diff --git a/docs/README.md b/docs/README.md
index 219166e90..cf4494003 100644
--- a/docs/README.md
+++ b/docs/README.md
@@ -29,7 +29,7 @@ NOTE: This documentation is a work-in-progress!
           information
         - [auth.AnteHandler](core/app3.md#antehandler) - The `AnteHandler`
           verifies `StdTx`, manages accounts, and deducts fees
-        - [bank.CoinKeeper](core/app3.md#coin-keeper) - CoinKeeper allows for coin
+        - [bank.CoinKeeper](core/app3.md#coinkeeper) - CoinKeeper allows for coin
           transfers on an underlying AccountMapper
     - [App4 - ABCI](core/app4.md)
         - [ABCI](core/app4.md#abci) - ABCI is the interface between Tendermint
@@ -45,7 +45,9 @@ NOTE: This documentation is a work-in-progress!
     - [App5 - Basecoin](core/app5.md) - 
         - [Directory Structure](core/app5.md#directory-structure) - Keep your
           application code organized
-        - [Clients](core/app5.md#clients) - Hook up your app to standard CLI and REST
+        - [Tendermint Node](core/app5.md#tendermint-node) - Run a full
+          blockchain node with your app
+        - [Clients](core/app5.md#clients) - Hook up your app to CLI and REST
             interfaces for clients to use!
 
 - [Modules](modules)
diff --git a/docs/core/app5.md b/docs/core/app5.md
new file mode 100644
index 000000000..c6011f042
--- /dev/null
+++ b/docs/core/app5.md
@@ -0,0 +1,72 @@
+# App5 - Basecoin
+
+As we've seen, the SDK provides a flexible yet comprehensive framework for building state
+machines and defining their transitions, including authenticating transactions, 
+executing messages, controlling access to stores, and updating the validator set.
+
+Until now, we have focused on building only isolated ABCI applications to
+demonstrate and explain the various features and flexibilities of the SDK.
+Here, we'll connect our ABCI application to Tendermint so we can run a full
+blockchain node, and introduce command line and HTTP interfaces for interacting with it.
+
+But first, let's talk about how source code should be laid out.
+
+## Directory Structure
+
+TODO
+
+## Tendermint Node
+
+Since the Cosmos-SDK is written in Go, Cosmos-SDK applications can be compiled 
+with Tendermint into a single binary. Of course, like any ABCI application, they
+can also run as separate processes that communicate with Tendermint via socket.
+
+For more details on what's involved in starting a Tendermint full node, see the 
+[NewNode](https://godoc.org/github.com/tendermint/tendermint/node#NewNode)
+function in `github.com/tendermint/tendermint/node`.
+
+The `server` package in the Cosmos-SDK simplifies
+connecting an application with a Tendermint node.
+For instance, the following `main.go` file will give us a complete full node
+using the Basecoin application we built:
+
+```go
+//TODO imports
+
+func main() {
+	cdc := app.MakeCodec()
+	ctx := server.NewDefaultContext()
+
+	rootCmd := &cobra.Command{
+		Use:               "basecoind",
+		Short:             "Basecoin Daemon (server)",
+		PersistentPreRunE: server.PersistentPreRunEFn(ctx),
+	}
+
+	server.AddCommands(ctx, cdc, rootCmd, server.DefaultAppInit,
+		server.ConstructAppCreator(newApp, "basecoin"))
+
+	// prepare and add flags
+	rootDir := os.ExpandEnv("$HOME/.basecoind")
+	executor := cli.PrepareBaseCmd(rootCmd, "BC", rootDir)
+	executor.Execute()
+}
+
+func newApp(logger log.Logger, db dbm.DB) abci.Application {
+	return app.NewBasecoinApp(logger, db)
+}
+```
+
+Note we utilize the popular [cobra library](https://github.com/spf13/cobra) 
+for the CLI, in concert with the [viper library](https://github.com/spf13/library) 
+for managing configuration. See our [cli library](https://github.com/tendermint/tmlibs/blob/master/cli/setup.go)
+for more details.
+
+TODO: compile and run the binary
+
+Options for running the `basecoind` binary are effectively the same as for `tendermint`. 
+See [Using Tendermint](TODO) for more details.
+
+## Clients
+
+TODO