diff --git a/.gitignore b/.gitignore
new file mode 100644
index 0000000..6c8c47f
--- /dev/null
+++ b/.gitignore
@@ -0,0 +1,3 @@
+*.swp
+build/
+package_delivery_contract.js
diff --git a/LICENSE b/LICENSE
index 261eeb9..7a9b3cb 100644
--- a/LICENSE
+++ b/LICENSE
@@ -186,7 +186,7 @@
       same "printed page" as the copyright notice for easier
       identification within third-party archives.
 
-   Copyright [yyyy] [name of copyright owner]
+   Copyright 2018 Ondrej Mular
 
    Licensed under the Apache License, Version 2.0 (the "License");
    you may not use this file except in compliance with the License.
diff --git a/Makefile b/Makefile
new file mode 100644
index 0000000..dc2e404
--- /dev/null
+++ b/Makefile
@@ -0,0 +1,60 @@
+DOCKER=docker
+NETWORK_NAME=eth-testname
+DOCKER_RUN_ARGS=--detach --tty --interactive --network $(NETWORK_NAME)
+BOOTNODE_IMG=eth-bootnode
+NODE_IMG=eth-node
+NODES_NUM=3
+BUILD_DIR=./build
+CONTRACT_SOL=package_delivery.sol
+
+all: run
+
+run: run_bootnode run_nodes
+
+run_bootnode: setup build_bootnode clean_bootnode
+	$(DOCKER) run $(DOCKER_RUN_ARGS) --name eth-bootnode $(BOOTNODE_IMG)
+
+run_nodes: setup build_node clean_nodes
+	for i in $$(seq 1 $(NODES_NUM)); do \
+		$(DOCKER) run $(DOCKER_RUN_ARGS) --name eth-node$$i --env "eth_acc=acc$$i" $(NODE_IMG);\
+	done
+
+setup: setup_network build_contract
+
+setup_network:
+	-$(DOCKER) network create --internal $(NETWORK_NAME)
+
+build: build_bootnode build_node build_contract
+
+build_contract: $(CONTRACT_SOL)
+	mkdir -p $(BUILD_DIR)
+	docker run -v $$(pwd):/_input:ro -v $$(cd $(BUILD_DIR); pwd):/_output:rw -i ethereum/solc:0.4.23 --combined-json abi,bin --overwrite -o /_output /_input/$(CONTRACT_SOL)
+	./create_crontract_script.py
+
+build_base: baseimg.docker
+	$(DOCKER) build -f baseimg.docker -t eth-base .
+
+build_bootnode: build_base bootnode.docker
+	$(DOCKER) build -f bootnode.docker -t $(BOOTNODE_IMG) .
+
+build_node: build_base node.docker
+	$(DOCKER) build -f node.docker -t $(NODE_IMG) .
+
+clean: clean_contract clean_containers clean_images clean_network
+
+clean_contract:
+	-rm -rf package_delivery_contract.js $(BUILD_DIR)
+
+clean_images:
+	-$(DOCKER) rmi eth-base $(BOOTNODE_IMG) $(NODE_IMG)
+
+clean_network:
+	-$(DOCKER) network rm $(NETWORK_NAME)
+
+clean_containers: clean_bootnode clean_nodes
+
+clean_bootnode:
+	-$(DOCKER) rm -f eth-bootnode
+
+clean_nodes:
+	-$(DOCKER) rm -f $$(for i in $$(seq 1 $(NODES_NUM)); do echo "eth-node$$i"; done)
diff --git a/baseimg.docker b/baseimg.docker
new file mode 100644
index 0000000..4d77895
--- /dev/null
+++ b/baseimg.docker
@@ -0,0 +1,8 @@
+FROM fedora:27
+
+ENV geth_pkg geth-alltools-linux-amd64-1.8.6-12683fec
+ENV geth_home /root/
+ENV bootnode_name eth-bootnode
+
+RUN dnf install -y wget; dnf clean all
+RUN wget -nv https://gethstore.blob.core.windows.net/builds/${geth_pkg}.tar.gz && tar -xvzf ${geth_pkg}.tar.gz && rm -f ${geth_pkg}.tar.gz && mv ${geth_pkg} ${geth_home}/geth
diff --git a/boot.key b/boot.key
new file mode 100644
index 0000000..a114fd8
--- /dev/null
+++ b/boot.key
@@ -0,0 +1 @@
+e9aa0425ad62b9eecd8c0f0861a17f547ba597bb7c7622d24e75ec053d4ec100
\ No newline at end of file
diff --git a/bootnode.docker b/bootnode.docker
new file mode 100644
index 0000000..bf10d3b
--- /dev/null
+++ b/bootnode.docker
@@ -0,0 +1,7 @@
+FROM eth-base
+
+# geth/bootnode -genkey boot.key
+COPY boot.key ${geth_home}/boot.key
+COPY start_bootnode.sh /bin/start_bootnode
+
+CMD ["/bin/start_bootnode"]
diff --git a/bootnode_id b/bootnode_id
new file mode 100644
index 0000000..8e47188
--- /dev/null
+++ b/bootnode_id
@@ -0,0 +1 @@
+91884f0f60ea2347e16abcc158409271cc011b4d933142dd1ffb2edd920373de9a2cc95ea21944dd4d89b347bb8579b3f6a22cd8ebdad8f9ccd66135b762a567
diff --git a/create_crontract_script.py b/create_crontract_script.py
new file mode 100755
index 0000000..2da03bc
--- /dev/null
+++ b/create_crontract_script.py
@@ -0,0 +1,14 @@
+#!/usr/bin/env python
+
+import json
+
+contract = json.load(
+    open("./build/combined.json")
+)["contracts"]["/_input/package_delivery.sol:PackageDelivery"]
+with open("package_delivery_contract.js", "w+") as f:
+    f.write("""\
+var packageDeliveryAbi = {abi};
+var packageDeliveryCode = '0x{code}';
+
+""".format(abi=contract["abi"], code=contract["bin"])
+    )
diff --git a/genesis.json b/genesis.json
new file mode 100644
index 0000000..43e8d24
--- /dev/null
+++ b/genesis.json
@@ -0,0 +1,35 @@
+{
+  "config": {
+    "chainId": 12345,
+    "homesteadBlock": 1,
+    "eip150Block": 2,
+    "eip150Hash": "0x0000000000000000000000000000000000000000000000000000000000000000",
+    "eip155Block": 3,
+    "eip158Block": 3,
+    "byzantiumBlock": 4,
+    "clique": {
+      "period": 5,
+      "epoch": 30000
+    }
+  },
+  "nonce": "0x0",
+  "extraData": "0x0000000000000000000000000000000000000000000000000000000000000000830de593b42d3a007e19553c68f0f4c95e0e6e8f92f4f00f2f5355f5ec1c55512118f1fa537b1864f27292834a6b7129e5ad00e264062c978c48d7050000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000",
+  "gasLimit": "0x47b760000",
+  "difficulty": "0x1",
+  "mixHash": "0x0000000000000000000000000000000000000000000000000000000000000000",
+  "coinbase": "0x0000000000000000000000000000000000000000",
+  "alloc": {
+    "830de593b42d3a007e19553c68f0f4c95e0e6e8f": {
+      "balance": "0x200000000000000000000000000000000000000000000000000000000000000"
+    },
+    "92f4f00f2f5355f5ec1c55512118f1fa537b1864": {
+      "balance": "0x200000000000000000000000000000000000000000000000000000000000000"
+    },
+    "f27292834a6b7129e5ad00e264062c978c48d705": {
+      "balance": "0x200000000000000000000000000000000000000000000000000000000000000"
+    }
+  },
+  "number": "0x0",
+  "gasUsed": "0x0",
+  "parentHash": "0x0000000000000000000000000000000000000000000000000000000000000000"
+}
diff --git a/keystore/830de593b42d3a007e19553c68f0f4c95e0e6e8f b/keystore/830de593b42d3a007e19553c68f0f4c95e0e6e8f
new file mode 100644
index 0000000..f9e07b9
--- /dev/null
+++ b/keystore/830de593b42d3a007e19553c68f0f4c95e0e6e8f
@@ -0,0 +1 @@
+{"address":"830de593b42d3a007e19553c68f0f4c95e0e6e8f","crypto":{"cipher":"aes-128-ctr","ciphertext":"ccccee5012a1c4d60776d2847bb2c99a7b6aa5b89bb27813c13a02b31c85077b","cipherparams":{"iv":"d97fd2beacb3c86a2753bfa7fb87679c"},"kdf":"scrypt","kdfparams":{"dklen":32,"n":262144,"p":1,"r":8,"salt":"5eae42bba2927111d395b2354e9f3e44f589538487e7d2d7bad5d6ff4c02938a"},"mac":"710541e740afb4d61b902296a39c3e58e76a5bfd761b9428b47bc8fb057f191d"},"id":"49a3b284-0715-4f24-9171-a019e16ad015","version":3}
\ No newline at end of file
diff --git a/keystore/92f4f00f2f5355f5ec1c55512118f1fa537b1864 b/keystore/92f4f00f2f5355f5ec1c55512118f1fa537b1864
new file mode 100644
index 0000000..d5cc315
--- /dev/null
+++ b/keystore/92f4f00f2f5355f5ec1c55512118f1fa537b1864
@@ -0,0 +1 @@
+{"address":"92f4f00f2f5355f5ec1c55512118f1fa537b1864","crypto":{"cipher":"aes-128-ctr","ciphertext":"490a953a0775cc7219ce7a2387f1ae228ca99acc9bc2f9d69d6e7948ee628675","cipherparams":{"iv":"958f9bacb98e83f7b5e4291b5c029039"},"kdf":"scrypt","kdfparams":{"dklen":32,"n":262144,"p":1,"r":8,"salt":"eca9045f389ef34c2f25add6f4c3bd1bbeb1bdb2381cabbef11b6be9c6c2d126"},"mac":"69cc13232e6c5830ac5b4135b4207916f48c6bf3e88f55e2b6f0fa57520825e6"},"id":"01adc11d-3151-46a4-9a6e-ee2e008d810b","version":3}
\ No newline at end of file
diff --git a/keystore/f27292834a6b7129e5ad00e264062c978c48d705 b/keystore/f27292834a6b7129e5ad00e264062c978c48d705
new file mode 100644
index 0000000..bd75d86
--- /dev/null
+++ b/keystore/f27292834a6b7129e5ad00e264062c978c48d705
@@ -0,0 +1 @@
+{"address":"f27292834a6b7129e5ad00e264062c978c48d705","crypto":{"cipher":"aes-128-ctr","ciphertext":"19e549e155b54db7367ddb8ae85f4299ccbe5b8da5331b069c78fe0cc57ede0e","cipherparams":{"iv":"db8a4b6de73f9d6a52ba4014ebe405b1"},"kdf":"scrypt","kdfparams":{"dklen":32,"n":262144,"p":1,"r":8,"salt":"3697350ba2d855a397e470d131c8ba32dfcc997fb7e2453504970e2f7bfb10d4"},"mac":"adfc8eafdb5941b0aabcb29edf1154d4eefa20a34c6b17afbce90b0e01f2c32f"},"id":"f54fd5c0-7a76-4d63-b7c1-4db7b680d0a4","version":3}
\ No newline at end of file
diff --git a/node.docker b/node.docker
new file mode 100644
index 0000000..0781210
--- /dev/null
+++ b/node.docker
@@ -0,0 +1,13 @@
+FROM eth-base
+
+RUN mkdir -p ${geth_home}/chain_data
+
+COPY start_node.sh /bin/start_node
+COPY genesis.json ${geth_home}/genesis.json
+COPY keystore ${geth_home}/keystore
+COPY bootnode_id ${geth_home}/bootnode_id
+COPY password ${geth_home}/password
+COPY package_delivery_contract.js ${geth_home}/package_delivery_contract.js
+COPY package_delivery.js ${geth_home}/package_delivery.js
+
+CMD ["/bin/start_node"]
diff --git a/package_delivery.js b/package_delivery.js
new file mode 100644
index 0000000..fbdc63c
--- /dev/null
+++ b/package_delivery.js
@@ -0,0 +1,38 @@
+// requires defined packageDeliveryAbi and packageDeliveryCode variables
+
+var acc1 = "0x92f4f00f2f5355f5ec1c55512118f1fa537b1864";
+var acc2 = "0xf27292834a6b7129e5ad00e264062c978c48d705";
+var acc3 = "0x830de593b42d3a007e19553c68f0f4c95e0e6e8f";
+
+function new_pkg_delivery_contract(carrier_addr, recipient_addr) {
+  return web3.eth.contract(packageDeliveryAbi).new(
+    carrier_addr,
+    recipient_addr,
+    {
+      from: web3.eth.accounts[0],
+      data: packageDeliveryCode,
+      gas: '4700000'
+    },
+    function (e, contract){
+      console.log(e, contract);
+      if (typeof contract.address !== 'undefined') {
+        console.log(
+          'Contract mined! address: ' + contract.address + ' transactionHash: ' + contract.transactionHash
+        );
+      }
+    }
+  )
+}
+
+function get_existing_pkg_delivery_contract(addr) {
+  return web3.eth.contract(packageDeliveryAbi).at(addr);
+}
+
+function send_tx(arg) {
+  return arg.sendTransaction({from: eth.accounts[0]})
+}
+
+function show_status(obj) {
+  console.log("Process status: " + obj.get_process_state());
+  console.log("Package delivery status: " + obj.get_status());
+}
diff --git a/package_delivery.sol b/package_delivery.sol
new file mode 100644
index 0000000..91e3f6a
--- /dev/null
+++ b/package_delivery.sol
@@ -0,0 +1,158 @@
+pragma solidity ^0.4.23;
+
+contract Process {
+    enum State {
+        Initiated,  // 0
+        InProgress, // 1
+        Ended       // 2
+    }
+    State public state;
+
+    modifier is_in_progress() {
+        require(state == State.InProgress, "Process is not in progress");
+        _;
+    }
+
+    constructor() public {
+        state = State.Initiated;
+    }
+
+    function start() internal {
+        require(state == State.Initiated, "Process has been already started");
+        state = State.InProgress;
+    }
+
+    function end() internal is_in_progress() {
+        state = State.Ended;
+    }
+
+    function get_process_state() public view returns(State) {
+        return state;
+    }
+}
+
+contract PackageDelivery is Process {
+    address public sender;
+    address public carrier;
+    address public recipient;
+    uint failed_deliveries;
+    uint delivered_confirmation_until;
+    // set to lower timeout for testing
+    uint delivered_confirmation_timeout = 60; // in seconds
+
+    enum PackageDeliveryState {
+        Preparing,           // 0
+        HandoverToCarrier,   // 1
+        InDelivery,          // 2
+        HandoverToRecipient, // 3
+        Delivered,           // 4
+        ReturningToSender,   // 5
+        HandoverToSender,    // 6
+        Returned             // 7
+    }
+
+    PackageDeliveryState package_state;
+
+    modifier allowed_actor(address _actor) {
+        require(msg.sender == _actor, "Not authorized");
+        _;
+    }
+
+    modifier package_in_state(PackageDeliveryState _state) {
+        require(_state == package_state, "Invalid action");
+        _;
+    }
+
+    constructor(address _carrier, address _recipient) public {
+        failed_deliveries = 0;
+        sender = msg.sender;
+        carrier = _carrier;
+        recipient = _recipient;
+        start();
+        package_state = PackageDeliveryState.Preparing;
+    }
+
+    function get_status() public view returns (PackageDeliveryState) {
+        return package_state;
+    }
+
+    function hand_over_to_carrier()
+        public
+        is_in_progress()
+        allowed_actor(sender)
+        package_in_state(PackageDeliveryState.Preparing)
+    {
+        package_state = PackageDeliveryState.HandoverToCarrier;
+    }
+
+    function accept_package_for_delivery()
+        public
+        is_in_progress()
+        allowed_actor(carrier)
+        package_in_state(PackageDeliveryState.HandoverToCarrier)
+    {
+        package_state = PackageDeliveryState.InDelivery;
+    }
+
+    function hand_over_to_recipient()
+        public
+        is_in_progress()
+        allowed_actor(carrier)
+        package_in_state(PackageDeliveryState.InDelivery)
+    {
+        package_state = PackageDeliveryState.HandoverToRecipient;
+        delivered_confirmation_until = now + delivered_confirmation_timeout;
+    }
+
+    function accept_package()
+        public
+        is_in_progress()
+        allowed_actor(recipient)
+        package_in_state(PackageDeliveryState.HandoverToRecipient)
+    {
+        require(
+            now <= delivered_confirmation_until,
+            "Delivery confirmation timed out."
+        );
+        package_state = PackageDeliveryState.Delivered;
+        end();
+    }
+
+    function unable_to_deliver()
+        public
+        is_in_progress()
+        allowed_actor(carrier)
+        package_in_state(PackageDeliveryState.HandoverToRecipient)
+    {
+        require(
+            now > delivered_confirmation_until,
+            "Delivery confirmation didn't time out yet."
+        );
+        failed_deliveries++;
+        if (failed_deliveries >= 3) {
+            package_state = PackageDeliveryState.ReturningToSender;
+        } else {
+            package_state = PackageDeliveryState.InDelivery;
+        }
+    }
+
+    function return_to_sender()
+        public
+        is_in_progress()
+        allowed_actor(carrier)
+        package_in_state(PackageDeliveryState.ReturningToSender)
+    {
+        package_state = PackageDeliveryState.HandoverToSender;
+    }
+
+    function confirm_pkg_return()
+        public
+        is_in_progress()
+        allowed_actor(sender)
+        package_in_state(PackageDeliveryState.HandoverToSender)
+    {
+        package_state = PackageDeliveryState.Returned;
+        end();
+    }
+}
+
diff --git a/password b/password
new file mode 100644
index 0000000..81c545e
--- /dev/null
+++ b/password
@@ -0,0 +1 @@
+1234
diff --git a/start_bootnode.sh b/start_bootnode.sh
new file mode 100755
index 0000000..955b730
--- /dev/null
+++ b/start_bootnode.sh
@@ -0,0 +1,12 @@
+#!/bin/sh
+
+BOOTNODE_IP=$(getent hosts ${bootnode_name} | awk '{print $1;}')
+
+echo "running: ${geth_home}/geth/bootnode \
+        -nodekey ${geth_home}/boot.key \
+        -addr ${BOOTNODE_IP}:30301"
+${geth_home}/geth/bootnode \
+        -nodekey ${geth_home}/boot.key \
+        -addr ${BOOTNODE_IP}:30301
+
+
diff --git a/start_node.sh b/start_node.sh
new file mode 100755
index 0000000..df4d4e4
--- /dev/null
+++ b/start_node.sh
@@ -0,0 +1,58 @@
+#!/bin/sh
+
+BOOTNODE_IP=$(getent hosts ${bootnode_name} | awk '{print $1;}')
+CHAIN_DATA_DIR=$geth_home/chain_dir/
+GETH_BIN=${geth_home}/geth/geth
+CHAIN_KEYSTORE=$CHAIN_DATA_DIR/keystore/
+NODE_IP=$(awk 'END{print $1}' /etc/hosts)
+
+mkdir -p $CHAIN_KEYSTORE
+
+case $eth_acc in
+        acc1)
+                ACC=92f4f00f2f5355f5ec1c55512118f1fa537b1864
+                ;;
+        acc2)
+                ACC=f27292834a6b7129e5ad00e264062c978c48d705
+                ;;
+        acc3)
+                ACC=830de593b42d3a007e19553c68f0f4c95e0e6e8f
+                ;;
+esac
+
+if [[ ! -z $ACC ]]; then
+        echo "Using account $ACC"
+        cp $geth_home/keystore/$ACC $CHAIN_KEYSTORE/
+        ACC_UNLOCK="--unlock 0x$ACC --password $geth_home/password"
+fi
+
+echo "running: $GETH_BIN init $geth_home/genesis.json --datadir $CHAIN_DATA_DIR"
+$GETH_BIN init $geth_home/genesis.json --datadir $CHAIN_DATA_DIR
+
+echo "$GETH_BIN
+        --datadir $CHAIN_DATA_DIR
+        --networkid 12345
+        --bootnodes enode://$(cat $geth_home/bootnode_id)@$BOOTNODE_IP:30301
+        --syncmode full
+        --rpc
+        --rpcaddr ${NODE_IP}
+        $ACC_UNLOCK
+        --mine
+        --etherbase 0x$ACC
+        --preload $geth_home/package_delivery_contract.js,$geth_home/package_delivery.js
+        console
+"
+$GETH_BIN \
+        --datadir $CHAIN_DATA_DIR \
+        --networkid 12345 \
+        --bootnodes enode://$(cat $geth_home/bootnode_id)@$BOOTNODE_IP:30301 \
+        --syncmode full \
+        --rpc \
+        --rpcaddr ${NODE_IP} \
+        $ACC_UNLOCK \
+        --mine \
+        --etherbase 0x$ACC \
+        --preload $geth_home/package_delivery_contract.js,$geth_home/package_delivery.js \
+        console
+
+        # --ethash.dagdir $geth_home/.ethash \