diff --git a/Dockerfile b/Dockerfile
index f0c48cb..195bdc8 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -7,7 +7,10 @@ ENV BUILD_LIST git
 
 RUN apk add --update $BUILD_LIST \
     && git clone https://github.com/leesander1/ABC.git /abc \
+    && git checkout -b docker origin/networking \
     && apk --repository http://dl-3.alpinelinux.org/alpine/edge/testing/ --update add leveldb leveldb-dev \
+    && apk add --no-cache gcc \
+    && apk add musl-dev \
     && pip install pipenv \
     && pipenv --python=python3.6 \
     && pipenv install \
diff --git a/Pipfile b/Pipfile
index 73980f5..5058a55 100644
--- a/Pipfile
+++ b/Pipfile
@@ -1,21 +1,12 @@
 [[source]]
 
+name = "pypi"
 url = "https://pypi.python.org/simple"
 verify_ssl = true
-name = "pypi"
 
 
 [dev-packages]
 
 
 
-[requires]
-
-python_version = "3.6"
-
-
 [packages]
-
-flask = "==0.12.2"
-requests = "==2.18.4"
-plyvel = "*"
\ No newline at end of file
diff --git a/Pipfile.lock b/Pipfile.lock
new file mode 100644
index 0000000..e440d0b
--- /dev/null
+++ b/Pipfile.lock
@@ -0,0 +1,125 @@
+{
+    "_meta": {
+        "hash": {
+            "sha256": "bf2ebb1f31508383de0ec6cf0f9686bfcd145810fac55eec1083dcd70fb91b5c"
+        },
+        "host-environment-markers": {
+            "implementation_name": "cpython",
+            "implementation_version": "3.6.2",
+            "os_name": "posix",
+            "platform_machine": "x86_64",
+            "platform_python_implementation": "CPython",
+            "platform_release": "4.4.0-43-Microsoft",
+            "platform_system": "Linux",
+            "platform_version": "#1-Microsoft Wed Dec 31 14:42:53 PST 2014",
+            "python_full_version": "3.6.2",
+            "python_version": "3.6",
+            "sys_platform": "linux"
+        },
+        "pipfile-spec": 6,
+        "requires": {
+            "python_version": "3.6"
+        },
+        "sources": [
+            {
+                "name": "pypi",
+                "url": "https://pypi.python.org/simple",
+                "verify_ssl": true
+            }
+        ]
+    },
+    "default": {
+        "certifi": {
+            "hashes": [
+                "sha256:244be0d93b71e93fc0a0a479862051414d0e00e16435707e5bf5000f92e04694",
+                "sha256:5ec74291ca1136b40f0379e1128ff80e866597e4e2c1e755739a913bbc3613c0"
+            ],
+            "version": "==2017.11.5"
+        },
+        "chardet": {
+            "hashes": [
+                "sha256:fc323ffcaeaed0e0a02bf4d117757b98aed530d9ed4531e3e15460124c106691",
+                "sha256:84ab92ed1c4d4f16916e05906b6b75a6c0fb5db821cc65e70cbd64a3e2a5eaae"
+            ],
+            "version": "==3.0.4"
+        },
+        "click": {
+            "hashes": [
+                "sha256:29f99fc6125fbc931b758dc053b3114e55c77a6e4c6c3a2674a2dc986016381d",
+                "sha256:f15516df478d5a56180fbf80e68f206010e6d160fc39fa508b65e035fd75130b"
+            ],
+            "version": "==6.7"
+        },
+        "flask": {
+            "hashes": [
+                "sha256:0749df235e3ff61ac108f69ac178c9770caeaccad2509cb762ce1f65570a8856",
+                "sha256:49f44461237b69ecd901cc7ce66feea0319b9158743dd27a2899962ab214dac1"
+            ],
+            "version": "==0.12.2"
+        },
+        "idna": {
+            "hashes": [
+                "sha256:8c7309c718f94b3a625cb648ace320157ad16ff131ae0af362c9f21b80ef6ec4",
+                "sha256:2c6a5de3089009e3da7c5dde64a141dbc8551d5b7f6cf4ed7c2568d0cc520a8f"
+            ],
+            "version": "==2.6"
+        },
+        "itsdangerous": {
+            "hashes": [
+                "sha256:cbb3fcf8d3e33df861709ecaf89d9e6629cff0a217bc2848f1b41cd30d360519"
+            ],
+            "version": "==0.24"
+        },
+        "jinja2": {
+            "hashes": [
+                "sha256:74c935a1b8bb9a3947c50a54766a969d4846290e1e788ea44c1392163723c3bd",
+                "sha256:f84be1bb0040caca4cea721fcbbbbd61f9be9464ca236387158b0feea01914a4"
+            ],
+            "version": "==2.10"
+        },
+        "markupsafe": {
+            "hashes": [
+                "sha256:a6be69091dac236ea9c6bc7d012beab42010fa914c459791d627dad4910eb665"
+            ],
+            "version": "==1.0"
+        },
+        "pycryptodome": {
+            "hashes": [
+                "sha256:2174fa555916b5ae8bcc7747ecfe2a4d5943b42c9dcf4878e269baaae264e85d",
+                "sha256:9fc97cd0f6eeec59af736b3df81e5811d836fa646b89a4325672dcaf997250b3",
+                "sha256:8440a35ccd52f0eab0f4ece284bd13a587d86d79bd404d8914f81eda74a66de1",
+                "sha256:6f64d8b63034fd9289bae4cb48aa8f7049f6b8db702c7af50cb3718821d28147",
+                "sha256:f0196124f83221f9c5e06a68e247019466395d35d92d4ce4482c835f75302851",
+                "sha256:8851b1e1d85e4fb981048c8a8a8431839103f43ea3c35f1b46bae2e41699f439",
+                "sha256:a9e3e3e9ab0241b0303206656a74d5cd6bd00fcad6f9ffd0ba6b8e35072f74d7",
+                "sha256:15ced95a00b55bb2fc22f3dddde1c8d6f270089f35c3af0e07306bc2ba1e1c4e",
+                "sha256:f7befe2249df41e012a3d8079ab3c7089be21969591eb77b21767fa24557a7b7",
+                "sha256:ec560e62258358afd7a1a3d34c8860fdf478e28c0999173f2d5c618fd2fd60d3",
+                "sha256:18d8dfe31bf0cb53d58694903e526be68f3cf48e6e3c6dfbbc1e7042b1693af7"
+            ],
+            "version": "==3.4.7"
+        },
+        "requests": {
+            "hashes": [
+                "sha256:6a1b267aa90cac58ac3a765d067950e7dbbf75b1da07e895d1f594193a40a38b",
+                "sha256:9c443e7324ba5b85070c4a818ade28bfabedf16ea10206da1132edaa6dda237e"
+            ],
+            "version": "==2.18.4"
+        },
+        "urllib3": {
+            "hashes": [
+                "sha256:06330f386d6e4b195fbfc736b297f58c5a892e4440e54d294d7004e3a9bbea1b",
+                "sha256:cc44da8e1145637334317feebd728bd869a35285b93cbb4cca2577da7e62db4f"
+            ],
+            "version": "==1.22"
+        },
+        "werkzeug": {
+            "hashes": [
+                "sha256:e8549c143af3ce6559699a01e26fa4174f4c591dbee0a499f3cd4c3781cdec3d",
+                "sha256:903a7b87b74635244548b30d30db4c8947fe64c5198f58899ddcd3a13c23bb26"
+            ],
+            "version": "==0.12.2"
+        }
+    },
+    "develop": {}
+}
diff --git a/README.md b/README.md
index 8122a9f..2163474 100644
--- a/README.md
+++ b/README.md
@@ -7,3 +7,15 @@ The core functions we will discuss, explore and develop are the following:
 3. Communication with other nodes
 4. Proof of work algorithms
 5. Transactions
+
+
+### Docker
+
+```bash
+$ docker build -t abc .
+```
+```bash
+$ docker run -it --rm -p 80:5000 abc
+$ docker run -it --rm -p 80:5001 abc
+$ docker run -it --rm -p 80:5002 abc
+```
diff --git a/main.py b/main.py
index e757515..e08138c 100644
--- a/main.py
+++ b/main.py
@@ -1,5 +1,9 @@
 ''' Main File '''
 # from block import Block
+import _thread, time
 from src.client import CLI
+from src.network.network import start_server, seed_peers
 
+_thread.start_new_thread(start_server, ())
+time.sleep(1)
 CLI().cmdloop()
diff --git a/src/block/block.py b/src/block/block.py
index 9b1784b..44f2045 100644
--- a/src/block/block.py
+++ b/src/block/block.py
@@ -16,7 +16,7 @@
 
 
 class Block(object):
-    def __init__(self, previous_hash=None, transactions=None):
+    def __init__(self, previous_hash=None, transactions=None, **kwargs):
         """
             Constructor for Block class
               Block Header: Key info on block (80 bytes)
@@ -30,19 +30,33 @@ def __init__(self, previous_hash=None, transactions=None):
                 merkle_root - a hash of all the hashed transactions in the merkle tree
 
         """
-
-        # define block header attributes
-        self.version = version.encode('utf8')  # 4 bytes
-        self.previous_hash = previous_hash.encode('utf8')  # 32 bytes
-        self.merkle_root = self.merkle_root(transactions)  # 32 bytes
-        self.timestamp = self.block_timestamp()  # 4 bytes
-        self.nonce = None  # 4 bytes
-        self.target = None  # 4 bytes
-
-        # define rest of block
-        self.transactions = transactions  # NOTE: may need to change
-        self.txcount = len(transactions)  # 4 bytes
-        self.size = self.block_size()  # 4 bytes
+        self.payload = kwargs.pop('payload', None)
+        if self.payload:
+            # define block header attributes
+            self.version = self.payload['header']['version'].encode('utf8')  # 4 bytes
+            self.previous_hash = self.payload['header']['parent'].encode('utf8')  # 32 bytes
+            self.merkle_root = self.payload['header']['merkle_root']  # 32 bytes
+            self.timestamp = self.payload['header']['timestamp'].encode('utf8')  # 4 bytes
+            self.nonce = self.payload['header']['nonce']
+            self.target = self.payload['header']['target']
+
+            # define rest of block
+            self.transactions = self.payload['transactions'] # NOTE: may need to change
+            self.txcount = self.payload['txcount']  # 4 bytes
+            self.size = self.payload['size']
+        else:
+            # define block header attributes
+            self.version = version.encode('utf8')  # 4 bytes
+            self.previous_hash = previous_hash.encode('utf8')  # 32 bytes
+            self.merkle_root = self.merkle_root(transactions)  # 32 bytes
+            self.timestamp = self.block_timestamp()  # 4 bytes
+            self.nonce = None  # 4 bytes
+            self.target = None  # 4 bytes
+
+            # define rest of block
+            self.transactions = transactions  # NOTE: may need to change
+            self.txcount = len(transactions)  # 4 bytes
+            self.size = self.block_size()  # 4 bytes
 
     def block_size(self):
         # calculates the size of the block and returns instance size to value
diff --git a/src/client/cli.py b/src/client/cli.py
index d551ea2..a176d44 100644
--- a/src/client/cli.py
+++ b/src/client/cli.py
@@ -1,10 +1,12 @@
 ''' The cmd line interface '''
 import cmd
 import json
+import _thread
 
 from src.client.helpers import cromulon
 # TODO: this module should not explicitly import persist or config. Need api fot this
 from src.core import mine, create_transaction, get_block, init_configuration
+from src.network.network import start_server, seed_peers
 
 
 class CLI(cmd.Cmd, object):
@@ -54,6 +56,7 @@ def do_block_info(self, arg):
         print(json.dumps(b, indent=4, sort_keys=True))
 
     def do_send(self, arg):
+        'Send an amount'
         # TODO: add exception handling for wrong input format
         try:
             args = arg.split()
@@ -103,6 +106,10 @@ def preloop(self):
         self.wallet = self.conf.get_conf("wallet")
         self.peers = self.conf.get_conf("peers")
 
+        # _thread.start_new_thread(start_server, ())  # start flask server on new thread
+        # seed_peers()
+
+
     def postloop(self):
         'Do stuff on end'
         # this is where we want to save all the data on exit
diff --git a/src/configuration/configuration.py b/src/configuration/configuration.py
index 31742c5..7a65d3d 100644
--- a/src/configuration/configuration.py
+++ b/src/configuration/configuration.py
@@ -56,14 +56,16 @@ def create_conf(self):
                 'address': hashed_address,
                 'amount': 0
             },
+            'ip': "0.0.0.0",
+            'port': "5000",
             'peers': {
                 '1': {
-                    'ip': "127.0.0.1",
-                    'port': 3390
+                    'ip': "0.0.0.0",
+                    'port': 5001
                 },
                 '2': {
-                    'ip': "localhost",
-                    'port': 3390
+                    'ip': "0.0.0.0",
+                    'port': 5002
                 }
             }
         }
@@ -89,6 +91,24 @@ def update_previous_hash(self, block_hash):
         self.save_conf()
         return self.conf
 
+    def add_balance(self, new_amount):
+        """
+        Updates the wallet amount, aka the balance, by adding new_amount
+        :param new_amount: amount to add
+        :return: None
+        """
+        self.conf["wallet"]["amount"] = self.conf["wallet"]["amount"] + new_amount
+        self.save_conf()
+
+    def subtract_balance(self, amount):
+        """
+        Subtracts an amount from the balance
+        :param amount: amount to subtract
+        :return: None
+        """
+        self.conf["wallet"]["amount"] = self.conf["wallet"]["amount"] - amount
+        self.save_conf()
+
     def get_conf(self, key=None):
         """
         returns the value for the matching key in the configuration
diff --git a/src/core/__init__.py b/src/core/__init__.py
index a0bb0da..0d166ae 100644
--- a/src/core/__init__.py
+++ b/src/core/__init__.py
@@ -1 +1,2 @@
-from src.core.api import mine, create_transaction, get_block, init_configuration
\ No newline at end of file
+from src.core.api import mine, create_transaction, get_block, init_configuration
+from src.core import threader
\ No newline at end of file
diff --git a/src/core/api.py b/src/core/api.py
index d478852..3a678e6 100644
--- a/src/core/api.py
+++ b/src/core/api.py
@@ -8,7 +8,7 @@
 from src.configuration import Configuration
 from src.transaction import Transaction
 from src.wallet import get_public_key, get_private_key
-
+from src.network import network
 
 def mine():
     # config object
@@ -26,7 +26,16 @@ def mine():
     save_block(b)
     conf.increment_height()
     conf.update_previous_hash(b.block_hash())
+    # TODO: create new transmit with mined block
+    network.transmit(b, "block")
 
+def verify_block(b):
+    # need to check txns
+    conf = Configuration()
+    bh = Block(payload=json.loads(b))
+    save_block(bh)
+    conf.increment_height()
+    conf.update_previous_hash(bh.block_hash())
 
 def create_transaction(recipient, amount):
     """
@@ -41,6 +50,8 @@ def create_transaction(recipient, amount):
         tx.add_output(recipient, amount)
         tx.unlock_inputs(get_private_key(), get_public_key("string"))
         save_verified_transaction(tx.get_transaction_id(), tx.get_data())
+        network.transmit(tx.get_data(), "txn")
+
     except ValueError as e:
         # Will raise if insufficient utxos are found
         raise ValueError("INSUFFICIENT FUNDS")
diff --git a/src/core/threader.py b/src/core/threader.py
new file mode 100644
index 0000000..38ce7d8
--- /dev/null
+++ b/src/core/threader.py
@@ -0,0 +1,31 @@
+import threading
+
+# class Threader(object):
+#     '''
+#     Threading class for the application
+#     '''
+#
+#     def __init__(self):
+#         self.threads = []
+#
+#     def startBackgroundThread(self, method, args=False):
+#         '''
+#         Start new thread
+#         '''
+#
+#         if args:
+#             newThread = threading.Thread(target=method, args=args)
+#         else:
+#             newThread = threading.Thread(target=method)
+#
+#         newThread.start()
+#
+#         self.threads.append(newThread)
+#
+#     def waitForThreads(self, timeout=5.00):
+#         '''
+#         Send stop signal to threads and wait for them to end
+#         '''
+#
+#         for thread in self.threads:
+#             thread.join(timeout)
\ No newline at end of file
diff --git a/src/network/__init__.py b/src/network/__init__.py
new file mode 100644
index 0000000..75d0058
--- /dev/null
+++ b/src/network/__init__.py
@@ -0,0 +1 @@
+from src.network import network
diff --git a/src/network/network.py b/src/network/network.py
new file mode 100644
index 0000000..67e75de
--- /dev/null
+++ b/src/network/network.py
@@ -0,0 +1,184 @@
+'''
+Networking - Server
+- handle seeding peers
+- handle recieving new block
+- handle updating chain on startup
+- handle transmitting new block to network
+- handle recieving new transaction from network
+- handle transmitting new transaction to network
+'''
+
+from flask import Flask
+from flask import request
+import requests
+import logging, json, os
+from src.configuration import Configuration
+from src.persist import block, save_verified_transaction, save_unverified_transaction
+from src.core import api as core
+from src.transaction import Transaction
+
+app = Flask(__name__)
+# app.logger.disabled = True
+log = logging.getLogger('werkzeug')
+log.setLevel(logging.ERROR)
+
+def start_server():
+    '''
+    Starts the server and prevents default start
+    :return:
+    '''
+    app.run(host='0.0.0.0', port='5000', use_reloader=False, debug=False)
+
+
+def seed_peers():
+    '''
+    seed peers by connecting to firebase cloud function that returns a list of peers.
+    :return:
+    '''
+    conf = Configuration()
+    url = 'https://us-central1-abc-network.cloudfunctions.net/getpeers/'
+    port = conf.get_conf("port")  # expecting {port: 50050}
+    p = {'port': port}
+    r = requests.get(url, params=p)  # Not currently working. maybe requires POST?
+    return r.json()
+
+
+def req_post(host, endpoint, port, data):
+    '''
+    trasmit data by making a request to peers
+    :return:
+    '''
+    # post request
+    # for each peer, make a request to the endpoint with the appropriate data
+    url = 'http://{0}:{2}/{1}'.format(host, endpoint, port)
+    payload = json.dumps(data)
+    headers = {'content-type': 'application/json', 'dataType': 'json'}
+    r = requests.post(url, data=payload, headers=headers)
+    # print(r.json())
+    return r.json()
+
+def req_get(host, endpoint, port, data=None):
+    '''
+    receive data from peer through a get request to an endpoint
+    :return:
+    '''
+    # get request
+    url = 'http://{0}:{2}/{1}'.format(host, endpoint, port)
+    p = data
+    r = requests.get(url, params=p)
+    return r.json()
+
+def transmit(data, handler):
+    # send data to all peers
+    conf = Configuration()
+    peers = conf.get_conf("peers")
+    for n in peers:
+        p = peers[n]
+        h = req_post(p["ip"], handler, p["port"], data)  # make post to peer
+
+def sync():
+    '''
+    sync with peers by checking your height against peers and getting transactions.
+    :return:
+    '''
+    conf = Configuration()
+    peers = conf.get_conf("peers")
+    for n in peers:
+        p = peers[n]
+        h = req_get(p["ip"], "height", p["port"])  # make request to get peers height
+        while h > conf.get_conf("height"):
+            nb = req_get(p["ip"], "block", p["port"], conf.get_conf("last_block"))
+            core.verify_block(nb)
+
+
+def verify_incoming_tnx(data):
+    """
+    Deserializes transaction and verifies it. If so, add it to verified transaction
+    :param data: serialized transaction
+    :return: None
+    """
+    tnx_tuple = data.items()
+
+    tnx_payload = tnx_tuple[1]
+    tnx_payload["transaction_id"] = tnx_tuple[0]
+
+    tnx = Transaction(payload=tnx_payload)
+
+    if tnx.verify():
+        save_verified_transaction(tnx.get_transaction_id(), tnx.get_data())
+    else:
+        save_unverified_transaction(tnx.get_transaction_id(), tnx.get_data())
+
+@app.route('/', methods=['GET'])
+def test():
+    b = block.read_block("0000fff57a5e49c38152b54edfd587c738ba33708008c995d973c2d2238179a6")
+    r = transmit(b, "block")
+    # r = req_post('localhost', 'block', '5001', b)
+    return "working"
+
+@app.route('/block', methods=['POST'])
+# # recieve a new block from the network.
+# # should verify the block
+# # if valid stop mining, update height and transmit to peers
+# # start mining new block
+def h_block():
+    # handle getting new block
+    nb = request.get_json(silent=True)
+    core.verify_block(nb)
+    return json.dumps(nb)
+
+@app.route('/block', methods=['GET'])
+# # request for a certain block
+# # contain params for last block hash
+# # should return the next block
+def r_block():
+    bh = request.args.get("block")
+    b = block.find_block(bh)
+    return json.dumps(b)
+
+@app.route('/height', methods=['GET'])
+# request from network for block height
+# should return current block height
+def r_height():
+    conf = Configuration()
+    h = {'height': conf.get_conf("height")}
+    return json.dumps(h)
+
+@app.route('/txn', methods=['POST'])
+# # recieve a new txn from the network.
+# # should verify the txn
+# # transmit to peers either way
+# # add to verified or unverified txns list
+def h_txn():
+    # handle the txn
+    return "receive txn"
+
+@app.route('/txn', methods=['GET'])
+# # request for updated list of txns
+# # should return list of txns
+def r_txn():
+    try:
+        with open('{0}/verified_transactions.json'.format(os.path.join(os.getcwd(), r'data')), 'r') as file:
+            data = json.load(file)
+            file.close()
+    except IOError:
+        with open('{0}/verified_transactions.json'.format(os.path.join(os.getcwd(), r'data')), 'w') as file:
+            data = {}
+            json.dump(data, file)
+            file.close()
+    return json.dumps(data)
+
+@app.route('/peers', methods=['GET'])
+# request from network for peers
+# should return peers
+def r_peers():
+    conf = Configuration()
+    peers = conf.get_conf("peers")
+    return json.dumps(peers)
+
+@app.route('/ping', methods=['GET'])
+# # request to check if connection is alive
+# # should ping back
+def ping():
+    r = {'ping': 'pong'}
+    return json.dumps(r)
diff --git a/src/persist/block.py b/src/persist/block.py
index c8973d7..1d62e90 100644
--- a/src/persist/block.py
+++ b/src/persist/block.py
@@ -1,7 +1,7 @@
 """ Getting and Putting blocks into json files """
 import json
 import os
-from src.persist.utxo import save_utxo
+from src.configuration import Configuration
 
 
 def read_block(block_hash):
@@ -15,9 +15,20 @@ def read_block(block_hash):
         # file does not exist or not able to read file
         data = {}
         print(e)
-
     return data
 
+def find_block(parent_hash=None, block_hash=None):
+    # find the next block based on hash..
+    if not block_hash:
+        conf = Configuration()
+        block_hash = conf.get_conf("last_block")
+
+    b = read_block(block_hash)
+    if b["header"]["parent"] == parent_hash:
+        return b
+    else:
+        find_block(parent_hash, b["header"]["parent"])
+
 
 def save_block(b):
     # saves the block
@@ -26,4 +37,5 @@ def save_block(b):
             json.dump(b.info(), file, indent=4, sort_keys=True)
             file.close()
     except IOError as e:
-        print(e)
\ No newline at end of file
+        print(e)
+
diff --git a/src/persist/transaction.py b/src/persist/transaction.py
index be75693..cc640d2 100644
--- a/src/persist/transaction.py
+++ b/src/persist/transaction.py
@@ -1,49 +1,49 @@
-import os, json
-
-def save_verified_transaction(tnx_id, tnx_data):
-    """
-    Saves the transaction to the verified pool.
-    Note that it will save the transaction as a key-value pair where the id is the key and the rest is the value
-    :param tnx_id: transaction id
-    :param tnx_data: transaction data
-    :return: None
-    """
-    verified_tnx = {tnx_id: tnx_data}
-    try:
-        with open('{0}/verified_transactions.json'.format(os.path.join(os.getcwd(), r'data')), 'r+') as file:
-            data = json.load(file)
-            data.update(verified_tnx)
-
-            file.seek(0)
-            json.dump(data, file)
-            file.close()
-    except IOError as e:
-        with open('{0}/verified_transactions.json'.format(os.path.join(os.getcwd(), r'data')), 'w') as file:
-            data = {}
-            data.update(verified_tnx)
-            json.dump(data, file)
-            file.close()
-
-def save_unverified_transaction(tnx_id, tnx_data):
-    """
-    Saves the transaction to the unverified pool.
-    Note that it will save the transaction as a key-value pair where the id is the key and the rest is the value
-    :param tnx_id: transaction id
-    :param tnx_data: transaction data
-    :return: None
-    """
-    unverified_tnx = {tnx_id: tnx_data}
-    try:
-        with open('{0}/unverified_transactions.json'.format(os.path.join(os.getcwd(), r'data')), 'r+') as file:
-            data = json.load(file)
-            data.update([unverified_tnx])
-
-            file.seek(0)
-            json.dump(data, file)
-            file.close()
-    except IOError as e:
-        with open('{0}/unverified_transactions.json'.format(os.path.join(os.getcwd(), r'data')), 'w') as file:
-            data = {}
-            data.update([unverified_tnx])
-            json.dump(data, file)
+import os, json
+
+def save_verified_transaction(tnx_id, tnx_data):
+    """
+    Saves the transaction to the verified pool.
+    Note that it will save the transaction as a key-value pair where the id is the key and the rest is the value
+    :param tnx_id: transaction id
+    :param tnx_data: transaction data
+    :return: None
+    """
+    verified_tnx = {tnx_id: tnx_data}
+    try:
+        with open('{0}/verified_transactions.json'.format(os.path.join(os.getcwd(), r'data')), 'r+') as file:
+            data = json.load(file)
+            data.update(verified_tnx)
+
+            file.seek(0)
+            json.dump(data, file)
+            file.close()
+    except IOError as e:
+        with open('{0}/verified_transactions.json'.format(os.path.join(os.getcwd(), r'data')), 'w') as file:
+            data = {}
+            data.update(verified_tnx)
+            json.dump(data, file)
+            file.close()
+
+def save_unverified_transaction(tnx_id, tnx_data):
+    """
+    Saves the transaction to the unverified pool.
+    Note that it will save the transaction as a key-value pair where the id is the key and the rest is the value
+    :param tnx_id: transaction id
+    :param tnx_data: transaction data
+    :return: None
+    """
+    unverified_tnx = {tnx_id: tnx_data}
+    try:
+        with open('{0}/unverified_transactions.json'.format(os.path.join(os.getcwd(), r'data')), 'r+') as file:
+            data = json.load(file)
+            data.update([unverified_tnx])
+
+            file.seek(0)
+            json.dump(data, file)
+            file.close()
+    except IOError as e:
+        with open('{0}/unverified_transactions.json'.format(os.path.join(os.getcwd(), r'data')), 'w') as file:
+            data = {}
+            data.update([unverified_tnx])
+            json.dump(data, file)
             file.close()
\ No newline at end of file
diff --git a/src/persist/utxo.py b/src/persist/utxo.py
index a962fe2..1e6c1c0 100644
--- a/src/persist/utxo.py
+++ b/src/persist/utxo.py
@@ -1,114 +1,114 @@
-import copy
-import json
-import os
-
-_PATH_UNSPENT_TNX = '{0}/utxo.json'.format(os.path.join(os.getcwd(), r'data'))
-
-
-def get_unspent_outputs(amount):
-    """
-    Create a dict of unspent transaction outputs that add up
-    to or exceed `amount`
-    NOTE: This function assumes that the TX fee is included in the param amount
-    NOTE: This is most efficient if UTXOs are sorted in descending amount value
-    :param amount: the minimum amount required from the utxos
-    :return: a dict of utxo's if sufficient funds found, otherwise an empty dict. Also returns utxo sum
-    """
-
-    try:
-        with open(_PATH_UNSPENT_TNX) as file:
-            data = json.load(file)
-            file.close()
-    except IOError:
-        with open(_PATH_UNSPENT_TNX, 'w') as file:
-            data = {}
-            json.dump(data, file)
-            file.close()
-
-    utxos = copy.deepcopy(data)
-    selected_utxos = []
-    utxo_sum = 0
-
-    # NOTE: This is random at the moment
-    for key, value in utxos.items():
-        if utxo_sum < amount:
-            selected_utxos.append({
-                "transaction_id": key,
-                "output_index": value["index"],
-                "block_hash": value["block"]})
-            data.pop(key)
-            utxo_sum = utxo_sum + value["amount"]
-        else:
-            break
-
-    if utxo_sum >= amount:
-        # if there was sufficient funds, remove them from the utxo file
-        with open('{0}/utxo.json'.format(os.path.join(os.getcwd(), r'data')), 'w') as file:
-            json.dump(data, file)
-            file.close()
-    else:
-        raise ValueError("Insufficient funds")
-    return selected_utxos, utxo_sum
-
-
-def find_unspent_output(transaction_id, output_index, block_hash):
-    """
-    Get an unspent transaction output from the block chain
-    :param transaction_id: id of the transaction
-    :param output_index: index of the output within the transaction
-    :param block_hash: the block hash of the transaction
-    :return:
-
-        a dict representing an unspent transaction output in the form:
-
-        {
-            "transaction_id": "",
-            "output_index": "",
-            "address": "",
-            "amount": ""
-        }
-
-    """
-
-    try:
-        with open('{0}/{1}.json'.format(os.path.join(os.getcwd(), r'data'), block_hash)) as file:
-            data = json.load(file)
-            file.close()
-
-            output = data["transactions"][transaction_id]["outputs"][output_index]
-
-            # adding additional info to the output object(since the output structure does not include index or id)
-            output["transaction_id"] = transaction_id
-            output["output_index"] = output_index
-
-        return output
-    except IOError as e:
-        # file does not exist or not able to read file
-        print(e)
-    except KeyError as e:
-        # error finding utxo
-        print('Transaction not found\nTXID:{0}'.format(e))
-
-def save_utxo(transaction_id, output_index, block_hash, amount):
-    new_utxo = {"{0}".format(transaction_id): {
-        "amount": amount,
-        "index": output_index,
-        "block": block_hash
-    }}
-
-    try:
-        with open(_PATH_UNSPENT_TNX, 'r+') as file:
-            data = json.load(file)
-            data.update(new_utxo)
-
-            file.seek(0)
-            json.dump(data, file)
-            file.close()
-    except IOError:
-        with open(_PATH_UNSPENT_TNX, 'w') as file:
-            data = {}
-
-            data.update(new_utxo)
-            json.dump(data, file)
-            file.close()
-
+import copy
+import json
+import os
+
+_PATH_UNSPENT_TNX = '{0}/utxo.json'.format(os.path.join(os.getcwd(), r'data'))
+
+
+def get_unspent_outputs(amount):
+    """
+    Create a dict of unspent transaction outputs that add up
+    to or exceed `amount`
+    NOTE: This function assumes that the TX fee is included in the param amount
+    NOTE: This is most efficient if UTXOs are sorted in descending amount value
+    :param amount: the minimum amount required from the utxos
+    :return: a dict of utxo's if sufficient funds found, otherwise an empty dict. Also returns utxo sum
+    """
+
+    try:
+        with open(_PATH_UNSPENT_TNX) as file:
+            data = json.load(file)
+            file.close()
+    except IOError:
+        with open(_PATH_UNSPENT_TNX, 'w') as file:
+            data = {}
+            json.dump(data, file)
+            file.close()
+
+    utxos = copy.deepcopy(data)
+    selected_utxos = []
+    utxo_sum = 0
+
+    # NOTE: This is random at the moment
+    for key, value in utxos.items():
+        if utxo_sum < amount:
+            selected_utxos.append({
+                "transaction_id": key,
+                "output_index": value["index"],
+                "block_hash": value["block"]})
+            data.pop(key)
+            utxo_sum = utxo_sum + value["amount"]
+        else:
+            break
+
+    if utxo_sum >= amount:
+        # if there was sufficient funds, remove them from the utxo file
+        with open('{0}/utxo.json'.format(os.path.join(os.getcwd(), r'data')), 'w') as file:
+            json.dump(data, file)
+            file.close()
+    else:
+        raise ValueError("Insufficient funds")
+    return selected_utxos, utxo_sum
+
+
+def find_unspent_output(transaction_id, output_index, block_hash):
+    """
+    Get an unspent transaction output from the block chain
+    :param transaction_id: id of the transaction
+    :param output_index: index of the output within the transaction
+    :param block_hash: the block hash of the transaction
+    :return:
+
+        a dict representing an unspent transaction output in the form:
+
+        {
+            "transaction_id": "",
+            "output_index": "",
+            "address": "",
+            "amount": ""
+        }
+
+    """
+
+    try:
+        with open('{0}/{1}.json'.format(os.path.join(os.getcwd(), r'data'), block_hash)) as file:
+            data = json.load(file)
+            file.close()
+
+            output = data["transactions"][transaction_id]["outputs"][output_index]
+
+            # adding additional info to the output object(since the output structure does not include index or id)
+            output["transaction_id"] = transaction_id
+            output["output_index"] = output_index
+
+        return output
+    except IOError as e:
+        # file does not exist or not able to read file
+        print(e)
+    except KeyError as e:
+        # error finding utxo
+        print('Transaction not found\nTXID:{0}'.format(e))
+
+def save_utxo(transaction_id, output_index, block_hash, amount):
+    new_utxo = {"{0}".format(transaction_id): {
+        "amount": amount,
+        "index": output_index,
+        "block": block_hash
+    }}
+
+    try:
+        with open(_PATH_UNSPENT_TNX, 'r+') as file:
+            data = json.load(file)
+            data.update(new_utxo)
+
+            file.seek(0)
+            json.dump(data, file)
+            file.close()
+    except IOError:
+        with open(_PATH_UNSPENT_TNX, 'w') as file:
+            data = {}
+
+            data.update(new_utxo)
+            json.dump(data, file)
+            file.close()
+
diff --git a/src/transaction/transaction.py b/src/transaction/transaction.py
index 2f153c2..d66685a 100644
--- a/src/transaction/transaction.py
+++ b/src/transaction/transaction.py
@@ -236,6 +236,16 @@ def get_data(self):
         }
         return transaction
 
+    def sum_of_outputs(self):
+        """
+        Calculates the sum of all outputs
+        :return: Double
+       """
+        total = 0
+
+        for output in self.outputs:
+            total = total + output["amount"]
+        return total
 
 def create_coinbase_tx(reward_amount):
     """