diff --git a/src/block.rs b/src/block.rs
index 9727d6a37..4663a0b00 100644
--- a/src/block.rs
+++ b/src/block.rs
@@ -1,6 +1,7 @@
 use util::hash::*;
 use util::hashdb::*;
 use util::overlaydb::*;
+use blockheader::*;
 use state::*;
 
 /// Active model of a block within the blockchain
@@ -9,10 +10,22 @@ pub struct Block {
 }
 
 impl Block {
-	/// Basic state object from database
+	/// Creates block with empty state root
 	pub fn new(db: OverlayDB) -> Block {
 		Block {
 			state: State::new(db)
 		}
 	}
+
+	/// Creates block with state root
+	pub fn new_existing(db: OverlayDB, state_root: H256) -> Block {
+		Block {
+			state: State::new_existing(db, state_root)
+		}
+	}
+
+	/// Returns mutable reference to backing state
+	pub fn mutable_state<'a>(&'a mut self) -> &'a mut State {
+		&mut self.state
+	}
 }
diff --git a/src/blockchain.rs b/src/blockchain.rs
index 895a1dfb6..55a8248f7 100644
--- a/src/blockchain.rs
+++ b/src/blockchain.rs
@@ -2,20 +2,67 @@ use util::hash::*;
 use util::rlp::*;
 use util::hashdb::*;
 use util::overlaydb::*;
+use util::sha3::*;
 use blockheader::*;
 use block::*;
+use verifiedblock::*;
+use importroute::*;
 
 pub struct BlockChain {
-	genesis_hash: H256,
-	genesis_block: Vec<u8>
+	genesis_block: Vec<u8>,
+	genesis_hash: H256
 }
 
 impl BlockChain {
+	pub fn new(genesis_block: Vec<u8>) -> BlockChain {
+		// consider creating `GenesisView` for genesis block RLP
+		let genesis_hash = BlockView::new(&genesis_block).parent_hash().sha3();
+
+		BlockChain {
+			genesis_block: genesis_block,
+			genesis_hash: genesis_hash
+		}
+	}
+
 	pub fn genesis_block(&self, db: &OverlayDB) -> Block {
 		let root = BlockView::new(&self.genesis_block).state_root();
+
 		if db.exists(&root) {
-			return Block::new(db.clone())
+			return Block::new_existing(db.clone(), root)
 		}
+
+		let mut block = Block::new(db.clone());
+		// TODO: commit genesis state (accounts) to block.state
+		block.mutable_state().commit_db();
+		// TODO: set previous block
+		// TODO: reset current
+		block
+	}
+
+	pub fn verify_block<'a>(&self, block: &'a [u8]) -> VerifiedBlock<'a> {
+		//TODO: verify block 
+		VerifiedBlock::new(block)
+	}
+
+	pub fn import_block(&self, block: &[u8], db: &OverlayDB) -> ImportRoute {
+		let view = BlockView::new(block);
+
+		// check if we already know this block
+		if self.is_known(&view.sha3()) {
+
+		}
+
+		// check if we already know parent of this block
+		if !self.is_known(&view.parent_hash()) {
+		}
+
+		unimplemented!();
+	}
+
+	/// Returns true if the given block is known 
+	/// (though not necessarily a part of the canon chain).
+	pub fn is_known(&self, hash: &H256) -> bool {
 		unimplemented!()
+		// TODO: check is hash exist in hashes
 	}
 }
diff --git a/src/blockheader.rs b/src/blockheader.rs
index 0f5010a37..bfa81ed46 100644
--- a/src/blockheader.rs
+++ b/src/blockheader.rs
@@ -1,6 +1,7 @@
 use util::hash::*;
 use util::uint::*;
 use util::rlp::*;
+use util::sha3;
 
 /// view onto block header rlp
 pub struct BlockView<'a> {
@@ -30,7 +31,14 @@ impl<'a> BlockView<'a> {
 	pub fn nonce(&self) -> H64 { self.rlp.val_at(13) }
 }
 
+impl<'a> sha3::Hashable for BlockView<'a> {
+	fn sha3(&self) -> H256 {
+		self.rlp.data().sha3()
+	}
+}
+
 /// Data structure represening block header
+/// similar to cpp-ethereum's BlockInfo
 pub struct BlockHeader {
 	parent_hash: H256,
 	uncles_hash: H256,
diff --git a/src/importroute.rs b/src/importroute.rs
new file mode 100644
index 000000000..c544f3e07
--- /dev/null
+++ b/src/importroute.rs
@@ -0,0 +1,8 @@
+use util::hash::*;
+use transaction::*;
+
+pub struct ImportRoute {
+	dead_blocks: Vec<H256>,
+	live_blocks: Vec<H256>,
+	transactions: Vec<Transaction>
+}
diff --git a/src/lib.rs b/src/lib.rs
index d66351e83..b6afb47f4 100644
--- a/src/lib.rs
+++ b/src/lib.rs
@@ -79,8 +79,11 @@ extern crate evmjit;
 pub mod block;
 pub mod blockchain;
 pub mod blockheader;
-
 pub mod transaction;
+pub mod verifiedblock;
+pub mod importroute;
+
+
 pub mod networkparams;
 pub mod denominations;
 
diff --git a/src/state.rs b/src/state.rs
index 693544bcd..3b2d4cf2c 100644
--- a/src/state.rs
+++ b/src/state.rs
@@ -4,17 +4,45 @@ use util::overlaydb::*;
 use util::trie::*;
 
 pub struct State {
-	trie: TrieDB
+	db: OverlayDB,
+	root: H256
 }
 
 impl State {
-	pub fn new(db: OverlayDB) -> State {
+	/// Creates new state with empty state root
+	pub fn new(mut db: OverlayDB) -> State {
+		let mut root = H256::new();
+		{
+			// init trie and reset root too null
+			let _ = TrieDB::new(&mut db, &mut root);
+		}
+
 		State {
-			trie: TrieDB::new(db)
+			db: db,
+			root: root
 		}
 	}
 
+	/// Creates new state with existing state root
+	pub fn new_existing(mut db: OverlayDB, mut root: H256) -> State {
+		{
+			// trie should panic! if root does not exist
+			let _ = TrieDB::new_existing(&mut db, &mut root);
+		}
+
+		State {
+			db: db,
+			root: root
+		}
+	}
+
+	/// Create temporary state object
 	pub fn new_temp() -> State {
 		Self::new(OverlayDB::new_temp())
 	}
+
+	/// Commit everything to the disk
+	pub fn commit_db(&mut self) {
+		self.db.commit().expect("Number of kills exceeded number of inserts!");
+	}
 }
diff --git a/src/verifiedblock.rs b/src/verifiedblock.rs
new file mode 100644
index 000000000..49d2340a7
--- /dev/null
+++ b/src/verifiedblock.rs
@@ -0,0 +1,17 @@
+use blockheader::*;
+use transaction::*;
+
+pub struct VerifiedBlock<'a> {
+	blockview: BlockView<'a>,
+	transactions: Vec<Transaction>
+}
+
+impl<'a> VerifiedBlock<'a> {
+	// todo, new should also take transactions
+	pub fn new(bytes: &'a [u8]) -> VerifiedBlock<'a> {
+		VerifiedBlock {
+			blockview: BlockView::new(bytes),
+			transactions: vec![]
+		}
+	}
+}