diff --git a/lib/blockchain/chain.js b/lib/blockchain/chain.js
index 287e011b..19d95b93 100644
--- a/lib/blockchain/chain.js
+++ b/lib/blockchain/chain.js
@@ -286,7 +286,8 @@ Chain.prototype.verify = co(function* verify(block, prev) {
   if (this.isGenesis(block))
     return this.state;
 
-  if (!block.verify(now, ret)) {
+  // Non-contextual checks.
+  if (!block.verify(ret)) {
     err = new VerifyError(block,
       'invalid',
       ret.reason,
@@ -295,11 +296,7 @@ Chain.prototype.verify = co(function* verify(block, prev) {
     // High hash is the only thing an
     // adversary couldn't mutate in
     // otherwise valid non-contextual
-    // checks. The block timestamp
-    // can't be mutated, but our
-    // adjusted time might be off.
-    // We may be able to accept the
-    // block later.
+    // checks.
     if (ret.reason !== 'high-hash')
       err.malleated = true;
 
@@ -322,17 +319,7 @@ Chain.prototype.verify = co(function* verify(block, prev) {
       return this.state;
   }
 
-  height = prev.height + 1;
   ancestors = yield prev.getRetargetAncestors();
-  medianTime = prev.getMedianTime(ancestors);
-
-  // Ensure the timestamp is correct.
-  if (block.ts <= medianTime) {
-    throw new VerifyError(block,
-      'invalid',
-      'time-too-old',
-      0);
-  }
 
   // Ensure the POW is what we expect.
   if (block.bits !== this.getTarget(block, prev, ancestors)) {
@@ -342,9 +329,48 @@ Chain.prototype.verify = co(function* verify(block, prev) {
       100);
   }
 
+  // Ensure the timestamp is correct.
+  medianTime = prev.getMedianTime(ancestors);
+
+  if (block.ts <= medianTime) {
+    throw new VerifyError(block,
+      'invalid',
+      'time-too-old',
+      0);
+  }
+
+  // Check timestamp against adj-time+2hours.
+  // If this fails we may be able to accept
+  // the block later.
+  if (block.ts > now + 2 * 60 * 60) {
+    err = new VerifyError(block,
+      'invalid',
+      'time-too-new',
+      0);
+    err.malleated = true;
+    throw err;
+  }
+
   // Get the new deployment state.
   state = yield this.getDeployments(block, prev);
 
+  // Get timestamp for tx.isFinal().
+  ts = state.hasMTP() ? medianTime : block.ts;
+  height = prev.height + 1;
+
+  // Transactions must be finalized with
+  // regards to nSequence and nLockTime.
+  for (i = 0; i < block.txs.length; i++) {
+    tx = block.txs[i];
+
+    if (!tx.isFinal(height, ts)) {
+      throw new VerifyError(block,
+        'invalid',
+        'bad-txns-nonfinal',
+        10);
+    }
+  }
+
   // Make sure the height contained
   // in the coinbase is correct.
   if (state.hasBIP34()) {
@@ -408,22 +434,6 @@ Chain.prototype.verify = co(function* verify(block, prev) {
       100);
   }
 
-  // Get timestamp for tx.isFinal().
-  ts = state.hasMTP() ? medianTime : block.ts;
-
-  // Transactions must be finalized with
-  // regards to nSequence and nLockTime.
-  for (i = 0; i < block.txs.length; i++) {
-    tx = block.txs[i];
-
-    if (!tx.isFinal(height, ts)) {
-      throw new VerifyError(block,
-        'invalid',
-        'bad-txns-nonfinal',
-        10);
-    }
-  }
-
   return state;
 });
 
@@ -441,17 +451,6 @@ Chain.prototype.getDeployments = co(function* getDeployments(block, prev) {
   var state = new DeploymentState();
   var active;
 
-  // For some reason bitcoind has p2sh in the
-  // mandatory flags by default, when in reality
-  // it wasn't activated until march 30th 2012.
-  // The first p2sh output and redeem script
-  // appeared on march 7th 2012, only it did
-  // not have a signature. See:
-  // 6a26d2ecb67f27d1fa5524763b49029d7106e91e3cc05743073461a719776192
-  // 9c08a4d78931342b37fd5f72900fb9983087e6f46c4a097d8a1f52c74e28eaf6
-  if (block.ts >= constants.block.BIP16_TIME)
-    state.flags |= constants.flags.VERIFY_P2SH;
-
   // Only allow version 2 blocks (coinbase height)
   // once the majority of blocks are using it.
   if (block.version < 2 && height >= this.network.block.bip34height)
@@ -474,6 +473,17 @@ Chain.prototype.getDeployments = co(function* getDeployments(block, prev) {
       throw new VerifyError(block, 'obsolete', 'bad-version', 0);
   }
 
+  // For some reason bitcoind has p2sh in the
+  // mandatory flags by default, when in reality
+  // it wasn't activated until march 30th 2012.
+  // The first p2sh output and redeem script
+  // appeared on march 7th 2012, only it did
+  // not have a signature. See:
+  // 6a26d2ecb67f27d1fa5524763b49029d7106e91e3cc05743073461a719776192
+  // 9c08a4d78931342b37fd5f72900fb9983087e6f46c4a097d8a1f52c74e28eaf6
+  if (block.ts >= constants.block.BIP16_TIME)
+    state.flags |= constants.flags.VERIFY_P2SH;
+
   // Coinbase heights are now enforced (bip34).
   if (height >= this.network.block.bip34height)
     state.bip34 = true;
@@ -1249,7 +1259,7 @@ Chain.prototype._add = co(function* add(block) {
     // This is only necessary for new
     // blocks coming in, not the resolving
     // orphans.
-    if (initial && !block.verify(now, ret)) {
+    if (initial && !block.verify(ret)) {
       if (ret.reason === 'high-hash')
         this.invalid[hash] = true;
       this.emit('invalid', block, block.getCoinbaseHeight());
diff --git a/lib/http/rpc.js b/lib/http/rpc.js
index 3a65cba9..5b90bb80 100644
--- a/lib/http/rpc.js
+++ b/lib/http/rpc.js
@@ -1241,7 +1241,6 @@ RPC.prototype.gettxoutproof = co(function* gettxoutproof(args) {
 });
 
 RPC.prototype.verifytxoutproof = co(function* verifytxoutproof(args) {
-  var now = this.network.now();
   var res = [];
   var i, block, hash, entry;
 
@@ -1250,7 +1249,7 @@ RPC.prototype.verifytxoutproof = co(function* verifytxoutproof(args) {
 
   block = MerkleBlock.fromRaw(toString(args[0]), 'hex');
 
-  if (!block.verify(now))
+  if (!block.verify())
     return res;
 
   entry = yield this.chain.db.getEntry(block.hash('hex'));
@@ -1311,7 +1310,6 @@ RPC.prototype._submitwork = co(function* _submitwork(data) {
 });
 
 RPC.prototype.__submitwork = co(function* _submitwork(data) {
-  var now = this.network.now();
   var attempt = this.attempt;
   var block, header, cb, cur;
 
@@ -1333,7 +1331,7 @@ RPC.prototype.__submitwork = co(function* _submitwork(data) {
     return false;
   }
 
-  if (!header.verify(now))
+  if (!header.verify())
     return false;
 
   cb = this.coinbase[header.merkleRoot];
@@ -4012,7 +4010,6 @@ RPC.prototype.walletpassphrase = co(function* walletpassphrase(args) {
 });
 
 RPC.prototype.importprunedfunds = co(function* importprunedfunds(args) {
-  var now = this.network.now();
   var tx, block, label, height;
 
   if (args.help || args.length < 2 || args.length > 3) {
@@ -4032,7 +4029,7 @@ RPC.prototype.importprunedfunds = co(function* importprunedfunds(args) {
   if (args.length === 3)
     label = toString(args[2]);
 
-  if (!block.verify(now))
+  if (!block.verify())
     throw new RPCError('Invalid proof.');
 
   if (!block.hasTX(tx))
diff --git a/lib/net/bip152.js b/lib/net/bip152.js
index ac174ae3..d486c12c 100644
--- a/lib/net/bip152.js
+++ b/lib/net/bip152.js
@@ -52,8 +52,8 @@ function CompactBlock(options) {
 
 util.inherits(CompactBlock, AbstractBlock);
 
-CompactBlock.prototype._verify = function _verify(now, ret) {
-  return this.verifyHeaders(now, ret);
+CompactBlock.prototype._verify = function _verify(ret) {
+  return this.verifyHeaders(ret);
 };
 
 CompactBlock.prototype.fromOptions = function fromOptions(options) {
diff --git a/lib/net/pool.js b/lib/net/pool.js
index b0b90386..ed170437 100644
--- a/lib/net/pool.js
+++ b/lib/net/pool.js
@@ -756,12 +756,11 @@ Pool.prototype._handleHeaders = co(function* _handleHeaders(headers, peer) {
  */
 
 Pool.prototype.__handleHeaders = co(function* _handleHeaders(headers, peer) {
-  var i, now, ret, header, hash, last;
+  var i, ret, header, hash, last;
 
   if (!this.options.headers)
     return;
 
-  now = this.network.now();
   ret = new VerifyResult();
 
   this.logger.debug(
@@ -787,7 +786,7 @@ Pool.prototype.__handleHeaders = co(function* _handleHeaders(headers, peer) {
       throw new Error('Bad header chain.');
     }
 
-    if (!header.verify(now, ret)) {
+    if (!header.verify(ret)) {
       peer.reject(header, 'invalid', ret.reason, 100);
       throw new Error('Invalid header.');
     }
diff --git a/lib/primitives/abstractblock.js b/lib/primitives/abstractblock.js
index 5ad0855f..ced1cccd 100644
--- a/lib/primitives/abstractblock.js
+++ b/lib/primitives/abstractblock.js
@@ -187,11 +187,11 @@ AbstractBlock.prototype.abbr = function abbr(writer) {
  * @returns {Boolean}
  */
 
-AbstractBlock.prototype.verify = function verify(now, ret) {
+AbstractBlock.prototype.verify = function verify(ret) {
   var valid = this._valid;
 
   if (valid == null) {
-    valid = this._verify(now, ret);
+    valid = this._verify(ret);
     if (!this.mutable)
       this._valid = valid;
   }
@@ -202,16 +202,12 @@ AbstractBlock.prototype.verify = function verify(now, ret) {
 /**
  * Verify the block headers (called by `verify()` in
  * all objects which inherit from AbstractBlock).
- * @param {Number|null} - Adjusted time.
  * @param {Object?} ret - Return object, may be
  * set with properties `reason` and `score`.
  * @returns {Boolean}
  */
 
-AbstractBlock.prototype.verifyHeaders = function verifyHeaders(now, ret) {
-  if (!now)
-    now = util.now();
-
+AbstractBlock.prototype.verifyHeaders = function verifyHeaders(ret) {
   if (!ret)
     ret = new VerifyResult();
 
@@ -222,13 +218,6 @@ AbstractBlock.prototype.verifyHeaders = function verifyHeaders(now, ret) {
     return false;
   }
 
-  // Check timestamp against adjusted-time + 2 hours.
-  if (this.ts > now + 2 * 60 * 60) {
-    ret.reason = 'time-too-new';
-    ret.score = 0;
-    return false;
-  }
-
   return true;
 };
 
diff --git a/lib/primitives/block.js b/lib/primitives/block.js
index ada5f533..9f302829 100644
--- a/lib/primitives/block.js
+++ b/lib/primitives/block.js
@@ -427,13 +427,12 @@ Block.prototype.getCommitmentHash = function getCommitmentHash(enc) {
  * Do non-contextual verification on the block. Including checking the block
  * size, the coinbase and the merkle root. This is consensus-critical.
  * @alias Block#verify
- * @param {Number|null} - Adjusted time.
  * @param {Object?} ret - Return object, may be
  * set with properties `reason` and `score`.
  * @returns {Boolean}
  */
 
-Block.prototype._verify = function _verify(now, ret) {
+Block.prototype._verify = function _verify(ret) {
   var sigops = 0;
   var scale = constants.WITNESS_SCALE_FACTOR;
   var i, tx, merkle;
@@ -441,11 +440,28 @@ Block.prototype._verify = function _verify(now, ret) {
   if (!ret)
     ret = new VerifyResult();
 
-  if (!this.verifyHeaders(now, ret))
+  if (!this.verifyHeaders(ret))
     return false;
 
-  // Size can't be bigger than MAX_BLOCK_SIZE
-  if (this.txs.length > constants.block.MAX_SIZE
+  // Check merkle root
+  merkle = this.createMerkleRoot('hex');
+
+  // If the merkle is mutated,
+  // we have duplicate txs.
+  if (!merkle) {
+    ret.reason = 'bad-txns-duplicate';
+    ret.score = 100;
+    return false;
+  }
+
+  if (this.merkleRoot !== merkle) {
+    ret.reason = 'bad-txnmrklroot';
+    ret.score = 100;
+    return false;
+  }
+
+  if (this.txs.length === 0
+      || this.txs.length > constants.block.MAX_SIZE
       || this.getBaseSize() > constants.block.MAX_SIZE) {
     ret.reason = 'bad-blk-length';
     ret.score = 100;
@@ -483,23 +499,6 @@ Block.prototype._verify = function _verify(now, ret) {
     }
   }
 
-  // Check merkle root
-  merkle = this.createMerkleRoot('hex');
-
-  // If the merkle is mutated,
-  // we have duplicate txs.
-  if (!merkle) {
-    ret.reason = 'bad-txns-duplicate';
-    ret.score = 100;
-    return false;
-  }
-
-  if (this.merkleRoot !== merkle) {
-    ret.reason = 'bad-txnmrklroot';
-    ret.score = 100;
-    return false;
-  }
-
   return true;
 };
 
@@ -584,12 +583,9 @@ Block.prototype.getPrevout = function getPrevout() {
   var prevout = {};
   var i, j, tx, input;
 
-  for (i = 0; i < this.txs.length; i++) {
+  for (i = 1; i < this.txs.length; i++) {
     tx = this.txs[i];
 
-    if (tx.isCoinbase())
-      continue;
-
     for (j = 0; j < tx.inputs.length; j++) {
       input = tx.inputs[j];
       prevout[input.prevout.hash] = true;
diff --git a/lib/primitives/headers.js b/lib/primitives/headers.js
index 9ce9a850..c09bd017 100644
--- a/lib/primitives/headers.js
+++ b/lib/primitives/headers.js
@@ -32,14 +32,13 @@ util.inherits(Headers, AbstractBlock);
 /**
  * Do non-contextual verification on the headers.
  * @alias Headers#verify
- * @param {Number|null} - Adjusted time.
  * @param {Object?} ret - Return object, may be
  * set with properties `reason` and `score`.
  * @returns {Boolean}
  */
 
-Headers.prototype._verify = function _verify(now, ret) {
-  return this.verifyHeaders(now, ret);
+Headers.prototype._verify = function _verify(ret) {
+  return this.verifyHeaders(ret);
 };
 
 /**
diff --git a/lib/primitives/memblock.js b/lib/primitives/memblock.js
index 4156d1ed..3ca10296 100644
--- a/lib/primitives/memblock.js
+++ b/lib/primitives/memblock.js
@@ -106,14 +106,13 @@ MemBlock.prototype.getSize = function getSize() {
 /**
  * Verify the block headers.
  * @alias MemBlock#verify
- * @param {Number|null} - Adjusted time.
  * @param {Object?} ret - Return object, may be
  * set with properties `reason` and `score`.
  * @returns {Boolean}
  */
 
-MemBlock.prototype._verify = function _verify(now, ret) {
-  return this.verifyHeaders(now, ret);
+MemBlock.prototype._verify = function _verify(ret) {
+  return this.verifyHeaders(ret);
 };
 
 /**
diff --git a/lib/primitives/merkleblock.js b/lib/primitives/merkleblock.js
index dcd9f43e..d470b518 100644
--- a/lib/primitives/merkleblock.js
+++ b/lib/primitives/merkleblock.js
@@ -279,17 +279,16 @@ MerkleBlock.prototype.extractTree = function extractTree() {
  * Do non-contextual verification on the block.
  * Verify the headers and the partial merkle tree.
  * @alias MerkleBlock#verify
- * @param {Number|null} - Adjusted time.
  * @param {Object?} ret - Return object, may be
  * set with properties `reason` and `score`.
  * @returns {Boolean}
  */
 
-MerkleBlock.prototype._verify = function _verify(now, ret) {
+MerkleBlock.prototype._verify = function _verify(ret) {
   if (!ret)
     ret = new VerifyResult();
 
-  if (!this.verifyHeaders(now, ret))
+  if (!this.verifyHeaders(ret))
     return false;
 
   if (!this.verifyPartial()) {
diff --git a/test/block-test.js b/test/block-test.js
index 336f4adf..25a57254 100644
--- a/test/block-test.js
+++ b/test/block-test.js
@@ -166,7 +166,7 @@ describe('Block', function() {
     block2.merkleRoot = constants.NULL_HASH;
     delete block2._valid;
     var ret = {};
-    assert(!block2.verify(0, ret));
+    assert(!block2.verify(ret));
     assert.equal(ret.reason, 'bad-txnmrklroot');
     delete block2._valid;
     delete block2._hash;
@@ -179,7 +179,7 @@ describe('Block', function() {
     mblock2.hash();
     mblock2.merkleRoot = constants.NULL_HASH;
     var ret = {};
-    assert(!mblock2.verify(0, ret));
+    assert(!mblock2.verify(ret));
     assert.equal(ret.reason, 'bad-txnmrklroot');
     delete mblock2._validPartial;
     delete mblock2._valid;
@@ -193,7 +193,7 @@ describe('Block', function() {
     block2.hash();
     block2.bits = 403014710;
     var ret = {};
-    assert(!block2.verify(0, ret));
+    assert(!block2.verify(ret));
     assert.equal(ret.reason, 'high-hash');
     delete block2._valid;
     delete block2._hash;
@@ -205,7 +205,7 @@ describe('Block', function() {
     var block2 = new bcoin.block(block);
     block2.txs.push(block2.txs[block2.txs.length - 1]);
     var ret = {};
-    assert(!block2.verify(0, ret));
+    assert(!block2.verify(ret));
     assert.equal(ret.reason, 'bad-txns-duplicate');
   });