diff --git a/lib/transaction.js b/lib/transaction.js
index aad3f4549..4deb23bf6 100644
--- a/lib/transaction.js
+++ b/lib/transaction.js
@@ -9,6 +9,7 @@ var Transaction = function Transaction(version, txinsvi, txins, txoutsvi, txouts
   if (!(this instanceof Transaction))
     return new Transaction(version, txinsvi, txins, txoutsvi, txouts, nlocktime);
   if (typeof version === 'number') {
+    this.initialize();
     this.set({
       version: version,
       txinsvi: txinsvi,
@@ -18,14 +19,28 @@ var Transaction = function Transaction(version, txinsvi, txins, txoutsvi, txouts
       nlocktime: nlocktime
     });
   } else if (Buffer.isBuffer(version)) {
+    //not necessary to initialize, since everything should be overwritten
     var txbuf = version;
     this.fromBuffer(txbuf);
   } else if (version) {
+    this.initialize();
     var obj = version;
     this.set(obj);
+  } else {
+    this.initialize();
   }
 };
 
+Transaction.prototype.initialize = function() {
+  this.version = 1;
+  this.txinsvi = Varint(0);
+  this.txins = [];
+  this.txoutsvi = Varint(0);
+  this.txouts = [];
+  this.nlocktime = 0xffffffff;
+  return this;
+};
+
 Transaction.prototype.set = function(obj) {
   this.version = typeof obj.version !== 'undefined' ? obj.version : this.version;
   this.txinsvi = obj.txinsvi || this.txinsvi;
diff --git a/test/transaction.js b/test/transaction.js
index 180f10a64..9083b565d 100644
--- a/test/transaction.js
+++ b/test/transaction.js
@@ -30,7 +30,31 @@ describe('Transaction', function() {
     should.exist(tx);
     tx = Transaction();
     should.exist(tx);
+
     Transaction(txbuf).toBuffer().toString('hex').should.equal(txhex);
+    
+    //should set known defaults
+    tx.version.should.equal(1);
+    tx.txinsvi.toNumber().should.equal(0);
+    tx.txins.length.should.equal(0);
+    tx.txoutsvi.toNumber().should.equal(0);
+    tx.txouts.length.should.equal(0);
+    tx.nlocktime.should.equal(0xffffffff);
+  });
+
+  describe('#initialize', function() {
+    
+    it('should set these known defaults', function() {
+      var tx = new Transaction();
+      tx.initialize();
+      tx.version.should.equal(1);
+      tx.txinsvi.toNumber().should.equal(0);
+      tx.txins.length.should.equal(0);
+      tx.txoutsvi.toNumber().should.equal(0);
+      tx.txouts.length.should.equal(0);
+      tx.nlocktime.should.equal(0xffffffff);
+    });
+
   });
 
   describe('#set', function() {