diff --git a/lib/messages/commands/verack.js b/lib/messages/commands/verack.js
index 1653612..5def3e2 100644
--- a/lib/messages/commands/verack.js
+++ b/lib/messages/commands/verack.js
@@ -8,6 +8,10 @@ var BufferUtil = bitcore.util.buffer;
 var magicNumber = bitcore.Networks.defaultNetwork.networkMagic.readUInt32LE(0);
 
 function VerackMessage(options) {
+  if(!options) {
+    options = {};
+  }
+
   Message.call(this, options);
   this.magicNumber = magicNumber;
   this.command = 'verack';
diff --git a/lib/peer.js b/lib/peer.js
index ac05bb2..2757543 100644
--- a/lib/peer.js
+++ b/lib/peer.js
@@ -38,10 +38,17 @@ function Peer(options) {
     return new Peer(options);
   }
 
-  this.host = options.host || 'localhost';
-  this.status = Peer.STATUS.DISCONNECTED;
-  this.port = options.port;
-
+  if(options.socket) {
+    this.socket = options.socket;
+    this.host = this.socket.remoteAddress;
+    this.port = this.socket.remotePort;
+    this.status = Peer.STATUS.CONNECTED;
+    this._addSocketEventHandlers();
+  } else {
+    this.host = options.host || 'localhost';
+    this.status = Peer.STATUS.DISCONNECTED;
+    this.port = options.port;
+  }
 
   this.network = Networks.get(options.network) || Networks.defaultNetwork;
   if (!this.port) {
@@ -61,6 +68,8 @@ function Peer(options) {
   this.subversion = null;
   this.relay = options.relay === false ? false : true;
 
+  this.versionSent = false;
+
   // set message handlers
   var self = this;
   this.on('verack', function() {
@@ -72,6 +81,13 @@ function Peer(options) {
     self.version = message.version;
     self.subversion = message.subversion;
     self.bestHeight = message.startHeight;
+
+    var verackResponse = self.messages.build('verack');
+    self.sendMessage(verackResponse);
+
+    if(!self.versionSent) {
+      self._sendVersion();
+    }
   });
 
   this.on('ping', function(message) {
@@ -122,6 +138,14 @@ Peer.prototype.connect = function() {
     self._sendVersion();
   });
 
+  this._addSocketEventHandlers();
+  this.socket.connect(this.port, this.host);
+  return this;
+};
+
+Peer.prototype._addSocketEventHandlers = function() {
+  var self = this;
+
   this.socket.on('error', self._onError.bind(this));
   this.socket.on('end', self.disconnect.bind(this));
 
@@ -134,13 +158,11 @@ Peer.prototype.connect = function() {
     }
     self._readMessage();
   });
-
-  this.socket.connect(this.port, this.host);
-  return this;
 };
 
 Peer.prototype._onError = function(e) {
   this.emit('error', e);
+  this.disconnect();
 };
 
 /**
@@ -172,6 +194,7 @@ Peer.prototype._sendVersion = function() {
   var message = this.messages.build('version', {
     relay: this.relay
   });
+  this.versionSent = true;
   this.sendMessage(message);
 };
 
diff --git a/lib/pool.js b/lib/pool.js
index 7e613e6..70481bf 100644
--- a/lib/pool.js
+++ b/lib/pool.js
@@ -7,6 +7,7 @@ var sha256 = bitcore.crypto.Hash.sha256;
 var Peer = require('./peer');
 var Networks = bitcore.Networks;
 var util = require('util');
+var net = require('net');
 
 function now() {
   return Math.floor(new Date().getTime() / 1000);
@@ -126,6 +127,8 @@ Pool.prototype.connect = function connect() {
   } else {
     self._fillConnections();
   }
+
+  this.listen();
   return this;
 };
 
@@ -185,40 +188,61 @@ Pool.prototype._removeConnectedPeer = function _removeConnectedPeer(addr) {
 Pool.prototype._connectPeer = function _connectPeer(addr) {
   var self = this;
 
-  function addConnectedPeer(addr) {
+  if (!this._connectedPeers[addr.hash]) {
     var port = addr.port || self.network.port;
     var ip = addr.ip.v4 || addr.ip.v6;
     var peer = new Peer({
-      ip: ip,
+      host: ip,
       port: port,
       messages: self.messages,
       relay: self.relay
     });
-    peer.on('disconnect', function peerDisconnect() {
-      self.emit('peerdisconnect', peer, addr);
-    });
+
     peer.on('connect', function peerConnect() {
       self.emit('peerconnect', peer, addr);
     });
-    peer.on('ready', function peerReady() {
-      self.emit('peerready', peer, addr);
-    });
-    Pool.PeerEvents.forEach(function addPeerEvents(event) {
-      peer.on(event, function peerEvent(message) {
-        self.emit('peer' + event, peer, message);
-      });
-    });
+
+    self._addPeerEventHandlers(peer, addr);
     peer.connect();
     self._connectedPeers[addr.hash] = peer;
   }
 
+  return this;
+};
+
+Pool.prototype._addConnectedPeer = function _addConnectedPeer(socket, addr) {
+  var self = this;
+
   if (!this._connectedPeers[addr.hash]) {
-    addConnectedPeer(addr);
+    var peer = new Peer({
+      socket: socket,
+      messages: self.messages
+    });
+
+    self._addPeerEventHandlers(peer, addr);
+    self._connectedPeers[addr.hash] = peer;
+    self.emit('peerconnect', peer, addr);
   }
 
   return this;
 };
 
+Pool.prototype._addPeerEventHandlers = function(peer, addr) {
+  var self = this;
+
+  peer.on('disconnect', function peerDisconnect() {
+    self.emit('peerdisconnect', peer, addr);
+  });
+  peer.on('ready', function peerReady() {
+    self.emit('peerready', peer, addr);
+  });
+  Pool.PeerEvents.forEach(function addPeerEvents(event) {
+    peer.on(event, function peerEvent(message) {
+      self.emit('peer' + event, peer, message);
+    });
+  });
+};
+
 /**
  * Will deprioritize an addr in the list of addrs by moving it to the end
  * of the array, and setting a retryTime
@@ -257,7 +281,7 @@ Pool.prototype._addAddr = function _addAddr(addr) {
   if (!exists) {
     this._addrs.unshift(addr);
   }
-  return this;
+  return addr;
 };
 
 /**
@@ -313,4 +337,24 @@ Pool.prototype.sendMessage = function(message) {
   }
 };
 
+Pool.prototype.listen = function() {
+  var self = this;
+
+    // Create server
+  this.server = net.createServer(function(socket) {
+    var addr = {
+      ip: {}
+    };
+    if(net.isIPv6(socket.remoteAddress)) {
+      addr.ip.v6 = socket.remoteAddress;
+    } else {
+      addr.ip.v4 = socket.remoteAddress;
+    }
+
+    addr = self._addAddr(addr);
+    self._addConnectedPeer(socket, addr);
+  });
+  this.server.listen(this.network.port);
+};
+
 module.exports = Pool;