diff --git a/bitcore.js b/bitcore.js
index d9d8cdf..f50fd26 100644
--- a/bitcore.js
+++ b/bitcore.js
@@ -81,4 +81,5 @@ requireWhenAccessed('PeerManager', './lib/PeerManager');
 requireWhenAccessed('Message', './lib/Message');
 requireWhenAccessed('Electrum', './lib/Electrum');
 requireWhenAccessed('Armory', './lib/Armory');
+requireWhenAccessed('NetworkMonitor', './lib/NetworkMonitor');
 module.exports.Buffer = Buffer;
diff --git a/lib/Address.js b/lib/Address.js
index 6dafa0c..17118b8 100644
--- a/lib/Address.js
+++ b/lib/Address.js
@@ -182,5 +182,9 @@ Address.prototype.getScriptPubKey = function() {
   return script;
 };
 
+Address.validate = function(s) {
+  return new Address(s).isValid();
+};
+
 
 module.exports = Address;
diff --git a/lib/NetworkMonitor.js b/lib/NetworkMonitor.js
new file mode 100644
index 0000000..b112642
--- /dev/null
+++ b/lib/NetworkMonitor.js
@@ -0,0 +1,80 @@
+var log = require('../util/log');
+var networks = require('../networks');
+var Address = require('./Address');
+var Peer = require('./Peer');
+var PeerManager = require('./PeerManager');
+var util = require('util');
+var EventEmitter = require('events').EventEmitter;
+var preconditions = require('preconditions').singleton();
+
+var NetworkMonitor = function(peerman) {
+  preconditions.checkArgument(peerman);
+  this.peerman = peerman;
+  this.init();
+}
+
+util.inherits(NetworkMonitor, EventEmitter);
+
+NetworkMonitor.create = function(config) {
+  var peerman = new PeerManager({
+    network: config.networkName
+  });
+
+  peerman.addPeer(new Peer(config.host, config.port));
+  return new NetworkMonitor(peerman);
+};
+
+NetworkMonitor.prototype.init = function() {
+  var self = this;
+  var handleInv = function(info) {
+    var invs = info.message.invs;
+    info.conn.sendGetData(invs);
+  };
+
+  var handleBlock = function(info) {
+    self.emit('block', info.message);
+  };
+
+  var handleTx = function(info) {
+    var tx = info.message.tx;
+    
+    var from = tx.getSendingAddresses();
+    for (var i = 0; i < from.length; i++) {
+      var addr = from[i];
+      self.emit('out:'+addr, tx);
+    }
+    var to = tx.getReceivingAddresses(); 
+    for (var i = 0; i < to.length; i++) {
+      var addr = to[i];
+      self.emit('in:'+addr, tx);
+    }
+  };
+
+  this.peerman.on('connection', function(conn) {
+    if (self.connection) throw new Error('Cant handle more than one connection');
+    self.connection = conn;
+    conn.on('inv', handleInv);
+    conn.on('block', handleBlock);
+    conn.on('tx', handleTx);
+  });
+};
+
+NetworkMonitor.prototype.incoming = function(addrStr, callback) {
+  preconditions.checkArgument(Address.validate(addrStr));
+  this.on('in:'+addrStr, callback);
+};
+
+NetworkMonitor.prototype.outgoing = function(addrStr, callback) {
+  preconditions.checkArgument(Address.validate(addrStr));
+  this.on('out:'+addrStr, callback);
+};
+
+NetworkMonitor.prototype.start = function() {
+  this.peerman.start();
+};
+
+NetworkMonitor.prototype.stop = function() {
+  this.peerman.stop();
+};
+
+module.exports = NetworkMonitor;
diff --git a/package.json b/package.json
index 0a64dc8..cd5ca05 100644
--- a/package.json
+++ b/package.json
@@ -84,7 +84,8 @@
     "async": "~0.2.10",
     "event-stream": "~3.1.5",
     "gulp-concat": "~2.2.0",
-    "gulp": "~3.8.2"
+    "gulp": "~3.8.2",
+    "preconditions": "^1.0.7"
   },
   "testling": {
     "harness": "mocha-bdd",
diff --git a/test/test.Address.js b/test/test.Address.js
index ab7e4c7..0c4d359 100644
--- a/test/test.Address.js
+++ b/test/test.Address.js
@@ -50,6 +50,7 @@ describe('Address', function() {
       var s = a.toString();
 
       a.isValid().should.equal(result);
+      Address.validate(address).should.equal(result);
       s.should.equal(a.toString()); // check that validation doesn't change data
     });
   });
diff --git a/test/test.NetworkMonitor.js b/test/test.NetworkMonitor.js
new file mode 100644
index 0000000..6eb6b17
--- /dev/null
+++ b/test/test.NetworkMonitor.js
@@ -0,0 +1,97 @@
+'use strict';
+
+var chai = chai || require('chai');
+var bitcore = bitcore || require('../bitcore');
+var NetworkMonitor = bitcore.NetworkMonitor;
+var EventEmitter = require('events').EventEmitter;
+
+var should = chai.should();
+
+var nop = function() {};
+
+describe('NetworkMonitor', function() {
+  var config = {
+    networkName: 'testnet',
+    host: 'localhost',
+    port: 18333
+  };
+  var fakePM = {};
+  fakePM.on = nop;
+  it('should initialze the main object', function() {
+    should.exist(NetworkMonitor);
+  });
+  it('should be able to instanciate', function() {
+    var nm = new NetworkMonitor(fakePM);
+    should.exist(nm);
+  });
+  it('should be able to create instance', function() {
+    var nm = new NetworkMonitor.create(config);
+    should.exist(nm);
+  });
+  it('should be able to start instance', function() {
+    var nm = new NetworkMonitor.create(config);
+    nm.start.bind(nm).should.not.throw();
+  });
+  it('should be able to stop instance', function() {
+    var nm = new NetworkMonitor.create(config);
+    nm.start();
+    nm.stop.bind(nm).should.not.throw();
+  });
+  it('should be able to register listeners', function() {
+    var nm = new NetworkMonitor.create(config);
+    (function() {
+      nm.on('block', nop);
+    }).should.not.throw();
+    (function() {
+      nm.incoming('n2tTCgsJPJBZZEKLiJx9KoU4idJQB37j9E', nop);
+    }).should.not.throw();
+    (function() {
+      nm.outgoing('n2tTCgsJPJBZZEKLiJx9KoU4idJQB37j9E', nop);
+    }).should.not.throw();
+  });
+  var createConnectedNM = function() {
+    var nm = new NetworkMonitor.create(config);
+    var fakeConnection = new EventEmitter();
+    nm.peerman.emit('connection', fakeConnection);
+    return nm;
+  };
+  it('should store connection', function() {
+    var nm = createConnectedNM();
+    should.exist(nm.connection);
+  });
+  describe('block event', function() {
+    it('should be called on blocks', function(done) {
+      var nm = createConnectedNM();
+      nm.on('block', function(m) {
+        should.exist(m);
+        done();
+      });
+      nm.connection.emit('block', {
+        message: 'test'
+      });
+    });
+  });
+  describe('incoming tx event', function() {
+    it('should be called on incoming transactions', function(done) {
+      var nm = createConnectedNM();
+      nm.incoming('n2tTCgsJPJBZZEKLiJx9KoU4idJQB37j9E', function(tx) {
+        should.exist(tx);
+        done();
+      });
+      var fakeTX = null;
+      nm.connection.emit('tx', {
+        message: {
+          tx: fakeTX
+        }
+      });
+    });
+    it('should not be called on outgoing transactions', function() {
+    });
+  });
+  describe('outgoing tx event', function() {
+    it('should be called on outgoing transactions', function() {
+    });
+    it('should not be called on incoming transactions', function() {
+    });
+  });
+});
diff --git a/test/test.PeerManager.js b/test/test.PeerManager.js
index d2c4ec8..f0fc2fe 100644
--- a/test/test.PeerManager.js
+++ b/test/test.PeerManager.js
@@ -5,16 +5,10 @@ var bitcore = bitcore || require('../bitcore');
 
 var should = chai.should();
 
-var PeerManagerModule = bitcore.PeerManager;
-
-var PeerManager;
+var PeerManager = bitcore.PeerManager;
 
 describe('PeerManager', function() {
-  it('should initialze the main object', function() {
-    should.exist(PeerManagerModule);
-  });
   it('should be able to create class', function() {
-    PeerManager = PeerManagerModule;
     should.exist(PeerManager);
   });
   it('should be able to create instance', function() {
diff --git a/test/test.Transaction.js b/test/test.Transaction.js
index df68753..fa8e076 100644
--- a/test/test.Transaction.js
+++ b/test/test.Transaction.js
@@ -48,7 +48,7 @@ function parse_test_transaction(entry) {
 }
 
 describe('Transaction', function() {
-  it('should initialze the main object', function() {
+  it('should initialize the main objects', function() {
     should.exist(Transaction);
     In = Transaction.In;
     Out = Transaction.Out;