -162,6 +177,7 @@ var opCodeToString = map[OpCode]string{
 	JUMPI:   "JUMPI",
 	PC:      "PC",
 	MSIZE:   "MSIZE",
+	GAS:     "GAS",
 
 	// 0x60 range - push
 	PUSH1:  "PUSH1",
@@ -208,7 +224,12 @@ var opCodeToString = map[OpCode]string{
 }
 
 func (o OpCode) String() string {
-	return opCodeToString[o]
+	str := opCodeToString[o]
+	if len(str) == 0 {
+		return fmt.Sprintf("Missing opcode %#x", int(o))
+	}
+
+	return str
 }
 
 // Op codes for assembling
diff --git a/ethchain/vm.go b/ethchain/vm.go
index 955be847f..2ba0e2ef3 100644
--- a/ethchain/vm.go
+++ b/ethchain/vm.go
@@ -5,6 +5,7 @@ import (
 	"fmt"
 	"github.com/ethereum/eth-go/ethutil"
 	_ "github.com/obscuren/secp256k1-go"
+	"math"
 	_ "math"
 	"math/big"
 )
@@ -18,6 +19,7 @@ var (
 	GasCreate  = big.NewInt(100)
 	GasCall    = big.NewInt(20)
 	GasMemory  = big.NewInt(1)
+	GasData    = big.NewInt(5)
 	GasTx      = big.NewInt(500)
 )
 
@@ -112,15 +114,18 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 		}
 
 		gas := new(big.Int)
-		setStepGasUsage := func(amount *big.Int) {
+		addStepGasUsage := func(amount *big.Int) {
 			gas.Add(gas, amount)
 		}
 
+		addStepGasUsage(GasStep)
+
+		var newMemSize uint64 = 0
 		switch op {
-		case SHA3:
-			setStepGasUsage(GasSha)
+		case STOP:
+		case SUICIDE:
 		case SLOAD:
-			setStepGasUsage(GasSLoad)
+			gas.Set(GasSLoad)
 		case SSTORE:
 			var mult *big.Int
 			y, x := stack.Peekn()
@@ -132,22 +137,55 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 			} else {
 				mult = ethutil.Big1
 			}
-			setStepGasUsage(new(big.Int).Mul(mult, GasSStore))
+			gas = new(big.Int).Mul(mult, GasSStore)
 		case BALANCE:
-			setStepGasUsage(GasBalance)
-		case CREATE:
+			gas.Set(GasBalance)
+		case MSTORE:
+			require(2)
+			newMemSize = stack.Peek().Uint64() + 32
+		case MLOAD:
+
+		case MSTORE8:
+			require(2)
+			newMemSize = stack.Peek().Uint64() + 1
+		case RETURN:
+			require(2)
+
+			newMemSize = stack.Peek().Uint64() + stack.data[stack.Len()-2].Uint64()
+		case SHA3:
+			require(2)
+
+			gas.Set(GasSha)
+
+			newMemSize = stack.Peek().Uint64() + stack.data[stack.Len()-2].Uint64()
+		case CALLDATACOPY:
 			require(3)
 
-			args := stack.Get(big.NewInt(3))
-			initSize := new(big.Int).Add(args[1], args[0])
+			newMemSize = stack.Peek().Uint64() + stack.data[stack.Len()-3].Uint64()
+		case CODECOPY:
+			require(3)
 
-			setStepGasUsage(CalculateTxGas(initSize))
+			newMemSize = stack.Peek().Uint64() + stack.data[stack.Len()-3].Uint64()
 		case CALL:
-			setStepGasUsage(GasCall)
-		case MLOAD, MSIZE, MSTORE8, MSTORE:
-			setStepGasUsage(GasMemory)
-		default:
-			setStepGasUsage(GasStep)
+			require(7)
+			gas.Set(GasCall)
+			addStepGasUsage(stack.data[stack.Len()-2])
+
+			x := stack.data[stack.Len()-6].Uint64() + stack.data[stack.Len()-7].Uint64()
+			y := stack.data[stack.Len()-4].Uint64() + stack.data[stack.Len()-5].Uint64()
+
+			newMemSize = uint64(math.Max(float64(x), float64(y)))
+		case CREATE:
+			require(3)
+			gas.Set(GasCreate)
+
+			newMemSize = stack.data[stack.Len()-2].Uint64() + stack.data[stack.Len()-3].Uint64()
+		}
+
+		newMemSize = (newMemSize + 31) / 32 * 32
+		if newMemSize > uint64(mem.Len()) {
+			m := GasMemory.Uint64() * (newMemSize - uint64(mem.Len())) / 32
+			addStepGasUsage(big.NewInt(int64(m)))
 		}
 
 		if !closure.UseGas(gas) {
@@ -156,6 +194,8 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 			return closure.Return(nil), fmt.Errorf("insufficient gas %v %v", closure.Gas, gas)
 		}
 
+		mem.Resize(newMemSize)
+
 		switch op {
 		case LOG:
 			stack.Print()
@@ -320,7 +360,7 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 		case ORIGIN:
 			stack.Push(ethutil.BigD(vm.vars.Origin))
 		case CALLER:
-			stack.Push(ethutil.BigD(closure.Callee().Address()))
+			stack.Push(ethutil.BigD(closure.caller.Address()))
 		case CALLVALUE:
 			stack.Push(vm.vars.Value)
 		case CALLDATALOAD:
@@ -337,6 +377,26 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 			stack.Push(ethutil.BigD(data))
 		case CALLDATASIZE:
 			stack.Push(big.NewInt(int64(len(closure.Args))))
+		case CALLDATACOPY:
+		case CODESIZE:
+		case CODECOPY:
+			var (
+				size = int64(len(closure.Script))
+				mOff = stack.Pop().Int64()
+				cOff = stack.Pop().Int64()
+				l    = stack.Pop().Int64()
+			)
+
+			if cOff > size {
+				cOff = 0
+				l = 0
+			} else if cOff+l > size {
+				l = 0
+			}
+
+			code := closure.Script[cOff : cOff+l]
+
+			mem.Set(mOff, l, code)
 		case GASPRICE:
 			stack.Push(closure.Price)
 
@@ -423,6 +483,8 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 			stack.Push(pc)
 		case MSIZE:
 			stack.Push(big.NewInt(int64(mem.Len())))
+		case GAS:
+			stack.Push(closure.Gas)
 			// 0x60 range
 		case CREATE:
 			require(3)
@@ -435,7 +497,7 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 			snapshot := vm.state.Snapshot()
 
 			// Generate a new address
-			addr := ethutil.CreateAddress(closure.callee.Address(), closure.callee.N())
+			addr := ethutil.CreateAddress(closure.caller.Address(), closure.caller.N())
 			// Create a new contract
 			contract := NewContract(addr, value, []byte(""))
 			// Set the init script
@@ -443,10 +505,10 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 			// Transfer all remaining gas to the new
 			// contract so it may run the init script
 			gas := new(big.Int).Set(closure.Gas)
-			closure.UseGas(gas)
+			//closure.UseGas(gas)
 
 			// Create the closure
-			c := NewClosure(closure.callee,
+			c := NewClosure(closure.caller,
 				closure.Object(),
 				contract.initScript,
 				vm.state,
@@ -467,6 +529,7 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 				vm.state.UpdateStateObject(contract)
 			}
 		case CALL:
+			// TODO RE-WRITE
 			require(7)
 			// Closure addr
 			addr := stack.Pop()
@@ -476,51 +539,44 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 			inSize, inOffset := stack.Popn()
 			// Pop return size and offset
 			retSize, retOffset := stack.Popn()
-			// Make sure there's enough gas
-			if closure.Gas.Cmp(gas) < 0 {
-				stack.Push(ethutil.BigFalse)
-
-				break
-			}
 
 			// Get the arguments from the memory
 			args := mem.Get(inOffset.Int64(), inSize.Int64())
 
 			snapshot := vm.state.Snapshot()
 
-			// Fetch the contract which will serve as the closure body
-			contract := vm.state.GetStateObject(addr.Bytes())
+			closure.object.Nonce += 1
+			if closure.object.Amount.Cmp(value) < 0 {
+				ethutil.Config.Log.Debugf("Insufficient funds to transfer value. Req %v, has %v", value, closure.object.Amount)
 
-			if contract != nil {
-				// Prepay for the gas
-				// If gas is set to 0 use all remaining gas for the next call
-				if gas.Cmp(big.NewInt(0)) == 0 {
-					// Copy
-					gas = new(big.Int).Set(closure.Gas)
-				}
-				closure.UseGas(gas)
-
-				// Add the value to the state object
-				contract.AddAmount(value)
-
-				// Create a new callable closure
-				closure := NewClosure(closure, contract, contract.script, vm.state, gas, closure.Price)
-				// Executer the closure and get the return value (if any)
-				ret, _, err := closure.Call(vm, args, hook)
-				if err != nil {
-					stack.Push(ethutil.BigFalse)
-					// Reset the changes applied this object
-					vm.state.Revert(snapshot)
+				stack.Push(ethutil.BigFalse)
+			} else {
+				// Fetch the contract which will serve as the closure body
+				contract := vm.state.GetStateObject(addr.Bytes())
+
+				if contract != nil {
+					// Add the value to the state object
+					contract.AddAmount(value)
+
+					// Create a new callable closure
+					closure := NewClosure(closure, contract, contract.script, vm.state, gas, closure.Price)
+					// Executer the closure and get the return value (if any)
+					ret, _, err := closure.Call(vm, args, hook)
+					if err != nil {
+						stack.Push(ethutil.BigFalse)
+						// Reset the changes applied this object
+						vm.state.Revert(snapshot)
+					} else {
+						stack.Push(ethutil.BigTrue)
+
+						vm.state.UpdateStateObject(contract)
+
+						mem.Set(retOffset.Int64(), retSize.Int64(), ret)
+					}
 				} else {
-					stack.Push(ethutil.BigTrue)
-
-					vm.state.UpdateStateObject(contract)
-
-					mem.Set(retOffset.Int64(), retSize.Int64(), ret)
+					ethutil.Config.Log.Debugf("Contract %x not found\n", addr.Bytes())
+					stack.Push(ethutil.BigFalse)
 				}
-			} else {
-				ethutil.Config.Log.Debugf("Contract %x not found\n", addr.Bytes())
-				stack.Push(ethutil.BigFalse)
 			}
 		case RETURN:
 			require(2)
diff --git a/ethminer/miner.go b/ethminer/miner.go
index 19ff5dd9e..1ef9ca229 100644
--- a/ethminer/miner.go
+++ b/ethminer/miner.go
@@ -136,11 +136,21 @@ func (self *Miner) mineNewBlock() {
 
 	// Sort the transactions by nonce in case of odd network propagation
 	sort.Sort(ethchain.TxByNonce{self.txs})
+
 	// Accumulate all valid transaction and apply them to the new state
-	receipts, txs := stateManager.ApplyTransactions(self.block.State(), self.block, self.txs)
-	self.txs = txs
+	// Error may be ignored. It's not important during mining
+	parent := self.ethereum.BlockChain().GetBlock(self.block.PrevHash)
+	coinbase := self.block.State().GetOrNewStateObject(self.block.Coinbase)
+	coinbase.SetGasPool(self.block.CalcGasLimit(parent))
+	receipts, txs, unhandledTxs, err := stateManager.ProcessTransactions(coinbase, self.block.State(), self.block, self.block, self.txs)
+	if err != nil {
+		ethutil.Config.Log.Debugln("[MINER]", err)
+	}
+	self.txs = append(txs, unhandledTxs...)
+
 	// Set the transactions to the block so the new SHA3 can be calculated
 	self.block.SetReceipts(receipts, txs)
+
 	// Accumulate the rewards included for this block
 	stateManager.AccumelateRewards(self.block.State(), self.block)
 
@@ -155,6 +165,7 @@ func (self *Miner) mineNewBlock() {
 		} else {
 			self.ethereum.Broadcast(ethwire.MsgBlockTy, []interface{}{self.block.Value().Val})
 			ethutil.Config.Log.Infof("[MINER] 🔨  Mined block %x\n", self.block.Hash())
+			ethutil.Config.Log.Infoln(self.block)
 			// Gather the new batch of transactions currently in the tx pool
 			self.txs = self.ethereum.TxPool().CurrentTransactions()
 		}
diff --git a/ethpub/pub.go b/ethpub/pub.go
index e00bd0dbe..20ba79d0b 100644
--- a/ethpub/pub.go
+++ b/ethpub/pub.go
@@ -115,9 +115,13 @@ var namereg = ethutil.FromHex("bb5f186604d057c1c5240ca2ae0f6430138ac010")
 func GetAddressFromNameReg(stateManager *ethchain.StateManager, name string) []byte {
 	recp := new(big.Int).SetBytes([]byte(name))
 	object := stateManager.CurrentState().GetStateObject(namereg)
-	reg := object.GetStorage(recp)
+	if object != nil {
+		reg := object.GetStorage(recp)
 
-	return reg.Bytes()
+		return reg.Bytes()
+	}
+
+	return nil
 }
 
 func (lib *PEthereum) createTx(key, recipient, valueStr, gasStr, gasPriceStr, scriptStr string) (*PReceipt, error) {
@@ -193,8 +197,6 @@ func (lib *PEthereum) createTx(key, recipient, valueStr, gasStr, gasPriceStr, sc
 
 	if contractCreation {
 		ethutil.Config.Log.Infof("Contract addr %x", tx.CreationAddress())
-	} else {
-		ethutil.Config.Log.Infof("Tx hash %x", tx.Hash())
 	}
 
 	return NewPReciept(contractCreation, tx.CreationAddress(), tx.Hash(), keyPair.Address()), nil
diff --git a/ethpub/types.go b/ethpub/types.go
index 6893c7e09..a76421007 100644
--- a/ethpub/types.go
+++ b/ethpub/types.go
@@ -46,6 +46,8 @@ type PBlock struct {
 	Transactions string `json:"transactions"`
 	Time         int64  `json:"time"`
 	Coinbase     string `json:"coinbase"`
+	GasLimit     string `json:"gasLimit"`
+	GasUsed      string `json:"gasUsed"`
 }
 
 // Creates a new QML Block from a chain block
@@ -64,7 +66,7 @@ func NewPBlock(block *ethchain.Block) *PBlock {
 		return nil
 	}
 
-	return &PBlock{ref: block, Number: int(block.Number.Uint64()), Hash: ethutil.Hex(block.Hash()), Transactions: string(txJson), Time: block.Time, Coinbase: ethutil.Hex(block.Coinbase)}
+	return &PBlock{ref: block, Number: int(block.Number.Uint64()), GasUsed: block.GasUsed.String(), GasLimit: block.GasLimit.String(), Hash: ethutil.Hex(block.Hash()), Transactions: string(txJson), Time: block.Time, Coinbase: ethutil.Hex(block.Coinbase)}
 }
 
 func (self *PBlock) ToString() string {
@@ -109,11 +111,12 @@ func NewPTx(tx *ethchain.Transaction) *PTx {
 	sender := hex.EncodeToString(tx.Sender())
 	createsContract := tx.CreatesContract()
 
-	data := strings.Join(ethchain.Disassemble(tx.Data), "\n")
-
-	isContract := len(tx.Data) > 0
+	data := string(tx.Data)
+	if tx.CreatesContract() {
+		data = strings.Join(ethchain.Disassemble(tx.Data), "\n")
+	}
 
-	return &PTx{ref: tx, Hash: hash, Value: ethutil.CurrencyToString(tx.Value), Address: receiver, Contract: isContract, Gas: tx.Gas.String(), GasPrice: tx.GasPrice.String(), Data: data, Sender: sender, CreatesContract: createsContract, RawData: hex.EncodeToString(tx.Data)}
+	return &PTx{ref: tx, Hash: hash, Value: ethutil.CurrencyToString(tx.Value), Address: receiver, Contract: tx.CreatesContract(), Gas: tx.Gas.String(), GasPrice: tx.GasPrice.String(), Data: data, Sender: sender, CreatesContract: createsContract, RawData: hex.EncodeToString(tx.Data)}
 }
 
 func (self *PTx) ToString() string {
diff --git a/ethutil/big.go b/ethutil/big.go
index 1c25a4784..7af6f7414 100644
--- a/ethutil/big.go
+++ b/ethutil/big.go
@@ -68,8 +68,8 @@ func BigCopy(src *big.Int) *big.Int {
 // Returns the maximum size big integer
 func BigMax(x, y *big.Int) *big.Int {
 	if x.Cmp(y) <= 0 {
-		return x
+		return y
 	}
 
-	return y
+	return x
 }
diff --git a/ethutil/common.go b/ethutil/common.go
index c7973eb92..f63ba5d83 100644
--- a/ethutil/common.go
+++ b/ethutil/common.go
@@ -18,8 +18,8 @@ var (
 	Wei      = big.NewInt(1)
 )
 
-// Currency to string
 //
+// Currency to string
 // Returns a string representing a human readable format
 func CurrencyToString(num *big.Int) string {
 	switch {
@@ -47,7 +47,7 @@ func CurrencyToString(num *big.Int) string {
 // Common big integers often used
 var (
 	Big1   = big.NewInt(1)
-	Big2   = big.NewInt(1)
+	Big2   = big.NewInt(2)
 	Big0   = big.NewInt(0)
 	Big32  = big.NewInt(32)
 	Big256 = big.NewInt(0xff)
diff --git a/ethutil/config.go b/ethutil/config.go
index e992bda12..a24c39bfe 100644
--- a/ethutil/config.go
+++ b/ethutil/config.go
@@ -75,11 +75,11 @@ func ReadConfig(base string, logTypes LoggerType, g *globalconf.GlobalConf, id s
 	if Config == nil {
 		path := ApplicationFolder(base)
 
-		Config = &config{ExecPath: path, Debug: true, Ver: "0.5.0 RC12"}
+		Config = &config{ExecPath: path, Debug: true, Ver: "0.5.13"}
 		Config.conf = g
 		Config.Identifier = id
 		Config.Log = NewLogger(logTypes, LogLevelDebug)
-		Config.SetClientString("/Ethereum(G)")
+		Config.SetClientString("Ethereum(G)")
 	}
 
 	return Config
@@ -88,11 +88,9 @@ func ReadConfig(base string, logTypes LoggerType, g *globalconf.GlobalConf, id s
 // Set client string
 //
 func (c *config) SetClientString(str string) {
-	id := runtime.GOOS
-	if len(c.Identifier) > 0 {
-		id = c.Identifier
-	}
-	Config.ClientString = fmt.Sprintf("%s nv%s/%s", str, c.Ver, id)
+	os := runtime.GOOS
+	cust := c.Identifier
+	Config.ClientString = fmt.Sprintf("%s/v%s/%s/%s/Go", str, c.Ver, cust, os)
 }
 
 func (c *config) SetIdentifier(id string) {
@@ -145,12 +143,17 @@ func NewLogger(flag LoggerType, level int) *Logger {
 	return &Logger{logSys: loggers, logLevel: level}
 }
 
+func (self *Logger) SetLevel(level int) {
+	self.logLevel = level
+}
+
 func (log *Logger) AddLogSystem(logger LogSystem) {
 	log.logSys = append(log.logSys, logger)
 }
 
 const (
-	LogLevelDebug = iota
+	LogLevelSystem = iota
+	LogLevelDebug
 	LogLevelInfo
 )
 
@@ -206,6 +209,26 @@ func (log *Logger) Fatal(v ...interface{}) {
 	os.Exit(1)
 }
 
+func (log *Logger) Println(level int, v ...interface{}) {
+	if log.logLevel > level {
+		return
+	}
+
+	for _, logger := range log.logSys {
+		logger.Println(v...)
+	}
+}
+
+func (log *Logger) Printf(level int, format string, v ...interface{}) {
+	if log.logLevel > level {
+		return
+	}
+
+	for _, logger := range log.logSys {
+		logger.Printf(format, v...)
+	}
+}
+
 type confValue struct {
 	value string
 }
diff --git a/ethutil/keypair.go b/ethutil/keypair.go
index cf5882e2c..29fb1bac5 100644
--- a/ethutil/keypair.go
+++ b/ethutil/keypair.go
@@ -12,6 +12,12 @@ type KeyPair struct {
 	account *StateObject
 }
 
+func GenerateNewKeyPair() (*KeyPair, error) {
+	_, prv := secp256k1.GenerateKeyPair()
+
+	return NewKeyPairFromSec(prv)
+}
+
 func NewKeyPairFromSec(seckey []byte) (*KeyPair, error) {
 	pubkey, err := secp256k1.GeneratePubKey(seckey)
 	if err != nil {
diff --git a/ethutil/rlp.go b/ethutil/rlp.go
index 69f80a0a6..195ef0efb 100644
--- a/ethutil/rlp.go
+++ b/ethutil/rlp.go
@@ -11,6 +11,7 @@ import (
 
 type RlpEncodable interface {
 	RlpEncode() []byte
+	RlpValue() []interface{}
 }
 
 type RlpEncoder struct {
diff --git a/ethwire/messaging.go b/ethwire/messaging.go
index cbcbbb8b7..f13b72353 100644
--- a/ethwire/messaging.go
+++ b/ethwire/messaging.go
@@ -1,3 +1,5 @@
+// Package ethwire provides low level access to the Ethereum network and allows
+// you to broadcast data over the network.
 package ethwire
 
 import (
@@ -9,11 +11,13 @@ import (
 	"time"
 )
 
-// Message:
-// [4 bytes token] RLP([TYPE, DATA])
-// Refer to http://wiki.ethereum.org/index.php/Wire_Protocol
+// Connection interface describing the methods required to implement the wire protocol.
+type Conn interface {
+	Write(typ MsgType, v ...interface{}) error
+	Read() *Msg
+}
 
-// The magic token which should be the first 4 bytes of every message.
+// The magic token which should be the first 4 bytes of every message and can be used as separator between messages.
 var MagicToken = []byte{34, 64, 8, 145}
 
 type MsgType byte
@@ -68,6 +72,157 @@ func NewMessage(msgType MsgType, data interface{}) *Msg {
 	}
 }
 
+type Messages []*Msg
+
+// The connection object allows you to set up a connection to the Ethereum network.
+// The Connection object takes care of all encoding and sending objects properly over
+// the network.
+type Connection struct {
+	conn            net.Conn
+	nTimeout        time.Duration
+	pendingMessages Messages
+}
+
+// Create a new connection to the Ethereum network
+func New(conn net.Conn) *Connection {
+	return &Connection{conn: conn, nTimeout: 500}
+}
+
+// Read, reads from the network. It will block until the next message is received.
+func (self *Connection) Read() *Msg {
+	if len(self.pendingMessages) == 0 {
+		self.readMessages()
+	}
+
+	ret := self.pendingMessages[0]
+	self.pendingMessages = self.pendingMessages[1:]
+
+	return ret
+
+}
+
+// Write to the Ethereum network specifying the type of the message and
+// the data. Data can be of type RlpEncodable or []interface{}. Returns
+// nil or if something went wrong an error.
+func (self *Connection) Write(typ MsgType, v ...interface{}) error {
+	var pack []byte
+
+	slice := [][]interface{}{[]interface{}{byte(typ)}}
+	for _, value := range v {
+		if encodable, ok := value.(ethutil.RlpEncodable); ok {
+			slice = append(slice, encodable.RlpValue())
+		} else if raw, ok := value.([]interface{}); ok {
+			slice = append(slice, raw)
+		} else {
+			panic(fmt.Sprintf("Unable to 'write' object of type %T", value))
+		}
+	}
+
+	// Encode the type and the (RLP encoded) data for sending over the wire
+	encoded := ethutil.NewValue(slice).Encode()
+	payloadLength := ethutil.NumberToBytes(uint32(len(encoded)), 32)
+
+	// Write magic token and payload length (first 8 bytes)
+	pack = append(MagicToken, payloadLength...)
+	pack = append(pack, encoded...)
+
+	// Write to the connection
+	_, err := self.conn.Write(pack)
+	if err != nil {
+		return err
+	}
+
+	return nil
+}
+
+func (self *Connection) readMessage(data []byte) (msg *Msg, remaining []byte, done bool, err error) {
+	if len(data) == 0 {
+		return nil, nil, true, nil
+	}
+
+	if len(data) <= 8 {
+		return nil, remaining, false, errors.New("Invalid message")
+	}
+
+	// Check if the received 4 first bytes are the magic token
+	if bytes.Compare(MagicToken, data[:4]) != 0 {
+		return nil, nil, false, fmt.Errorf("MagicToken mismatch. Received %v", data[:4])
+	}
+
+	messageLength := ethutil.BytesToNumber(data[4:8])
+	remaining = data[8+messageLength:]
+	if int(messageLength) > len(data[8:]) {
+		return nil, nil, false, fmt.Errorf("message length %d, expected %d", len(data[8:]), messageLength)
+	}
+
+	message := data[8 : 8+messageLength]
+	decoder := ethutil.NewValueFromBytes(message)
+	// Type of message
+	t := decoder.Get(0).Uint()
+	// Actual data
+	d := decoder.SliceFrom(1)
+
+	msg = &Msg{
+		Type: MsgType(t),
+		Data: d,
+	}
+
+	return
+}
+
+// The basic message reader waits for data on the given connection, decoding
+// and doing a few sanity checks such as if there's a data type and
+// unmarhals the given data
+func (self *Connection) readMessages() (err error) {
+	// The recovering function in case anything goes horribly wrong
+	defer func() {
+		if r := recover(); r != nil {
+			err = fmt.Errorf("ethwire.ReadMessage error: %v", r)
+		}
+	}()
+
+	// Buff for writing network message to
+	//buff := make([]byte, 1440)
+	var buff []byte
+	var totalBytes int
+	for {
+		// Give buffering some time
+		self.conn.SetReadDeadline(time.Now().Add(self.nTimeout * time.Millisecond))
+		// Create a new temporarily buffer
+		b := make([]byte, 1440)
+		// Wait for a message from this peer
+		n, _ := self.conn.Read(b)
+		if err != nil && n == 0 {
+			if err.Error() != "EOF" {
+				fmt.Println("err now", err)
+				return err
+			} else {
+				break
+			}
+
+			// Messages can't be empty
+		} else if n == 0 {
+			break
+		}
+
+		buff = append(buff, b[:n]...)
+		totalBytes += n
+	}
+
+	// Reslice buffer
+	buff = buff[:totalBytes]
+	msg, remaining, done, err := self.readMessage(buff)
+	for ; done != true; msg, remaining, done, err = self.readMessage(remaining) {
+		//log.Println("rx", msg)
+
+		if msg != nil {
+			self.pendingMessages = append(self.pendingMessages, msg)
+		}
+	}
+
+	return
+}
+
 func ReadMessage(data []byte) (msg *Msg, remaining []byte, done bool, err error) {
 	if len(data) == 0 {
 		return nil, nil, true, nil
diff --git a/peer.go b/peer.go
index eed5bec30..07c93e5b4 100644
--- a/peer.go
+++ b/peer.go
@@ -17,7 +17,9 @@ const (
 	// The size of the output buffer for writing messages
 	outputBufferSize = 50
 	// Current protocol version
-	ProtocolVersion = 17
+	ProtocolVersion = 20
+	// Interval for ping/pong message
+	pingPongTimer = 2 * time.Second
 )
 
 type DiscReason byte
@@ -151,11 +153,11 @@ func NewPeer(conn net.Conn, ethereum *Ethereum, inbound bool) *Peer {
 		pubkey:          pubkey,
 		blocksRequested: 10,
 		caps:            ethereum.ServerCaps(),
+		version:         ethutil.Config.ClientString,
 	}
 }
 
 func NewOutboundPeer(addr string, ethereum *Ethereum, caps Caps) *Peer {
-
 	p := &Peer{
 		outputQueue: make(chan *ethwire.Msg, outputBufferSize),
 		quit:        make(chan bool),
@@ -241,9 +243,11 @@ func (p *Peer) writeMessage(msg *ethwire.Msg) {
 		}
 	}
 
+	ethutil.Config.Log.Println(ethutil.LogLevelSystem, "<=", msg.Type, msg.Data)
+
 	err := ethwire.WriteMessage(p.conn, msg)
 	if err != nil {
-		ethutil.Config.Log.Debugln("Can't send message:", err)
+		ethutil.Config.Log.Debugln("[PEER] Can't send message:", err)
 		// Stop the client if there was an error writing to it
 		p.Stop()
 		return
@@ -253,7 +257,7 @@ func (p *Peer) writeMessage(msg *ethwire.Msg) {
 // Outbound message handler. Outbound messages are handled here
 func (p *Peer) HandleOutbound() {
 	// The ping timer. Makes sure that every 2 minutes a ping is send to the peer
-	pingTimer := time.NewTicker(30 * time.Second)
+	pingTimer := time.NewTicker(pingPongTimer)
 	serviceTimer := time.NewTicker(5 * time.Minute)
 
 out:
@@ -264,8 +268,14 @@ out:
 			p.writeMessage(msg)
 			p.lastSend = time.Now()
 
-		// Ping timer sends a ping to the peer each 2 minutes
+		// Ping timer
 		case <-pingTimer.C:
+			timeSince := time.Since(time.Unix(p.lastPong, 0))
+			if !p.pingStartTime.IsZero() && p.lastPong != 0 && timeSince > (pingPongTimer+30*time.Second) {
+				ethutil.Config.Log.Infof("[PEER] Peer did not respond to latest pong fast enough, it took %s, disconnecting.\n", timeSince)
+				p.Stop()
+				return
+			}
 			p.writeMessage(ethwire.NewMessage(ethwire.MsgPingTy, ""))
 			p.pingStartTime = time.Now()
 
@@ -307,6 +317,8 @@ func (p *Peer) HandleInbound() {
 			ethutil.Config.Log.Debugln(err)
 		}
 		for _, msg := range msgs {
+			ethutil.Config.Log.Println(ethutil.LogLevelSystem, "=>", msg.Type, msg.Data)
+
 			switch msg.Type {
 			case ethwire.MsgHandshakeTy:
 				// Version message
@@ -393,7 +405,7 @@ func (p *Peer) HandleInbound() {
 				if err != nil {
 					// If the parent is unknown try to catch up with this peer
 					if ethchain.IsParentErr(err) {
-						ethutil.Config.Log.Infoln("Attempting to catch up since we don't know the parent")
+						ethutil.Config.Log.Infoln("Attempting to catch. Parent known")
 						p.catchingUp = false
 						p.CatchupWithPeer(p.ethereum.BlockChain().CurrentBlock.Hash())
 					} else if ethchain.IsValidationErr(err) {
@@ -405,7 +417,7 @@ func (p *Peer) HandleInbound() {
 					if p.catchingUp && msg.Data.Len() > 1 {
 						if lastBlock != nil {
 							blockInfo := lastBlock.BlockInfo()
-							ethutil.Config.Log.Debugf("Synced to block height #%d %x %x\n", blockInfo.Number, lastBlock.Hash(), blockInfo.Hash)
+							ethutil.Config.Log.Debugf("Synced chain to #%d %x %x\n", blockInfo.Number, lastBlock.Hash(), blockInfo.Hash)
 						}
 
 						p.catchingUp = false
@@ -571,7 +583,7 @@ func (p *Peer) pushHandshake() error {
 		pubkey := keyRing.PublicKey
 
 		msg := ethwire.NewMessage(ethwire.MsgHandshakeTy, []interface{}{
-			uint32(ProtocolVersion), uint32(0), p.version, byte(p.caps), p.port, pubkey[1:],
+			uint32(ProtocolVersion), uint32(0), []byte(p.version), byte(p.caps), p.port, pubkey[1:],
 		})
 
 		p.QueueMessage(msg)
@@ -603,7 +615,7 @@ func (p *Peer) handleHandshake(msg *ethwire.Msg) {
 	c := msg.Data
 
 	if c.Get(0).Uint() != ProtocolVersion {
-		ethutil.Config.Log.Debugln("Invalid peer version. Require protocol:", ProtocolVersion)
+		ethutil.Config.Log.Debugf("Invalid peer version. Require protocol: %d. Received: %d\n", ProtocolVersion, c.Get(0).Uint())
 		p.Stop()
 		return
 	}