diff --git a/config.js b/config.js
index 3c5bfe6a..fc964060 100644
--- a/config.js
+++ b/config.js
@@ -4,7 +4,7 @@ var path = require('path');
 var fs = require('fs');
 var mkdirp = require('mkdirp');
 
-var rootPath = path.normalize(__dirname + '/..'),
+var rootPath = path.normalize(__dirname),
   env,
   db,
   port,
diff --git a/lib/logger.js b/lib/logger.js
index 23680925..ba233391 100644
--- a/lib/logger.js
+++ b/lib/logger.js
@@ -1,5 +1,5 @@
 var winston = require('winston');
-var config = require('../config/config');
+var config = require('../config');
 
 var logger = new winston.Logger({
   transports: [
@@ -10,4 +10,4 @@ var logger = new winston.Logger({
 });
 logger.transports.console.level = config.loggerLevel;
 
-module.exports.logger = logger;
+module.exports = logger;
diff --git a/lib/networkmonitor.js b/lib/networkmonitor.js
index c3256648..2cd4f151 100644
--- a/lib/networkmonitor.js
+++ b/lib/networkmonitor.js
@@ -2,20 +2,55 @@
 
 
 var bitcore = require('bitcore');
+var Networks = bitcore.Networks;
+var p2p = require('bitcore-p2p');
 var Promise = require('bluebird');
 var $ = bitcore.util.preconditions;
 var _ = bitcore.deps._;
 var EventEmitter = require('events').EventEmitter;
 var util = require('util');
 var EventBus = require('./eventbus');
+var Peer = p2p.Peer;
+var Messages = p2p.Messages;
+var logger = require('./logger');
 
-
-var p2p = require('bitcore-p2p');
-
-function NetworkMonitor(eventBus) {
+function NetworkMonitor(eventBus, opts) {
   $.checkArgument(eventBus instanceof EventBus);
   this.bus = eventBus;
+
+  opts = opts || {};
+  opts.network = opts.network || Networks.defaultNetwork;
+  opts.host = opts.host || 'localhost';
+  opts.port = opts.port || Networks.defaultNetwork.port;
+
+  var peer = new Peer(opts.host, opts.port, opts.network);
+  this.peer = peer;
+  this.setupPeer(peer);
 }
 util.inherits(NetworkMonitor, EventEmitter);
 
+
+NetworkMonitor.prototype.setupPeer = function(peer) {
+  var self = this;
+
+  peer.on('ready', function() {
+    logger.info('NetworkMonitor: connected to the bitcoin network.');
+  });
+  peer.on('inv', function(m) {
+    // TODO only ask for data if tx or block is unknown
+    peer.sendMessage(new Messages.GetData(m.inventory));
+  });
+  peer.on('tx', function(m) {
+    self.bus.process(m.transaction);
+  });
+  peer.on('block', function(m) {
+    self.bus.process(m.block);
+  });
+};
+
+NetworkMonitor.prototype.start = function() {
+  this.peer.connect();
+};
+
+
 module.exports = NetworkMonitor;
diff --git a/test/networkmonitor.js b/test/networkmonitor.js
index 074692fe..98437b78 100644
--- a/test/networkmonitor.js
+++ b/test/networkmonitor.js
@@ -3,6 +3,7 @@
 var chai = require('chai');
 var should = chai.should();
 var sinon = require('sinon');
+var bitcore = require('bitcore');
 
 var NetworkMonitor = require('../lib/networkmonitor');
 var EventBus = require('../lib/eventbus');
@@ -10,13 +11,22 @@ var util = require('util');
 var Promise = require('bluebird');
 Promise.longStackTraces();
 
-var bus = sinon.createStubInstance(EventBus);
+var bus = new EventBus(); //sinon.createStubInstance(EventBus);
 
-describe('NetworkMonitor', function() {
+describe.only('NetworkMonitor', function() {
 
-  it.only('instantiate', function() {
+  this.timeout(10000);
+
+  it('instantiate', function() {
     var nm = new NetworkMonitor(bus);
     should.exist(nm);
   });
+  it('start', function(cb) {
+    var nm = new NetworkMonitor(bus);
+    bus.register(bitcore.Transaction, function(tx) {
+      console.log('new tx: ', tx.id); 
+    });
+    nm.start();
+  });
 
 });