diff --git a/lib/bcoin/chain.js b/lib/bcoin/chain.js
index 7f093ff8..8fad723e 100644
--- a/lib/bcoin/chain.js
+++ b/lib/bcoin/chain.js
@@ -154,21 +154,24 @@ Chain.prototype._init = function _init() {
       if (err)
         return self.emit('error', err);
 
-      self.isSegwitActive(function(err) {
+      self.db.getTip(function(err, tip) {
         if (err)
           return self.emit('error', err);
 
-        self.db.getTip(function(err, tip) {
+        assert(tip);
+
+        self.tip = tip;
+        self.height = tip.height;
+
+        if (self.bestHeight === -1)
+          network.height = tip.height;
+
+        self.isSegwitActive(function(err, result) {
           if (err)
             return self.emit('error', err);
 
-          assert(tip);
-
-          self.tip = tip;
-          self.height = tip.height;
-
-          if (self.bestHeight === -1)
-            network.height = tip.height;
+          if (result)
+            utils.debug('Segwit is active.');
 
           self.loaded = true;
           self.emit('open');
@@ -1906,6 +1909,7 @@ Chain.prototype.computeBlockVersion = function computeBlockVersion(prev, callbac
 };
 
 Chain.prototype.isSegwitActive = function isSegwitActive(callback) {
+  var self = this;
   var tip = this.tip;
   var unlock;
 
@@ -1915,7 +1919,7 @@ Chain.prototype.isSegwitActive = function isSegwitActive(callback) {
   if (!tip)
     return utils.asyncify(callback)(null, false);
 
-  if (!(network.segwitHeight !== -1 && height >= network.segwitHeight))
+  if (!(network.segwitHeight !== -1 && tip.height >= network.segwitHeight))
     return utils.asyncify(callback)(null, false);
 
   unlock = this._lock(isSegwitActive, [callback]);
diff --git a/lib/bcoin/coin.js b/lib/bcoin/coin.js
index cde997ff..d1788056 100644
--- a/lib/bcoin/coin.js
+++ b/lib/bcoin/coin.js
@@ -22,12 +22,12 @@ var network = bcoin.protocol.network;
 function Coin(tx, index) {
   var options;
 
-  if (!(this instanceof Coin))
-    return new Coin(tx, index);
-
   if (tx instanceof Coin)
     return tx;
 
+  if (!(this instanceof Coin))
+    return new Coin(tx, index);
+
   if (tx instanceof bcoin.tx) {
     this.version = tx.version;
     this.height = tx.height;
@@ -117,7 +117,7 @@ Coin.prototype.toJSON = function toJSON() {
     version: this.version,
     height: this.height,
     value: utils.btc(this.value),
-    script: utils.toHex(bcoin.protocol.framer(this.script)),
+    script: utils.toHex(bcoin.protocol.framer.script(this.script)),
     coinbase: this.coinbase,
     hash: this.hash ? utils.revHex(this.hash) : null,
     index: this.index
diff --git a/lib/bcoin/mempool.js b/lib/bcoin/mempool.js
index f291f6f5..48de5b75 100644
--- a/lib/bcoin/mempool.js
+++ b/lib/bcoin/mempool.js
@@ -360,6 +360,7 @@ Mempool.prototype.addTX = function addTX(tx, peer, callback, force) {
               'mempool full',
               0));
           }
+          utils.debug('Added orphan %s to mempool.', tx.rhash);
           return self.storeOrphan(tx, callback);
         }
 
@@ -412,6 +413,7 @@ Mempool.prototype.addUnchecked = function addUnchecked(tx, peer, callback) {
         self.addUnchecked(tx, peer, function(err) {
           if (err)
             self.emit('error', err);
+          utils.debug('Resolved orphan %s in mempool.', tx.rhash);
           next();
         }, true);
       }, callback);
@@ -872,9 +874,9 @@ Mempool.prototype.getLocks = function getLocks(tx, flags, entry, callback) {
     if (input.sequence & disableFlag)
       return next();
 
-    coinHeight = coin.height === -1
+    coinHeight = input.coin.height === -1
       ? self.chain.tip + 1
-      : coin.height;
+      : input.coin.height;
 
     if ((input.sequence & typeFlag) === 0) {
       coinHeight += (input.sequence & mask) - 1;
@@ -921,7 +923,7 @@ Mempool.prototype.evalLocks = function evalLocks(entry, minHeight, minTime, call
 
     return callback(null, true);
   });
-}
+};
 
 Mempool.prototype.checkLocks = function checkLocks(tx, flags, entry, callback) {
   var self = this;
@@ -931,7 +933,7 @@ Mempool.prototype.checkLocks = function checkLocks(tx, flags, entry, callback) {
 
     self.evalLocks(entry, minHeight, minTime, callback);
   });
-}
+};
 
 Mempool.prototype.checkMempoolLocks = function checkMempoolLocks(tx, flags, callback) {
   var self = this;
@@ -950,7 +952,7 @@ Mempool.prototype.checkMempoolLocks = function checkMempoolLocks(tx, flags, call
   });
 
   this.checkLocks(tx, flags, index, callback);
-}
+};
 
 /**
  * VerifyError
diff --git a/lib/bcoin/peer.js b/lib/bcoin/peer.js
index 1bade9ee..c3ec7bef 100644
--- a/lib/bcoin/peer.js
+++ b/lib/bcoin/peer.js
@@ -42,6 +42,8 @@ function Peer(pool, options) {
   this.ack = false;
   this.connected = false;
   this.ts = this.options.ts || 0;
+  this.sendHeaders = false;
+  this.haveWitness = false;
 
   this.challenge = null;
   this.lastPong = 0;
@@ -147,6 +149,11 @@ Peer.prototype._init = function init() {
   this.challenge = utils.nonce();
 
   this._ping.timer = setInterval(function() {
+    if (self.options.witness && !self.haveWitness) {
+      self._error('Peer does not support segregated witness.');
+      self.setMisbehavior(100);
+      return;
+    }
     self._write(self.framer.ping({
       nonce: self.challenge
     }));
@@ -163,12 +170,20 @@ Peer.prototype._init = function init() {
     self.emit('ack');
     self.ts = utils.now();
 
-    self._write(self.framer.packet('getaddr', new Buffer([])));
+    self._write(self.framer.packet('getaddr'));
 
-    if (self.pool.options.headers) {
+    if (self.options.headers) {
       if (self.version && self.version.version > 70012)
-        self._write(self.framer.packet('sendheaders', new Buffer([])));
+        self._write(self.framer.packet('sendheaders'));
     }
+
+    if (self.options.witness) {
+      if (self.version && self.version.version >= 70012)
+        self._write(self.framer.packet('havewitness'));
+    }
+
+    if (self.pool.chain.isFull())
+      self.getMempool();
   });
 
   // Send hello
@@ -454,6 +469,16 @@ Peer.prototype._onPacket = function onPacket(packet) {
     }
   }
 
+  if (cmd === 'sendheaders') {
+    this.sendHeaders = true;
+    return;
+  }
+
+  if (cmd === 'havewitness') {
+    this.haveWitness = true;
+    return;
+  }
+
   if (this._res(cmd, payload))
     return;
 
@@ -469,14 +494,14 @@ Peer.prototype._emitMerkle = function _emitMerkle(payload) {
 Peer.prototype._handleVersion = function handleVersion(payload) {
   if (payload.version < constants.minVersion) {
     this._error('Peer doesn\'t support required protocol version.');
-    this.pool.setMisbehavior(this, 100);
+    this.setMisbehavior(100);
     return;
   }
 
   if (this.options.headers) {
     if (payload.version < 31800) {
       this._error('Peer doesn\'t support getheaders.');
-      this.pool.setMisbehavior(this, 100);
+      this.setMisbehavior(100);
       return;
     }
   }
@@ -484,7 +509,7 @@ Peer.prototype._handleVersion = function handleVersion(payload) {
   if (this.options.network) {
     if (!payload.network) {
       this._error('Peer does not support network services.');
-      this.pool.setMisbehavior(this, 100);
+      this.setMisbehavior(100);
       return;
     }
   }
@@ -492,19 +517,22 @@ Peer.prototype._handleVersion = function handleVersion(payload) {
   if (this.options.spv) {
     if (!payload.bloom && payload.version < 70011) {
       this._error('Peer does not support bip37.');
-      this.pool.setMisbehavior(this, 100);
+      this.setMisbehavior(100);
       return;
     }
   }
 
   if (this.options.witness) {
     if (!payload.witness) {
-      this._error('Peer does not support segregated witness.');
-      this.pool.setMisbehavior(this, 100);
-      return;
+      // this._error('Peer does not support segregated witness service.');
+      // this.setMisbehavior(100);
+      // return;
     }
   }
 
+  if (payload.witness)
+    this.haveWitness = true;
+
   // ACK
   this._write(this.framer.verack());
   this.version = payload;
@@ -734,8 +762,8 @@ Peer.prototype.isMisbehaving = function isMisbehaving() {
   return this.pool.isMisbehaving(this.host);
 };
 
-Peer.prototype.setMisbehavior = function setMisbehavior(dos) {
-  return this.pool.setMisbehavior(this, dos);
+Peer.prototype.setMisbehavior = function setMisbehavior(score) {
+  return this.pool.setMisbehavior(this, score);
 };
 
 Peer.prototype.sendReject = function sendReject(obj, code, reason, score) {
diff --git a/lib/bcoin/protocol/constants.js b/lib/bcoin/protocol/constants.js
index 176c500d..5154d435 100644
--- a/lib/bcoin/protocol/constants.js
+++ b/lib/bcoin/protocol/constants.js
@@ -7,10 +7,9 @@
 var bn = require('bn.js');
 
 exports.minVersion = 70001;
-exports.version = 70002;
+exports.version = 70012;
 // exports.maxMessage = 2 * 1024 * 1024; // main
 exports.maxMessage = 4 * 1000 * 1000; // segwit
-exports.bcoinServices = 0;
 
 exports.services = {
   network: (1 << 0),
@@ -19,6 +18,9 @@ exports.services = {
   witness: (1 << 3)
 };
 
+exports.localServices = exports.services.network
+  | exports.services.witness;
+
 exports.inv = {
   error: 0,
   tx: 1,
diff --git a/lib/bcoin/protocol/framer.js b/lib/bcoin/protocol/framer.js
index c7d1ea86..cac9611a 100644
--- a/lib/bcoin/protocol/framer.js
+++ b/lib/bcoin/protocol/framer.js
@@ -10,6 +10,7 @@ var constants = require('./constants');
 var utils = require('../utils');
 var assert = utils.assert;
 var BufferWriter = require('../writer');
+var DUMMY = new Buffer([]);
 
 /**
  * Framer
@@ -53,8 +54,14 @@ Framer.prototype.header = function header(cmd, payload) {
 };
 
 Framer.prototype.packet = function packet(cmd, payload) {
-  var h = this.header(cmd, payload);
-  return Buffer.concat([h, payload]);
+  var header;
+
+  if (!payload)
+    payload = DUMMY;
+
+  header = this.header(cmd, payload);
+
+  return Buffer.concat([header, payload]);
 };
 
 Framer.prototype.version = function version(options) {
@@ -205,10 +212,10 @@ Framer.version = function version(options, writer) {
     options.local = {};
 
   if (options.local.services == null)
-    options.local.services = constants.bcoinServices;
+    options.local.services = constants.localServices;
 
   p.write32(constants.version);
-  p.writeU64(constants.bcoinServices);
+  p.writeU64(constants.localServices);
   p.write64(utils.now());
   Framer.address(options.remote, false, p);
   Framer.address(options.local, false, p);
diff --git a/lib/bcoin/protocol/parser.js b/lib/bcoin/protocol/parser.js
index eadf26b7..d671f8bf 100644
--- a/lib/bcoin/protocol/parser.js
+++ b/lib/bcoin/protocol/parser.js
@@ -153,6 +153,9 @@ Parser.prototype.parsePayload = function parsePayload(cmd, p) {
   if (cmd === 'alert')
     return Parser.parseAlert(p);
 
+  if (cmd === 'utxo')
+    return Parser.parseUTXO(p);
+
   return p;
 };
 
@@ -436,7 +439,7 @@ Parser.parseOutput = function parseOutput(p) {
 };
 
 Parser.parseUTXO = function parseUTXO(p) {
-  var version, height, value, script, hash, index, coinbase;
+  var version, height, value, script;
 
   p = new BufferReader(p);
   p.start();
diff --git a/lib/bcoin/script.js b/lib/bcoin/script.js
index 949d5922..751e0e89 100644
--- a/lib/bcoin/script.js
+++ b/lib/bcoin/script.js
@@ -2234,7 +2234,7 @@ Script.format = function format(code) {
 
     assert(typeof chunk === 'number');
 
-    if (constants.opcodeByVal[chunk])
+    if (constants.opcodesByVal[chunk])
       return constants.opcodesByVal[chunk];
 
     chunk = chunk.toString(16);
diff --git a/lib/bcoin/tx.js b/lib/bcoin/tx.js
index 19621fdb..1272d303 100644
--- a/lib/bcoin/tx.js
+++ b/lib/bcoin/tx.js
@@ -852,7 +852,7 @@ TX.prototype.isStandardInputs = function isStandardInputs(flags) {
       return false;
 
     if ((flags & constants.flags.VERIFY_WITNESS)
-        && input.coin.isWitnessProgram()) {
+        && input.coin.script.isWitnessProgram()) {
       hadWitness = true;
 
       // Input script must be empty.
@@ -1266,8 +1266,7 @@ TX._fromExtended = function _fromExtended(buf, saveCoins) {
       coin = bcoin.protocol.parser.parseCoin(coin, false);
       coin.hash = tx.inputs[i].prevout.hash;
       coin.index = tx.inputs[i].prevout.index;
-      coin.coinbase = false;
-      tx.inputs[i].coin = new bcoin.coin(coin);
+      tx.inputs[i].coin = coin;
     }
   }