diff --git a/lib/bcoin/chain.js b/lib/bcoin/chain.js
index aabf97e7..3988492f 100644
--- a/lib/bcoin/chain.js
+++ b/lib/bcoin/chain.js
@@ -699,8 +699,10 @@ Chain.prototype._checkInputs = function _checkInputs(block, prev, flags, callbac
           utils.debug('Block has invalid inputs: %s (%s/%d)',
             block.rhash, tx.rhash, j);
           utils.debug(input);
-          utils.debug('Signature Hash: %s',
-            utils.toHex(tx.signatureHash(j, input.output.script, 'all')));
+          utils.debug('Signature Hash v0: %s',
+            utils.toHex(tx.signatureHash(j, input.output.script, 'all', 0)));
+          utils.debug('Signature Hash v1: %s',
+            utils.toHex(tx.signatureHash(j, input.output.script, 'all', 1)));
           utils.debug('Raw Script: %s',
             utils.toHex(input.output.script._raw || []));
           utils.debug('Reserialized Script: %s',
diff --git a/lib/bcoin/mtx.js b/lib/bcoin/mtx.js
index 61c097ef..63321311 100644
--- a/lib/bcoin/mtx.js
+++ b/lib/bcoin/mtx.js
@@ -305,7 +305,7 @@ MTX.prototype.scriptInput = function scriptInput(index, addr) {
   return true;
 };
 
-MTX.prototype.createSignature = function createSignature(index, prev, key, type) {
+MTX.prototype.createSignature = function createSignature(index, prev, key, type, version) {
   var prev, hash, signature;
 
   if (typeof index !== 'number')
@@ -319,7 +319,7 @@ MTX.prototype.createSignature = function createSignature(index, prev, key, type)
 
   // Get the hash of the current tx, minus the other
   // inputs, plus the sighash type.
-  hash = this.signatureHash(index, prev, type);
+  hash = this.signatureHash(index, prev, type, version);
 
   // Sign the transaction with our one input
   signature = bcoin.script.sign(hash, key, type);
@@ -332,7 +332,7 @@ MTX.prototype.createSignature = function createSignature(index, prev, key, type)
 
 MTX.prototype.signInput = function signInput(index, addr, type) {
   var input, prev, signature, ki, signatures, i;
-  var len, m, n, keys, vector, dummy;
+  var len, m, n, keys, vector, dummy, version;
 
   if (typeof index !== 'number')
     index = this.inputs.indexOf(index);
@@ -350,6 +350,7 @@ MTX.prototype.signInput = function signInput(index, addr, type) {
   vector = input.script;
   len = vector.length;
   dummy = 0;
+  version = 0;
 
   // We need to grab the redeem script when
   // signing p2sh transactions.
@@ -369,15 +370,17 @@ MTX.prototype.signInput = function signInput(index, addr, type) {
     vector = input.witness;
     len = vector.length - 1;
     dummy = new Buffer([]);
+    version = 1;
   } else if (bcoin.script.isWitnessPubkeyhash(prev)) {
     prev = bcoin.script.createPubkeyhash(prev[1]);
     vector = input.witness;
     len = vector.length;
     dummy = new Buffer([]);
+    version = 1;
   }
 
   // Create our signature.
-  signature = this.createSignature(index, prev, addr.key, type);
+  signature = this.createSignature(index, prev, addr.key, type, version);
 
   // Add signatures.
   if (bcoin.script.isPubkey(prev)) {
diff --git a/lib/bcoin/script.js b/lib/bcoin/script.js
index ce36b23e..91edec77 100644
--- a/lib/bcoin/script.js
+++ b/lib/bcoin/script.js
@@ -303,14 +303,14 @@ script.verify = function verify(input, witness, output, tx, i, flags) {
   }
 
   // Execute the input script
-  script.execute(input, stack, tx, i, flags);
+  script.execute(input, stack, tx, i, flags, 0);
 
   // Copy the stack for P2SH
   if (flags & constants.flags.VERIFY_P2SH)
     copy = stack.slice();
 
   // Execute the previous output script
-  res = script.execute(output, stack, tx, i, flags);
+  res = script.execute(output, stack, tx, i, flags, 0);
 
   // Verify the script did not fail as well as the stack values
   if (!res || stack.length === 0 || !script.bool(stack.pop()))
@@ -354,7 +354,7 @@ script.verify = function verify(input, witness, output, tx, i, flags) {
     redeem = script.decode(raw);
 
     // Execute the redeem script
-    res = script.execute(redeem, stack, tx, i, flags);
+    res = script.execute(redeem, stack, tx, i, flags, 0);
 
     // Verify the script did not fail as well as the stack values
     if (!res || stack.length === 0 || !script.bool(stack.pop()))
@@ -465,7 +465,7 @@ script.verifyProgram = function verifyProgram(witness, output, tx, i, flags) {
   utils.debug(bcoin.script.format(stack));
   utils.debug(bcoin.script.format(redeem));
 
-  res = script.execute(redeem, stack, tx, i, flags);
+  res = script.execute(redeem, stack, tx, i, flags, 1);
 
   utils.debug(bcoin.script.format(stack));
 
@@ -581,7 +581,7 @@ script._next = function _next(to, s, pc) {
   return -1;
 };
 
-script.execute = function execute(data, stack, tx, index, flags, recurse) {
+script.execute = function execute(data, stack, tx, index, flags, version, recurse) {
   var s = data.slice();
 
   if (flags == null)
@@ -1053,7 +1053,7 @@ script.execute = function execute(data, stack, tx, index, flags, recurse) {
         subscript = script.getSubscript(data, lastSep);
         script.removeData(subscript, sig);
 
-        hash = tx.signatureHash(index, subscript, type);
+        hash = tx.signatureHash(index, subscript, type, version);
 
         res = script.checksig(hash, sig, key, flags);
         if (o === 'checksigverify') {
@@ -1112,7 +1112,7 @@ script.execute = function execute(data, stack, tx, index, flags, recurse) {
 
           type = sig[sig.length - 1];
 
-          hash = tx.signatureHash(index, subscript, type);
+          hash = tx.signatureHash(index, subscript, type, version);
 
           res = false;
           for (; !res && j < n; j++)
@@ -1215,7 +1215,9 @@ script.execute = function execute(data, stack, tx, index, flags, recurse) {
         if (res)
           return false;
 
-        res = script.execute(evalScript, stack, tx, index, flags, recurse);
+        res = script.execute(
+          evalScript, stack, tx, index, flags, version, recurse);
+
         if (!res)
           return false;
 
diff --git a/lib/bcoin/tx.js b/lib/bcoin/tx.js
index 00bcf874..2c6d8869 100644
--- a/lib/bcoin/tx.js
+++ b/lib/bcoin/tx.js
@@ -212,7 +212,15 @@ TX.prototype.getSubscript = function getSubscript(index) {
   return bcoin.script.getSubscript(script);
 };
 
-TX.prototype.signatureHash = function signatureHash(index, s, type) {
+TX.prototype.signatureHash = function signatureHash(index, s, type, version) {
+  assert(version >= 0 && version <= 1);
+  if (version === 0)
+    return this.signatureHashV0(index, s, type);
+  if (version === 1)
+    return this.signatureHashV1(index, s, type);
+};
+
+TX.prototype.signatureHashV0 = function signatureHashV0(index, s, type) {
   var copy = this.clone();
   var i, msg, hash;
 
@@ -288,6 +296,98 @@ TX.prototype.signatureHash = function signatureHash(index, s, type) {
   return hash;
 };
 
+TX.prototype.signatureHashV1 = function signatureHashV1(index, s, type) {
+  var i, msg, hash, hashPrevouts, hashSequence, hashOutputs;
+  var size, outputs, output, off, prev;
+
+  if (typeof index !== 'number')
+    index = this.inputs.indexOf(index);
+
+  if (typeof type === 'string')
+    type = constants.hashType[type];
+
+  assert(index >= 0 && index < this.inputs.length)
+  assert(Array.isArray(s));
+
+  if (!(type & constants.hashType.anyonecanpay)) {
+    hashPrevouts = new Buffer(36 * this.inputs.length);
+    off = 0;
+    for (i = 0; i < this.inputs.length; i++) {
+      prev = this.inputs[i].prevout;
+      off += utils.copy(new Buffer(prev.hash, 'hex'), hashPrevouts, off);
+      off += utils.writeU32(hashPrevouts, prev.index, off);
+    }
+    hashPrevouts = utils.dsha256(hashPrevouts);
+  } else {
+    hashPrevouts = new Buffer(32);
+    hashPrevouts.fill(0);
+  }
+
+  if (!(type & constants.hashType.anyonecanpay)
+      && (type & 0x1f) !== constants.hashType.single
+      && (type & 0x1f) !== constants.hashType.none) {
+    hashSequence = new Buffer(4 * this.inputs.length);
+    off = 0;
+    for (i = 0; i < this.inputs.length; i++)
+      off += utils.writeU32(hashSequence, this.inputs[i].sequence, off);
+    hashSequence = utils.dsha256(hashSequence);
+  } else {
+    hashSequence = new Buffer(32);
+    hashSequence.fill(0);
+  }
+
+  if ((type & 0x1f) !== constants.hashType.single
+      && (type & 0x1f) !== constants.hashType.none) {
+    size = 0;
+    outputs = [];
+    for (i = 0; i < this.outputs.length; i++) {
+      output = bcoin.protocol.framer.output(this.outputs[i]);
+      size += output.length;
+      outputs.push(output);
+    }
+    hashOutputs = new Buffer(size);
+    off = 0;
+    for (i = 0; i < outputs.length; i++)
+      off += utils.copy(outputs[i], hashOutputs, off);
+    hashOutputs = utils.dsha256(hashOutputs);
+  } else if ((type & 0x1f) === constants.hashType.single && index < this.outputs.length) {
+    hashOutputs = bcoin.protocol.framer.output(this.outputs[index]);
+    hashOutputs = utils.dsha256(hashOutputs);
+  } else {
+    hashOutputs = new Buffer(32);
+    hashOutputs.fill(0);
+  }
+
+  s = bcoin.script.encode(s);
+
+  msg = new Buffer(
+    4 + 32 + 32 + 36
+    + utils.sizeIntv(s.length)
+    + s.length
+    + 8 + 4 + 32 + 4 + 4);
+
+  off = 0;
+  off += utils.write32(msg, this.version, off);
+  off += utils.copy(hashPrevouts, msg, off);
+  off += utils.copy(hashSequence, msg, off);
+  off += utils.copy(new Buffer(this.inputs[index].prevout.hash, 'hex'), msg, off);
+  off += utils.writeU32(msg, this.inputs[index].prevout.index, off);
+  assert(off === 4 + 32 + 32 + 36);
+  off += utils.writeIntv(msg, s.length, off);
+  off += utils.copy(s, msg, off);
+  off += utils.write64(msg, this.inputs[index].output.value, off);
+  off += utils.writeU32(msg, this.inputs[index].sequence, off);
+  off += utils.copy(hashOutputs, msg, off);
+  off += utils.writeU32(msg, this.locktime, off);
+  assert(off === msg.length - 4);
+  off += utils.writeU32(msg, type, off);
+  assert(off === msg.length);
+
+  hash = utils.dsha256(msg);
+
+  return hash;
+};
+
 TX.prototype.normalizedHash = function normalizedHash(enc, force) {
   var copy = this.clone();
   var i;