diff --git a/cov.sh b/cov.sh
index 9f2a87a47..371746a39 100755
--- a/cov.sh
+++ b/cov.sh
@@ -17,5 +17,5 @@ fi
 
 cargo test --no-run || exit $?
 mkdir -p target/coverage
-kcov --exclude-pattern ~/.multirust --include-pattern src --verify target/coverage target/debug/ethcore*
+kcov --exclude-pattern ~/.multirust,rocksdb,secp256k1 --include-pattern src --verify target/coverage target/debug/ethcore*
 xdg-open target/coverage/index.html
diff --git a/res/ethereum/tests b/res/ethereum/tests
index dc86e6359..e838fd909 160000
--- a/res/ethereum/tests
+++ b/res/ethereum/tests
@@ -1 +1 @@
-Subproject commit dc86e6359675440aea59ddb48648a01c799925d8
+Subproject commit e838fd90998fc5502d0b7c9427a4c231f9a6953d
diff --git a/src/bin/client/main.rs b/src/bin/client/main.rs
index 0194a0a91..31bb79d8e 100644
--- a/src/bin/client/main.rs
+++ b/src/bin/client/main.rs
@@ -61,13 +61,13 @@ fn main() {
 	setup_log(&args.flag_logging);
 
 	let spec = ethereum::new_frontier();
-
 	let init_nodes = match &args.arg_enode {
 		&None => spec.nodes().clone(),
 		&Some(ref enodes) => enodes.clone(),
 	};
-
-	let mut service = ClientService::start(spec, &init_nodes).unwrap();
+	let mut net_settings = NetworkConfiguration::new();
+	net_settings.boot_nodes = init_nodes;
+	let mut service = ClientService::start(spec, net_settings).unwrap();
 	let io_handler  = Arc::new(ClientIoHandler { client: service.client(), info: Default::default(), sync: service.sync() });
 	service.io().register_handler(io_handler).expect("Error registering IO handler");
 
diff --git a/src/client.rs b/src/client.rs
index 6f47d0601..4461f3d7b 100644
--- a/src/client.rs
+++ b/src/client.rs
@@ -162,14 +162,10 @@ impl Client {
 		let db = Arc::new(DB::open(&opts, state_path.to_str().unwrap()).unwrap());
 		
 		let engine = Arc::new(try!(spec.to_engine()));
-		{
-			let mut state_db = JournalDB::new_with_arc(db.clone());
-			if engine.spec().ensure_db_good(&mut state_db) {
-				state_db.commit(0, &engine.spec().genesis_header().hash(), None).expect("Error commiting genesis state to state DB");
-			}
+		let mut state_db = JournalDB::new_with_arc(db.clone());
+		if engine.spec().ensure_db_good(&mut state_db) {
+			state_db.commit(0, &engine.spec().genesis_header().hash(), None).expect("Error commiting genesis state to state DB");
 		}
-		let state_db = JournalDB::new_with_arc(db);
-
 		Ok(Arc::new(Client {
 			chain: chain,
 			engine: engine.clone(),
diff --git a/src/service.rs b/src/service.rs
index 7e9c3ae41..8c900d20a 100644
--- a/src/service.rs
+++ b/src/service.rs
@@ -26,8 +26,8 @@ pub struct ClientService {
 
 impl ClientService {
 	/// Start the service in a separate thread.
-	pub fn start(spec: Spec, init_nodes: &[String]) -> Result<ClientService, Error> {
-		let mut net_service = try!(NetworkService::start(init_nodes));
+	pub fn start(spec: Spec, net_config: NetworkConfiguration) -> Result<ClientService, Error> {
+		let mut net_service = try!(NetworkService::start(net_config));
 		info!("Starting {}", net_service.host_info());
 		info!("Configured for {} using {} engine", spec.name, spec.engine_name);
 		let mut dir = env::home_dir().unwrap();
diff --git a/src/sync/chain.rs b/src/sync/chain.rs
index c55cb0a6e..aaba701c2 100644
--- a/src/sync/chain.rs
+++ b/src/sync/chain.rs
@@ -475,6 +475,9 @@ impl ChainSync {
 				}
 			}
 		};
+		if max_height != x!(0) {
+			self.sync_peer(io, peer_id, true);
+		}
 		Ok(())
 	}
 
diff --git a/util/src/io/mod.rs b/util/src/io/mod.rs
index 48c02f6ee..1906e7438 100644
--- a/util/src/io/mod.rs
+++ b/util/src/io/mod.rs
@@ -74,6 +74,8 @@ pub trait IoHandler<Message>: Send + Sync where Message: Send + Sync + Clone + '
 	fn register_stream(&self, _stream: StreamToken, _reg: Token, _event_loop: &mut EventLoop<IoManager<Message>>) {}
 	/// Re-register a stream with the event loop
 	fn update_stream(&self, _stream: StreamToken, _reg: Token, _event_loop: &mut EventLoop<IoManager<Message>>) {}
+	/// Deregister a stream. Called whenstream is removed from event loop
+	fn deregister_stream(&self, _stream: StreamToken, _event_loop: &mut EventLoop<IoManager<Message>>) {}
 }
 
 /// TODO [arkpar] Please document me
diff --git a/util/src/io/service.rs b/util/src/io/service.rs
index 8a1653056..9a3187f8e 100644
--- a/util/src/io/service.rs
+++ b/util/src/io/service.rs
@@ -42,6 +42,10 @@ pub enum IoMessage<Message> where Message: Send + Clone + Sized {
 		handler_id: HandlerId,
 		token: StreamToken,
 	},
+	DeregisterStream {
+		handler_id: HandlerId,
+		token: StreamToken,
+	},
 	UpdateStreamRegistration {
 		handler_id: HandlerId,
 		token: StreamToken,
@@ -83,6 +87,7 @@ impl<Message> IoContext<Message> where Message: Send + Clone + 'static {
 		}));
 		Ok(())
 	}
+
 	/// Register a new IO stream.
 	pub fn register_stream(&self, token: StreamToken) -> Result<(), UtilError> {
 		try!(self.channel.send_io(IoMessage::RegisterStream {
@@ -92,6 +97,15 @@ impl<Message> IoContext<Message> where Message: Send + Clone + 'static {
 		Ok(())
 	}
 
+	/// Deregister an IO stream.
+	pub fn deregister_stream(&self, token: StreamToken) -> Result<(), UtilError> {
+		try!(self.channel.send_io(IoMessage::DeregisterStream {
+			token: token,
+			handler_id: self.handler,
+		}));
+		Ok(())
+	}
+
 	/// Reregister an IO stream.
 	pub fn update_registration(&self, token: StreamToken) -> Result<(), UtilError> {
 		try!(self.channel.send_io(IoMessage::UpdateStreamRegistration {
@@ -214,6 +228,10 @@ impl<Message> Handler for IoManager<Message> where Message: Send + Clone + Sync
 				let handler = self.handlers.get(handler_id).expect("Unknown handler id").clone();
 				handler.register_stream(token, Token(token + handler_id * TOKENS_PER_HANDLER), event_loop);
 			},
+			IoMessage::DeregisterStream { handler_id, token } => {
+				let handler = self.handlers.get(handler_id).expect("Unknown handler id").clone();
+				handler.deregister_stream(token, event_loop);
+			},
 			IoMessage::UpdateStreamRegistration { handler_id, token } => {
 				let handler = self.handlers.get(handler_id).expect("Unknown handler id").clone();
 				handler.update_stream(token, Token(token + handler_id * TOKENS_PER_HANDLER), event_loop);
diff --git a/util/src/network/connection.rs b/util/src/network/connection.rs
index 33cafd708..7ed8c3c18 100644
--- a/util/src/network/connection.rs
+++ b/util/src/network/connection.rs
@@ -1,3 +1,4 @@
+use std::sync::Arc;
 use std::collections::VecDeque;
 use mio::{Handler, Token, EventSet, EventLoop, PollOpt, TryRead, TryWrite};
 use mio::tcp::*;
@@ -10,6 +11,7 @@ use error::*;
 use io::{IoContext, StreamToken};
 use network::error::NetworkError;
 use network::handshake::Handshake;
+use network::stats::NetworkStats;
 use crypto;
 use rcrypto::blockmodes::*;
 use rcrypto::aessafe::*;
@@ -34,6 +36,8 @@ pub struct Connection {
 	send_queue: VecDeque<Cursor<Bytes>>,
 	/// Event flags this connection expects
 	interest: EventSet,
+	/// Shared network staistics
+	stats: Arc<NetworkStats>,
 }
 
 /// Connection write status.
@@ -47,7 +51,7 @@ pub enum WriteStatus {
 
 impl Connection {
 	/// Create a new connection with given id and socket.
-	pub fn new(token: StreamToken, socket: TcpStream) -> Connection {
+	pub fn new(token: StreamToken, socket: TcpStream, stats: Arc<NetworkStats>) -> Connection {
 		Connection {
 			token: token,
 			socket: socket,
@@ -55,6 +59,7 @@ impl Connection {
 			rec_buf: Bytes::new(),
 			rec_size: 0,
 			interest: EventSet::hup() | EventSet::readable(),
+			stats: stats,
 		}
 	}
 
@@ -68,7 +73,6 @@ impl Connection {
 	}
 
 	/// Readable IO handler. Called when there is some data to be read.
-	//TODO: return a slice
 	pub fn readable(&mut self) -> io::Result<Option<Bytes>> {
 		if self.rec_size == 0 || self.rec_buf.len() >= self.rec_size {
 			warn!(target:"net", "Unexpected connection read");
@@ -77,9 +81,12 @@ impl Connection {
 		// resolve "multiple applicable items in scope [E0034]" error
 		let sock_ref = <TcpStream as Read>::by_ref(&mut self.socket);
 		match sock_ref.take(max as u64).try_read_buf(&mut self.rec_buf) {
-			Ok(Some(_)) if self.rec_buf.len() == self.rec_size => {
-				self.rec_size = 0;
-				Ok(Some(::std::mem::replace(&mut self.rec_buf, Bytes::new())))
+			Ok(Some(size)) if size != 0  => {
+				self.stats.inc_recv(size);
+				if self.rec_size != 0 && self.rec_buf.len() == self.rec_size {
+					self.rec_size = 0;
+					Ok(Some(::std::mem::replace(&mut self.rec_buf, Bytes::new())))
+				} else { Ok(None) }
 			},
 			Ok(_) => Ok(None),
 			Err(e) => Err(e),
@@ -109,14 +116,17 @@ impl Connection {
 				return Ok(WriteStatus::Complete)
 			}
 			match self.socket.try_write_buf(buf) {
-				Ok(_) if (buf.position() as usize) < send_size => {
+				Ok(Some(size)) if (buf.position() as usize) < send_size => {
 					self.interest.insert(EventSet::writable());
+					self.stats.inc_send(size);
 					Ok(WriteStatus::Ongoing)
 				},
-				Ok(_) if (buf.position() as usize) == send_size => {
+				Ok(Some(size)) if (buf.position() as usize) == send_size => {
+					self.stats.inc_send(size);
 					Ok(WriteStatus::Complete)
 				},
-				Ok(_) => { panic!("Wrote past buffer");},
+				Ok(Some(_)) => { panic!("Wrote past buffer");},
+				Ok(None) => Ok(WriteStatus::Ongoing),
 				Err(e) => Err(e)
 			}
 		}.and_then(|r| {
@@ -137,8 +147,8 @@ impl Connection {
 	pub fn register_socket<Host: Handler>(&self, reg: Token, event_loop: &mut EventLoop<Host>) -> io::Result<()> {
 		trace!(target: "net", "connection register; token={:?}", reg);
 		event_loop.register(&self.socket, reg, self.interest, PollOpt::edge() | PollOpt::oneshot()).or_else(|e| {
-			error!("Failed to register {:?}, {:?}", reg, e);
-			Err(e)
+			debug!("Failed to register {:?}, {:?}", reg, e);
+			Ok(())
 		})
 	}
 
@@ -146,10 +156,17 @@ impl Connection {
 	pub fn update_socket<Host: Handler>(&self, reg: Token, event_loop: &mut EventLoop<Host>) -> io::Result<()> {
 		trace!(target: "net", "connection reregister; token={:?}", reg);
 		event_loop.reregister( &self.socket, reg, self.interest, PollOpt::edge() | PollOpt::oneshot()).or_else(|e| {
-			error!("Failed to reregister {:?}, {:?}", reg, e);
-			Err(e)
+			debug!("Failed to reregister {:?}, {:?}", reg, e);
+			Ok(())
 		})
 	}
+
+	/// Delete connection registration. Should be called at the end of the IO handler.
+	pub fn deregister_socket<Host: Handler>(&self, event_loop: &mut EventLoop<Host>) -> io::Result<()> {
+		trace!(target: "net", "connection deregister; token={:?}", self.token);
+		event_loop.deregister(&self.socket).ok(); // ignore errors here
+		Ok(())
+	}
 }
 
 /// RLPx packet
@@ -371,6 +388,12 @@ impl EncryptedConnection {
 		try!(self.connection.update_socket(reg, event_loop));
 		Ok(())
 	}
+
+	/// Delete connection registration. This should be called at the end of the event loop.
+	pub fn deregister_socket<Host:Handler>(&self, event_loop: &mut EventLoop<Host>) -> Result<(), UtilError> {
+		try!(self.connection.deregister_socket(event_loop));
+		Ok(())
+	}
 }
 
 #[test]
diff --git a/util/src/network/handshake.rs b/util/src/network/handshake.rs
index ddeab17b7..9b835d5bd 100644
--- a/util/src/network/handshake.rs
+++ b/util/src/network/handshake.rs
@@ -1,3 +1,4 @@
+use std::sync::Arc;
 use mio::*;
 use mio::tcp::*;
 use hash::*;
@@ -10,6 +11,7 @@ use network::host::{HostInfo};
 use network::node::NodeId;
 use error::*;
 use network::error::NetworkError;
+use network::stats::NetworkStats;
 use io::{IoContext, StreamToken};
 
 #[derive(PartialEq, Eq, Debug)]
@@ -54,10 +56,10 @@ const HANDSHAKE_TIMEOUT: u64 = 30000;
 
 impl Handshake {
 	/// Create a new handshake object
-	pub fn new(token: StreamToken, id: &NodeId, socket: TcpStream, nonce: &H256) -> Result<Handshake, UtilError> {
+	pub fn new(token: StreamToken, id: Option<&NodeId>, socket: TcpStream, nonce: &H256, stats: Arc<NetworkStats>) -> Result<Handshake, UtilError> {
 		Ok(Handshake {
-			id: id.clone(),
-			connection: Connection::new(token, socket),
+			id: if let Some(id) = id { id.clone()} else { NodeId::new() },
+			connection: Connection::new(token, socket, stats),
 			originated: false,
 			state: HandshakeState::New,
 			ecdhe: try!(KeyPair::create()),
@@ -134,32 +136,45 @@ impl Handshake {
 		Ok(())
 	}
 
+	/// Delete registration
+	pub fn deregister_socket<Host:Handler>(&self, event_loop: &mut EventLoop<Host>) -> Result<(), UtilError> {
+		try!(self.connection.deregister_socket(event_loop));
+		Ok(())
+	}
+
 	/// Parse, validate and confirm auth message
 	fn read_auth(&mut self, host: &HostInfo, data: &[u8]) -> Result<(), UtilError> {
 		trace!(target:"net", "Received handshake auth to {:?}", self.connection.socket.peer_addr());
-		assert!(data.len() == AUTH_PACKET_SIZE);
+		if data.len() != AUTH_PACKET_SIZE {
+			debug!(target:"net", "Wrong auth packet size");
+			return Err(From::from(NetworkError::BadProtocol));
+		}
 		self.auth_cipher = data.to_vec();
 		let auth = try!(ecies::decrypt(host.secret(), data));
 		let (sig, rest) = auth.split_at(65);
 		let (hepubk, rest) = rest.split_at(32);
 		let (pubk, rest) = rest.split_at(64);
 		let (nonce, _) = rest.split_at(32);
-		self.remote_public.clone_from_slice(pubk);
+		self.id.clone_from_slice(pubk);
 		self.remote_nonce.clone_from_slice(nonce);
-		let shared = try!(ecdh::agree(host.secret(), &self.remote_public));
+		let shared = try!(ecdh::agree(host.secret(), &self.id));
 		let signature = Signature::from_slice(sig);
 		let spub = try!(ec::recover(&signature, &(&shared ^ &self.remote_nonce)));
+		self.remote_public = spub.clone();
 		if &spub.sha3()[..] != hepubk {
 			trace!(target:"net", "Handshake hash mismath with {:?}", self.connection.socket.peer_addr());
 			return Err(From::from(NetworkError::Auth));
 		};
-		self.write_ack()
+		Ok(())
 	}
 
 	/// Parse and validate ack message
 	fn read_ack(&mut self, host: &HostInfo, data: &[u8]) -> Result<(), UtilError> {
 		trace!(target:"net", "Received handshake auth to {:?}", self.connection.socket.peer_addr());
-		assert!(data.len() == ACK_PACKET_SIZE);
+		if data.len() != ACK_PACKET_SIZE {
+			debug!(target:"net", "Wrong ack packet size");
+			return Err(From::from(NetworkError::BadProtocol));
+		}
 		self.ack_cipher = data.to_vec();
 		let ack = try!(ecies::decrypt(host.secret(), data));
 		self.remote_public.clone_from_slice(&ack[0..64]);
diff --git a/util/src/network/host.rs b/util/src/network/host.rs
index 06e7f5a4e..6f306ecb0 100644
--- a/util/src/network/host.rs
+++ b/util/src/network/host.rs
@@ -17,6 +17,7 @@ use error::*;
 use io::*;
 use network::NetworkProtocolHandler;
 use network::node::*;
+use network::stats::NetworkStats;
 
 type Slab<T> = ::slab::Slab<T, usize>;
 
@@ -28,24 +29,45 @@ const IDEAL_PEERS: u32 = 10;
 const MAINTENANCE_TIMEOUT: u64 = 1000;
 
 #[derive(Debug)]
-struct NetworkConfiguration {
-	listen_address: SocketAddr,
-	public_address: SocketAddr,
-	nat_enabled: bool,
-	discovery_enabled: bool,
-	pin: bool,
+/// Network service configuration
+pub struct NetworkConfiguration {
+	/// IP address to listen for incoming connections
+	pub listen_address: SocketAddr,
+	/// IP address to advertise
+	pub public_address: SocketAddr,
+	/// Enable NAT configuration
+	pub nat_enabled: bool,
+	/// Enable discovery
+	pub discovery_enabled: bool,
+	/// Pin to boot nodes only
+	pub pin: bool,
+	/// List of initial node addresses
+	pub boot_nodes: Vec<String>,
+	/// Use provided node key instead of default
+	pub use_secret: Option<Secret>,
 }
 
 impl NetworkConfiguration {
-	fn new() -> NetworkConfiguration {
+	/// Create a new instance of default settings.
+	pub fn new() -> NetworkConfiguration {
 		NetworkConfiguration {
 			listen_address: SocketAddr::from_str("0.0.0.0:30304").unwrap(),
 			public_address: SocketAddr::from_str("0.0.0.0:30304").unwrap(),
 			nat_enabled: true,
 			discovery_enabled: true,
 			pin: false,
+			boot_nodes: Vec::new(),
+			use_secret: None,
 		}
 	}
+
+	/// Create new default configuration with sepcified listen port.
+	pub fn new_with_port(port: u16) -> NetworkConfiguration {
+		let mut config = NetworkConfiguration::new();
+		config.listen_address = SocketAddr::from_str(&format!("0.0.0.0:{}", port)).unwrap();
+		config.public_address = SocketAddr::from_str(&format!("0.0.0.0:{}", port)).unwrap();
+		config
+	}
 }
 
 // Tokens
@@ -243,18 +265,19 @@ pub struct Host<Message> where Message: Send + Sync + Clone {
 	handlers: RwLock<HashMap<ProtocolId, Arc<NetworkProtocolHandler<Message>>>>,
 	timers: RwLock<HashMap<TimerToken, ProtocolTimer>>,
 	timer_counter: RwLock<usize>,
+	stats: Arc<NetworkStats>,
 }
 
 impl<Message> Host<Message> where Message: Send + Sync + Clone {
-	pub fn new() -> Host<Message> {
-		let config = NetworkConfiguration::new();
+	/// Create a new instance
+	pub fn new(config: NetworkConfiguration) -> Host<Message> {
 		let addr = config.listen_address;
 		// Setup the server socket
 		let tcp_listener = TcpListener::bind(&addr).unwrap();
 		let udp_socket = UdpSocket::bound(&addr).unwrap();
-		let host = Host::<Message> {
+		let mut host = Host::<Message> {
 			info: RwLock::new(HostInfo {
-				keys: KeyPair::create().unwrap(),
+				keys: if let Some(ref secret) = config.use_secret { KeyPair::from_secret(secret.clone()).unwrap() } else { KeyPair::create().unwrap() },
 				config: config,
 				nonce: H256::random(),
 				protocol_version: 4,
@@ -269,6 +292,7 @@ impl<Message> Host<Message> where Message: Send + Sync + Clone {
 			handlers: RwLock::new(HashMap::new()),
 			timers: RwLock::new(HashMap::new()),
 			timer_counter: RwLock::new(LAST_CONNECTION + 1),
+			stats: Arc::new(NetworkStats::default()),
 		};
 		let port = host.info.read().unwrap().config.listen_address.port();
 		host.info.write().unwrap().deref_mut().listen_port = port;
@@ -278,9 +302,18 @@ impl<Message> Host<Message> where Message: Send + Sync + Clone {
 		Some(iface) => config.public_address = iface.addr.unwrap(),
 		None => warn!("No public network interface"),
 		*/
+
+		let boot_nodes = host.info.read().unwrap().config.boot_nodes.clone();
+		for n in boot_nodes {
+			host.add_node(&n);
+		}
 		host
 	}
 
+	pub fn stats(&self) -> Arc<NetworkStats> {
+		self.stats.clone()
+	}
+
 	pub fn add_node(&mut self, id: &str) {
 		match Node::from_str(id) {
 			Err(e) => { warn!("Could not add node: {:?}", e); },
@@ -358,7 +391,6 @@ impl<Message> Host<Message> where Message: Send + Sync + Clone {
 	}
 
 	#[allow(single_match)]
-	#[allow(block_in_if_condition_stmt)]
 	fn connect_peer(&self, id: &NodeId, io: &IoContext<NetworkIoMessage<Message>>) {
 		if self.have_session(id)
 		{
@@ -385,11 +417,16 @@ impl<Message> Host<Message> where Message: Send + Sync + Clone {
 				}
 			}
 		};
+		self.create_connection(socket, Some(id), io);
+	}
 
+	#[allow(block_in_if_condition_stmt)]
+	fn create_connection(&self, socket: TcpStream, id: Option<&NodeId>, io: &IoContext<NetworkIoMessage<Message>>) {
 		let nonce = self.info.write().unwrap().next_nonce();
-		if self.connections.write().unwrap().insert_with(|token| {
-			let mut handshake = Handshake::new(token, id, socket, &nonce).expect("Can't create handshake");
-			handshake.start(io, &self.info.read().unwrap(), true).and_then(|_| io.register_stream(token)).unwrap_or_else (|e| {
+		let mut connections = self.connections.write().unwrap();
+		if connections.insert_with(|token| {
+			let mut handshake = Handshake::new(token, id, socket, &nonce, self.stats.clone()).expect("Can't create handshake");
+			handshake.start(io, &self.info.read().unwrap(), id.is_some()).and_then(|_| io.register_stream(token)).unwrap_or_else (|e| {
 				debug!(target: "net", "Handshake create error: {:?}", e);
 			});
 			Arc::new(Mutex::new(ConnectionEntry::Handshake(handshake)))
@@ -398,8 +435,20 @@ impl<Message> Host<Message> where Message: Send + Sync + Clone {
 		}
 	}
 
-	fn accept(&self, _io: &IoContext<NetworkIoMessage<Message>>) {
+	fn accept(&self, io: &IoContext<NetworkIoMessage<Message>>) {
 		trace!(target: "net", "accept");
+		loop {
+			let socket = match self.tcp_listener.lock().unwrap().accept() {
+				Ok(None) => break,
+				Ok(Some((sock, _addr))) => sock,
+				Err(e) => {
+					warn!("Error accepting connection: {:?}", e);
+					break
+				},
+			};
+			self.create_connection(socket, None, io);
+		}
+		io.update_registration(TCP_ACCEPT).expect("Error registering TCP listener");
 	}
 
 	#[allow(single_match)]
@@ -508,11 +557,13 @@ impl<Message> Host<Message> where Message: Send + Sync + Clone {
 	}
 
 	fn start_session(&self, token: StreamToken, io: &IoContext<NetworkIoMessage<Message>>) {
-		self.connections.write().unwrap().replace_with(token, |c| {
+		let mut connections = self.connections.write().unwrap();
+		connections.replace_with(token, |c| {
 			match Arc::try_unwrap(c).ok().unwrap().into_inner().unwrap() {
 				ConnectionEntry::Handshake(h) => {
 					let session = Session::new(h, io, &self.info.read().unwrap()).expect("Session creation error");
 					io.update_registration(token).expect("Error updating session registration");
+					self.stats.inc_sessions();
 					Some(Arc::new(Mutex::new(ConnectionEntry::Session(session))))
 				},
 				_ => { None } // handshake expired
@@ -544,6 +595,7 @@ impl<Message> Host<Message> where Message: Send + Sync + Clone {
 					_ => {},
 				}
 			}
+			io.deregister_stream(token).expect("Error deregistering stream");
 		}
 		for p in to_disconnect {
 			let h = self.handlers.read().unwrap().get(p).unwrap().clone();
@@ -656,6 +708,24 @@ impl<Message> IoHandler<NetworkIoMessage<Message>> for Host<Message> where Messa
 		}
 	}
 
+	fn deregister_stream(&self, stream: StreamToken, event_loop: &mut EventLoop<IoManager<NetworkIoMessage<Message>>>) {
+		match stream {
+			FIRST_CONNECTION ... LAST_CONNECTION => {
+				let mut connections = self.connections.write().unwrap();
+				if let Some(connection) = connections.get(stream).cloned() {
+					match *connection.lock().unwrap().deref() {
+						ConnectionEntry::Handshake(ref h) => h.deregister_socket(event_loop).expect("Error deregistering socket"),
+						ConnectionEntry::Session(ref s) => s.deregister_socket(event_loop).expect("Error deregistering session socket"),
+					}
+					connections.remove(stream);
+				} 
+			},
+			NODETABLE_RECEIVE => event_loop.deregister(self.udp_socket.lock().unwrap().deref()).unwrap(),
+			TCP_ACCEPT => event_loop.deregister(self.tcp_listener.lock().unwrap().deref()).unwrap(),
+			_ => warn!("Unexpected stream deregistration")
+		}
+	}
+
 	fn update_stream(&self, stream: StreamToken, reg: Token, event_loop: &mut EventLoop<IoManager<NetworkIoMessage<Message>>>) {
 		match stream {
 			FIRST_CONNECTION ... LAST_CONNECTION => {
diff --git a/util/src/network/mod.rs b/util/src/network/mod.rs
index 0c734442d..668cdc8b1 100644
--- a/util/src/network/mod.rs
+++ b/util/src/network/mod.rs
@@ -1,5 +1,4 @@
-/// Network and general IO module.
-///
+/// Network and general IO module. 
 /// Example usage for craeting a network service and adding an IO handler:
 ///
 /// ```rust
@@ -40,7 +39,7 @@
 /// }
 ///
 /// fn main () {
-/// 	let mut service = NetworkService::<MyMessage>::start().expect("Error creating network service");
+/// 	let mut service = NetworkService::<MyMessage>::start(NetworkConfiguration::new()).expect("Error creating network service");
 /// 	service.register_protocol(Arc::new(MyHandler), "myproto", &[1u8]);
 ///
 /// 	// Wait for quit condition
@@ -56,21 +55,20 @@ mod discovery;
 mod service;
 mod error;
 mod node;
+mod stats;
+
+#[cfg(test)]
+mod tests;
 
-/// TODO [arkpar] Please document me
 pub use network::host::PeerId;
-/// TODO [arkpar] Please document me
 pub use network::host::PacketId;
-/// TODO [arkpar] Please document me
 pub use network::host::NetworkContext;
-/// TODO [arkpar] Please document me
 pub use network::service::NetworkService;
-/// TODO [arkpar] Please document me
 pub use network::host::NetworkIoMessage;
-/// TODO [arkpar] Please document me
 pub use network::host::NetworkIoMessage::User as UserMessage;
-/// TODO [arkpar] Please document me
 pub use network::error::NetworkError;
+pub use network::host::NetworkConfiguration;
+pub use network::stats::NetworkStats;
 
 use io::TimerToken;
 
@@ -92,44 +90,3 @@ pub trait NetworkProtocolHandler<Message>: Sync + Send where Message: Send + Syn
 	fn message(&self, _io: &NetworkContext<Message>, _message: &Message) {}
 }
 
-
-#[test]
-fn test_net_service() {
-
-	use std::sync::Arc;
-	struct MyHandler;
-
-	#[derive(Clone)]
-	struct MyMessage {
-		data: u32
-	}
-
-	impl NetworkProtocolHandler<MyMessage> for MyHandler {
-		fn initialize(&self, io: &NetworkContext<MyMessage>) {
-			io.register_timer(0, 1000).unwrap();
-		}
-
-		fn read(&self, _io: &NetworkContext<MyMessage>, peer: &PeerId, packet_id: u8, data: &[u8]) {
-			println!("Received {} ({} bytes) from {}", packet_id, data.len(), peer);
-		}
-
-		fn connected(&self, _io: &NetworkContext<MyMessage>, peer: &PeerId) {
-			println!("Connected {}", peer);
-		}
-
-		fn disconnected(&self, _io: &NetworkContext<MyMessage>, peer: &PeerId) {
-			println!("Disconnected {}", peer);
-		}
-
-		fn timeout(&self, _io: &NetworkContext<MyMessage>, timer: TimerToken) {
-			println!("Timeout {}", timer);
-		}
-
-		fn message(&self, _io: &NetworkContext<MyMessage>, message: &MyMessage) {
-			println!("Message {}", message.data);
-		}
-	}
-
-	let mut service = NetworkService::<MyMessage>::start().expect("Error creating network service");
-	service.register_protocol(Arc::new(MyHandler), "myproto", &[1u8]).unwrap();
-}
diff --git a/util/src/network/service.rs b/util/src/network/service.rs
index 811730d4b..cbf400872 100644
--- a/util/src/network/service.rs
+++ b/util/src/network/service.rs
@@ -1,8 +1,9 @@
 use std::sync::*;
 use error::*;
-use network::{NetworkProtocolHandler};
+use network::{NetworkProtocolHandler, NetworkConfiguration};
 use network::error::{NetworkError};
 use network::host::{Host, NetworkIoMessage, ProtocolId};
+use network::stats::{NetworkStats};
 use io::*;
 
 /// IO Service with networking
@@ -10,21 +11,22 @@ use io::*;
 pub struct NetworkService<Message> where Message: Send + Sync + Clone + 'static {
 	io_service: IoService<NetworkIoMessage<Message>>,
 	host_info: String,
+	stats: Arc<NetworkStats>
 }
 
 impl<Message> NetworkService<Message> where Message: Send + Sync + Clone + 'static {
 	/// Starts IO event loop
-	pub fn start(init_nodes: &[String]) -> Result<NetworkService<Message>, UtilError> {
+	pub fn start(config: NetworkConfiguration) -> Result<NetworkService<Message>, UtilError> {
 		let mut io_service = try!(IoService::<NetworkIoMessage<Message>>::start());
-		let mut host = Host::new();
-		for n in init_nodes { host.add_node(&n); }
-		let host = Arc::new(host);
+		let host = Arc::new(Host::new(config));
+		let stats = host.stats().clone();
 		let host_info = host.client_version();
 		info!("NetworkService::start(): id={:?}", host.client_id());
 		try!(io_service.register_handler(host));
 		Ok(NetworkService {
 			io_service: io_service,
 			host_info: host_info,
+			stats: stats,
 		})
 	}
 
@@ -47,5 +49,10 @@ impl<Message> NetworkService<Message> where Message: Send + Sync + Clone + 'stat
 	pub fn io(&mut self) -> &mut IoService<NetworkIoMessage<Message>> {
 		&mut self.io_service
 	}
+
+	/// Returns underlying io service.
+	pub fn stats(&self) -> &NetworkStats {
+		&self.stats
+	}
 }
 
diff --git a/util/src/network/session.rs b/util/src/network/session.rs
index 8f580f476..2817f008d 100644
--- a/util/src/network/session.rs
+++ b/util/src/network/session.rs
@@ -131,6 +131,11 @@ impl Session {
 		self.connection.update_socket(reg, event_loop)
 	}
 
+	/// Delete registration
+	pub fn deregister_socket<Host:Handler>(&self, event_loop: &mut EventLoop<Host>) -> Result<(), UtilError> {
+		self.connection.deregister_socket(event_loop)
+	}
+
 	/// Send a protocol packet to peer.
 	pub fn send_packet(&mut self, protocol: &str, packet_id: u8, data: &[u8]) -> Result<(), UtilError> {
 		let mut i = 0usize;
diff --git a/util/src/network/stats.rs b/util/src/network/stats.rs
new file mode 100644
index 000000000..02d904985
--- /dev/null
+++ b/util/src/network/stats.rs
@@ -0,0 +1,51 @@
+//! Network Statistics
+use std::sync::atomic::*;
+
+/// Network statistics structure
+#[derive(Default, Debug)]
+pub struct NetworkStats {
+	/// Bytes received
+	recv: AtomicUsize,
+	/// Bytes sent
+	send: AtomicUsize,
+	/// Total number of sessions created
+	sessions: AtomicUsize,
+}
+
+impl NetworkStats {
+	/// Increase bytes received.
+	#[inline]
+	pub fn inc_recv(&self, size: usize) {
+		self.recv.fetch_add(size, Ordering::Relaxed);
+	}
+
+	/// Increase bytes sent.
+	#[inline]
+	pub fn inc_send(&self, size: usize) {
+		self.send.fetch_add(size, Ordering::Relaxed);
+	}
+
+	/// Increase number of sessions.
+	#[inline]
+	pub fn inc_sessions(&self) {
+		self.sessions.fetch_add(1, Ordering::Relaxed);
+	}
+
+	/// Get bytes sent.
+	#[inline]
+	pub fn send(&self) -> usize {
+		self.send.load(Ordering::Relaxed)
+	}
+
+	/// Get bytes received.
+	#[inline]
+	pub fn recv(&self) -> usize {
+		self.recv.load(Ordering::Relaxed)
+	}
+
+	/// Get total number of sessions created.
+	#[inline]
+	pub fn sessions(&self) -> usize {
+		self.sessions.load(Ordering::Relaxed)
+	}
+}
diff --git a/util/src/network/tests.rs b/util/src/network/tests.rs
new file mode 100644
index 000000000..7b0870532
--- /dev/null
+++ b/util/src/network/tests.rs
@@ -0,0 +1,103 @@
+use std::sync::atomic::{AtomicBool, Ordering as AtomicOrdering};
+use std::thread;
+use std::time::*;
+use common::*;
+use network::*;
+use io::TimerToken;
+use crypto::KeyPair;
+
+pub struct TestProtocol {
+	pub packet: Mutex<Bytes>,
+	pub got_timeout: AtomicBool,
+}
+
+impl Default for TestProtocol {
+	fn default() -> Self {
+		TestProtocol { 
+			packet: Mutex::new(Vec::new()), 
+			got_timeout: AtomicBool::new(false), 
+		}
+	}
+}
+
+#[derive(Clone)]
+pub struct TestProtocolMessage {
+	payload: u32,
+}
+
+impl TestProtocol {
+	/// Creates and register protocol with the network service
+	pub fn register(service: &mut NetworkService<TestProtocolMessage>) -> Arc<TestProtocol> {
+		let handler = Arc::new(TestProtocol::default());
+		service.register_protocol(handler.clone(), "test", &[42u8, 43u8]).expect("Error registering test protocol handler");
+		handler
+	}
+
+	pub fn got_packet(&self) -> bool {
+		self.packet.lock().unwrap().deref()[..] == b"hello"[..]
+	}
+
+	pub fn got_timeout(&self) -> bool {
+		self.got_timeout.load(AtomicOrdering::Relaxed)
+	}
+}
+
+impl NetworkProtocolHandler<TestProtocolMessage> for TestProtocol {
+	fn initialize(&self, io: &NetworkContext<TestProtocolMessage>) {
+		io.register_timer(0, 10).unwrap();
+	}
+
+	fn read(&self, _io: &NetworkContext<TestProtocolMessage>, _peer: &PeerId, packet_id: u8, data: &[u8]) {
+		assert_eq!(packet_id, 33);
+		self.packet.lock().unwrap().extend(data);
+	}
+
+	fn connected(&self, io: &NetworkContext<TestProtocolMessage>, _peer: &PeerId) {
+		io.respond(33, "hello".to_owned().into_bytes()).unwrap();
+	}
+
+	fn disconnected(&self, _io: &NetworkContext<TestProtocolMessage>, _peer: &PeerId) {
+	}
+
+	/// Timer function called after a timeout created with `NetworkContext::timeout`.
+	fn timeout(&self, _io: &NetworkContext<TestProtocolMessage>, timer: TimerToken) {
+		assert_eq!(timer, 0);
+		self.got_timeout.store(true, AtomicOrdering::Relaxed);
+	}
+}
+
+
+#[test]
+fn test_net_service() {
+	let mut service = NetworkService::<TestProtocolMessage>::start(NetworkConfiguration::new()).expect("Error creating network service");
+	service.register_protocol(Arc::new(TestProtocol::default()), "myproto", &[1u8]).unwrap();
+}
+
+#[test]
+fn test_net_connect() {
+	let key1 = KeyPair::create().unwrap();
+	let mut config1 = NetworkConfiguration::new_with_port(30344);
+	config1.use_secret = Some(key1.secret().clone());
+	config1.boot_nodes = Some(vec![ ]);
+	let mut config2 = NetworkConfiguration::new_with_port(30345);
+	config2.boot_nodes = Some(vec![ format!("enode://{}@127.0.0.1:30344", key1.public().hex()) ]);
+	let mut service1 = NetworkService::<TestProtocolMessage>::start(config1).unwrap();
+	let mut service2 = NetworkService::<TestProtocolMessage>::start(config2).unwrap();
+	let handler1 = TestProtocol::register(&mut service1);
+	let handler2 = TestProtocol::register(&mut service2);
+	while !handler1.got_packet() && !handler2.got_packet() {
+		thread::sleep(Duration::from_millis(50));
+	}
+	assert!(service1.stats().sessions() >= 1);
+	assert!(service2.stats().sessions() >= 1);
+}
+
+#[test]
+fn test_net_timeout() {
+	let config = NetworkConfiguration::new_with_port(30346);
+	let mut service = NetworkService::<TestProtocolMessage>::start(config).unwrap();
+	let handler = TestProtocol::register(&mut service);
+	while !handler.got_timeout() {
+		thread::sleep(Duration::from_millis(50));
+	}
+}