diff --git a/lib/bcoin/chain.js b/lib/bcoin/chain.js
index 6bf25d00..bae5f90c 100644
--- a/lib/bcoin/chain.js
+++ b/lib/bcoin/chain.js
@@ -13,6 +13,7 @@ var network = bcoin.protocol.network;
 var utils = require('./utils');
 var assert = utils.assert;
 var BufferReader = require('./reader');
+var VerifyError = utils.VerifyError;
 
 /**
  * Chain
@@ -61,15 +62,27 @@ utils.inherits(Chain, EventEmitter);
 Chain.prototype._init = function _init() {
   var self = this;
 
+  function getPeer() {
+    if (!self.node || !self.node.pool)
+      return;
+
+    return self.node.pool.peers.load;
+  }
+
+  function getHost() {
+    var peer = getPeer();
+    if (peer)
+      return peer.host;
+    return 'unknown';
+  }
+
   // Hook into events for debugging
-  // this.on('block', function(block, entry, peer) {
-  //   var host = peer ? peer.host : 'unknown';
+  // this.on('block', function(block, entry) {
   //   utils.debug('Block %s (%d) added to chain (%s)',
-  //     utils.revHex(entry.hash), entry.height, host);
+  //     utils.revHex(entry.hash), entry.height, getHost());
   // });
 
-  this.on('competitor', function(block, entry, peer) {
-    var host = peer ? peer.host : 'unknown';
+  this.on('competitor', function(block, entry) {
     utils.debug('Heads up: Competing chain at height %d:'
       + ' tip-height=%d competitor-height=%d'
       + ' tip-hash=%s competitor-hash=%s'
@@ -83,64 +96,58 @@ Chain.prototype._init = function _init() {
       self.tip.chainwork.toString(),
       entry.chainwork.toString(),
       self.tip.chainwork.sub(entry.chainwork).toString(),
-      host);
+      getHost());
   });
 
-  this.on('resolved', function(block, entry, peer) {
-    var host = peer ? peer.host : 'unknown';
+  this.on('resolved', function(block, entry) {
     utils.debug('Orphan %s (%d) was resolved (%s)',
-      utils.revHex(entry.hash), entry.height, host);
+      utils.revHex(entry.hash), entry.height, getHost());
   });
 
-  this.on('checkpoint', function(block, data, peer) {
-    var host = peer ? peer.host : 'unknown';
+  this.on('checkpoint', function(block, data) {
     utils.debug('Hit checkpoint block %s (%d) (%s)',
-      utils.revHex(data.checkpoint), data.height, host);
+      utils.revHex(data.checkpoint), data.height, getHost());
   });
 
-  this.on('fork', function(block, data, peer) {
-    var host = peer ? peer.host : 'unknown';
+  this.on('fork', function(block, data) {
     utils.debug(
-      'Fork at height %d: expected=%s received=%s checkpoint=%s peer=%s',
+      'Fork at height %d: expected=%s received=%s checkpoint=%s',
       data.height,
       utils.revHex(data.expected),
       utils.revHex(data.received),
       data.checkpoint,
-      host
+      getHost()
     );
     if (data.checkpoint)
       utils.debug('WARNING: Block failed a checkpoint.');
   });
 
-  this.on('invalid', function(block, data, peer) {
-    var host = peer ? peer.host : 'unknown';
+  this.on('invalid', function(block, data) {
     utils.debug(
-      'Invalid block at height %d: hash=%s peer=%s',
+      'Invalid block at height %d: hash=%s',
       data.height,
       utils.revHex(data.hash),
-      host
+      getHost()
     );
     if (data.chain) {
       utils.debug(
         'Peer is sending an invalid continuation chain (%s)',
-        host);
+        getHost());
     } else if (data.seen) {
-      utils.debug('Peer is sending an invalid chain (%s)', host);
+      utils.debug('Peer is sending an invalid chain (%s)', getHost());
     }
   });
 
-  this.on('exists', function(block, data, peer) {
-    var host = peer ? peer.host : 'unknown';
+  this.on('exists', function(block, data) {
     utils.debug('Already have block %s (%s)',
-      data.height, host);
+      data.height, getHost());
   });
 
-  this.on('orphan', function(block, data, peer) {
-    var host = peer ? peer.host : 'unknown';
-    utils.debug('Handled orphan %s (%s)', utils.revHex(data.hash), host);
+  this.on('orphan', function(block, data) {
+    utils.debug('Handled orphan %s (%s)', utils.revHex(data.hash), getHost());
   });
 
-  this.on('purge', function(count, size, peer) {
+  this.on('purge', function(count, size) {
     utils.debug('Warning: %d (%dmb) orphans cleared!', count, utils.mb(size));
   });
 
@@ -366,37 +373,28 @@ Chain.prototype._preload = function _preload(callback) {
   });
 };
 
-Chain.prototype._verifyContext = function _verifyContext(block, prev, peer, callback) {
+Chain.prototype._verifyContext = function _verifyContext(block, prev, callback) {
   var self = this;
 
-  this._verify(block, prev, peer, function(err, flags) {
+  this._verify(block, prev, function(err, flags) {
     if (err)
       return callback(err);
 
-    if (flags === false)
-      return callback(null, false);
-
-    self._checkDuplicates(block, prev, peer, function(err, result) {
+    self._checkDuplicates(block, prev, function(err, result) {
       if (err)
         return callback(err);
 
-      if (!result)
-        return callback(null, false);
-
-      self._checkInputs(block, prev, flags, peer, function(err, result) {
+      self._checkInputs(block, prev, flags, function(err) {
         if (err)
           return callback(err);
 
-        if (!result)
-          return callback(null, false);
-
-        return callback(null, true);
+        return callback();
       });
     });
   });
 };
 
-Chain.prototype._verify = function _verify(block, prev, peer, callback) {
+Chain.prototype._verify = function _verify(block, prev, callback) {
   var self = this;
   var flags = constants.flags.MANDATORY_VERIFY_FLAGS;
   var height, ts, i, tx, coinbaseHeight;
@@ -408,11 +406,8 @@ Chain.prototype._verify = function _verify(block, prev, peer, callback) {
     callback(err, result);
   }
 
-  if (!block.verify(ret)) {
-    self.emit('verify-error',
-      block, 'invalid', ret.reason, ret.score, peer);
-    return done(null, false);
-  }
+  if (!block.verify(ret))
+    return done(new VerifyError(block, 'invalid', ret.reason, ret.score));
 
   // Skip the genesis block
   if (block.isGenesis())
@@ -421,12 +416,12 @@ Chain.prototype._verify = function _verify(block, prev, peer, callback) {
   // Ensure it's not an orphan
   if (!prev) {
     utils.debug('Block has no previous entry: %s', block.rhash);
-    return done(null, false);
+    return done(new VerifyError(block, 'invalid', 'bad-prevblk', 0));
   }
 
   prev.ensureAncestors(function(err) {
     if (err)
-      return callback(err);
+      return done(err);
 
     height = prev.height + 1;
     medianTime = prev.getMedianTime();
@@ -434,16 +429,12 @@ Chain.prototype._verify = function _verify(block, prev, peer, callback) {
     // Ensure the timestamp is correct
     if (block.ts <= medianTime) {
       utils.debug('Block time is lower than median: %s', block.rhash);
-      self.emit('verify-error',
-        block, 'invalid', 'time-too-old', 0, peer);
-      return done(null, false);
+      return done(new VerifyError(block, 'invalid', 'time-too-old', 0));
     }
 
     if (block.bits !== self.getTarget(prev, block)) {
       utils.debug('Block is using wrong target: %s', block.rhash);
-      self.emit('verify-error',
-        block, 'invalid', 'bad-diffbits', 100, peer);
-      return done(null, false);
+      return done(new VerifyError(block, 'invalid', 'bad-diffbits', 100));
     }
 
     // For some reason bitcoind has p2sh in the
@@ -461,27 +452,21 @@ Chain.prototype._verify = function _verify(block, prev, peer, callback) {
     // once the majority of blocks are using it.
     if (block.version < 2 && prev.isOutdated(2)) {
       utils.debug('Block is outdated (v2): %s', block.rhash);
-      self.emit('verify-error',
-        block, 'obsolete', 'bad-version', 0, peer);
-      return done(null, false);
+      return done(new VerifyError(block, 'obsolete', 'bad-version', 0));
     }
 
     // Only allow version 3 blocks (sig validation)
     // once the majority of blocks are using it.
     if (block.version < 3 && prev.isOutdated(3)) {
       utils.debug('Block is outdated (v3): %s', block.rhash);
-      self.emit('verify-error',
-        block, 'obsolete', 'bad-version', 0, peer);
-      return done(null, false);
+      return done(new VerifyError(block, 'obsolete', 'bad-version', 0));
     }
 
     // Only allow version 4 blocks (checklocktimeverify)
     // once the majority of blocks are using it.
     if (block.version < 4 && prev.isOutdated(4)) {
       utils.debug('Block is outdated (v4): %s', block.rhash);
-      self.emit('verify-error',
-        block, 'obsolete', 'bad-version', 0, peer);
-      return done(null, false);
+      return done(new VerifyError(block, 'obsolete', 'bad-version', 0));
     }
 
     // Only allow version 5 blocks (segwit)
@@ -489,9 +474,7 @@ Chain.prototype._verify = function _verify(block, prev, peer, callback) {
     if (network.segwitHeight !== -1 && height >= network.segwitHeight) {
       if (block.version < 5 && prev.isOutdated(5)) {
         utils.debug('Block is outdated (v5): %s', block.rhash);
-        self.emit('verify-error',
-          block, 'obsolete', 'bad-version', 0, peer);
-        return done(null, false);
+        return done(new VerifyError(block, 'obsolete', 'bad-version', 0));
       }
     }
 
@@ -535,25 +518,19 @@ Chain.prototype._verify = function _verify(block, prev, peer, callback) {
     if (coinbaseHeight) {
       if (block.getCoinbaseHeight() !== height) {
         utils.debug('Block has bad coinbase height: %s', block.rhash);
-        self.emit('verify-error',
-          block, 'invalid', 'bad-cb-height', 100, peer);
-        return done(null, false);
+        return done(new VerifyError(block, 'invalid', 'bad-cb-height', 100));
       }
     }
 
     if (block.version >= 5 && segwit) {
       if (block.commitmentHash !== block.getCommitmentHash()) {
         utils.debug('Block failed witnessroot test: %s', block.rhash);
-        self.emit('verify-error',
-          block, 'invalid', 'bad-blk-wit-length', 100, peer);
-        return done(null, false);
+        return done(new VerifyError(block, 'invalid', 'bad-blk-wit-length', 100));
       }
     } else {
       if (block.hasWitness()) {
         utils.debug('Unexpected witness data found: %s', block.rhash);
-        self.emit('verify-error',
-          block, 'invalid', 'unexpected-witness', 100, peer);
-        return done(null, false);
+        return done(new VerifyError(block, 'invalid', 'unexpected-witness', 100));
       }
     }
 
@@ -568,9 +545,7 @@ Chain.prototype._verify = function _verify(block, prev, peer, callback) {
       // regards to nSequence and nLockTime.
       if (!tx.isFinal(height, ts)) {
         utils.debug('TX is not final: %s (%s)', block.rhash, i);
-        self.emit('verify-error',
-          block, 'invalid', 'bad-txns-nonfinal', 10, peer);
-        return done(null, false);
+        return done(new VerifyError(block, 'invalid', 'bad-txns-nonfinal', 10));
       }
     }
 
@@ -578,18 +553,18 @@ Chain.prototype._verify = function _verify(block, prev, peer, callback) {
   });
 };
 
-Chain.prototype._checkDuplicates = function _checkDuplicates(block, prev, peer, callback) {
+Chain.prototype._checkDuplicates = function _checkDuplicates(block, prev, callback) {
   var self = this;
   var height = prev.height + 1;
 
   if (this.options.spv || block.type !== 'block')
-    return callback(null, true);
+    return callback();
 
   if (block.isGenesis())
-    return callback(null, true);
+    return callback();
 
   // Check all transactions
-  utils.everySerial(block.txs, function(tx, next) {
+  utils.forEachSerial(block.txs, function(tx, next) {
     var hash = tx.hash('hex');
 
     // BIP30 - Ensure there are no duplicate txids
@@ -603,41 +578,45 @@ Chain.prototype._checkDuplicates = function _checkDuplicates(block, prev, peer,
       if (result) {
         utils.debug('Block is overwriting txids: %s', block.rhash);
         if (network.type === 'main' && (height === 91842 || height === 91880))
-          return next(null, true);
-        self.emit('verify-error',
-          block, 'invalid', 'bad-txns-BIP30', 100, peer);
-        return next(null, false);
+          return next();
+        return next(new VerifyError(block, 'invalid', 'bad-txns-BIP30', 100));
       }
 
-      next(null, true);
+      next();
     });
   }, callback);
 };
 
-Chain.prototype._checkInputs = function _checkInputs(block, prev, flags, peer, callback) {
+Chain.prototype._checkInputs = function _checkInputs(block, prev, flags, callback) {
   var height = prev.height + 1;
   var scriptCheck = true;
+  var historical = false;
 
   if (this.options.spv || block.type !== 'block')
-    return callback(null, true);
+    return callback();
 
   if (block.isGenesis())
-    return callback(null, true);
+    return callback();
 
   // If we are an ancestor of a checkpoint, we can
   // skip the input verification.
-  if (this.options.useCheckpoints) {
-    if (height < network.checkpoints.lastHeight && !network.checkpoints[height])
+  if (height <= network.checkpoints.lastHeight) {
+    if (this.options.useCheckpoints)
       scriptCheck = false;
+    historical = true;
   }
 
   this.db.fillBlock(block, function(err) {
-    var i, j, input, tx, hash;
+    var ret = {};
     var sigops = 0;
+    var i, j, input, tx, hash;
 
     if (err)
       return callback(err);
 
+    if (!self._checkReward(block))
+      return callback(new VerifyError(block, 'invalid', 'bad-cb-amount', 100));
+
     // Check all transactions
     for (i = 0; i < block.txs.length; i++) {
       tx = block.txs[i];
@@ -653,19 +632,15 @@ Chain.prototype._checkInputs = function _checkInputs(block, prev, flags, peer, c
 
       if (sigops > constants.block.maxSigops) {
         utils.debug('Block has too many sigops: %s', block.rhash);
-        self.emit('verify-error',
-          block, 'invalid', 'bad-blk-sigops', 100, peer);
-        return callback(null, false);
+        return callback(new VerifyError(block, 'invalid', 'bad-blk-sigops', 100));
       }
 
       // Coinbases do not have prevouts
       if (tx.isCoinbase())
         continue;
 
-      if (tx.getOutputValue().cmp(tx.getInputValue()) > 0) {
-        utils.debug('TX is spending funds it does not have: %s', tx.rhash);
-        return false;
-      }
+      if (!tx.checkInputs(height, ret))
+        return callback(new VerifyError(block, 'invalid', ret.reason, ret.score));
 
       for (j = 0; j < tx.inputs.length; j++) {
         input = tx.inputs[j];
@@ -675,19 +650,19 @@ Chain.prototype._checkInputs = function _checkInputs(block, prev, flags, peer, c
           utils.debug('Block is using spent inputs: %s (tx: %s, output: %s)',
             block.rhash, tx.rhash,
             utils.revHex(input.prevout.hash) + '/' + input.prevout.index);
-          if (height < network.checkpoints.lastHeight)
-            throw new Error('BUG: Spent inputs in historical data!');
-          self.emit('verify-error',
-            block, 'invalid', 'bad-txns-inputs-missingorspent', 100, peer);
-          return callback(null, false);
+          assert(!historical, 'BUG: Spent inputs in historical data!');
+          return callback(new VerifyError(block,
+            'invalid',
+            'bad-txns-inputs-missingorspent',
+            100));
         }
 
+        if (self.options.verifySync !== true)
+          continue;
+
         if (!scriptCheck)
           continue;
 
-        // Disable. Use workers and verifyAsync for now.
-        continue;
-
         // Verify the scripts
         if (!tx.verify(j, true, flags)) {
           utils.debug('Block has invalid inputs: %s (%s/%d)',
@@ -701,23 +676,39 @@ Chain.prototype._checkInputs = function _checkInputs(block, prev, flags, peer, c
             utils.toHex(input.coin.script.encode()));
           utils.debug('Reserialized Script: %s',
             utils.toHex(input.coin.script.clone().encode()));
-          if (height < network.checkpoints.lastHeight)
-            throw new Error('BUG: Bad inputs in historical data!');
-          return callback(null, false);
+          assert(!historical, 'BUG: Invalid inputs in historical data!');
+          return callback(new VerifyError(block,
+            'invalid',
+            'mandatory-script-verify-flag-failed',
+            100));
         }
       }
     }
 
-    // Disable. Use workers and verifyAsync for now.
-    // return callback(null, true);
+    if (self.options.verifySync === true)
+      return callback();
 
     if (!scriptCheck)
-      return callback(null, true);
+      return callback();
 
     // Verify all txs in parallel.
     utils.every(block.txs, function(tx, next) {
       tx.verifyAsync(null, true, flags, next);
-    }, callback);
+    }, function(err, verified) {
+      if (err)
+        return callback(err);
+
+      if (!verified) {
+        utils.debug('Block has invalid inputs: %s', block.rhash);
+        assert(!historical, 'BUG: Invalid inputs in historical data!');
+        return callback(new VerifyError(block,
+          'invalid',
+          'mandatory-script-verify-flag-failed',
+          100));
+      }
+
+      return callback();
+    });
   });
 };
 
@@ -730,13 +721,7 @@ Chain.prototype._checkReward = function _checkReward(block) {
   for (i = 1; i < block.txs.length; i++)
     actual.iadd(block.txs[i].getFee());
 
-  if (claimed.cmp(actual) > 0) {
-    self.emit('verify-error',
-      block, 'invalid', 'bad-cb-amount', 100, peer);
-    return false;
-  }
-
-  return true;
+  return claimed.cmp(actual) <= 0;
 };
 
 Chain.prototype.getHeight = function getHeight(hash) {
@@ -1001,14 +986,14 @@ Chain.prototype.onFlush = function onFlush(callback) {
   return this.locker.onFlush(callback);
 };
 
-Chain.prototype.add = function add(block, peer, callback, force) {
+Chain.prototype.add = function add(block, callback, force) {
   var self = this;
   var total = 0;
   var ret = {};
 
   assert(this.loaded);
 
-  var unlock = this._lock(add, [block, peer, callback], force);
+  var unlock = this._lock(add, [block, callback], force);
   if (!unlock)
     return;
 
@@ -1024,11 +1009,9 @@ Chain.prototype.add = function add(block, peer, callback, force) {
         hash: hash,
         seen: !!self.invalid[hash],
         chain: !!self.invalid[prevHash]
-      }, peer);
+      });
       self.invalid[hash] = true;
-      self.emit('verify-error',
-        block, 'duplicate', 'duplicate', 0, peer);
-      return done();
+      return done(new VerifyError(block, 'duplicate', 'duplicate', 0));
     }
 
     // Do we already have this block?
@@ -1040,8 +1023,8 @@ Chain.prototype.add = function add(block, peer, callback, force) {
         self.emit('exists', block, {
           height: -1,
           hash: hash
-        }, peer);
-        return done();
+        });
+        return done(new VerifyError(block, 'duplicate', 'duplicate', 0));
       }
 
       // Find the previous block height/index.
@@ -1062,10 +1045,8 @@ Chain.prototype.add = function add(block, peer, callback, force) {
             hash: hash,
             seen: false,
             chain: false
-          }, peer);
-          self.emit('verify-error',
-            block, 'invalid', ret.reason, ret.score, peer);
-          return done();
+          });
+          return done(new VerifyError(block, 'invalid', ret.reason, ret.score));
         }
 
         // Special case for genesis block.
@@ -1087,7 +1068,7 @@ Chain.prototype.add = function add(block, peer, callback, force) {
               expected: orphan.hash('hex'),
               received: hash,
               checkpoint: false
-            }, peer);
+            });
 
             return done();
           }
@@ -1096,12 +1077,9 @@ Chain.prototype.add = function add(block, peer, callback, force) {
             height: block.getCoinbaseHeight(),
             hash: hash,
             seen: true
-          }, peer);
+          });
 
-          self.emit('verify-error',
-            block, 'invalid', 'bad-prevblk', 0, peer);
-
-          return done();
+          return done(new VerifyError(block, 'invalid', 'bad-prevblk', 0));
         }
 
         // Update the best height based on the coinbase.
@@ -1124,10 +1102,8 @@ Chain.prototype.add = function add(block, peer, callback, force) {
             height: block.getCoinbaseHeight(),
             hash: hash,
             seen: false
-          }, peer);
-          self.emit('verify-error',
-            block, 'invalid', 'bad-prevblk', 0, peer);
-          return done();
+          });
+          return done(new VerifyError(block, 'invalid', 'bad-prevblk', 0));
         }
 
         // Verify the checkpoint.
@@ -1137,7 +1113,7 @@ Chain.prototype.add = function add(block, peer, callback, force) {
             height: height,
             hash: hash,
             checkpoint: checkpoint
-          }, peer);
+          });
 
           // Block did not match the checkpoint. The
           // chain could be reset to the last sane
@@ -1154,12 +1130,12 @@ Chain.prototype.add = function add(block, peer, callback, force) {
               expected: checkpoint,
               received: hash,
               checkpoint: true
-            }, peer);
+            });
 
-            self.emit('verify-error',
-              block, 'checkpoint', 'checkpoint mismatch', 100, peer);
-
-            return done();
+            return done(new VerifyError(block,
+              'checkpoint',
+              'checkpoint mismatch',
+              100));
           }
         }
 
@@ -1178,10 +1154,10 @@ Chain.prototype.add = function add(block, peer, callback, force) {
           try {
             block = block.toBlock();
           } catch (e) {
-            // Ugly hack to handle
-            // the error properly.
-            peer.parser.emit('error', e);
-            return done(e);
+            return done(new VerifyError(block,
+              'malformed',
+              'error parsing message',
+              100));
           }
         }
 
@@ -1196,30 +1172,28 @@ Chain.prototype.add = function add(block, peer, callback, force) {
         // Do "contextual" verification on our block
         // now that we're certain its previous
         // block is in the chain.
-        self._verifyContext(block, prev, peer, function(err, verified) {
+        self._verifyContext(block, prev, function(err) {
           var entry;
 
-          // Couldn't verify block.
-          // Revert the height.
-          if (err || !verified) {
+          if (err) {
+            // Couldn't verify block.
+            // Revert the height.
             block.height = -1;
             block.txs.forEach(function(tx) {
               tx.height = -1;
             });
-          }
 
-          if (err)
+            if (err.type === 'VerifyError') {
+              self.invalid[hash] = true;
+              self.emit('invalid', block, {
+                height: height,
+                hash: hash,
+                seen: false,
+                chain: false
+              });
+            }
+
             return done(err);
-
-          if (!verified) {
-            self.invalid[hash] = true;
-            self.emit('invalid', block, {
-              height: height,
-              hash: hash,
-              seen: false,
-              chain: false
-            }, peer);
-            return done();
           }
 
           // Create a new chain entry.
@@ -1246,12 +1220,12 @@ Chain.prototype.add = function add(block, peer, callback, force) {
             // Emit our block (and potentially resolved
             // orphan) only if it is on the main chain.
             if (mainChain)
-              self.emit('block', block, entry, peer);
+              self.emit('block', block, entry);
             else
-              self.emit('competitor', block, entry, peer);
+              self.emit('competitor', block, entry);
 
             if (!initial)
-              self.emit('resolved', block, entry, peer);
+              self.emit('resolved', block, entry);
 
             // No orphan chain.
             if (!self.orphan.map[hash])
@@ -1275,7 +1249,7 @@ Chain.prototype.add = function add(block, peer, callback, force) {
     // Failsafe for large orphan chains. Do not
     // allow more than 20mb stored in memory.
     if (self.orphan.size > self.orphanLimit)
-      self.pruneOrphans(peer);
+      self.pruneOrphans();
 
     // Keep track of total blocks handled.
     self.total += total;
@@ -1308,7 +1282,7 @@ Chain.prototype.purgeOrphans = function purgeOrphans() {
   this.orphan.size = 0;
 };
 
-Chain.prototype.pruneOrphans = function pruneOrphans(peer) {
+Chain.prototype.pruneOrphans = function pruneOrphans() {
   var self = this;
   var best, last;
 
@@ -1336,7 +1310,7 @@ Chain.prototype.pruneOrphans = function pruneOrphans(peer) {
   Object.keys(this.orphan.bmap).forEach(function(hash) {
     var orphan = self.orphan.bmap[hash];
     if (orphan !== best)
-      self.emit('unresolved', orphan, peer);
+      self.emit('unresolved', orphan);
   });
 
   this.orphan.map = {};
diff --git a/lib/bcoin/locker.js b/lib/bcoin/locker.js
index a76e4ddf..58e286f3 100644
--- a/lib/bcoin/locker.js
+++ b/lib/bcoin/locker.js
@@ -93,6 +93,7 @@ Locker.prototype.lock = function lock(func, args, force) {
 
 Locker.prototype.purgePending = function purgePending() {
   var self = this;
+  var total = this.pending.length;
 
   assert(this.add);
 
@@ -109,6 +110,9 @@ Locker.prototype.purgePending = function purgePending() {
   this.jobs = this.jobs.filter(function(item) {
     return item[0] !== self.add;
   });
+
+  if (total !== 0)
+    this.emit('flush');
 };
 
 Locker.prototype.onFlush = function onFlush(callback) {
diff --git a/lib/bcoin/mempool.js b/lib/bcoin/mempool.js
index ee102227..80d90f57 100644
--- a/lib/bcoin/mempool.js
+++ b/lib/bcoin/mempool.js
@@ -14,7 +14,7 @@ var utils = require('./utils');
 var assert = utils.assert;
 var BufferWriter = require('./writer');
 var BufferReader = require('./reader');
-var DUMMY_PEER = { sendReject: function() {} };
+var VerifyError = utils.VerifyError;
 
 /**
  * Mempool
@@ -283,24 +283,16 @@ Mempool.prototype.hasTX = function hasTX(hash, callback) {
 };
 
 Mempool.prototype.add =
-Mempool.prototype.addTX = function addTX(tx, peer, callback, force) {
+Mempool.prototype.addTX = function addTX(tx, callback, force) {
   var self = this;
   var hash, ts, height, now;
   var flags = Mempool.flags;
   var ret = {};
 
-  var unlock = this._lock(addTX, [tx, peer, callback], force);
+  var unlock = this._lock(addTX, [tx, callback], force);
   if (!unlock)
     return;
 
-  if (typeof peer === 'function') {
-    callback = peer;
-    peer = null;
-  }
-
-  if (!peer)
-    peer = DUMMY_PEER;
-
   if (this.chain.segwitActive) {
     flags |= constants.flags.VERIFY_WITNESS;
     flags |= constants.flags.VERIFY_DISCOURAGE_UPGRADABLE_WITNESS_PROGRAM;
@@ -312,29 +304,22 @@ Mempool.prototype.addTX = function addTX(tx, peer, callback, force) {
   callback = utils.asyncify(callback);
 
   if (tx.ts !== 0) {
-    peer.sendReject(tx, 'alreadyknown', 'txn-already-in-mempool', 0);
-    return callback(new VerifyError(
+    return callback(new VerifyError(tx,
       'alreadyknown',
       'txn-already-in-mempool',
       0));
   }
 
   if (!this.chain.segwitActive) {
-    if (tx.hasWitness()) {
-      peer.sendReject(tx, 'nonstandard', 'no-witness-yet', 0);
-      return callback(new VerifyError('nonstandard', 'no-witness-yet', 0));
-    }
+    if (tx.hasWitness())
+      return callback(new VerifyError(tx, 'nonstandard', 'no-witness-yet', 0));
   }
 
-  if (!tx.isSane(ret)) {
-    peer.sendReject(tx, 'invalid', ret.reason, ret.score);
-    return callback(new VerifyError('invalid', ret.reason, ret.score));
-  }
+  if (!tx.isSane(ret))
+    return callback(new VerifyError(tx, 'invalid', ret.reason, ret.score));
 
-  if (tx.isCoinbase()) {
-    peer.sendReject(tx, 'invalid', 'coinbase', 100);
-    return callback(new VerifyError('invalid', 'coinbase', 100));
-  }
+  if (tx.isCoinbase())
+    return callback(new VerifyError(tx, 'invalid', 'coinbase', 100));
 
   // ts = locktimeFlags & LOCKTIME_MEDIAN_PAST
   //   ? self.chain.tip.getMedianTime()
@@ -343,34 +328,27 @@ Mempool.prototype.addTX = function addTX(tx, peer, callback, force) {
   ts = utils.now();
   height = this.chain.height + 1;
 
-  if (!tx.isFinal(ts, height)) {
-    peer.sendReject(tx, 'nonstandard', 'non-final', 0);
-    return callback(new VerifyError('nonstandard', 'non-final', 0));
-  }
+  if (!tx.isFinal(ts, height))
+    return callback(new VerifyError(tx, 'nonstandard', 'non-final', 0));
 
   if (this.requireStandard) {
-    if (!tx.isStandard(flags, ret)) {
-      peer.sendReject(tx, 'nonstandard', ret.reason, 0);
-      return callback(new VerifyError(ret.reason, 0));
-    }
+    if (!tx.isStandard(flags, ret))
+      return callback(new VerifyError(tx, ret.reason, 0));
   }
 
   this._hasTX(tx, function(err, exists) {
     if (err)
       return callback(err);
 
-    if (exists) {
-      peer.sendReject(tx, 'alreadyknown', 'txn-already-in-mempool', 0);
-      return callback();
-    }
+    if (exists)
+      return callback(new VerifyError(tx, 'alreadyknown', 'txn-already-in-mempool', 0));
 
     self.tx.isDoubleSpend(tx, function(err, doubleSpend) {
       if (err)
         return callback(err);
 
       if (doubleSpend) {
-        peer.sendReject(tx, 'duplicate', 'bad-txns-inputs-spent', 0);
-        return callback(new VerifyError(
+        return callback(new VerifyError(tx,
           'duplicate',
           'bad-txns-inputs-spent',
           0));
@@ -382,7 +360,7 @@ Mempool.prototype.addTX = function addTX(tx, peer, callback, force) {
 
         if (!tx.hasCoins()) {
           if (self.size > Mempool.MAX_MEMPOOL_SIZE) {
-            return callback(new VerifyError(
+            return callback(new VerifyError(tx,
               'insufficientfee',
               'mempool full',
               0));
@@ -392,24 +370,21 @@ Mempool.prototype.addTX = function addTX(tx, peer, callback, force) {
         }
 
         self.verify(tx, function(err) {
-          if (err) {
-            if (err.type === 'VerifyError' && err.score >= 0)
-              peer.sendReject(tx, err.code, err.reason, err.score);
+          if (err)
             return callback(err);
-          }
 
           self.limitMempoolSize(function(err, result) {
             if (err)
               return callback(err);
 
             if (!result) {
-              return callback(new VerifyError(
+              return callback(new VerifyError(tx,
                 'insufficientfee',
                 'mempool full',
                 0));
             }
 
-            self.addUnchecked(tx, peer, callback);
+            self.addUnchecked(tx, callback);
           });
         });
       });
@@ -417,7 +392,7 @@ Mempool.prototype.addTX = function addTX(tx, peer, callback, force) {
   });
 };
 
-Mempool.prototype.addUnchecked = function addUnchecked(tx, peer, callback) {
+Mempool.prototype.addUnchecked = function addUnchecked(tx, callback) {
   var self = this;
   this.tx.addUnchecked(tx, function(err) {
     if (err)
@@ -437,7 +412,7 @@ Mempool.prototype.addUnchecked = function addUnchecked(tx, peer, callback) {
         return callback(err);
 
       utils.forEachSerial(resolved, function(tx, next) {
-        self.addUnchecked(tx, peer, function(err) {
+        self.addUnchecked(tx, function(err) {
           if (err)
             self.emit('error', err);
           utils.debug('Resolved orphan %s in mempool.', tx.rhash);
@@ -462,9 +437,10 @@ Mempool.prototype.removeUnchecked = function removeUnchecked(tx, callback) {
 Mempool.prototype.verify = function verify(tx, callback) {
   var self = this;
   var height = this.chain.height + 1;
-  var total, input, coin, i, fee, now, free, minFee;
   var flags = Mempool.flags;
   var mandatory = Mempool.mandatory;
+  var ret = {};
+  var fee, now, free, minFee;
 
   if (this.chain.segwitActive) {
     flags |= constants.flags.VERIFY_WITNESS;
@@ -477,84 +453,42 @@ Mempool.prototype.verify = function verify(tx, callback) {
       return callback(err);
 
     if (!result) {
-      return callback(new VerifyError(
+      return callback(new VerifyError(tx,
         'nonstandard',
         'non-BIP68-final',
         0));
     }
 
     if (self.requireStandard && !tx.hasStandardInputs(flags)) {
-      return callback(new VerifyError(
+      return callback(new VerifyError(tx,
         'nonstandard',
         'bad-txns-nonstandard-inputs',
         0));
     }
 
     if (tx.getSigops(true) > constants.tx.maxSigops) {
-      return callback(new VerifyError(
+      return callback(new VerifyError(tx,
         'nonstandard',
         'bad-txns-too-many-sigops',
         0));
     }
 
-    total = new bn(0);
-    for (i = 0; i < tx.inputs.length; i++) {
-      input = tx.inputs[i];
-      coin = input.coin;
-
-      if (coin.coinbase) {
-        if (self.chain.height - coin.height < constants.tx.coinbaseMaturity) {
-          return callback(new VerifyError(
-            'invalid',
-            'bad-txns-premature-spend-of-coinbase',
-            0));
-        }
-      }
-
-      if (coin.value.cmpn(0) < 0 || coin.value.cmp(constants.maxMoney) > 0) {
-        return callback(new VerifyError(
-          'invalid',
-          'bad-txns-inputvalues-outofrange',
-          100));
-      }
-
-      total.iadd(coin.value);
-    }
-
-    if (total.cmpn(0) < 0 || total.cmp(constants.maxMoney) > 0) {
-      return callback(new VerifyError(
-        'invalid',
-        'bad-txns-inputvalues-outofrange',
-        100));
-    }
-
-    if (tx.getOutputValue().cmp(total) > 0)
-      return callback(new VerifyError('invalid', 'bad-txns-in-belowout', 100));
-
-    fee = total.sub(tx.getOutputValue());
-
-    if (fee.cmpn(0) < 0)
-      return callback(new VerifyError('invalid', 'bad-txns-fee-negative', 100));
-
-    if (fee.cmp(constants.maxMoney) > 0) {
-      return callback(new VerifyError(
-        'invalid',
-        'bad-txns-fee-outofrange',
-        100));
-    }
+    if (!tx.checkInputs(height, ret))
+      return callback(new VerifyError(tx, 'invalid', ret.reason, ret.score));
 
+    fee = tx.getFee();
     minFee = tx.getMinFee();
     if (fee.cmp(minFee) < 0) {
       if (self.relayPriority && fee.cmpn(0) === 0) {
         free = tx.isFree(height);
         if (!free) {
-          return callback(new VerifyError(
+          return callback(new VerifyError(tx,
             'insufficientfee',
             'insufficient priority',
             0));
         }
       } else {
-        return callback(new VerifyError(
+        return callback(new VerifyError(tx,
           'insufficientfee',
           'insufficient fee',
           0));
@@ -571,7 +505,7 @@ Mempool.prototype.verify = function verify(tx, callback) {
       self.lastTime = now;
 
       if (self.freeCount > self.limitFreeRelay * 10 * 1000) {
-        return callback(new VerifyError(
+        return callback(new VerifyError(tx,
           'insufficientfee',
           'rate limited free transaction',
           0));
@@ -581,14 +515,14 @@ Mempool.prototype.verify = function verify(tx, callback) {
     }
 
     if (self.rejectInsaneFees && fee.cmp(minFee.muln(10000)) > 0)
-      return callback(new VerifyError('highfee', 'absurdly-high-fee', 0));
+      return callback(new VerifyError(tx, 'highfee', 'absurdly-high-fee', 0));
 
     self.countAncestors(tx, function(err, count) {
       if (err)
         return callback(err);
 
       if (count > Mempool.ANCESTOR_LIMIT) {
-        return callback(new VerifyError(
+        return callback(new VerifyError(tx,
           'nonstandard',
           'too-long-mempool-chain',
           0));
@@ -605,13 +539,13 @@ Mempool.prototype.verify = function verify(tx, callback) {
               return callback(err);
 
             if (result) {
-              return callback(new VerifyError(
+              return callback(new VerifyError(tx,
                 'nonstandard',
                 'non-mandatory-script-verify-flag',
                 0));
             }
 
-            return callback(new VerifyError(
+            return callback(new VerifyError(tx,
               'nonstandard',
               'mandatory-script-verify-flag',
               0));
@@ -920,23 +854,6 @@ Mempool.prototype.checkMempoolLocks = function checkMempoolLocks(tx, flags, call
   this.checkLocks(tx, flags, index, callback);
 };
 
-/**
- * VerifyError
- */
-
-function VerifyError(code, reason, score) {
-  Error.call(this);
-  if (Error.captureStackTrace)
-    Error.captureStackTrace(this, VerifyError);
-  this.type = 'VerifyError';
-  this.code = code;
-  this.message = reason;
-  this.reason = score === -1 ? null : reason;
-  this.score = score;
-}
-
-utils.inherits(VerifyError, Error);
-
 /**
  * Expose
  */
diff --git a/lib/bcoin/pool.js b/lib/bcoin/pool.js
index 00cc98df..d1cc5687 100644
--- a/lib/bcoin/pool.js
+++ b/lib/bcoin/pool.js
@@ -193,10 +193,6 @@ Pool.prototype._init = function _init() {
     }
   });
 
-  this.chain.on('verify-error', function(block, code, reason, score, peer) {
-    peer.sendReject(block, code, reason, score);
-  });
-
   this.chain.on('fork', function(block, data, peer) {
     self.emit('fork', data, peer);
   });
@@ -448,14 +444,12 @@ Pool.prototype._addLoader = function _addLoader() {
 
     // If the peer sent us a block that was added
     // to the chain (not orphans), reset the timeout.
-    self._handleBlock(block, peer, function(err, added) {
+    self._handleBlock(block, peer, function(err) {
       if (err)
-        self.emit('error', err);
+        return self.emit('error', err);
 
-      if (added) {
-        self._startInterval();
-        self._startTimer();
-      }
+      self._startInterval();
+      self._startTimer();
     });
   });
 
@@ -468,14 +462,12 @@ Pool.prototype._addLoader = function _addLoader() {
 
     // If the peer sent us a block that was added
     // to the chain (not orphans), reset the timeout.
-    self._handleBlock(block, peer, function(err, added) {
+    self._handleBlock(block, peer, function(err) {
       if (err)
-        self.emit('error', err);
+        return self.emit('error', err);
 
-      if (added) {
-        self._startInterval();
-        self._startTimer();
-      }
+      self._startInterval();
+      self._startTimer();
     });
   });
 
@@ -713,22 +705,33 @@ Pool.prototype._handleBlock = function _handleBlock(block, peer, callback) {
     utils.debug(
       'Recieved unrequested block: %s (%s)',
       block.rhash, peer.host);
-    return callback(null, false);
+    return callback();
   }
 
   this._prehandleBlock(block, peer, function(err) {
     if (err)
       return callback(err);
 
-    self.chain.add(block, peer, function(err, added) {
-      if (err)
+    self.chain.add(block, function(err) {
+      if (err) {
+        if (err.type === 'VerifyError') {
+          if (err.score >= 0)
+            peer.sendReject(block, err.code, err.reason, err.score);
+
+          if (err.reason === 'bad-prevblk') {
+            // self.chain.purgePending();
+            // self.resolveOrphan(peer, null, block.hash('hex'));
+          }
+
+          self.scheduleRequests(peer);
+
+          return callback(err);
+        }
         return callback(err);
+      }
 
       self.scheduleRequests(peer);
 
-      if (added === 0)
-        return callback(null, false);
-
       self.emit('chain-progress', self.chain.getProgress(), peer);
 
       if (self.chain.total % 20 === 0) {
@@ -749,7 +752,7 @@ Pool.prototype._handleBlock = function _handleBlock(block, peer, callback) {
           self.chain.locker.jobs.length);
       }
 
-      return callback(null, true);
+      return callback();
     });
   });
 };
@@ -828,7 +831,10 @@ Pool.prototype._createPeer = function _createPeer(options) {
   });
 
   peer.on('tx', function(tx) {
-    self._handleTX(tx, peer);
+    self._handleTX(tx, peer, function(err) {
+      if (err)
+        self.emit('error', err);
+    });
   });
 
   peer.on('addr', function(data) {
@@ -905,8 +911,13 @@ Pool.prototype._handleTX = function _handleTX(tx, peer, callback) {
       return callback(err);
 
     addMempool(tx, peer, function(err) {
-      if (err)
-        utils.debug('Mempool error: %s', err.message);
+      if (err) {
+        if (err.type === 'VerifyError') {
+          if (err.score >= 0)
+            peer.sendReject(block, err.code, err.reason, err.score);
+          return callback();
+        }
+      }
 
       if (updated || tx.block)
         self.emit('tx', tx, peer);
diff --git a/lib/bcoin/tx.js b/lib/bcoin/tx.js
index 339fc1ab..901012cd 100644
--- a/lib/bcoin/tx.js
+++ b/lib/bcoin/tx.js
@@ -929,6 +929,65 @@ TX.prototype.hasStandardInputs = function hasStandardInputs(flags) {
   return true;
 };
 
+TX.prototype.checkInputs = function checkInputs(spendHeight, ret) {
+  var total = new bn(0);
+  var i, input, coin, fee, value;
+
+  if (!ret)
+    ret = {};
+
+  for (i = 0; i < this.inputs.length; i++) {
+    input = this.inputs[i];
+    coin = input.coin;
+
+    if (coin.coinbase) {
+      if (spendHeight - coin.height < constants.tx.coinbaseMaturity) {
+        ret.reason = 'bad-txns-premature-spend-of-coinbase';
+        ret.score = 0;
+        return false;
+      }
+    }
+
+    if (coin.value.cmpn(0) < 0 || coin.value.cmp(constants.maxMoney) > 0) {
+      ret.reason = 'bad-txns-inputvalues-outofrange';
+      ret.score = 100;
+      return false;
+    }
+
+    total.iadd(coin.value);
+  }
+
+  if (total.cmpn(0) < 0 || total.cmp(constants.maxMoney) > 0) {
+    ret.reason = 'bad-txns-inputvalues-outofrange';
+    ret.score = 100;
+    return false;
+  }
+
+  value = this.getOutputValue();
+
+  if (value.cmp(total) > 0) {
+    ret.reason = 'bad-txns-in-belowout'
+    ret.score = 100;
+    return false;
+  }
+
+  fee = total.sub(value);
+
+  if (fee.cmpn(0) < 0) {
+    ret.reason = 'bad-txns-fee-negative';
+    ret.score = 100;
+    return false;
+  }
+
+  if (fee.cmp(constants.maxMoney) > 0) {
+    ret.reason = 'bad-txns-fee-outofrange';
+    ret.score = 100;
+    return false;
+  }
+
+  return true;
+};
+
 TX.prototype.maxSize = function maxSize() {
   return this.getVirtualSize();
 };
diff --git a/lib/bcoin/utils.js b/lib/bcoin/utils.js
index 6ede75d0..54a15327 100644
--- a/lib/bcoin/utils.js
+++ b/lib/bcoin/utils.js
@@ -1990,3 +1990,28 @@ if (utils.isBrowser) {
     return this.toArrayLike(Buffer, order, size);
   };
 }
+
+/**
+ * VerifyError
+ */
+
+function VerifyError(object, code, reason, score) {
+  Error.call(this);
+  if (Error.captureStackTrace)
+    Error.captureStackTrace(this, VerifyError);
+  this.type = 'VerifyError';
+  this.hash = object.hash();
+  this.height = object.height;
+  this.code = code;
+  this.reason = score === -1 ? null : reason;
+  this.score = score;
+  this.message = reason
+    + ' (code=' + code
+    + ', score=' + score
+    + ', height=' + this.height
+    + ', hash=' + utils.revHex(utils.toHex(this.hash)) + ')';
+}
+
+utils.inherits(VerifyError, Error);
+
+utils.VerifyError = VerifyError;
diff --git a/test/node-test.js b/test/node-test.js
index 597dc62f..8d5afc38 100644
--- a/test/node-test.js
+++ b/test/node-test.js
@@ -95,31 +95,29 @@ describe('Wallet', function() {
     f1.hint = 'f1';
     fake.hint = 'fake';
 
-    var peer = { sendReject: function() {} };
-
-    node.mempool.addTX(fake, peer, function(err) {
+    node.mempool.addTX(fake, function(err) {
       assert.noError(err);
-      node.mempool.addTX(t4, peer, function(err) {
+      node.mempool.addTX(t4, function(err) {
         assert.noError(err);
         node.mempool.getBalance(function(err, balance) {
           assert.noError(err);
           assert.equal(balance.toString(10), '0');
-          node.mempool.addTX(t1, peer, function(err) {
+          node.mempool.addTX(t1, function(err) {
             assert.noError(err);
             node.mempool.getBalance(function(err, balance) {
               assert.noError(err);
               assert.equal(balance.toString(10), '60000');
-              node.mempool.addTX(t2, peer, function(err) {
+              node.mempool.addTX(t2, function(err) {
                 assert.noError(err);
                 node.mempool.getBalance(function(err, balance) {
                   assert.noError(err);
                   assert.equal(balance.toString(10), '50000');
-                  node.mempool.addTX(t3, peer, function(err) {
+                  node.mempool.addTX(t3, function(err) {
                     assert.noError(err);
                     node.mempool.getBalance(function(err, balance) {
                       assert.noError(err);
                       assert.equal(balance.toString(10), '22000');
-                      node.mempool.addTX(f1, peer, function(err) {
+                      node.mempool.addTX(f1, function(err) {
                         assert.noError(err);
                         node.mempool.getBalance(function(err, balance) {
                           assert.noError(err);