diff --git a/account/account.go b/account/account.go
index 520afd70c..235da8583 100644
--- a/account/account.go
+++ b/account/account.go
@@ -6,6 +6,7 @@ import (
 	"io"
 
 	"github.com/tendermint/tendermint/binary"
+	"github.com/tendermint/tendermint/merkle"
 )
 
 // Signable is an interface for all signable things.
@@ -24,6 +25,11 @@ func SignBytes(o Signable) []byte {
 	return buf.Bytes()
 }
 
+// HashSignBytes is a convenience method for getting the hash of the bytes of a signable
+func HashSignBytes(o Signable) []byte {
+	return merkle.HashFromBinary(SignBytes(o))
+}
+
 //-----------------------------------------------------------------------------
 
 // Account resides in the application state, and is mutated by transactions
diff --git a/blockchain/reactor.go b/blockchain/reactor.go
index 33edb4179..9bdfe27cf 100644
--- a/blockchain/reactor.go
+++ b/blockchain/reactor.go
@@ -43,7 +43,7 @@ type BlockchainReactor struct {
 	quit       chan struct{}
 	running    uint32
 
-	evsw *events.EventSwitch
+	evsw events.Fireable
 }
 
 func NewBlockchainReactor(state *sm.State, store *BlockStore, sync bool) *BlockchainReactor {
@@ -244,7 +244,7 @@ func (bcR *BlockchainReactor) BroadcastStatus() error {
 }
 
 // implements events.Eventable
-func (bcR *BlockchainReactor) SetEventSwitch(evsw *events.EventSwitch) {
+func (bcR *BlockchainReactor) SetFireable(evsw events.Fireable) {
 	bcR.evsw = evsw
 }
 
diff --git a/common/word.go b/common/word.go
index d67730e13..7c5c8a81a 100644
--- a/common/word.go
+++ b/common/word.go
@@ -13,10 +13,11 @@ var (
 
 type Word256 [32]byte
 
-func (w Word256) String() string      { return string(w[:]) }
-func (w Word256) Copy() Word256       { return w }
-func (w Word256) Bytes() []byte       { return w[:] } // copied.
-func (w Word256) Prefix(n int) []byte { return w[:n] }
+func (w Word256) String() string       { return string(w[:]) }
+func (w Word256) Copy() Word256        { return w }
+func (w Word256) Bytes() []byte        { return w[:] } // copied.
+func (w Word256) Prefix(n int) []byte  { return w[:n] }
+func (w Word256) Postfix(n int) []byte { return w[32-n:] }
 func (w Word256) IsZero() bool {
 	accum := byte(0)
 	for _, byt := range w {
diff --git a/consensus/reactor.go b/consensus/reactor.go
index 1e8766458..7c3033d6e 100644
--- a/consensus/reactor.go
+++ b/consensus/reactor.go
@@ -41,7 +41,7 @@ type ConsensusReactor struct {
 	blockStore *bc.BlockStore
 	conS       *ConsensusState
 
-	evsw *events.EventSwitch
+	evsw events.Fireable
 }
 
 func NewConsensusReactor(consensusState *ConsensusState, blockStore *bc.BlockStore) *ConsensusReactor {
@@ -235,8 +235,9 @@ func (conR *ConsensusReactor) ResetToState(state *sm.State) {
 }
 
 // implements events.Eventable
-func (conR *ConsensusReactor) SetEventSwitch(evsw *events.EventSwitch) {
+func (conR *ConsensusReactor) SetFireable(evsw events.Fireable) {
 	conR.evsw = evsw
+	conR.conS.SetFireable(evsw)
 }
 
 //--------------------------------------
diff --git a/consensus/state.go b/consensus/state.go
index c036fa3b4..c1579c7e9 100644
--- a/consensus/state.go
+++ b/consensus/state.go
@@ -66,17 +66,21 @@ import (
 	. "github.com/tendermint/tendermint/common"
 	"github.com/tendermint/tendermint/config"
 	. "github.com/tendermint/tendermint/consensus/types"
+	"github.com/tendermint/tendermint/events"
 	mempl "github.com/tendermint/tendermint/mempool"
 	sm "github.com/tendermint/tendermint/state"
 	"github.com/tendermint/tendermint/types"
 )
 
 const (
-	roundDuration0         = 10 * time.Second   // The first round is 60 seconds long.
-	roundDurationDelta     = 3 * time.Second    // Each successive round lasts 15 seconds longer.
 	roundDeadlinePrevote   = float64(1.0 / 3.0) // When the prevote is due.
 	roundDeadlinePrecommit = float64(2.0 / 3.0) // When the precommit vote is due.
-	newHeightDelta         = roundDuration0 / 3 // The time to wait between commitTime and startTime of next consensus rounds.
+)
+
+var (
+	RoundDuration0     = 10 * time.Second   // The first round is 60 seconds long.
+	RoundDurationDelta = 3 * time.Second    // Each successive round lasts 15 seconds longer.
+	newHeightDelta     = RoundDuration0 / 3 // The time to wait between commitTime and startTime of next consensus rounds.
 )
 
 var (
@@ -246,6 +250,9 @@ type ConsensusState struct {
 	stagedBlock          *types.Block // Cache last staged block.
 	stagedState          *sm.State    // Cache result of staged block.
 	lastCommitVoteHeight uint         // Last called commitVoteBlock() or saveCommitVoteBlock() on.
+
+	evsw events.Fireable
+	evc  *events.EventCache // set in stageBlock and passed into state
 }
 
 func NewConsensusState(state *sm.State, blockStore *bc.BlockStore, mempoolReactor *mempl.MempoolReactor) *ConsensusState {
@@ -315,14 +322,14 @@ func (cs *ConsensusState) stepTransitionRoutine() {
 			// NOTE: We can push directly to runActionCh because
 			// we're running in a separate goroutine, which avoids deadlocks.
 			rs := cs.getRoundState()
-			round, roundStartTime, roundDuration, _, elapsedRatio := calcRoundInfo(rs.StartTime)
+			round, roundStartTime, RoundDuration, _, elapsedRatio := calcRoundInfo(rs.StartTime)
 			log.Debug("Scheduling next action", "height", rs.Height, "round", round, "step", rs.Step, "roundStartTime", roundStartTime, "elapsedRatio", elapsedRatio)
 			switch rs.Step {
 			case RoundStepNewHeight:
 				// We should run RoundActionPropose when rs.StartTime passes.
 				if elapsedRatio < 0 {
 					// startTime is in the future.
-					time.Sleep(time.Duration((-1.0 * elapsedRatio) * float64(roundDuration)))
+					time.Sleep(time.Duration((-1.0 * elapsedRatio) * float64(RoundDuration)))
 				}
 				cs.runActionCh <- RoundAction{rs.Height, rs.Round, RoundActionPropose}
 			case RoundStepNewRound:
@@ -330,15 +337,15 @@ func (cs *ConsensusState) stepTransitionRoutine() {
 				cs.runActionCh <- RoundAction{rs.Height, rs.Round, RoundActionPropose}
 			case RoundStepPropose:
 				// Wake up when it's time to vote.
-				time.Sleep(time.Duration((roundDeadlinePrevote - elapsedRatio) * float64(roundDuration)))
+				time.Sleep(time.Duration((roundDeadlinePrevote - elapsedRatio) * float64(RoundDuration)))
 				cs.runActionCh <- RoundAction{rs.Height, rs.Round, RoundActionPrevote}
 			case RoundStepPrevote:
 				// Wake up when it's time to precommit.
-				time.Sleep(time.Duration((roundDeadlinePrecommit - elapsedRatio) * float64(roundDuration)))
+				time.Sleep(time.Duration((roundDeadlinePrecommit - elapsedRatio) * float64(RoundDuration)))
 				cs.runActionCh <- RoundAction{rs.Height, rs.Round, RoundActionPrecommit}
 			case RoundStepPrecommit:
 				// Wake up when the round is over.
-				time.Sleep(time.Duration((1.0 - elapsedRatio) * float64(roundDuration)))
+				time.Sleep(time.Duration((1.0 - elapsedRatio) * float64(RoundDuration)))
 				cs.runActionCh <- RoundAction{rs.Height, rs.Round, RoundActionTryCommit}
 			case RoundStepCommit:
 				// There's nothing to scheudle, we're waiting for
@@ -437,6 +444,12 @@ ACTION_LOOP:
 			if cs.TryFinalizeCommit(rs.Height) {
 				// Now at new height
 				// cs.Step is at RoundStepNewHeight or RoundStepNewRound.
+				// fire some events!
+				go func() {
+					newBlock := cs.blockStore.LoadBlock(cs.state.LastBlockHeight)
+					cs.evsw.FireEvent(types.EventStringNewBlock(), newBlock)
+					cs.evc.Flush()
+				}()
 				scheduleNextAction()
 				continue ACTION_LOOP
 			} else {
@@ -1023,6 +1036,9 @@ func (cs *ConsensusState) stageBlock(block *types.Block, blockParts *types.PartS
 
 	// Create a copy of the state for staging
 	stateCopy := cs.state.Copy()
+	// reset the event cache and pass it into the state
+	cs.evc = events.NewEventCache(cs.evsw)
+	stateCopy.SetFireable(cs.evc)
 
 	// Commit block onto the copied state.
 	// NOTE: Basic validation is done in state.AppendBlock().
@@ -1107,17 +1123,22 @@ func (cs *ConsensusState) saveCommitVoteBlock(block *types.Block, blockParts *ty
 	}
 }
 
+// implements events.Eventable
+func (cs *ConsensusState) SetFireable(evsw events.Fireable) {
+	cs.evsw = evsw
+}
+
 //-----------------------------------------------------------------------------
 
 // total duration of given round
 func calcRoundDuration(round uint) time.Duration {
-	return roundDuration0 + roundDurationDelta*time.Duration(round)
+	return RoundDuration0 + RoundDurationDelta*time.Duration(round)
 }
 
 // startTime is when round zero started.
 func calcRoundStartTime(round uint, startTime time.Time) time.Time {
-	return startTime.Add(roundDuration0*time.Duration(round) +
-		roundDurationDelta*(time.Duration((int64(round)*int64(round)-int64(round))/2)))
+	return startTime.Add(RoundDuration0*time.Duration(round) +
+		RoundDurationDelta*(time.Duration((int64(round)*int64(round)-int64(round))/2)))
 }
 
 // calculates the current round given startTime of round zero.
@@ -1131,8 +1152,8 @@ func calcRound(startTime time.Time) uint {
 	// D_delta * R^2  +  (2D_0 - D_delta) * R  +  2(Start - Now)  <=  0.
 	// AR^2 + BR + C <= 0; A = D_delta, B = (2_D0 - D_delta), C = 2(Start - Now).
 	// R = Floor((-B + Sqrt(B^2 - 4AC))/2A)
-	A := float64(roundDurationDelta)
-	B := 2.0*float64(roundDuration0) - float64(roundDurationDelta)
+	A := float64(RoundDurationDelta)
+	B := 2.0*float64(RoundDuration0) - float64(RoundDurationDelta)
 	C := 2.0 * float64(startTime.Sub(now))
 	R := math.Floor((-B + math.Sqrt(B*B-4.0*A*C)) / (2 * A))
 	if math.IsNaN(R) {
@@ -1149,12 +1170,12 @@ func calcRound(startTime time.Time) uint {
 
 // convenience
 // NOTE: elapsedRatio can be negative if startTime is in the future.
-func calcRoundInfo(startTime time.Time) (round uint, roundStartTime time.Time, roundDuration time.Duration,
+func calcRoundInfo(startTime time.Time) (round uint, roundStartTime time.Time, RoundDuration time.Duration,
 	roundElapsed time.Duration, elapsedRatio float64) {
 	round = calcRound(startTime)
 	roundStartTime = calcRoundStartTime(round, startTime)
-	roundDuration = calcRoundDuration(round)
+	RoundDuration = calcRoundDuration(round)
 	roundElapsed = time.Now().Sub(roundStartTime)
-	elapsedRatio = float64(roundElapsed) / float64(roundDuration)
+	elapsedRatio = float64(roundElapsed) / float64(RoundDuration)
 	return
 }
diff --git a/events/event_cache.go b/events/event_cache.go
new file mode 100644
index 000000000..3231fe0d4
--- /dev/null
+++ b/events/event_cache.go
@@ -0,0 +1,41 @@
+package events
+
+const (
+	eventsBufferSize = 1000
+)
+
+// An EventCache buffers events for a Fireable
+// All events are cached. Filtering happens on Flush
+type EventCache struct {
+	evsw   Fireable
+	events []eventInfo
+}
+
+// Create a new EventCache with an EventSwitch as backend
+func NewEventCache(evsw Fireable) *EventCache {
+	return &EventCache{
+		evsw:   evsw,
+		events: make([]eventInfo, eventsBufferSize),
+	}
+}
+
+// a cached event
+type eventInfo struct {
+	event string
+	msg   interface{}
+}
+
+// Cache an event to be fired upon finality.
+func (evc *EventCache) FireEvent(event string, msg interface{}) {
+	// append to list
+	evc.events = append(evc.events, eventInfo{event, msg})
+}
+
+// Fire events by running evsw.FireEvent on all cached events. Blocks.
+// Clears cached events
+func (evc *EventCache) Flush() {
+	for _, ei := range evc.events {
+		evc.evsw.FireEvent(ei.event, ei.msg)
+	}
+	evc.events = make([]eventInfo, eventsBufferSize)
+}
diff --git a/events/events.go b/events/events.go
index 46f01cb57..13aca2dac 100644
--- a/events/events.go
+++ b/events/events.go
@@ -8,7 +8,12 @@ import (
 // reactors and other modules should export
 // this interface to become eventable
 type Eventable interface {
-	SetEventSwitch(*EventSwitch)
+	SetFireable(Fireable)
+}
+
+// an event switch or cache implements fireable
+type Fireable interface {
+	FireEvent(event string, msg interface{})
 }
 
 type EventSwitch struct {
diff --git a/mempool/mempool.go b/mempool/mempool.go
index 819198778..51cfab139 100644
--- a/mempool/mempool.go
+++ b/mempool/mempool.go
@@ -42,7 +42,7 @@ func (mem *Mempool) GetCache() *sm.BlockCache {
 func (mem *Mempool) AddTx(tx types.Tx) (err error) {
 	mem.mtx.Lock()
 	defer mem.mtx.Unlock()
-	err = sm.ExecTx(mem.cache, tx, false)
+	err = sm.ExecTx(mem.cache, tx, false, nil)
 	if err != nil {
 		log.Debug("AddTx() error", "tx", tx, "error", err)
 		return err
@@ -93,7 +93,7 @@ func (mem *Mempool) ResetForBlockAndState(block *types.Block, state *sm.State) {
 	// Next, filter all txs that aren't valid given new state.
 	validTxs := []types.Tx{}
 	for _, tx := range txs {
-		err := sm.ExecTx(mem.cache, tx, false)
+		err := sm.ExecTx(mem.cache, tx, false, nil)
 		if err == nil {
 			log.Debug("Filter in, valid", "tx", tx)
 			validTxs = append(validTxs, tx)
diff --git a/mempool/reactor.go b/mempool/reactor.go
index 1b87a26f4..28af17438 100644
--- a/mempool/reactor.go
+++ b/mempool/reactor.go
@@ -26,7 +26,7 @@ type MempoolReactor struct {
 
 	Mempool *Mempool
 
-	evsw *events.EventSwitch
+	evsw events.Fireable
 }
 
 func NewMempoolReactor(mempool *Mempool) *MempoolReactor {
@@ -116,7 +116,7 @@ func (memR *MempoolReactor) BroadcastTx(tx types.Tx) error {
 }
 
 // implements events.Eventable
-func (memR *MempoolReactor) SetEventSwitch(evsw *events.EventSwitch) {
+func (memR *MempoolReactor) SetFireable(evsw events.Fireable) {
 	memR.evsw = evsw
 }
 
diff --git a/node/node.go b/node/node.go
index f7749a800..a4071752a 100644
--- a/node/node.go
+++ b/node/node.go
@@ -82,7 +82,7 @@ func NewNode() *Node {
 
 	// add the event switch to all services
 	// they should all satisfy events.Eventable
-	SetEventSwitch(eventSwitch, pexReactor, bcReactor, mempoolReactor, consensusReactor)
+	SetFireable(eventSwitch, pexReactor, bcReactor, mempoolReactor, consensusReactor)
 
 	return &Node{
 		sw:               sw,
@@ -116,9 +116,9 @@ func (n *Node) Stop() {
 }
 
 // Add the event switch to reactors, mempool, etc.
-func SetEventSwitch(evsw *events.EventSwitch, eventables ...events.Eventable) {
+func SetFireable(evsw *events.EventSwitch, eventables ...events.Eventable) {
 	for _, e := range eventables {
-		e.SetEventSwitch(evsw)
+		e.SetFireable(evsw)
 	}
 }
 
@@ -167,6 +167,10 @@ func (n *Node) MempoolReactor() *mempl.MempoolReactor {
 	return n.mempoolReactor
 }
 
+func (n *Node) EventSwitch() *events.EventSwitch {
+	return n.evsw
+}
+
 //------------------------------------------------------------------------------
 
 func RunNode() {
diff --git a/p2p/pex_reactor.go b/p2p/pex_reactor.go
index a9b0bbd80..8a3ba6444 100644
--- a/p2p/pex_reactor.go
+++ b/p2p/pex_reactor.go
@@ -34,7 +34,7 @@ type PEXReactor struct {
 
 	book *AddrBook
 
-	evsw *events.EventSwitch
+	evsw events.Fireable
 }
 
 func NewPEXReactor(book *AddrBook) *PEXReactor {
@@ -211,7 +211,7 @@ func (pexR *PEXReactor) ensurePeers() {
 }
 
 // implements events.Eventable
-func (pexR *PEXReactor) SetEventSwitch(evsw *events.EventSwitch) {
+func (pexR *PEXReactor) SetFireable(evsw events.Fireable) {
 	pexR.evsw = evsw
 }
 
diff --git a/rpc/core/routes.go b/rpc/core/routes.go
index 62630fb5a..395ad82a4 100644
--- a/rpc/core/routes.go
+++ b/rpc/core/routes.go
@@ -4,10 +4,6 @@ import (
 	"github.com/tendermint/tendermint/rpc"
 )
 
-/*
-TODO: support Call && GetStorage.
-*/
-
 var Routes = map[string]*rpc.RPCFunc{
 	"status":                  rpc.NewRPCFunc(Status, []string{}),
 	"net_info":                rpc.NewRPCFunc(NetInfo, []string{}),
diff --git a/rpc/core/txs.go b/rpc/core/txs.go
index f16a3ae70..628bc6584 100644
--- a/rpc/core/txs.go
+++ b/rpc/core/txs.go
@@ -43,7 +43,7 @@ func Call(address, data []byte) (*ctypes.ResponseCall, error) {
 		GasLimit:    10000000,
 	}
 
-	vmach := vm.NewVM(txCache, params, caller.Address)
+	vmach := vm.NewVM(txCache, params, caller.Address, nil)
 	gas := uint64(1000000000)
 	ret, err := vmach.Call(caller, callee, callee.Code, data, 0, &gas)
 	if err != nil {
@@ -68,7 +68,7 @@ func CallCode(code, data []byte) (*ctypes.ResponseCall, error) {
 		GasLimit:    10000000,
 	}
 
-	vmach := vm.NewVM(txCache, params, caller.Address)
+	vmach := vm.NewVM(txCache, params, caller.Address, nil)
 	gas := uint64(1000000000)
 	ret, err := vmach.Call(caller, callee, code, data, 0, &gas)
 	if err != nil {
diff --git a/rpc/handlers.go b/rpc/handlers.go
index 51dd7e5e2..2d0bb1eaf 100644
--- a/rpc/handlers.go
+++ b/rpc/handlers.go
@@ -5,12 +5,13 @@ import (
 	"encoding/json"
 	"errors"
 	"fmt"
+	"github.com/gorilla/websocket"
 	"github.com/tendermint/tendermint/binary"
 	"github.com/tendermint/tendermint/events"
-	"golang.org/x/net/websocket"
 	"io/ioutil"
 	"net/http"
 	"reflect"
+	"sync/atomic"
 	"time"
 )
 
@@ -26,8 +27,8 @@ func RegisterRPCFuncs(mux *http.ServeMux, funcMap map[string]*RPCFunc) {
 
 func RegisterEventsHandler(mux *http.ServeMux, evsw *events.EventSwitch) {
 	// websocket endpoint
-	w := NewWebsocketManager(evsw)
-	mux.Handle("/events", websocket.Handler(w.eventsHandler))
+	wm := NewWebsocketManager(evsw)
+	mux.HandleFunc("/events", wm.websocketHandler) // 	websocket.Handler(w.eventsHandler))
 }
 
 //-------------------------------------
@@ -198,156 +199,192 @@ func _jsonStringToArg(ty reflect.Type, arg string) (reflect.Value, error) {
 //-----------------------------------------------------------------------------
 // rpc.websocket
 
+const (
+	WSConnectionReaperSeconds = 5
+	MaxFailedSends            = 10
+	WriteChanBufferSize       = 10
+)
+
 // for requests coming in
-type WsRequest struct {
+type WSRequest struct {
 	Type  string // subscribe or unsubscribe
 	Event string
 }
 
 // for responses going out
-type WsResponse struct {
+type WSResponse struct {
 	Event string
 	Data  interface{}
 	Error string
 }
 
 // a single websocket connection
-// contains the listeners id
-type Connection struct {
+// contains listener id, underlying ws connection,
+// and the event switch for subscribing to events
+type WSConnection struct {
 	id          string
-	wsCon       *websocket.Conn
-	writeChan   chan WsResponse
-	quitChan    chan struct{}
+	wsConn      *websocket.Conn
+	writeChan   chan WSResponse
 	failedSends uint
+	started     uint32
+	stopped     uint32
+
+	evsw *events.EventSwitch
 }
 
 // new websocket connection wrapper
-func NewConnection(con *websocket.Conn) *Connection {
-	return &Connection{
-		id:        con.RemoteAddr().String(),
-		wsCon:     con,
-		writeChan: make(chan WsResponse, WriteChanBuffer), // buffered. we keep track when its full
+func NewWSConnection(wsConn *websocket.Conn) *WSConnection {
+	return &WSConnection{
+		id:        wsConn.RemoteAddr().String(),
+		wsConn:    wsConn,
+		writeChan: make(chan WSResponse, WriteChanBufferSize), // buffered. we keep track when its full
+	}
+}
+
+// start the connection and hand her the event switch
+func (con *WSConnection) Start(evsw *events.EventSwitch) {
+	if atomic.CompareAndSwapUint32(&con.started, 0, 1) {
+		con.evsw = evsw
+
+		// read subscriptions/unsubscriptions to events
+		go con.read()
+		// write responses
+		con.write()
 	}
 }
 
 // close the connection
-func (c *Connection) Close() {
-	c.wsCon.Close()
-	close(c.writeChan)
-	close(c.quitChan)
+func (con *WSConnection) Stop() {
+	if atomic.CompareAndSwapUint32(&con.stopped, 0, 1) {
+		con.wsConn.Close()
+		close(con.writeChan)
+	}
+}
+
+// attempt to write response to writeChan and record failures
+func (con *WSConnection) safeWrite(resp WSResponse) {
+	select {
+	case con.writeChan <- resp:
+		// yay
+		con.failedSends = 0
+	default:
+		// channel is full
+		// if this happens too many times in a row,
+		// close connection
+		con.failedSends += 1
+	}
+}
+
+// read from the socket and subscribe to or unsubscribe from events
+func (con *WSConnection) read() {
+	reaper := time.Tick(time.Second * WSConnectionReaperSeconds)
+	for {
+		select {
+		case <-reaper:
+			if con.failedSends > MaxFailedSends {
+				// sending has failed too many times.
+				// kill the connection
+				con.Stop()
+				return
+			}
+		default:
+			var in []byte
+			_, in, err := con.wsConn.ReadMessage()
+			if err != nil {
+				// an error reading the connection,
+				// kill the connection
+				con.Stop()
+				return
+			}
+			var req WSRequest
+			err = json.Unmarshal(in, &req)
+			if err != nil {
+				errStr := fmt.Sprintf("Error unmarshaling data: %s", err.Error())
+				con.safeWrite(WSResponse{Error: errStr})
+				continue
+			}
+			switch req.Type {
+			case "subscribe":
+				log.Info("New event subscription", "con id", con.id, "event", req.Event)
+				con.evsw.AddListenerForEvent(con.id, req.Event, func(msg interface{}) {
+					resp := WSResponse{
+						Event: req.Event,
+						Data:  msg,
+					}
+					con.safeWrite(resp)
+				})
+			case "unsubscribe":
+				if req.Event != "" {
+					con.evsw.RemoveListenerForEvent(req.Event, con.id)
+				} else {
+					con.evsw.RemoveListener(con.id)
+				}
+			default:
+				con.safeWrite(WSResponse{Error: "Unknown request type: " + req.Type})
+			}
+
+		}
+	}
+}
+
+// receives on a write channel and writes out on the socket
+func (con *WSConnection) write() {
+	n, err := new(int64), new(error)
+	for {
+		msg, more := <-con.writeChan
+		if !more {
+			// the channel was closed, so ensure
+			// connection is stopped and return
+			con.Stop()
+			return
+		}
+		buf := new(bytes.Buffer)
+		binary.WriteJSON(msg, buf, n, err)
+		if *err != nil {
+			log.Error("Failed to write JSON WSResponse", "error", err)
+		} else {
+			if err := con.wsConn.WriteMessage(websocket.TextMessage, buf.Bytes()); err != nil {
+				log.Error("Failed to write response on websocket", "error", err)
+				con.Stop()
+				return
+			}
+		}
+	}
 }
 
 // main manager for all websocket connections
 // holds the event switch
 type WebsocketManager struct {
-	ew   *events.EventSwitch
-	cons map[string]*Connection
+	websocket.Upgrader
+	evsw *events.EventSwitch
 }
 
-func NewWebsocketManager(ew *events.EventSwitch) *WebsocketManager {
+func NewWebsocketManager(evsw *events.EventSwitch) *WebsocketManager {
 	return &WebsocketManager{
-		ew:   ew,
-		cons: make(map[string]*Connection),
+		evsw: evsw,
+		Upgrader: websocket.Upgrader{
+			ReadBufferSize:  1024,
+			WriteBufferSize: 1024,
+			CheckOrigin: func(r *http.Request) bool {
+				// TODO
+				return true
+			},
+		},
 	}
 }
 
-func (w *WebsocketManager) eventsHandler(con *websocket.Conn) {
+func (wm *WebsocketManager) websocketHandler(w http.ResponseWriter, r *http.Request) {
+	wsConn, err := wm.Upgrade(w, r, nil)
+	if err != nil {
+		// TODO - return http error
+		log.Error("Failed to upgrade to websocket connection", "error", err)
+		return
+	}
+
 	// register connection
-	c := NewConnection(con)
-	w.cons[con.RemoteAddr().String()] = c
-
-	// read subscriptions/unsubscriptions to events
-	go w.read(c)
-	// write responses
-	go w.write(c)
-}
-
-const (
-	WsConnectionReaperSeconds = 5
-	MaxFailedSendsSeconds     = 10
-	WriteChanBuffer           = 10
-)
-
-// read from the socket and subscribe to or unsubscribe from events
-func (w *WebsocketManager) read(con *Connection) {
-	reaper := time.Tick(time.Second * WsConnectionReaperSeconds)
-	for {
-		select {
-		case <-reaper:
-			if con.failedSends > MaxFailedSendsSeconds {
-				// sending has failed too many times.
-				// kill the connection
-				con.quitChan <- struct{}{}
-			}
-		default:
-			var in []byte
-			if err := websocket.Message.Receive(con.wsCon, &in); err != nil {
-				// an error reading the connection,
-				// so kill the connection
-				con.quitChan <- struct{}{}
-			}
-			var req WsRequest
-			err := json.Unmarshal(in, &req)
-			if err != nil {
-				errStr := fmt.Sprintf("Error unmarshaling data: %s", err.Error())
-				con.writeChan <- WsResponse{Error: errStr}
-			}
-			switch req.Type {
-			case "subscribe":
-				w.ew.AddListenerForEvent(con.id, req.Event, func(msg interface{}) {
-					resp := WsResponse{
-						Event: req.Event,
-						Data:  msg,
-					}
-					select {
-					case con.writeChan <- resp:
-						// yay
-						con.failedSends = 0
-					default:
-						// channel is full
-						// if this happens too many times,
-						// close connection
-						con.failedSends += 1
-					}
-				})
-			case "unsubscribe":
-				if req.Event != "" {
-					w.ew.RemoveListenerForEvent(req.Event, con.id)
-				} else {
-					w.ew.RemoveListener(con.id)
-				}
-			default:
-				con.writeChan <- WsResponse{Error: "Unknown request type: " + req.Type}
-			}
-
-		}
-	}
-}
-
-// receives on a write channel and writes out to the socket
-func (w *WebsocketManager) write(con *Connection) {
-	n, err := new(int64), new(error)
-	for {
-		select {
-		case msg := <-con.writeChan:
-			buf := new(bytes.Buffer)
-			binary.WriteJSON(msg, buf, n, err)
-			if *err != nil {
-				log.Error("Failed to write JSON WsResponse", "error", err)
-			} else {
-				websocket.Message.Send(con.wsCon, buf.Bytes())
-			}
-		case <-con.quitChan:
-			w.closeConn(con)
-			return
-		}
-	}
-}
-
-// close a connection and delete from manager
-func (w *WebsocketManager) closeConn(con *Connection) {
-	con.Close()
-	delete(w.cons, con.id)
+	con := NewWSConnection(wsConn)
+	log.Info("New websocket connection", "origin", con.id)
+	con.Start(wm.evsw)
 }
 
 // rpc.websocket
diff --git a/rpc/http_server.go b/rpc/http_server.go
index 14bcc9eed..5eaff856e 100644
--- a/rpc/http_server.go
+++ b/rpc/http_server.go
@@ -2,12 +2,15 @@
 package rpc
 
 import (
+	"bufio"
 	"bytes"
 	"fmt"
+	"net"
 	"net/http"
 	"runtime/debug"
 	"time"
 
+	"github.com/tendermint/tendermint/alert"
 	"github.com/tendermint/tendermint/binary"
 	. "github.com/tendermint/tendermint/common"
 )
@@ -96,3 +99,17 @@ func (w *ResponseWriterWrapper) WriteHeader(status int) {
 	w.Status = status
 	w.ResponseWriter.WriteHeader(status)
 }
+
+// implements http.Hijacker
+func (w *ResponseWriterWrapper) Hijack() (net.Conn, *bufio.ReadWriter, error) {
+	return w.ResponseWriter.(http.Hijacker).Hijack()
+}
+
+// Stick it as a deferred statement in gouroutines to prevent the program from crashing.
+func Recover(daemonName string) {
+	if e := recover(); e != nil {
+		stack := string(debug.Stack())
+		errorString := fmt.Sprintf("[%s] %s\n%s", daemonName, e, stack)
+		alert.Alert(errorString)
+	}
+}
diff --git a/rpc/test/client_ws_test.go b/rpc/test/client_ws_test.go
new file mode 100644
index 000000000..b342d390e
--- /dev/null
+++ b/rpc/test/client_ws_test.go
@@ -0,0 +1,302 @@
+package rpc
+
+import (
+	"encoding/json"
+	"fmt"
+	"github.com/gorilla/websocket"
+	"github.com/tendermint/tendermint/account"
+	"github.com/tendermint/tendermint/binary"
+	"github.com/tendermint/tendermint/rpc"
+	"github.com/tendermint/tendermint/types"
+	"net/http"
+	"testing"
+	"time"
+)
+
+//--------------------------------------------------------------------------------
+// Utilities for testing the websocket service
+
+// create a new connection
+func newWSCon(t *testing.T) *websocket.Conn {
+	dialer := websocket.DefaultDialer
+	rHeader := http.Header{}
+	con, r, err := dialer.Dial(websocketAddr, rHeader)
+	fmt.Println("response", r)
+	if err != nil {
+		t.Fatal(err)
+	}
+	return con
+}
+
+// subscribe to an event
+func subscribe(t *testing.T, con *websocket.Conn, eventid string) {
+	err := con.WriteJSON(rpc.WSRequest{
+		Type:  "subscribe",
+		Event: eventid,
+	})
+	if err != nil {
+		t.Fatal(err)
+	}
+}
+
+// unsubscribe from an event
+func unsubscribe(t *testing.T, con *websocket.Conn, eventid string) {
+	err := con.WriteJSON(rpc.WSRequest{
+		Type:  "unsubscribe",
+		Event: eventid,
+	})
+	if err != nil {
+		t.Fatal(err)
+	}
+}
+
+// wait for an event; do things that might trigger events, and check them when they are received
+func waitForEvent(t *testing.T, con *websocket.Conn, eventid string, dieOnTimeout bool, f func(), check func(string, []byte) error) {
+	// go routine to wait for webscoket msg
+	gch := make(chan []byte) // good channel
+	ech := make(chan error)  // error channel
+	go func() {
+		for {
+			_, p, err := con.ReadMessage()
+			if err != nil {
+				ech <- err
+				break
+			} else {
+				// if the event id isnt what we're waiting on
+				// ignore it
+				var response struct {
+					Event string
+				}
+				if err := json.Unmarshal(p, &response); err != nil {
+					ech <- err
+					break
+				}
+				if response.Event == eventid {
+					gch <- p
+					break
+				}
+			}
+		}
+	}()
+
+	// do stuff (transactions)
+	f()
+
+	// wait for an event or 10 seconds
+	ticker := time.Tick(10 * time.Second)
+	select {
+	case <-ticker:
+		if dieOnTimeout {
+			con.Close()
+			t.Fatalf("%s event was not received in time", eventid)
+		}
+		// else that's great, we didn't hear the event
+		// and we shouldn't have
+	case p := <-gch:
+		if dieOnTimeout {
+			// message was received and expected
+			// run the check
+			err := check(eventid, p)
+			if err != nil {
+				t.Fatal(err)
+			}
+		} else {
+			con.Close()
+			t.Fatalf("%s event was not expected", eventid)
+		}
+	case err := <-ech:
+		t.Fatal(err)
+	}
+}
+
+func unmarshalResponseNewBlock(b []byte) (*types.Block, error) {
+	// unmarshall and assert somethings
+	var response struct {
+		Event string
+		Data  *types.Block
+		Error string
+	}
+	var err error
+	binary.ReadJSON(&response, b, &err)
+	if err != nil {
+		return nil, err
+	}
+	if response.Error != "" {
+		return nil, fmt.Errorf(response.Error)
+	}
+	block := response.Data
+	return block, nil
+}
+
+//--------------------------------------------------------------------------------
+// Test the websocket service
+
+// make a simple connection to the server
+func TestWSConnect(t *testing.T) {
+	con := newWSCon(t)
+	con.Close()
+}
+
+// receive a new block message
+func _TestWSNewBlock(t *testing.T) {
+	con := newWSCon(t)
+	eid := types.EventStringNewBlock()
+	subscribe(t, con, eid)
+	defer func() {
+		unsubscribe(t, con, eid)
+		con.Close()
+	}()
+	waitForEvent(t, con, eid, true, func() {}, func(eid string, b []byte) error {
+		fmt.Println("Check:", string(b))
+		return nil
+	})
+}
+
+// receive a few new block messages in a row, with increasing height
+func TestWSBlockchainGrowth(t *testing.T) {
+	con := newWSCon(t)
+	eid := types.EventStringNewBlock()
+	subscribe(t, con, eid)
+	defer func() {
+		unsubscribe(t, con, eid)
+		con.Close()
+	}()
+	// listen for NewBlock, ensure height increases by 1
+	unmarshalValidateBlockchain(t, con, eid)
+}
+
+// send a transaction and validate the events from listening for both sender and receiver
+func TestWSSend(t *testing.T) {
+	toAddr := []byte{20, 143, 25, 63, 16, 177, 83, 29, 91, 91, 54, 23, 233, 46, 190, 121, 122, 34, 86, 54}
+	amt := uint64(100)
+
+	con := newWSCon(t)
+	eidInput := types.EventStringAccInput(userByteAddr)
+	eidOutput := types.EventStringAccOutput(toAddr)
+	subscribe(t, con, eidInput)
+	subscribe(t, con, eidOutput)
+	defer func() {
+		unsubscribe(t, con, eidInput)
+		unsubscribe(t, con, eidOutput)
+		con.Close()
+	}()
+	waitForEvent(t, con, eidInput, true, func() {
+		broadcastTx(t, "JSONRPC", userByteAddr, toAddr, nil, userBytePriv, amt, 0, 0)
+	}, unmarshalValidateSend(amt, toAddr))
+	waitForEvent(t, con, eidOutput, true, func() {}, unmarshalValidateSend(amt, toAddr))
+}
+
+// ensure events are only fired once for a given transaction
+func TestWSDoubleFire(t *testing.T) {
+	con := newWSCon(t)
+	eid := types.EventStringAccInput(userByteAddr)
+	subscribe(t, con, eid)
+	defer func() {
+		unsubscribe(t, con, eid)
+		con.Close()
+	}()
+	amt := uint64(100)
+	toAddr := []byte{20, 143, 25, 63, 16, 177, 83, 29, 91, 91, 54, 23, 233, 46, 190, 121, 122, 34, 86, 54}
+	// broadcast the transaction, wait to hear about it
+	waitForEvent(t, con, eid, true, func() {
+		broadcastTx(t, "JSONRPC", userByteAddr, toAddr, nil, userBytePriv, amt, 0, 0)
+	}, func(eid string, b []byte) error {
+		return nil
+	})
+	// but make sure we don't hear about it twice
+	waitForEvent(t, con, eid, false, func() {
+	}, func(eid string, b []byte) error {
+		return nil
+	})
+}
+
+// create a contract, wait for the event, and send it a msg, validate the return
+func TestWSCallWait(t *testing.T) {
+	con := newWSCon(t)
+	eid1 := types.EventStringAccInput(userByteAddr)
+	subscribe(t, con, eid1)
+	defer func() {
+		unsubscribe(t, con, eid1)
+		con.Close()
+	}()
+	amt := uint64(10000)
+	code, returnCode, returnVal := simpleContract()
+	var contractAddr []byte
+	// wait for the contract to be created
+	waitForEvent(t, con, eid1, true, func() {
+		_, receipt := broadcastTx(t, "JSONRPC", userByteAddr, nil, code, userBytePriv, amt, 1000, 1000)
+		contractAddr = receipt.ContractAddr
+
+	}, unmarshalValidateCall(amt, returnCode))
+
+	// susbscribe to the new contract
+	amt = uint64(10001)
+	eid2 := types.EventStringAccReceive(contractAddr)
+	subscribe(t, con, eid2)
+	defer func() {
+		unsubscribe(t, con, eid2)
+	}()
+	// get the return value from a call
+	data := []byte{0x1} // just needs to be non empty for this to be a CallTx
+	waitForEvent(t, con, eid2, true, func() {
+		broadcastTx(t, "JSONRPC", userByteAddr, contractAddr, data, userBytePriv, amt, 1000, 1000)
+	}, unmarshalValidateCall(amt, returnVal))
+}
+
+// create a contract and send it a msg without waiting. wait for contract event
+// and validate return
+func TestWSCallNoWait(t *testing.T) {
+	con := newWSCon(t)
+	amt := uint64(10000)
+	code, _, returnVal := simpleContract()
+
+	_, receipt := broadcastTx(t, "JSONRPC", userByteAddr, nil, code, userBytePriv, amt, 1000, 1000)
+	contractAddr := receipt.ContractAddr
+
+	// susbscribe to the new contract
+	amt = uint64(10001)
+	eid := types.EventStringAccReceive(contractAddr)
+	subscribe(t, con, eid)
+	defer func() {
+		unsubscribe(t, con, eid)
+		con.Close()
+	}()
+	// get the return value from a call
+	data := []byte{0x1} // just needs to be non empty for this to be a CallTx
+	waitForEvent(t, con, eid, true, func() {
+		broadcastTx(t, "JSONRPC", userByteAddr, contractAddr, data, userBytePriv, amt, 1000, 1000)
+	}, unmarshalValidateCall(amt, returnVal))
+}
+
+// create two contracts, one of which calls the other
+func TestWSCallCall(t *testing.T) {
+	con := newWSCon(t)
+	amt := uint64(10000)
+	code, _, returnVal := simpleContract()
+	txid := new([]byte)
+
+	// deploy the two contracts
+	_, receipt := broadcastTx(t, "JSONRPC", userByteAddr, nil, code, userBytePriv, amt, 1000, 1000)
+	contractAddr1 := receipt.ContractAddr
+	code, _, _ = simpleCallContract(contractAddr1)
+	_, receipt = broadcastTx(t, "JSONRPC", userByteAddr, nil, code, userBytePriv, amt, 1000, 1000)
+	contractAddr2 := receipt.ContractAddr
+
+	// susbscribe to the new contracts
+	amt = uint64(10001)
+	eid1 := types.EventStringAccReceive(contractAddr1)
+	eid2 := types.EventStringAccReceive(contractAddr2)
+	subscribe(t, con, eid1)
+	subscribe(t, con, eid2)
+	defer func() {
+		unsubscribe(t, con, eid1)
+		unsubscribe(t, con, eid2)
+		con.Close()
+	}()
+	// call contract2, which should call contract1, and wait for ev1
+	data := []byte{0x1} // just needs to be non empty for this to be a CallTx
+	waitForEvent(t, con, eid1, true, func() {
+		tx, _ := broadcastTx(t, "JSONRPC", userByteAddr, contractAddr2, data, userBytePriv, amt, 1000, 1000)
+		*txid = account.HashSignBytes(tx)
+	}, unmarshalValidateCallCall(userByteAddr, returnVal, txid))
+}
diff --git a/rpc/test/helpers.go b/rpc/test/helpers_test.go
similarity index 68%
rename from rpc/test/helpers.go
rename to rpc/test/helpers_test.go
index 2921303d9..7755277cc 100644
--- a/rpc/test/helpers.go
+++ b/rpc/test/helpers_test.go
@@ -6,6 +6,7 @@ import (
 	"github.com/tendermint/tendermint/account"
 	. "github.com/tendermint/tendermint/common"
 	"github.com/tendermint/tendermint/config"
+	"github.com/tendermint/tendermint/consensus"
 	"github.com/tendermint/tendermint/logger"
 	nm "github.com/tendermint/tendermint/node"
 	"github.com/tendermint/tendermint/p2p"
@@ -14,20 +15,23 @@ import (
 	"github.com/tendermint/tendermint/state"
 	"github.com/tendermint/tendermint/types"
 	"testing"
+	"time"
 )
 
 // global variables for use across all tests
 var (
-	rpcAddr     = "127.0.0.1:8089"
-	requestAddr = "http://" + rpcAddr + "/"
+	rpcAddr       = "127.0.0.1:8089"
+	requestAddr   = "http://" + rpcAddr + "/"
+	websocketAddr = "ws://" + rpcAddr + "/events"
 
 	node *nm.Node
 
 	mempoolCount = 0
 
-	userAddr = "D7DFF9806078899C8DA3FE3633CC0BF3C6C2B1BB"
-	userPriv = "FDE3BD94CB327D19464027BA668194C5EFA46AE83E8419D7542CFF41F00C81972239C21C81EA7173A6C489145490C015E05D4B97448933B708A7EC5B7B4921E3"
-	userPub  = "2239C21C81EA7173A6C489145490C015E05D4B97448933B708A7EC5B7B4921E3"
+	userAddr                   = "D7DFF9806078899C8DA3FE3633CC0BF3C6C2B1BB"
+	userPriv                   = "FDE3BD94CB327D19464027BA668194C5EFA46AE83E8419D7542CFF41F00C81972239C21C81EA7173A6C489145490C015E05D4B97448933B708A7EC5B7B4921E3"
+	userPub                    = "2239C21C81EA7173A6C489145490C015E05D4B97448933B708A7EC5B7B4921E3"
+	userByteAddr, userBytePriv = initUserBytes()
 
 	clients = map[string]cclient.Client{
 		"JSONRPC": cclient.NewClient(requestAddr, "JSONRPC"),
@@ -35,6 +39,16 @@ var (
 	}
 )
 
+// returns byte versions of address and private key
+// type [64]byte needed by account.GenPrivAccountFromKey
+func initUserBytes() ([]byte, [64]byte) {
+	byteAddr, _ := hex.DecodeString(userAddr)
+	var byteKey [64]byte
+	userPrivByteSlice, _ := hex.DecodeString(userPriv)
+	copy(byteKey[:], userPrivByteSlice)
+	return byteAddr, byteKey
+}
+
 func decodeHex(hexStr string) []byte {
 	bytes, err := hex.DecodeString(hexStr)
 	if err != nil {
@@ -83,6 +97,9 @@ func init() {
 	priv.SetFile(rootDir + "/priv_validator.json")
 	priv.Save()
 
+	consensus.RoundDuration0 = 3 * time.Second
+	consensus.RoundDurationDelta = 1 * time.Second
+
 	// start a node
 	ready := make(chan struct{})
 	go newNode(ready)
@@ -263,3 +280,47 @@ func checkTx(t *testing.T, fromAddr []byte, priv *account.PrivAccount, tx *types
 		t.Fatal(types.ErrTxInvalidSignature)
 	}
 }
+
+// simple contract returns 5 + 6 = 0xb
+func simpleContract() ([]byte, []byte, []byte) {
+	// this is the code we want to run when the contract is called
+	contractCode := []byte{0x60, 0x5, 0x60, 0x6, 0x1, 0x60, 0x0, 0x52, 0x60, 0x20, 0x60, 0x0, 0xf3}
+	// the is the code we need to return the contractCode when the contract is initialized
+	lenCode := len(contractCode)
+	// push code to the stack
+	//code := append([]byte{byte(0x60 + lenCode - 1)}, LeftPadWord256(contractCode).Bytes()...)
+	code := append([]byte{0x7f}, RightPadWord256(contractCode).Bytes()...)
+	// store it in memory
+	code = append(code, []byte{0x60, 0x0, 0x52}...)
+	// return whats in memory
+	//code = append(code, []byte{0x60, byte(32 - lenCode), 0x60, byte(lenCode), 0xf3}...)
+	code = append(code, []byte{0x60, byte(lenCode), 0x60, 0x0, 0xf3}...)
+	// return init code, contract code, expected return
+	return code, contractCode, LeftPadBytes([]byte{0xb}, 32)
+}
+
+// simple call contract calls another contract
+func simpleCallContract(addr []byte) ([]byte, []byte, []byte) {
+	gas1, gas2 := byte(0x1), byte(0x1)
+	value := byte(0x1)
+	inOff, inSize := byte(0x0), byte(0x0) // no call data
+	retOff, retSize := byte(0x0), byte(0x20)
+	// this is the code we want to run (call a contract and return)
+	contractCode := []byte{0x60, retSize, 0x60, retOff, 0x60, inSize, 0x60, inOff, 0x60, value, 0x73}
+	contractCode = append(contractCode, addr...)
+	contractCode = append(contractCode, []byte{0x61, gas1, gas2, 0xf1, 0x60, 0x20, 0x60, 0x0, 0xf3}...)
+
+	// the is the code we need to return; the contractCode when the contract is initialized
+	// it should copy the code from the input into memory
+	lenCode := len(contractCode)
+	memOff := byte(0x0)
+	inOff = byte(0xc) // length of code before codeContract
+	length := byte(lenCode)
+
+	code := []byte{0x60, length, 0x60, inOff, 0x60, memOff, 0x37}
+	// return whats in memory
+	code = append(code, []byte{0x60, byte(lenCode), 0x60, 0x0, 0xf3}...)
+	code = append(code, contractCode...)
+	// return init code, contract code, expected return
+	return code, contractCode, LeftPadBytes([]byte{0xb}, 32)
+}
diff --git a/rpc/test/tests.go b/rpc/test/tests_test.go
similarity index 65%
rename from rpc/test/tests.go
rename to rpc/test/tests_test.go
index 8fbd81e30..f95a42d4b 100644
--- a/rpc/test/tests.go
+++ b/rpc/test/tests_test.go
@@ -2,14 +2,12 @@ package rpc
 
 import (
 	"bytes"
-	"encoding/hex"
 	"fmt"
 	. "github.com/tendermint/tendermint/common"
 	"github.com/tendermint/tendermint/config"
 	"github.com/tendermint/tendermint/state"
 	"github.com/tendermint/tendermint/types"
 	"testing"
-	"time"
 )
 
 func testStatus(t *testing.T, typ string) {
@@ -38,45 +36,34 @@ func testGenPriv(t *testing.T, typ string) {
 }
 
 func testGetAccount(t *testing.T, typ string) {
-	byteAddr, _ := hex.DecodeString(userAddr)
-	acc := getAccount(t, typ, byteAddr)
+	acc := getAccount(t, typ, userByteAddr)
 	if acc == nil {
 		t.Fatalf("Account was nil")
 	}
-	if bytes.Compare(acc.Address, byteAddr) != 0 {
-		t.Fatalf("Failed to get correct account. Got %x, expected %x", acc.Address, byteAddr)
+	if bytes.Compare(acc.Address, userByteAddr) != 0 {
+		t.Fatalf("Failed to get correct account. Got %x, expected %x", acc.Address, userByteAddr)
 	}
 }
 
 func testSignedTx(t *testing.T, typ string) {
-	byteAddr, _ := hex.DecodeString(userAddr)
-	var byteKey [64]byte
-	oh, _ := hex.DecodeString(userPriv)
-	copy(byteKey[:], oh)
-
 	amt := uint64(100)
 	toAddr := []byte{20, 143, 25, 63, 16, 177, 83, 29, 91, 91, 54, 23, 233, 46, 190, 121, 122, 34, 86, 54}
-	tx, priv := signTx(t, typ, byteAddr, toAddr, nil, byteKey, amt, 0, 0)
-	checkTx(t, byteAddr, priv, tx.(*types.SendTx))
+	tx, priv := signTx(t, typ, userByteAddr, toAddr, nil, userBytePriv, amt, 0, 0)
+	checkTx(t, userByteAddr, priv, tx.(*types.SendTx))
 
 	toAddr = []byte{20, 143, 24, 63, 16, 17, 83, 29, 90, 91, 52, 2, 0, 41, 190, 121, 122, 34, 86, 54}
-	tx, priv = signTx(t, typ, byteAddr, toAddr, nil, byteKey, amt, 0, 0)
-	checkTx(t, byteAddr, priv, tx.(*types.SendTx))
+	tx, priv = signTx(t, typ, userByteAddr, toAddr, nil, userBytePriv, amt, 0, 0)
+	checkTx(t, userByteAddr, priv, tx.(*types.SendTx))
 
 	toAddr = []byte{0, 0, 4, 0, 0, 4, 0, 0, 4, 91, 52, 2, 0, 41, 190, 121, 122, 34, 86, 54}
-	tx, priv = signTx(t, typ, byteAddr, toAddr, nil, byteKey, amt, 0, 0)
-	checkTx(t, byteAddr, priv, tx.(*types.SendTx))
+	tx, priv = signTx(t, typ, userByteAddr, toAddr, nil, userBytePriv, amt, 0, 0)
+	checkTx(t, userByteAddr, priv, tx.(*types.SendTx))
 }
 
 func testBroadcastTx(t *testing.T, typ string) {
-	byteAddr, _ := hex.DecodeString(userAddr)
-	var byteKey [64]byte
-	oh, _ := hex.DecodeString(userPriv)
-	copy(byteKey[:], oh)
-
 	amt := uint64(100)
 	toAddr := []byte{20, 143, 25, 63, 16, 177, 83, 29, 91, 91, 54, 23, 233, 46, 190, 121, 122, 34, 86, 54}
-	tx, receipt := broadcastTx(t, typ, byteAddr, toAddr, nil, byteKey, amt, 0, 0)
+	tx, receipt := broadcastTx(t, typ, userByteAddr, toAddr, nil, userBytePriv, amt, 0, 0)
 	if receipt.CreatesContract > 0 {
 		t.Fatal("This tx does not create a contract")
 	}
@@ -99,18 +86,20 @@ func testBroadcastTx(t *testing.T, typ string) {
 }
 
 func testGetStorage(t *testing.T, typ string) {
+	con := newWSCon(t)
+	eid := types.EventStringNewBlock()
+	subscribe(t, con, eid)
+	defer func() {
+		unsubscribe(t, con, eid)
+		con.Close()
+	}()
 	priv := state.LoadPrivValidator(".tendermint/priv_validator.json")
 	_ = priv
 	//core.SetPrivValidator(priv)
 
-	byteAddr, _ := hex.DecodeString(userAddr)
-	var byteKey [64]byte
-	oh, _ := hex.DecodeString(userPriv)
-	copy(byteKey[:], oh)
-
 	amt := uint64(1100)
 	code := []byte{0x60, 0x5, 0x60, 0x1, 0x55}
-	_, receipt := broadcastTx(t, typ, byteAddr, nil, code, byteKey, amt, 1000, 1000)
+	_, receipt := broadcastTx(t, typ, userByteAddr, nil, code, userBytePriv, amt, 1000, 1000)
 	if receipt.CreatesContract == 0 {
 		t.Fatal("This tx creates a contract")
 	}
@@ -123,7 +112,10 @@ func testGetStorage(t *testing.T, typ string) {
 	}
 
 	// allow it to get mined
-	time.Sleep(time.Second * 20)
+	waitForEvent(t, con, eid, true, func() {
+	}, func(eid string, b []byte) error {
+		return nil
+	})
 	mempoolCount = 0
 
 	v := getStorage(t, typ, contractAddr, []byte{0x1})
@@ -151,33 +143,20 @@ func testCallCode(t *testing.T, typ string) {
 }
 
 func testCall(t *testing.T, typ string) {
+	con := newWSCon(t)
+	eid := types.EventStringNewBlock()
+	subscribe(t, con, eid)
+	defer func() {
+		unsubscribe(t, con, eid)
+		con.Close()
+	}()
+
 	client := clients[typ]
 
-	priv := state.LoadPrivValidator(".tendermint/priv_validator.json")
-	_ = priv
-	//core.SetPrivValidator(priv)
-
-	byteAddr, _ := hex.DecodeString(userAddr)
-	var byteKey [64]byte
-	oh, _ := hex.DecodeString(userPriv)
-	copy(byteKey[:], oh)
-
 	// create the contract
 	amt := uint64(6969)
-	// this is the code we want to run when the contract is called
-	contractCode := []byte{0x60, 0x5, 0x60, 0x6, 0x1, 0x60, 0x0, 0x52, 0x60, 0x20, 0x60, 0x0, 0xf3}
-	// the is the code we need to return the contractCode when the contract is initialized
-	lenCode := len(contractCode)
-	// push code to the stack
-	//code := append([]byte{byte(0x60 + lenCode - 1)}, LeftPadWord256(contractCode).Bytes()...)
-	code := append([]byte{0x7f}, RightPadWord256(contractCode).Bytes()...)
-	// store it in memory
-	code = append(code, []byte{0x60, 0x0, 0x52}...)
-	// return whats in memory
-	//code = append(code, []byte{0x60, byte(32 - lenCode), 0x60, byte(lenCode), 0xf3}...)
-	code = append(code, []byte{0x60, byte(lenCode), 0x60, 0x0, 0xf3}...)
-
-	_, receipt := broadcastTx(t, typ, byteAddr, nil, code, byteKey, amt, 1000, 1000)
+	code, _, _ := simpleContract()
+	_, receipt := broadcastTx(t, typ, userByteAddr, nil, code, userBytePriv, amt, 1000, 1000)
 	if receipt.CreatesContract == 0 {
 		t.Fatal("This tx creates a contract")
 	}
@@ -190,7 +169,10 @@ func testCall(t *testing.T, typ string) {
 	}
 
 	// allow it to get mined
-	time.Sleep(time.Second * 20)
+	waitForEvent(t, con, eid, true, func() {
+	}, func(eid string, b []byte) error {
+		return nil
+	})
 	mempoolCount = 0
 
 	// run a call through the contract
diff --git a/rpc/test/ws_helpers_test.go b/rpc/test/ws_helpers_test.go
new file mode 100644
index 000000000..880220a32
--- /dev/null
+++ b/rpc/test/ws_helpers_test.go
@@ -0,0 +1,136 @@
+package rpc
+
+import (
+	"bytes"
+	"fmt"
+	"github.com/gorilla/websocket"
+	"github.com/tendermint/tendermint/binary"
+	"github.com/tendermint/tendermint/types"
+	"testing"
+)
+
+func unmarshalValidateBlockchain(t *testing.T, con *websocket.Conn, eid string) {
+	var initBlockN uint
+	for i := 0; i < 2; i++ {
+		waitForEvent(t, con, eid, true, func() {}, func(eid string, b []byte) error {
+			block, err := unmarshalResponseNewBlock(b)
+			if err != nil {
+				return err
+			}
+			if i == 0 {
+				initBlockN = block.Header.Height
+			} else {
+				if block.Header.Height != initBlockN+uint(i) {
+					return fmt.Errorf("Expected block %d, got block %d", i, block.Header.Height)
+				}
+			}
+
+			return nil
+		})
+	}
+}
+
+func unmarshalValidateSend(amt uint64, toAddr []byte) func(string, []byte) error {
+	return func(eid string, b []byte) error {
+		// unmarshal and assert correctness
+		var response struct {
+			Event string
+			Data  types.SendTx
+			Error string
+		}
+		var err error
+		binary.ReadJSON(&response, b, &err)
+		if err != nil {
+			return err
+		}
+		if response.Error != "" {
+			return fmt.Errorf(response.Error)
+		}
+		if eid != response.Event {
+			return fmt.Errorf("Eventid is not correct. Got %s, expected %s", response.Event, eid)
+		}
+		tx := response.Data
+		if bytes.Compare(tx.Inputs[0].Address, userByteAddr) != 0 {
+			return fmt.Errorf("Senders do not match up! Got %x, expected %x", tx.Inputs[0].Address, userByteAddr)
+		}
+		if tx.Inputs[0].Amount != amt {
+			return fmt.Errorf("Amt does not match up! Got %d, expected %d", tx.Inputs[0].Amount, amt)
+		}
+		if bytes.Compare(tx.Outputs[0].Address, toAddr) != 0 {
+			return fmt.Errorf("Receivers do not match up! Got %x, expected %x", tx.Outputs[0].Address, userByteAddr)
+		}
+		return nil
+	}
+}
+
+func unmarshalValidateCall(amt uint64, returnCode []byte) func(string, []byte) error {
+	return func(eid string, b []byte) error {
+		// unmarshall and assert somethings
+		var response struct {
+			Event string
+			Data  struct {
+				Tx        types.CallTx
+				Return    []byte
+				Exception string
+			}
+			Error string
+		}
+		var err error
+		binary.ReadJSON(&response, b, &err)
+		if err != nil {
+			return err
+		}
+		if response.Error != "" {
+			return fmt.Errorf(response.Error)
+		}
+		if response.Data.Exception != "" {
+			return fmt.Errorf(response.Data.Exception)
+		}
+		tx := response.Data.Tx
+		if bytes.Compare(tx.Input.Address, userByteAddr) != 0 {
+			return fmt.Errorf("Senders do not match up! Got %x, expected %x", tx.Input.Address, userByteAddr)
+		}
+		if tx.Input.Amount != amt {
+			return fmt.Errorf("Amt does not match up! Got %d, expected %d", tx.Input.Amount, amt)
+		}
+		ret := response.Data.Return
+		if bytes.Compare(ret, returnCode) != 0 {
+			return fmt.Errorf("Call did not return correctly. Got %x, expected %x", ret, returnCode)
+		}
+		return nil
+	}
+}
+
+func unmarshalValidateCallCall(origin, returnCode []byte, txid *[]byte) func(string, []byte) error {
+	return func(eid string, b []byte) error {
+		// unmarshall and assert somethings
+		var response struct {
+			Event string
+			Data  types.EventMsgCall
+			Error string
+		}
+		var err error
+		binary.ReadJSON(&response, b, &err)
+		if err != nil {
+			return err
+		}
+		if response.Error != "" {
+			return fmt.Errorf(response.Error)
+		}
+		if response.Data.Exception != "" {
+			return fmt.Errorf(response.Data.Exception)
+		}
+		if bytes.Compare(response.Data.Origin, origin) != 0 {
+			return fmt.Errorf("Origin does not match up! Got %x, expected %x", response.Data.Origin, origin)
+		}
+		ret := response.Data.Return
+		if bytes.Compare(ret, returnCode) != 0 {
+			return fmt.Errorf("Call did not return correctly. Got %x, expected %x", ret, returnCode)
+		}
+		if bytes.Compare(response.Data.TxId, *txid) != 0 {
+			return fmt.Errorf("TxIds do not match up! Got %x, expected %x", response.Data.TxId, *txid)
+		}
+		// calldata := response.Data.CallData
+		return nil
+	}
+}
diff --git a/state/block_cache.go b/state/block_cache.go
index c900accc7..277754541 100644
--- a/state/block_cache.go
+++ b/state/block_cache.go
@@ -91,13 +91,13 @@ func (cache *BlockCache) GetStorage(addr Word256, key Word256) (value Word256) {
 	}
 
 	// Get or load storage
-	acc, storage, removed, dirty := cache.accounts[string(addr.Prefix(20))].unpack()
+	acc, storage, removed, dirty := cache.accounts[string(addr.Postfix(20))].unpack()
 	if removed {
 		panic("GetStorage() on removed account")
 	}
 	if acc != nil && storage == nil {
 		storage = makeStorage(cache.db, acc.StorageRoot)
-		cache.accounts[string(addr.Prefix(20))] = accountInfo{acc, storage, false, dirty}
+		cache.accounts[string(addr.Postfix(20))] = accountInfo{acc, storage, false, dirty}
 	} else if acc == nil {
 		return Zero256
 	}
@@ -114,7 +114,7 @@ func (cache *BlockCache) GetStorage(addr Word256, key Word256) (value Word256) {
 
 // NOTE: Set value to zero to removed from the trie.
 func (cache *BlockCache) SetStorage(addr Word256, key Word256, value Word256) {
-	_, _, removed, _ := cache.accounts[string(addr.Prefix(20))].unpack()
+	_, _, removed, _ := cache.accounts[string(addr.Postfix(20))].unpack()
 	if removed {
 		panic("SetStorage() on a removed account")
 	}
@@ -146,7 +146,7 @@ func (cache *BlockCache) Sync() {
 	for _, storageKey := range storageKeys {
 		addr, key := Tuple256Split(storageKey)
 		if addr != curAddr || curAcc == nil {
-			acc, storage, removed, _ := cache.accounts[string(addr.Prefix(20))].unpack()
+			acc, storage, removed, _ := cache.accounts[string(addr.Postfix(20))].unpack()
 			if storage == nil {
 				storage = makeStorage(cache.db, acc.StorageRoot)
 			}
@@ -166,7 +166,7 @@ func (cache *BlockCache) Sync() {
 			curStorage.Remove(key.Bytes())
 		} else {
 			curStorage.Set(key.Bytes(), value.Bytes())
-			cache.accounts[string(addr.Prefix(20))] = accountInfo{curAcc, curStorage, false, true}
+			cache.accounts[string(addr.Postfix(20))] = accountInfo{curAcc, curStorage, false, true}
 		}
 	}
 
@@ -187,7 +187,7 @@ func (cache *BlockCache) Sync() {
 			}
 		} else {
 			if acc == nil {
-				panic(Fmt("Account should not be nil for addr: %X", acc.Address))
+				continue
 			}
 			if storage != nil {
 				newStorageRoot := storage.Save()
diff --git a/state/execution.go b/state/execution.go
index dcfd55554..5152b16f8 100644
--- a/state/execution.go
+++ b/state/execution.go
@@ -7,6 +7,7 @@ import (
 
 	"github.com/tendermint/tendermint/account"
 	. "github.com/tendermint/tendermint/common"
+	"github.com/tendermint/tendermint/events"
 	"github.com/tendermint/tendermint/types"
 	"github.com/tendermint/tendermint/vm"
 )
@@ -112,7 +113,7 @@ func execBlock(s *State, block *types.Block, blockPartsHeader types.PartSetHeade
 
 	// Commit each tx
 	for _, tx := range block.Data.Txs {
-		err := ExecTx(blockCache, tx, true)
+		err := ExecTx(blockCache, tx, true, s.evc)
 		if err != nil {
 			return InvalidTxError{tx, err}
 		}
@@ -292,11 +293,11 @@ func adjustByOutputs(accounts map[string]*account.Account, outs []*types.TxOutpu
 
 // If the tx is invalid, an error will be returned.
 // Unlike ExecBlock(), state will not be altered.
-func ExecTx(blockCache *BlockCache, tx_ types.Tx, runCall bool) error {
+func ExecTx(blockCache *BlockCache, tx_ types.Tx, runCall bool, evc events.Fireable) error {
 
 	// TODO: do something with fees
 	fees := uint64(0)
-	_s := blockCache.State() // hack to access validators.
+	_s := blockCache.State() // hack to access validators and event switch.
 
 	// Exec tx
 	switch tx := tx_.(type) {
@@ -326,6 +327,17 @@ func ExecTx(blockCache *BlockCache, tx_ types.Tx, runCall bool) error {
 		for _, acc := range accounts {
 			blockCache.UpdateAccount(acc)
 		}
+
+		// if the evc is nil, nothing will happen
+		if evc != nil {
+			for _, i := range tx.Inputs {
+				evc.FireEvent(types.EventStringAccInput(i.Address), tx)
+			}
+
+			for _, o := range tx.Outputs {
+				evc.FireEvent(types.EventStringAccOutput(o.Address), tx)
+			}
+		}
 		return nil
 
 	case *types.CallTx:
@@ -412,10 +424,14 @@ func ExecTx(blockCache *BlockCache, tx_ types.Tx, runCall bool) error {
 
 			txCache.UpdateAccount(caller) // because we adjusted by input above, and bumped nonce maybe.
 			txCache.UpdateAccount(callee) // because we adjusted by input above.
-			vmach := vm.NewVM(txCache, params, caller.Address)
+			vmach := vm.NewVM(txCache, params, caller.Address, account.HashSignBytes(tx))
+			vmach.SetFireable(_s.evc)
 			// NOTE: Call() transfers the value from caller to callee iff call succeeds.
+
 			ret, err := vmach.Call(caller, callee, code, tx.Data, value, &gas)
+			exception := ""
 			if err != nil {
+				exception = err.Error()
 				// Failure. Charge the gas fee. The 'value' was otherwise not transferred.
 				log.Debug(Fmt("Error on execution: %v", err))
 				inAcc.Balance -= tx.Fee
@@ -432,6 +448,13 @@ func ExecTx(blockCache *BlockCache, tx_ types.Tx, runCall bool) error {
 			}
 			// Create a receipt from the ret and whether errored.
 			log.Info("VM call complete", "caller", caller, "callee", callee, "return", ret, "err", err)
+
+			// Fire Events for sender and receiver
+			// a separate event will be fired from vm for each additional call
+			if evc != nil {
+				evc.FireEvent(types.EventStringAccInput(tx.Input.Address), types.EventMsgCallTx{tx, ret, exception})
+				evc.FireEvent(types.EventStringAccReceive(tx.Address), types.EventMsgCallTx{tx, ret, exception})
+			}
 		} else {
 			// The mempool does not call txs until
 			// the proposer determines the order of txs.
@@ -499,6 +522,9 @@ func ExecTx(blockCache *BlockCache, tx_ types.Tx, runCall bool) error {
 		if !added {
 			panic("Failed to add validator")
 		}
+		if evc != nil {
+			evc.FireEvent(types.EventStringBond(), tx)
+		}
 		return nil
 
 	case *types.UnbondTx:
@@ -521,6 +547,9 @@ func ExecTx(blockCache *BlockCache, tx_ types.Tx, runCall bool) error {
 
 		// Good!
 		_s.unbondValidator(val)
+		if evc != nil {
+			evc.FireEvent(types.EventStringUnbond(), tx)
+		}
 		return nil
 
 	case *types.RebondTx:
@@ -543,6 +572,9 @@ func ExecTx(blockCache *BlockCache, tx_ types.Tx, runCall bool) error {
 
 		// Good!
 		_s.rebondValidator(val)
+		if evc != nil {
+			evc.FireEvent(types.EventStringRebond(), tx)
+		}
 		return nil
 
 	case *types.DupeoutTx:
@@ -586,6 +618,9 @@ func ExecTx(blockCache *BlockCache, tx_ types.Tx, runCall bool) error {
 
 		// Good! (Bad validator!)
 		_s.destroyValidator(accused)
+		if evc != nil {
+			evc.FireEvent(types.EventStringDupeout(), tx)
+		}
 		return nil
 
 	default:
diff --git a/state/state.go b/state/state.go
index 700202b87..182d2692b 100644
--- a/state/state.go
+++ b/state/state.go
@@ -8,6 +8,7 @@ import (
 	"github.com/tendermint/tendermint/account"
 	"github.com/tendermint/tendermint/binary"
 	dbm "github.com/tendermint/tendermint/db"
+	"github.com/tendermint/tendermint/events"
 	"github.com/tendermint/tendermint/merkle"
 	"github.com/tendermint/tendermint/types"
 )
@@ -34,6 +35,8 @@ type State struct {
 	UnbondingValidators  *ValidatorSet
 	accounts             merkle.Tree // Shouldn't be accessed directly.
 	validatorInfos       merkle.Tree // Shouldn't be accessed directly.
+
+	evc events.Fireable // typically an events.EventCache
 }
 
 func LoadState(db dbm.DB) *State {
@@ -98,6 +101,7 @@ func (s *State) Copy() *State {
 		UnbondingValidators:  s.UnbondingValidators.Copy(),  // copy the valSet lazily.
 		accounts:             s.accounts.Copy(),
 		validatorInfos:       s.validatorInfos.Copy(),
+		evc:                  nil,
 	}
 }
 
@@ -115,6 +119,7 @@ func (s *State) Hash() []byte {
 // Mutates the block in place and updates it with new state hash.
 func (s *State) SetBlockStateHash(block *types.Block) error {
 	sCopy := s.Copy()
+	// sCopy has no event cache in it, so this won't fire events
 	err := execBlock(sCopy, block, types.PartSetHeader{})
 	if err != nil {
 		return err
@@ -264,6 +269,11 @@ func (s *State) LoadStorage(hash []byte) (storage merkle.Tree) {
 // State.storage
 //-------------------------------------
 
+// Implements events.Eventable. Typically uses events.EventCache
+func (s *State) SetFireable(evc events.Fireable) {
+	s.evc = evc
+}
+
 //-----------------------------------------------------------------------------
 
 type InvalidTxError struct {
diff --git a/state/state_test.go b/state/state_test.go
index 5f2990652..c2d766e31 100644
--- a/state/state_test.go
+++ b/state/state_test.go
@@ -12,7 +12,7 @@ import (
 
 func execTxWithState(state *State, tx types.Tx, runCall bool) error {
 	cache := NewBlockCache(state)
-	err := ExecTx(cache, tx, runCall)
+	err := ExecTx(cache, tx, runCall, nil)
 	if err != nil {
 		return err
 	} else {
diff --git a/state/tx_cache.go b/state/tx_cache.go
index fa6065cb4..d5a23d6c2 100644
--- a/state/tx_cache.go
+++ b/state/tx_cache.go
@@ -30,9 +30,13 @@ func (cache *TxCache) GetAccount(addr Word256) *vm.Account {
 	acc, removed := vmUnpack(cache.accounts[addr])
 	if removed {
 		return nil
-	} else {
-		return acc
+	} else if acc == nil {
+		acc2 := cache.backend.GetAccount(addr.Postfix(20))
+		if acc2 != nil {
+			return toVMAccount(acc2)
+		}
 	}
+	return acc
 }
 
 func (cache *TxCache) UpdateAccount(acc *vm.Account) {
@@ -64,7 +68,7 @@ func (cache *TxCache) CreateAccount(creator *vm.Account) *vm.Account {
 	nonce := creator.Nonce
 	creator.Nonce += 1
 
-	addr := RightPadWord256(NewContractAddress(creator.Address.Prefix(20), nonce))
+	addr := LeftPadWord256(NewContractAddress(creator.Address.Postfix(20), nonce))
 
 	// Create account from address.
 	account, removed := vmUnpack(cache.accounts[addr])
@@ -124,7 +128,7 @@ func (cache *TxCache) Sync() {
 	for addr, accInfo := range cache.accounts {
 		acc, removed := vmUnpack(accInfo)
 		if removed {
-			cache.backend.RemoveAccount(addr.Prefix(20))
+			cache.backend.RemoveAccount(addr.Postfix(20))
 		} else {
 			cache.backend.UpdateAccount(toStateAccount(acc))
 		}
@@ -150,7 +154,7 @@ func NewContractAddress(caller []byte, nonce uint64) []byte {
 // Converts backend.Account to vm.Account struct.
 func toVMAccount(acc *ac.Account) *vm.Account {
 	return &vm.Account{
-		Address:     RightPadWord256(acc.Address),
+		Address:     LeftPadWord256(acc.Address),
 		Balance:     acc.Balance,
 		Code:        acc.Code, // This is crazy.
 		Nonce:       uint64(acc.Sequence),
@@ -172,7 +176,7 @@ func toStateAccount(acc *vm.Account) *ac.Account {
 		storageRoot = acc.StorageRoot.Bytes()
 	}
 	return &ac.Account{
-		Address:     acc.Address.Prefix(20),
+		Address:     acc.Address.Postfix(20),
 		PubKey:      pubKey,
 		Balance:     acc.Balance,
 		Code:        acc.Code,
diff --git a/types/events.go b/types/events.go
new file mode 100644
index 000000000..0345efcb1
--- /dev/null
+++ b/types/events.go
@@ -0,0 +1,84 @@
+package types
+
+import (
+	"fmt"
+)
+
+// Functions to generate eventId strings
+
+func EventStringAccInput(addr []byte) string {
+	return fmt.Sprintf("Acc/%x/Input", addr)
+}
+
+func EventStringAccOutput(addr []byte) string {
+	return fmt.Sprintf("Acc/%x/Output", addr)
+}
+
+func EventStringAccReceive(addr []byte) string {
+	return fmt.Sprintf("Acc/%x/Receive", addr)
+}
+
+func EventStringBond() string {
+	return "Bond"
+}
+
+func EventStringUnbond() string {
+	return "Unbond"
+}
+
+func EventStringRebond() string {
+	return "Rebond"
+}
+
+func EventStringDupeout() string {
+	return "Dupeout"
+}
+
+func EventStringNewBlock() string {
+	return "NewBlock"
+}
+
+func EventStringFork() string {
+	return "Fork"
+}
+
+// Most event messages are basic types (a block, a transaction)
+// but some (an input to a call tx or a receive) are more exotic:
+
+type EventMsgCallTx struct {
+	Tx        Tx
+	Return    []byte
+	Exception string
+}
+
+type CallData struct {
+	Caller []byte
+	Callee []byte
+	Data   []byte
+	Value  uint64
+	Gas    uint64
+}
+
+type EventMsgCall struct {
+	CallData  *CallData
+	Origin    []byte
+	TxId      []byte
+	Return    []byte
+	Exception string
+}
+
+/*
+Acc/XYZ/Input -> full tx or {full tx, return value, exception}
+Acc/XYZ/Output -> full tx
+Acc/XYZ/Receive -> full tx, return value, exception, (optionally?) calldata
+Bond -> full tx
+Unbond -> full tx
+Rebond -> full tx
+Dupeout -> full tx
+NewBlock -> full block
+Fork -> block A, block B
+
+Log -> Fuck this
+NewPeer -> peer
+Alert -> alert msg
+*/
diff --git a/vm/test/vm_test.go b/vm/test/vm_test.go
index ee3fe7e57..740d0063a 100644
--- a/vm/test/vm_test.go
+++ b/vm/test/vm_test.go
@@ -36,7 +36,7 @@ func makeBytes(n int) []byte {
 }
 
 func TestVM(t *testing.T) {
-	ourVm := NewVM(newAppState(), newParams(), Zero256)
+	ourVm := NewVM(newAppState(), newParams(), Zero256, nil)
 
 	// Create accounts
 	account1 := &Account{
@@ -72,7 +72,7 @@ func TestSubcurrency(t *testing.T) {
 	st.accounts[account1.Address.String()] = account1
 	st.accounts[account2.Address.String()] = account2
 
-	ourVm := NewVM(st, newParams(), Zero256)
+	ourVm := NewVM(st, newParams(), Zero256, nil)
 
 	var gas uint64 = 1000
 	code_parts := []string{"620f42403355",
diff --git a/vm/vm.go b/vm/vm.go
index cbf68729d..ba16d846a 100644
--- a/vm/vm.go
+++ b/vm/vm.go
@@ -6,6 +6,8 @@ import (
 	"math/big"
 
 	. "github.com/tendermint/tendermint/common"
+	"github.com/tendermint/tendermint/events"
+	"github.com/tendermint/tendermint/types"
 	"github.com/tendermint/tendermint/vm/sha3"
 )
 
@@ -43,19 +45,28 @@ type VM struct {
 	appState AppState
 	params   Params
 	origin   Word256
+	txid     []byte
 
 	callDepth int
+
+	evc events.Fireable
 }
 
-func NewVM(appState AppState, params Params, origin Word256) *VM {
+func NewVM(appState AppState, params Params, origin Word256, txid []byte) *VM {
 	return &VM{
 		appState:  appState,
 		params:    params,
 		origin:    origin,
 		callDepth: 0,
+		txid:      txid,
 	}
 }
 
+// satisfies events.Eventable
+func (vm *VM) SetFireable(evc events.Fireable) {
+	vm.evc = evc
+}
+
 // CONTRACT appState is aware of caller and callee, so we can just mutate them.
 // value: To be transferred from caller to callee. Refunded upon error.
 // gas:   Available gas. No refunds for gas.
@@ -72,12 +83,25 @@ func (vm *VM) Call(caller, callee *Account, code, input []byte, value uint64, ga
 	vm.callDepth += 1
 	output, err = vm.call(caller, callee, code, input, value, gas)
 	vm.callDepth -= 1
+	exception := ""
 	if err != nil {
+		exception = err.Error()
 		err := transfer(callee, caller, value)
 		if err != nil {
 			panic("Could not return value to caller")
 		}
 	}
+	// if callDepth is 0 the event is fired from ExecTx (along with the Input event)
+	// otherwise, we fire from here.
+	if vm.callDepth != 0 && vm.evc != nil {
+		vm.evc.FireEvent(types.EventStringAccReceive(callee.Address.Postfix(20)), types.EventMsgCall{
+			&types.CallData{caller.Address.Postfix(20), callee.Address.Postfix(20), input, value, *gas},
+			vm.origin.Postfix(20),
+			vm.txid,
+			output,
+			exception,
+		})
+	}
 	return
 }
 
@@ -283,7 +307,6 @@ func (vm *VM) call(caller, callee *Account, code, input []byte, value uint64, ga
 			x, y := stack.Pop64(), stack.Pop64()
 			stack.Push64(x & y)
 			dbg.Printf(" %v & %v = %v\n", x, y, x&y)
-
 		case OR: // 0x17
 			x, y := stack.Pop64(), stack.Pop64()
 			stack.Push64(x | y)
@@ -330,7 +353,7 @@ func (vm *VM) call(caller, callee *Account, code, input []byte, value uint64, ga
 			if ok = useGas(gas, GasGetAccount); !ok {
 				return nil, firstErr(err, ErrInsufficientGas)
 			}
-			acc := vm.appState.GetAccount(addr) // TODO ensure that 20byte lengths are supported.
+			acc := vm.appState.GetAccount(flipWord(addr)) // TODO ensure that 20byte lengths are supported.
 			if acc == nil {
 				return nil, firstErr(err, ErrUnknownAddress)
 			}
@@ -357,7 +380,7 @@ func (vm *VM) call(caller, callee *Account, code, input []byte, value uint64, ga
 				return nil, firstErr(err, ErrInputOutOfBounds)
 			}
 			stack.Push(RightPadWord256(data))
-			dbg.Printf(" => 0x%X\n", data)
+			dbg.Printf(" => 0x%X\n", RightPadWord256(data))
 
 		case CALLDATASIZE: // 0x36
 			stack.Push64(uint64(len(input)))
@@ -407,7 +430,7 @@ func (vm *VM) call(caller, callee *Account, code, input []byte, value uint64, ga
 			if ok = useGas(gas, GasGetAccount); !ok {
 				return nil, firstErr(err, ErrInsufficientGas)
 			}
-			acc := vm.appState.GetAccount(addr)
+			acc := vm.appState.GetAccount(flipWord(addr))
 			if acc == nil {
 				return nil, firstErr(err, ErrUnknownAddress)
 			}
@@ -421,7 +444,7 @@ func (vm *VM) call(caller, callee *Account, code, input []byte, value uint64, ga
 			if ok = useGas(gas, GasGetAccount); !ok {
 				return nil, firstErr(err, ErrInsufficientGas)
 			}
-			acc := vm.appState.GetAccount(addr)
+			acc := vm.appState.GetAccount(flipWord(addr))
 			if acc == nil {
 				return nil, firstErr(err, ErrUnknownAddress)
 			}
@@ -628,7 +651,7 @@ func (vm *VM) call(caller, callee *Account, code, input []byte, value uint64, ga
 				if ok = useGas(gas, GasGetAccount); !ok {
 					return nil, firstErr(err, ErrInsufficientGas)
 				}
-				acc := vm.appState.GetAccount(addr)
+				acc := vm.appState.GetAccount(flipWord(addr))
 				if acc == nil {
 					return nil, firstErr(err, ErrUnknownAddress)
 				}
@@ -671,7 +694,7 @@ func (vm *VM) call(caller, callee *Account, code, input []byte, value uint64, ga
 				return nil, firstErr(err, ErrInsufficientGas)
 			}
 			// TODO if the receiver is , then make it the fee.
-			receiver := vm.appState.GetAccount(addr)
+			receiver := vm.appState.GetAccount(flipWord(addr))
 			if receiver == nil {
 				return nil, firstErr(err, ErrUnknownAddress)
 			}
@@ -697,10 +720,12 @@ func subslice(data []byte, offset, length uint64, flip_ bool) (ret []byte, ok bo
 	if size < offset {
 		return nil, false
 	} else if size < offset+length {
-		ret, ok = data[offset:], false
+		ret, ok = data[offset:], true
+		ret = RightPadBytes(ret, 32)
 	} else {
 		ret, ok = data[offset:offset+length], true
 	}
+
 	if flip_ {
 		ret = flip(ret)
 	}