diff --git a/index.js b/index.js
index 4c8712f0e..03a492e88 100644
--- a/index.js
+++ b/index.js
@@ -28,6 +28,7 @@ bitcore.util.js = require('./lib/util/js');
 bitcore.transport = {};
 bitcore.transport.Connection = require('./lib/transport/connection');
 bitcore.transport.Peer = require('./lib/transport/peer');
+bitcore.transport.Peer2 = require('./lib/transport/peer2');
 bitcore.transport.PeerManager = require('./lib/transport/peermanager');
 
 // errors thrown by the library
diff --git a/lib/networks.js b/lib/networks.js
index 0955fedc3..8b6b85f89 100644
--- a/lib/networks.js
+++ b/lib/networks.js
@@ -9,6 +9,8 @@ var _ = require('lodash');
  */
 function Network() {}
 
+var hex = function(hex) { return new Buffer(hex, 'hex'); };
+
 /**
  * @instance
  * @member Network#livenet
@@ -22,6 +24,7 @@ _.extend(livenet, {
   scripthash: 0x05,
   xpubkey:  0x0488b21e,
   xprivkey: 0x0488ade4,
+  networkMagic: hex('f9beb4d9'),
   port: 8333,
   dnsSeeds: [
     'seed.bitcoin.sipa.be',
@@ -46,6 +49,7 @@ _.extend(testnet, {
   scripthash: 0xc4,
   xpubkey: 0x043587cf,
   xprivkey: 0x04358394,
+  networkMagic: hex('0b110907'),
   port: 18333,
   dnsSeeds: [
     'testnet-seed.bitcoin.petertodd.org',
diff --git a/lib/transport/message.js b/lib/transport/message.js
new file mode 100644
index 000000000..a94d0e6dd
--- /dev/null
+++ b/lib/transport/message.js
@@ -0,0 +1,182 @@
+'use strict';
+
+var Put = require('bufferput');
+
+var Random = require('../crypto/random');
+var BufferReader = require('../encoding/bufferreader');
+var Block = require('../block');
+
+var CONNECTION_NONCE = Random.getPseudoRandomBuffer(8);
+var PROTOCOL_VERSION = 70000;
+
+var MESSAGES = {
+  'version' : Version,
+  'verack': VerAck,
+  'inv': Inventory,
+  'ping': Ping,
+  'pong': Pong
+}
+
+module.exports.buildMessage = function(command, payload) {
+  var Message = MESSAGES[command];
+  try {
+    console.log('Message Class', Message);
+    return Message.fromBuffer(payload);
+  } catch (err) {
+    console.log('Error while parrsing message', command);
+    console.log(err);
+  }
+}
+
+// ====== VERSION MESSAGE ======
+function Version(subversion, nonce) {
+  this.command = 'version';
+  this.subversion = subversion || '/BitcoinX:0.1/';
+  this.nonce = nonce || CONNECTION_NONCE;
+}
+
+Version.fromBuffer = function(payload) {
+  var message = new Version();
+
+  var parser = new BufferReader(payload);
+  message.version = parser.readUInt32LE();
+  message.services = parser.readUInt64LEBN();
+  message.timestamp = parser.readUInt64LEBN();
+  message.addr_me = parser.read(26);
+  message.addr_you = parser.read(26);
+  message.nonce = parser.read(8);
+  message.subversion = parser.readVarintBuf();
+  message.start_height = parser.readUInt32LE();
+
+  return message;
+}
+
+Version.prototype.serialize = function() {
+  var put = new Put();
+  put.word32le(PROTOCOL_VERSION); // version
+  put.word64le(1); // services
+  put.word64le(Math.round(new Date().getTime() / 1000)); // timestamp
+  put.pad(26); // addr_me
+  put.pad(26); // addr_you
+  put.put(this.nonce);
+  put.varint(this.subversion.length);
+  put.put(new Buffer(this.subversion, 'ascii'));
+  put.word32le(0);
+
+  return put.buffer();
+}
+
+module.exports.Version = Version;
+
+// ====== INV MESSAGE ======
+function Inventory(inventory) {
+  this.command = 'inv';
+  this.inventory = inventory || [];
+}
+
+Inventory.fromBuffer = function(payload) {
+  var message = new Inventory();
+
+  var parser = new BufferReader(payload);
+  var count = parser.readVarintNum();
+  for (var i = 0; i < count; i++) {
+    message.inventory.push({
+      type: parser.readUInt32LE(),
+      hash: parser.read(32)
+    });
+  }
+
+  return message;
+}
+
+Inventory.prototype.serialize = function() {
+  var put = new Put();
+  
+  put.varint(this.inventory.length);
+  this.inventory.forEach(function(value) {
+    value instanceof Block ? put.word32le(2) : put.word32le(1);
+    put.put(value.getHash());
+  });
+  
+  return put.buffer();
+}
+
+
+// ====== PING/PONG MESSAGE ======
+function Ping(nonce) {
+  this.command = 'ping';
+  this.nonce = nonce || CONNECTION_NONCE;
+}
+
+Ping.fromBuffer = function(payload) {
+  var nonce = new BufferReader(payload).read(8);
+  return new Ping(nonce);
+}
+
+Ping.prototype.serialize = function() {
+  return this.nonce;
+}
+
+function Pong(nonce) {
+  this.command = 'pong';
+  this.nonce = nonce || CONNECTION_NONCE;
+}
+
+Pong.fromBuffer = Ping.fromBuffer;
+Pong.prototype.serialize = Ping.prototype.serialize;
+
+
+// ====== VARIOUS MESSAGE ======
+
+
+
+function GetAddr() {};
+
+function VerAck() {};
+VerAck.fromBuffer = function() {
+  return new VerAck();
+}
+
+function Reject() {};
+
+function Ping(payload) {
+  var parser = new BufferReader(payload);
+
+  this.nonce = parser.read(8);
+};
+
+// ====== PING MESSAGE ======
+function Address(payload) {
+  var parser = new BufferReader(payload);
+
+  var addrCount = parser.readVarintNum();
+  addrCount = Math.min(addrCount, 1000);
+
+  this.addresses = [];
+  for (i = 0; i < addrCount; i++) {
+    // TODO: Time actually depends on the version of the other peer (>=31402)
+    this.addresses.push({
+      time: parser.readUInt32LE(),
+      services: parser.readUInt64LEBN(),
+      ip: parser.read(16), // TODO: Parse IP Address
+      port: parser.readUInt16BE()
+    });
+  }
+};
+
+function GetHeaders(payload) {
+  var parser = new BufferReader(payload);
+
+  this.version = parser.readUInt32LE();
+
+  var startCount = parser.readVarintNum();
+  startCount = Math.min(startCount, 500);
+
+  this.starts = [];
+  for (i = 0; i < startCount; i++) {
+    this.starts.push(parser.read(32));
+  }
+
+  this.stop = parser.read(32);
+}
+
diff --git a/lib/transport/peer2.js b/lib/transport/peer2.js
new file mode 100644
index 000000000..511b66ce9
--- /dev/null
+++ b/lib/transport/peer2.js
@@ -0,0 +1,285 @@
+'use strict';
+
+var Net = require('net');
+var Put = require('bufferput');
+var Buffers = require('buffers');
+var buffertools = require('buffertools');
+var Socks5Client = require('socks5-client');
+var EventEmitter = require('events').EventEmitter;
+
+var Networks = require('../networks');
+var Hash = require('../crypto/hash');
+var Message = require('./message');
+
+var MAX_RECEIVE_BUFFER = 10000000;
+
+/**
+ * A Peer instance represents a remote bitcoin node and allows to communicate
+ * with it using the standar messages of the bitcoin p2p protocol.
+ *
+ * @example
+ * 
+ * var peer = new Peer('127.0.0.1').setProxy('127.0.0.1', 9050);
+ * peer.on('tx', function(tx) {
+ *  console.log('New transaction: ', tx.id);
+ * });
+ * peer.connect();
+ *
+ * @param {String} host - IP address of the remote host
+ * @param {Number} [port] - Port number of the remote host
+ * @param {Network} [network] - The context for this communication
+ * @returns {Peer} A new instance of Peer.
+ * @constructor
+ */
+function Peer(host, port, network) {
+  if (!(this instanceof Peer)) {
+    return new Peer(host, port, network);
+  }
+
+  // overloading stuff
+  if (port instanceof Object && !network) {
+    network = port;
+    port = undefined;
+  }
+  
+  this.host = host;
+  this.status = Peer.STATUS.DISCONNECTED;
+  this.network = network || Networks.livenet;
+  this.port = port || this.network.port;
+
+  this.dataBuffer = new Buffers();
+
+  this.version = 0;
+  this.bestHeight = 0;
+  this.subversion = null;
+
+  // set message handlers
+  var self = this;
+  this.on('verack', function() {
+    self.status = Peer.STATUS.READY;
+    self.emit('ready');
+  });
+
+  this.on('version', function(message) {
+    self.version = message.version;
+    self.subversion = message.subversion;
+    self.bestHeight = message.start_height
+  });
+
+  this.on('ping', function(message) {
+    self.sendPong(message.nonce);
+  });
+
+}
+util.inherits(Peer, EventEmitter);
+
+Peer.STATUS = {
+  DISCONNECTED: 'disconnected',
+  CONNECTING: 'connecting',
+  CONNECTED: 'connected',
+  READY: 'ready'
+};
+
+/**
+ * Set a socks5 proxy for the connection. Enables the use of the TOR network.
+ *
+ * @param {String} host - IP address of the proxy
+ * @param {Number} port - Port number of the proxy
+ * @returns {Peer} The same Peer instance.
+ */
+Peer.prototype.setProxy = function(host, port) {
+  if (this.status != Peer.STATUS.DISCONNECTED) {
+    throw Error('Invalid State');
+  }
+
+  this.proxy = {
+    host: host,
+    port: port
+  };
+  return this;
+};
+
+/**
+ * Init the connection with the remote peer.
+ *
+ * @returns {Socket} The same peer instance.
+ */
+Peer.prototype.connect = function() {
+  this.socket = this._getSocket();
+  this.status = Peer.STATUS.CONNECTING;
+
+  var self = this;
+  this.socket.on('connect', function(ev) {
+    self.status = Peer.STATUS.CONNECTED;
+    self.emit('connect');
+    self._sendVersion();
+  });
+
+  this.socket.on('error', self.disconnect.bind(this));
+  this.socket.on('end', self.disconnect.bind(this));
+
+  this.socket.on('data', function(data) {
+    self.dataBuffer.push(data);
+    
+    if (self.dataBuffer.length > MAX_RECEIVE_BUFFER) return self.disconnect();
+    self._readMessage();
+  });
+
+  this.socket.connect(this.port, this.host);
+  return this;
+};
+
+/**
+ * Disconnects the remote connection.
+ *
+ * @returns {Socket} The same peer instance.
+ */
+Peer.prototype.disconnect = function() {
+  this.status = Peer.STATUS.DISCONNECTED;
+  this.socket.destroy();
+  this.emit('disconnect');
+  return this;
+};
+
+/**
+ * Internal function that tries to read a message from the data buffer
+ */
+Peer.prototype._readMessage = function() {
+  if (this.dataBuffer.length < 20) return;
+  var magic = this.network.networkMagic;
+
+  // Search the next magic number
+  if (!this._discardUntilNextMessage()) return;
+
+  var PAYLOAD_START = 16;
+  var payloadLen = (this.dataBuffer.get(PAYLOAD_START)) +
+    (this.dataBuffer.get(PAYLOAD_START + 1) << 8) +
+    (this.dataBuffer.get(PAYLOAD_START + 2) << 16) +
+    (this.dataBuffer.get(PAYLOAD_START + 3) << 24);
+
+  var messageLength = 24 + payloadLen;
+  if (this.dataBuffer.length < messageLength) return;
+
+  var command = this.dataBuffer.slice(4, 16).toString('ascii').replace(/\0+$/, '');
+  var payload = this.dataBuffer.slice(24, messageLength);
+  var checksum = this.dataBuffer.slice(20, 24);
+
+  var checksumConfirm = Hash.sha256sha256(payload).slice(0, 4);
+  if (buffertools.compare(checksumConfirm, checksum) !== 0) {
+    this.dataBuffer.skip(messageLength);
+    return;
+  }
+
+  console.log('we have a message:', command);
+  var message = Message.buildMessage(command, payload);
+  if (message) this.emit(command, message);
+  console.log('Emiting message', command, message);
+
+  this.dataBuffer.skip(messageLength);
+  this._readMessage();
+};
+
+/**
+ * Internal function that discards data until founds the next message.
+ */
+Peer.prototype._discardUntilNextMessage = function() {
+  var magicNumber = this.network.networkMagic;
+
+  var i = 0;
+  for (;;) {
+    // check if it's the beginning of a new message
+    var packageNumber = this.dataBuffer.slice(0, 4);
+    if (buffertools.compare(packageNumber, magicNumber) == 0) {
+      this.dataBuffer.skip(i);
+      return true;
+    }
+
+    // did we reach the end of the buffer?
+    if (i > (this.dataBuffer.length - 4)) {
+      this.dataBuffer.skip(i);
+      return false;
+    }
+
+    i++; // continue scanning
+  }
+}
+
+/**
+ * Internal function that sends VERSION message to the remote peer.
+ */
+Peer.prototype._sendVersion = function() {
+  var message = new Message.Version();
+  this._sendMessage(message.command, message.serialize());
+};
+
+/**
+ * Send a PING message to the remote peer.
+ */
+Peer.prototype.sendPing = function(nonce) {
+  var message = new Message.Pong(nonce);
+  this._sendMessage(message.command, message.serialize());
+};
+
+/**
+ * Send a PONG message to the remote peer.
+ */
+Peer.prototype.sendPong = function(nonce) {
+  var message = new Message.Pong(nonce);
+  this._sendMessage(message.command, message.serialize());
+};
+
+/**
+ * Internal function that sends a message to the remote peer.
+ */
+Peer.prototype._sendMessage = function(command, payload) {
+  var magic = this.network.networkMagic;
+  var commandBuf = new Buffer(command, 'ascii');
+  if (commandBuf.length > 12) throw 'Command name too long';
+
+  var checksum = Hash.sha256sha256(payload).slice(0, 4);
+
+  // -- HEADER --
+  var message = new Put();
+  message.put(magic); // magic bytes
+  message.put(commandBuf); // command name
+  message.pad(12 - commandBuf.length); // zero-padded
+  message.word32le(payload.length); // payload length
+  message.put(checksum); // checksum
+
+  // -- BODY --
+  message.put(payload); // payload data
+
+  this.socket.write(message.buffer());
+};
+
+/**
+ * Internal function that creates a socket using a proxy if neccesary.
+ *
+ * @returns {Socket} A Socket instance not yet connected.
+ */
+Peer.prototype._getSocket = function() {
+  if (this.proxy) {
+    return new Socks5Client(this.proxy.host, this.proxy.port);
+  }
+
+  return new Net.Socket();
+};
+
+
+// TODO: Remove this PATCH (yemel)
+Buffers.prototype.skip = function (i) {
+  if (i == 0) return;
+
+  if (i == this.length) {
+    this.buffers = [];
+    this.length = 0;
+    return;
+  }
+
+  var pos = this.pos(i);
+  this.buffers = this.buffers.slice(pos.buf);
+  this.buffers[0] = new Buffer(this.buffers[0].slice(pos.offset));
+  this.length -= i;
+};
+
+module.exports = Peer;
diff --git a/test/transport/peer2.js b/test/transport/peer2.js
new file mode 100644
index 000000000..2f2336233
--- /dev/null
+++ b/test/transport/peer2.js
@@ -0,0 +1,73 @@
+'use strict';
+
+var chai = require('chai');
+var Net = require('net');
+var Socks5Client = require('socks5-client');
+
+var should = chai.should();
+var expect = chai.expect;
+
+var bitcore = require('../..');
+var Peer = bitcore.transport.Peer2;
+var Networks = bitcore.Networks;
+
+describe.only('Peer2', function() {
+
+  it('should be able to create instance', function() {
+    var peer = new Peer('localhost');
+    peer.host.should.equal('localhost');
+    peer.network.should.equal(Networks.livenet);
+    peer.port.should.equal(Networks.livenet.port);
+  });
+
+  it('should be able to create instance setting a port', function() {
+    var peer = new Peer('localhost', 8111);
+    peer.host.should.equal('localhost');
+    peer.network.should.equal(Networks.livenet);
+    peer.port.should.equal(8111);
+  });
+
+  it('should be able to create instance setting a network', function() {
+    var peer = new Peer('localhost', Networks.testnet);
+    peer.host.should.equal('localhost');
+    peer.network.should.equal(Networks.testnet);
+    peer.port.should.equal(Networks.testnet.port);
+  });
+
+  it('should be able to create instance setting port and network', function() {
+    var peer = new Peer('localhost', 8111, Networks.testnet);
+    peer.host.should.equal('localhost');
+    peer.network.should.equal(Networks.testnet);
+    peer.port.should.equal(8111);
+  });
+
+  it('should support creating instance without new', function() {
+    var peer = Peer('localhost', 8111, Networks.testnet);
+    peer.host.should.equal('localhost');
+    peer.network.should.equal(Networks.testnet);
+    peer.port.should.equal(8111);
+  });
+
+  it('should be able to set a proxy', function() {
+    var peer, peer2, socket;
+
+    peer = new Peer('localhost');
+    expect(peer.proxy).to.be.undefined;
+    socket = peer._getSocket();
+    socket.should.be.instanceof(Net.Socket);
+
+    peer2 = peer.setProxy('127.0.0.1', 9050);
+    peer2.proxy.host.should.equal('127.0.0.1');
+    peer2.proxy.port.should.equal(9050);
+    socket = peer2._getSocket();
+    socket.should.be.instanceof(Socks5Client);
+
+    peer.should.equal(peer2);
+  });
+
+  it('should create connection', function() {
+    var peer = new Peer('localhost').connect();
+  });
+
+
+});