diff --git a/lndc/conn.go b/lndc/conn.go
new file mode 100644
index 00000000..71186217
--- /dev/null
+++ b/lndc/conn.go
@@ -0,0 +1,368 @@
+package lndc
+
+import (
+	"bytes"
+	"crypto/cipher"
+	"encoding/binary"
+	"fmt"
+	"net"
+	"time"
+
+	"github.com/btcsuite/btcutil"
+	"github.com/btcsuite/fastsha256"
+	"github.com/codahale/chacha20poly1305"
+
+	"github.com/btcsuite/btcd/btcec"
+)
+
+// Conn...
+type Conn struct {
+	longTermPriv *btcec.PrivateKey
+
+	remotePub  *btcec.PublicKey
+	remoteLNId [16]byte
+
+	myNonceInt     uint64
+	remoteNonceInt uint64
+
+	// If Authed == false, the remotePub is the EPHEMERAL key.
+	// once authed == true, remotePub is who you're actually talking to.
+	authed bool
+
+	// chachaStream saves some time as you don't have to init it with
+	// the session key every time.  Make SessionKey redundant; remove later.
+	chachaStream cipher.AEAD
+
+	// ViaPbx specifies whether this is a direct TCP connection or an
+	// encapsulated PBX connection.
+	// If going ViaPbx, Cn isn't used channels are used for Read() and
+	// Write(), which are filled by the PBXhandler.
+	viaPbx      bool
+	pbxIncoming chan []byte
+	pbxOutgoing chan []byte
+
+	version uint8
+
+	readBuf bytes.Buffer
+
+	conn net.Conn
+}
+
+// NewConn...
+func NewConn(connPrivKey *btcec.PrivateKey, conn net.Conn) *Conn {
+	return &Conn{longTermPriv: connPrivKey, conn: conn}
+}
+
+// Dial...
+func (c *Conn) Dial(address string, remoteId []byte) error {
+	var err error
+	if c.conn != nil {
+		return fmt.Errorf("connection already established")
+	}
+
+	// Before dialing out to the remote host, verify that `remoteId` is either
+	// a pubkey or a pubkey hash.
+	if len(remoteId) != 33 && len(remoteId) != 20 {
+		return fmt.Errorf("must supply either remote pubkey or " +
+			"pubkey hash")
+	}
+
+	// First, open the TCP connection itself.
+	c.conn, err = net.Dial("tcp", address)
+	if err != nil {
+		return err
+	}
+
+	// Calc remote LNId; need this for creating pbx connections just because
+	// LNid is in the struct does not mean it's authed!
+	if len(remoteId) == 20 {
+		copy(c.remoteLNId[:], remoteId[:16])
+	} else {
+		theirAdr := btcutil.Hash160(remoteId)
+		copy(c.remoteLNId[:], theirAdr[:16])
+	}
+
+	// Make up an ephemeral keypair for this session.
+	ourEphemeralPriv, err := btcec.NewPrivateKey(btcec.S256())
+	if err != nil {
+		return err
+	}
+	ourEphemeralPub := ourEphemeralPriv.PubKey()
+
+	// Sned 1. Send my ephemeral pubkey. Can add version bits.
+	if _, err = writeClear(c.conn, ourEphemeralPub.SerializeCompressed()); err != nil {
+		return err
+	}
+
+	// Read, then deserialize their ephemeral public key.
+	theirEphPubBytes, err := readClear(c.conn)
+	if err != nil {
+		return err
+	}
+	theirEphPub, err := btcec.ParsePubKey(theirEphPubBytes, btcec.S256())
+	if err != nil {
+		return err
+	}
+
+	// Do non-interactive diffie with ephemeral pubkeys. Sha256 for good
+	// luck.
+	sessionKey := fastsha256.Sum256(
+		btcec.GenerateSharedSecret(ourEphemeralPriv, theirEphPub),
+	)
+
+	// Now that we've derive the session key, we can initialize the
+	// chacha20poly1305 AEAD instance which will be used for the remainder of
+	// the session.
+	c.chachaStream, err = chacha20poly1305.New(sessionKey[:])
+	if err != nil {
+		return err
+	}
+
+	// display private key for debug only
+	fmt.Printf("made session key %x\n", sessionKey)
+
+	c.myNonceInt = 1 << 63
+	c.remoteNonceInt = 0
+
+	c.remotePub = theirEphPub
+	c.authed = false
+
+	// Session is now open and confidential but not yet authenticated...
+	// So auth!
+	if len(remoteId) == 20 {
+		// Only know pubkey hash (20 bytes).
+		err = c.authPKH(remoteId, ourEphemeralPub.SerializeCompressed())
+	} else {
+		// Must be 33 byte pubkey.
+		err = c.authPubKey(remoteId, ourEphemeralPub.SerializeCompressed())
+	}
+	if err != nil {
+		return err
+	}
+
+	return nil
+}
+
+// authPubKey...
+func (c *Conn) authPubKey(remotePubBytes, localEphPubBytes []byte) error {
+	if c.authed {
+		return fmt.Errorf("%s already authed", c.remotePub)
+	}
+
+	// Since we already know their public key, we can immediately generate
+	// the DH proof without an additional round-trip.
+	theirPub, err := btcec.ParsePubKey(remotePubBytes, btcec.S256())
+	if err != nil {
+		return err
+	}
+	theirPKH := btcutil.Hash160(remotePubBytes)
+	idDH := fastsha256.Sum256(btcec.GenerateSharedSecret(c.longTermPriv, theirPub))
+	myDHproof := btcutil.Hash160(append(c.remotePub.SerializeCompressed(), idDH[:]...))
+
+	// Send over the 73 byte authentication message: my pubkey, their
+	// pubkey hash, DH proof.
+	var authMsg [73]byte
+	copy(authMsg[:33], c.longTermPriv.PubKey().SerializeCompressed())
+	copy(authMsg[33:], theirPKH)
+	copy(authMsg[53:], myDHproof)
+	if _, err = c.conn.Write(authMsg[:]); err != nil {
+		return nil
+	}
+
+	// Await, their response. They should send only the 20-byte DH proof.
+	resp := make([]byte, 20)
+	_, err = c.conn.Read(resp)
+	if err != nil {
+		return err
+	}
+
+	// Verify that their proof matches our locally computed version.
+	theirDHproof := btcutil.Hash160(append(localEphPubBytes, idDH[:]...))
+	if bytes.Equal(resp, theirDHproof) == false {
+		return fmt.Errorf("invalid DH proof %x", theirDHproof)
+	}
+
+	// Proof checks out, auth complete.
+	c.remotePub = theirPub
+	theirAdr := btcutil.Hash160(theirPub.SerializeCompressed())
+	copy(c.remoteLNId[:], theirAdr[:16])
+	c.authed = true
+
+	return nil
+}
+
+// authPKH...
+func (c *Conn) authPKH(theirPKH, localEphPubBytes []byte) error {
+	if c.authed {
+		return fmt.Errorf("%s already authed", c.remotePub)
+	}
+	if len(theirPKH) != 20 {
+		return fmt.Errorf("remote PKH must be 20 bytes, got %d",
+			len(theirPKH))
+	}
+
+	// Send 53 bytes: our pubkey, and the remote's pubkey hash.
+	var greetingMsg [53]byte
+	copy(greetingMsg[:33], c.longTermPriv.PubKey().SerializeCompressed())
+	copy(greetingMsg[:33], theirPKH)
+	if _, err := c.conn.Write(greetingMsg[:]); err != nil {
+		return err
+	}
+
+	// Wait for their response.
+	// TODO(tadge): add timeout here
+	//  * NOTE(roasbeef): read timeout should be set on the underlying
+	//    net.Conn.
+	resp := make([]byte, 53)
+	if _, err := c.conn.Read(resp); err != nil {
+		return err
+	}
+
+	// Parse their long-term public key, and generate the DH proof.
+	theirPub, err := btcec.ParsePubKey(resp[:33], btcec.S256())
+	if err != nil {
+		return err
+	}
+	idDH := fastsha256.Sum256(btcec.GenerateSharedSecret(c.longTermPriv, theirPub))
+	fmt.Printf("made idDH %x\n", idDH)
+	theirDHproof := btcutil.Hash160(append(localEphPubBytes, idDH[:]...))
+
+	// Verify that their DH proof matches the one we just generated.
+	if bytes.Equal(resp[33:], theirDHproof) == false {
+		return fmt.Errorf("Invalid DH proof %x", theirDHproof)
+	}
+
+	// If their DH proof checks out, then send our own.
+	myDHproof := btcutil.Hash160(append(c.remotePub.SerializeCompressed(), idDH[:]...))
+	if _, err = c.conn.Write(myDHproof); err != nil {
+		return err
+	}
+
+	// Proof sent, auth complete.
+	c.remotePub = theirPub
+	theirAdr := btcutil.Hash160(theirPub.SerializeCompressed())
+	copy(c.remoteLNId[:], theirAdr[:16])
+	c.authed = true
+
+	return nil
+}
+
+// Read reads data from the connection.
+// Read can be made to time out and return a Error with Timeout() == true
+// after a fixed time limit; see SetDeadline and SetReadDeadline.
+// Part of the net.Conn interface.
+func (c *Conn) Read(b []byte) (n int, err error) {
+	// In order to reconcile the differences between the record abstraction
+	// of our AEAD connection, and the stream abstraction of TCP, we maintain
+	// an intermediate read buffer. If this buffer becomes depleated, then
+	// we read the next record, and feed it into the buffer. Otherwise, we
+	// read directly from the buffer.
+	if c.readBuf.Len() == 0 {
+		// The buffer is empty, so read the next cipher text.
+		ctext, err := readClear(c.conn)
+		if err != nil {
+			return 0, err
+		}
+
+		// Encode the current remote nonce, so we can use it to decrypt
+		// the cipher text.
+		var nonceBuf [8]byte
+		binary.BigEndian.PutUint64(nonceBuf[:], c.remoteNonceInt)
+
+		fmt.Printf("decrypt %d byte from %x nonce %d\n",
+			len(ctext), c.remoteLNId, c.remoteNonceInt)
+
+		c.remoteNonceInt++ // increment remote nonce, no matter what...
+
+		msg, err := c.chachaStream.Open(nil, nonceBuf[:], ctext, nil)
+		if err != nil {
+			fmt.Printf("decrypt %d byte ciphertext failed\n", len(ctext))
+			return 0, err
+		}
+
+		if _, err := c.readBuf.Write(msg); err != nil {
+			return 0, err
+		}
+	}
+
+	return c.readBuf.Read(b)
+}
+
+// Write writes data to the connection.
+// Write can be made to time out and return a Error with Timeout() == true
+// after a fixed time limit; see SetDeadline and SetWriteDeadline.
+// Part of the net.Conn interface.
+func (c *Conn) Write(b []byte) (n int, err error) {
+	if b == nil {
+		return 0, fmt.Errorf("write to %x nil", c.remoteLNId)
+	}
+	fmt.Printf("Encrypt %d byte plaintext to %x nonce %d\n",
+		len(b), c.remoteLNId, c.myNonceInt)
+
+	// first encrypt message with shared key
+	var nonceBuf [8]byte
+	binary.BigEndian.PutUint64(nonceBuf[:], c.myNonceInt)
+	c.myNonceInt++ // increment mine
+
+	ctext := c.chachaStream.Seal(nil, nonceBuf[:], b, nil)
+	if err != nil {
+		return 0, err
+	}
+	if len(ctext) > 65530 {
+		return 0, fmt.Errorf("Write to %x too long, %d bytes",
+			c.remoteLNId, len(ctext))
+	}
+
+	// use writeClear to prepend length / destination header
+	return writeClear(c.conn, ctext)
+}
+
+// Close closes the connection.
+// Any blocked Read or Write operations will be unblocked and return errors.
+// Part of the net.Conn interface.
+func (c *Conn) Close() error {
+	c.myNonceInt = 0
+	c.remoteNonceInt = 0
+	c.remotePub = nil
+
+	return c.conn.Close()
+}
+
+// LocalAddr returns the local network address.
+// Part of the net.Conn interface.
+// If PBX reports address of pbx host.
+func (c *Conn) LocalAddr() net.Addr {
+	return c.conn.LocalAddr()
+}
+
+// RemoteAddr returns the remote network address.
+// Part of the net.Conn interface.
+func (c *Conn) RemoteAddr() net.Addr {
+	return c.conn.RemoteAddr()
+}
+
+// SetDeadline sets the read and write deadlines associated
+// with the connection. It is equivalent to calling both
+// SetReadDeadline and SetWriteDeadline.
+// Part of the net.Conn interface.
+func (c *Conn) SetDeadline(t time.Time) error {
+	return c.conn.SetDeadline(t)
+}
+
+// SetReadDeadline sets the deadline for future Read calls.
+// A zero value for t means Read will not time out.
+// Part of the net.Conn interface.
+func (c *Conn) SetReadDeadline(t time.Time) error {
+	return c.conn.SetReadDeadline(t)
+}
+
+// SetWriteDeadline sets the deadline for future Write calls.
+// Even if write times out, it may return n > 0, indicating that
+// some of the data was successfully written.
+// A zero value for t means Write will not time out.
+// Part of the net.Conn interface.
+func (c *Conn) SetWriteDeadline(t time.Time) error {
+	return c.conn.SetWriteDeadline(t)
+}
+
+var _ net.Conn = (*Conn)(nil)
diff --git a/lndc/listener.go b/lndc/listener.go
new file mode 100644
index 00000000..99d3fc11
--- /dev/null
+++ b/lndc/listener.go
@@ -0,0 +1,206 @@
+package lndc
+
+import (
+	"bytes"
+	"fmt"
+	"net"
+
+	"github.com/btcsuite/btcd/btcec"
+	"github.com/btcsuite/btcutil"
+	"github.com/btcsuite/fastsha256"
+	"github.com/codahale/chacha20poly1305"
+)
+
+// Listener...
+type Listener struct {
+	longTermPriv *btcec.PrivateKey
+
+	tcp *net.TCPListener
+}
+
+var _ net.Listener = (*Listener)(nil)
+
+// NewListener...
+func NewListener(localPriv *btcec.PrivateKey, listenAddr string) (*Listener, error) {
+	addr, err := net.ResolveTCPAddr("tcp", listenAddr)
+	if err != nil {
+		return nil, err
+	}
+
+	l, err := net.ListenTCP("tcp", addr)
+	if err != nil {
+		return nil, err
+	}
+
+	return &Listener{localPriv, l}, nil
+}
+
+// Accept waits for and returns the next connection to the listener.
+// Part of the net.Listener interface.
+func (l *Listener) Accept() (c net.Conn, err error) {
+	conn, err := l.tcp.Accept()
+	if err != nil {
+		return nil, nil
+	}
+
+	lndc := NewConn(l.longTermPriv, conn)
+
+	// Exchange an ephemeral public key with the remote connection in order
+	// to establish a confidential connection before we attempt to
+	// authenticated.
+	ephemeralKey, err := l.createCipherConn(lndc)
+	if err != nil {
+		return nil, err
+	}
+
+	// Now that we've established an encrypted connection, authenticate the
+	// identity of the remote host.
+	ephemeralPub := ephemeralKey.PubKey().SerializeCompressed()
+	if err := l.authenticateConnection(lndc, ephemeralPub); err != nil {
+		lndc.Close()
+		return nil, err
+	}
+
+	return lndc, nil
+}
+
+// createCipherConn....
+func (l *Listener) createCipherConn(lnConn *Conn) (*btcec.PrivateKey, error) {
+	var err error
+	var theirEphPubBytes []byte
+
+	// First, read and deserialize their ephemeral public key.
+	theirEphPubBytes, err = readClear(lnConn.conn)
+	if err != nil {
+		return nil, err
+	}
+	if len(theirEphPubBytes) != 33 {
+		return nil, fmt.Errorf("Got invalid %d byte eph pubkey %x\n",
+			len(theirEphPubBytes), theirEphPubBytes)
+	}
+	theirEphPub, err := btcec.ParsePubKey(theirEphPubBytes, btcec.S256())
+	if err != nil {
+		return nil, err
+	}
+
+	// Once we've parsed and verified their key, generate, and send own
+	// ephemeral key pair for use within this session.
+	myEph, err := btcec.NewPrivateKey(btcec.S256())
+	if err != nil {
+		return nil, err
+	}
+	if _, err := writeClear(lnConn.conn, myEph.PubKey().SerializeCompressed()); err != nil {
+		return nil, err
+	}
+
+	// Now that we have both keys, do non-interactive diffie with ephemeral
+	// pubkeys, sha256 for good luck.
+	sessionKey := fastsha256.Sum256(
+		btcec.GenerateSharedSecret(myEph, theirEphPub),
+	)
+
+	lnConn.chachaStream, err = chacha20poly1305.New(sessionKey[:])
+
+	// display private key for debug only
+	fmt.Printf("made session key %x\n", sessionKey)
+
+	lnConn.remoteNonceInt = 1 << 63
+	lnConn.myNonceInt = 0
+
+	lnConn.remotePub = theirEphPub
+	lnConn.authed = false
+
+	return myEph, nil
+}
+
+// AuthListen...
+func (l *Listener) authenticateConnection(lnConn *Conn, localEphPubBytes []byte) error {
+	var err error
+
+	// TODO(roasbeef): should be using read/write clear here?
+	slice := make([]byte, 73)
+	n, err := lnConn.conn.Read(slice)
+	if err != nil {
+		fmt.Printf("Read error: %s\n", err.Error())
+		return err
+	}
+
+	fmt.Printf("read %d bytes\n", n)
+	authmsg := slice[:n]
+	if len(authmsg) != 53 && len(authmsg) != 73 {
+		return fmt.Errorf("got auth message of %d bytes, "+
+			"expect 53 or 73", len(authmsg))
+	}
+
+	myPKH := btcutil.Hash160(l.longTermPriv.PubKey().SerializeCompressed())
+	if !bytes.Equal(myPKH, authmsg[33:53]) {
+		return fmt.Errorf(
+			"remote host asking for PKH %x, that's not me", authmsg[33:53])
+	}
+
+	// do DH with id keys
+	theirPub, err := btcec.ParsePubKey(authmsg[:33], btcec.S256())
+	if err != nil {
+		return err
+	}
+	idDH := fastsha256.Sum256(
+		btcec.GenerateSharedSecret(lnConn.longTermPriv, theirPub),
+	)
+
+	myDHproof := btcutil.Hash160(
+		append(lnConn.remotePub.SerializeCompressed(), idDH[:]...),
+	)
+	theirDHproof := btcutil.Hash160(append(localEphPubBytes, idDH[:]...))
+
+	// If they already know our public key, then execute the fast path.
+	// Verify their DH proof, and send our own.
+	if len(authmsg) == 73 {
+		// Verify their DH proof.
+		if !bytes.Equal(authmsg[53:], theirDHproof) {
+			return fmt.Errorf("invalid DH proof from %s",
+				lnConn.RemoteAddr().String())
+		}
+
+		// Their DH proof checks out, so send ours now.
+		if _, err = lnConn.conn.Write(myDHproof); err != nil {
+			return err
+		}
+	} else {
+		// Otherwise, they don't yet know our public key. So we'll send
+		// it over to them, so we can both compute the DH proof.
+		msg := append(l.longTermPriv.PubKey().SerializeCompressed(), myDHproof...)
+		if _, err = lnConn.conn.Write(msg); err != nil {
+			return err
+		}
+
+		resp := make([]byte, 20)
+		if _, err := lnConn.conn.Read(resp); err != nil {
+			return err
+		}
+
+		// Verify their DH proof.
+		if bytes.Equal(resp, theirDHproof) == false {
+			return fmt.Errorf("Invalid DH proof %x", theirDHproof)
+		}
+	}
+
+	theirAdr := btcutil.Hash160(theirPub.SerializeCompressed())
+	copy(lnConn.remoteLNId[:], theirAdr[:16])
+	lnConn.remotePub = theirPub
+	lnConn.authed = true
+
+	return nil
+}
+
+// Close closes the listener.
+// Any blocked Accept operations will be unblocked and return errors.
+// Part of the net.Listener interface.
+func (l *Listener) Close() error {
+	return l.tcp.Close()
+}
+
+// Addr returns the listener's network address.
+// Part of the net.Listener interface.
+func (l *Listener) Addr() net.Addr {
+	return l.tcp.Addr()
+}
diff --git a/lndc/lndc_test.go b/lndc/lndc_test.go
new file mode 100644
index 00000000..0d2fae97
--- /dev/null
+++ b/lndc/lndc_test.go
@@ -0,0 +1,97 @@
+package lndc
+
+import (
+	"bytes"
+	"fmt"
+	"sync"
+	"testing"
+
+	"github.com/btcsuite/btcd/btcec"
+)
+
+func TestConnectionCorrectness(t *testing.T) {
+	// First, generate the long-term private keys both ends of the connection
+	// within our test.
+	localPriv, err := btcec.NewPrivateKey(btcec.S256())
+	if err != nil {
+		t.Fatalf("unable to generate local priv key: %v", err)
+	}
+	remotePriv, err := btcec.NewPrivateKey(btcec.S256())
+	if err != nil {
+		t.Fatalf("unable to generate remote priv key: %v", err)
+	}
+
+	// Having a port of "0" means a random port will be chosen for our
+	// listener.
+	addr := "127.0.0.1:0"
+
+	// Our listener will be local, and the connection remote.
+	listener, err := NewListener(localPriv, addr)
+	if err != nil {
+		t.Fatalf("unable to create listener: %v", err)
+	}
+	conn := NewConn(remotePriv, nil)
+
+	var wg sync.WaitGroup
+	var dialErr error
+
+	// Initiate a connection with a separate goroutine, and listen with our
+	// main one. If both errors are nil, then encryption+auth was succesful.
+	wg.Add(1)
+	go func() {
+		dialErr = conn.Dial(listener.Addr().String(),
+			localPriv.PubKey().SerializeCompressed())
+		wg.Done()
+	}()
+
+	localConn, listenErr := listener.Accept()
+	if listenErr != nil {
+		t.Fatalf("unable to accept connection: %v", listenErr)
+	}
+
+	wg.Wait()
+
+	if dialErr != nil {
+		t.Fatalf("unable to establish connection: %v", dialErr)
+	}
+
+	// Test out some message full-message reads.
+	for i := 0; i < 10; i++ {
+		msg := []byte("hello" + string(i))
+
+		if _, err := conn.Write(msg); err != nil {
+			t.Fatalf("remote conn failed to write: %v", err)
+		}
+
+		readBuf := make([]byte, len(msg))
+		if _, err := localConn.Read(readBuf); err != nil {
+			t.Fatalf("local conn failed to read: %v", err)
+		}
+
+		if !bytes.Equal(readBuf, msg) {
+			t.Fatalf("messages don't match, %v vs %v",
+				string(readBuf), string(msg))
+		}
+	}
+
+	// Now try incremental message reads. This simulates first writing a
+	// message header, then a message body.
+	outMsg := []byte("hello world")
+	fmt.Println("write")
+	if _, err := conn.Write(outMsg); err != nil {
+		t.Fatalf("remote conn failed to write: %v", err)
+	}
+
+	readBuf := make([]byte, len(outMsg))
+	if _, err := localConn.Read(readBuf[:len(outMsg)/2]); err != nil {
+		t.Fatalf("local conn failed to read: %v", err)
+	}
+	if _, err := localConn.Read(readBuf[len(outMsg)/2:]); err != nil {
+		t.Fatalf("local conn failed to read: %v", err)
+	}
+
+	if !bytes.Equal(outMsg, readBuf) {
+		t.Fatalf("messages don't match, %v vs %v",
+			string(readBuf), string(outMsg))
+	}
+}
diff --git a/lndc/netio.go b/lndc/netio.go
index 38ba9f3b..c7525d15 100644
--- a/lndc/netio.go
+++ b/lndc/netio.go
@@ -2,632 +2,90 @@ package lndc
 
 import (
 	"bytes"
-	"crypto/cipher"
 	"encoding/binary"
 	"fmt"
 	"io"
 	"net"
-	"time"
-
-	"github.com/btcsuite/btcd/btcec"
-	"github.com/btcsuite/fastsha256"
-	"github.com/codahale/chacha20poly1305"
-	"github.com/lightningnetwork/lnd/lnwire"
-	"golang.org/x/crypto/ripemd160"
 )
 
-/* good ol' OP_HASH160, which is just ripemd160(sha256(input)) */
-func H160(input []byte) []byte {
-	rp := ripemd160.New()
-	shaout := fastsha256.Sum256(input)
-	_, _ = rp.Write(shaout[:])
-	return rp.Sum(nil)
-}
-
-// Lightning Network Data Conection.  Encrypted.
-type LNDConn struct {
-	Version        uint8
-	Cn             net.Conn
-	RemotePub      *btcec.PublicKey
-	RemoteLNId     [16]byte
-	MyNonceInt     uint64
-	RemoteNonceInt uint64
-	// if Authed == false, the RemotePub is the EPHEMERAL key.
-	// once authed == true, RemotePub is who you're actually talking to.
-	Authed bool
-	// chachaStream saves some time as you don't have to init it with
-	// the session key every time.  Make SessionKey redundant; remove later
-	chachaStream cipher.AEAD
-
-	// ViaPbx specifies whether this is a direct TCP connection or an
-	// encapsulated PBX connection.
-	// if going ViaPbx, Cn isn't used
-	// channels are used for Read() and Write(),
-	// which are filled by the PBXhandler.
-	ViaPbx      bool
-	PbxIncoming chan []byte
-	PbxOutgoing chan []byte
-}
-
-/* new & improved tcp open session.
-There's connector A and listener B.  Once the connection is set up there's no
-difference, but there can be during the setup.
-Setup:
-1 -> A sends B ephemeral secp256k1 pubkey (33 bytes)
-2 <- B sends A ephemeral secp256k1 pubkey (33 bytes)
-A and B do DH, get a shared secret.
-==========
-Seesion is open!  Done!  Well not quite.  Session is confidential but not
-yet authenticated.  From here on, can use the Send() and Recv() functions with
-chacha20poly1305.
-==========
-The DH proof is h160(remote eph pubkey, IDDH secret)
-A initiates auth.
-
-If A does not know B's pubkey but only B's pubkey hash:
-
-1 -> A sends [PubKeyA, PubKeyHashB] (53 bytes)
-B computes ID pubkey DH
-2 <- B sends [PubkeyB, DH proof] (53 bytes)
-3 -> A sends DH proof (20 bytes)
-done.
-
-This exchange can be sped up if A already knows B's pubkey:
-
-A already knows who they're talking to, or trying to talk to
-1 -> A sends [PubKeyA, PubkeyHashB, DH proof] (73 bytes)
-2 <- B sends DH proof (20 bytes)
-
-A and B both verify those H160 hashes, and if matching consider their
-session counterparty authenticated.
-
-A possible weakness of the DH proof is if B re-uses eph keys.  That potentially
-makes *A*'s proof weaker though.  A gets to choose the proof B creates.  As
-long as your software makes new eph keys each time, you should be
-*/
-
-// Open creates and auths an lndc connections,
-// after the TCP or pbx connection is already assigned / dialed.
-func (lndc *LNDConn) Open(
-	me *btcec.PrivateKey, remote []byte) error {
-	//	make TCP connection to listening host
-	var err error
-
-	if len(remote) != 33 && len(remote) != 20 {
-		return fmt.Errorf("must supply either remote pubkey or pubkey hash")
-	}
-	// calc remote LNId; need this for creating pbx connections
-	// just because LNid is in the struct does not mean it's authed!
-	if len(remote) == 20 {
-		copy(lndc.RemoteLNId[:], remote[:16])
-	} else {
-		theirAdr := H160(remote)
-		copy(lndc.RemoteLNId[:], theirAdr[:16])
-	}
-
-	// make up an ephtemeral keypair.  Doesn't exit this function.
-	myEph, err := btcec.NewPrivateKey(btcec.S256())
-	if err != nil {
-		return nil
-	}
-
-	// Sned 1.  Send my ephemeral pubkey.  Can add version bits.
-	err = lndc.writeClear(myEph.PubKey().SerializeCompressed())
-	if err != nil {
-		return err
-	}
-
-	// read their ephemeral pubkey
-	TheirEphPubBytes, err := lndc.readClear()
-	if err != nil {
-		return err
-	}
-
-	// deserialize their ephemeral pubkey
-	TheirEphPub, err := btcec.ParsePubKey(TheirEphPubBytes, btcec.S256())
-	if err != nil {
-		return err
-	}
-	// do non-interactive diffie with ephemeral pubkeys
-	// sha256 for good luck
-	sessionKey :=
-		fastsha256.Sum256(btcec.GenerateSharedSecret(myEph, TheirEphPub))
-
-	lndc.chachaStream, err = chacha20poly1305.New(sessionKey[:])
-	if err != nil {
-		return err
-	}
-	// display private key for debug only
-	fmt.Printf("made session key %x\n", sessionKey)
-
-	lndc.MyNonceInt = 1 << 63
-	lndc.RemoteNonceInt = 0
-
-	lndc.RemotePub = TheirEphPub
-	lndc.Authed = false
-
-	// session is now open and confidential but not yet authenticated.
-	//	So auth!
-	if len(remote) == 20 { // only know pubkey hash (20 bytes)
-		return lndc.AuthPKH(me, remote, myEph.PubKey().SerializeCompressed())
-	} else { // must be 33 byte pubkey
-		return lndc.AuthPubKey(me, remote, myEph.PubKey().SerializeCompressed())
-	}
-}
-
-// TcpListen takes a lndc that's just connected, and sets it up.
-// Call this just after a connection comes in.
-// calls AuthListen, waiting for the auth step before returning.
-// in the case of a pbx connection, there is no lndc.Cn
-func (lndc *LNDConn) Setup(me *btcec.PrivateKey) error {
-	var err error
-	var TheirEphPubBytes []byte
-
-	TheirEphPubBytes, err = lndc.readClear()
-	if err != nil {
-		return err
-	}
-
-	if len(TheirEphPubBytes) != 33 {
-		return fmt.Errorf("Got invalid %d byte eph pubkey %x\n",
-			len(TheirEphPubBytes), TheirEphPubBytes)
-	}
-	// deserialize their ephemeral pubkey
-	TheirEphPub, err := btcec.ParsePubKey(TheirEphPubBytes, btcec.S256())
-	if err != nil {
-		return err
-	}
-
-	// their key looks OK, make our own
-	myEph, err := btcec.NewPrivateKey(btcec.S256())
-	if err != nil {
-		return nil
-	}
-
-	// and send out our eph key
-	err = lndc.writeClear(myEph.PubKey().SerializeCompressed())
-	if err != nil {
-		return err
-	}
-
-	// do non-interactive diffie with ephemeral pubkeys
-	// sha256 for good luck
-	sessionKey :=
-		fastsha256.Sum256(btcec.GenerateSharedSecret(myEph, TheirEphPub))
-
-	lndc.chachaStream, err = chacha20poly1305.New(sessionKey[:])
-
-	// display private key for debug only
-	fmt.Printf("made session key %x\n", sessionKey)
-
-	lndc.RemoteNonceInt = 1 << 63
-	lndc.MyNonceInt = 0
-
-	lndc.RemotePub = TheirEphPub
-	lndc.Authed = false
-
-	// session is open and confidential but not yet authenticated.
-	// Listen for auth message
-	return lndc.AuthListen(me, myEph.PubKey().SerializeCompressed())
-}
-
-func (lndc *LNDConn) AuthListen(
-	myId *btcec.PrivateKey, localEphPubBytes []byte) error {
-
-	var err error
-	slice := make([]byte, 65535)
-	n, err := lndc.Read(slice)
-	if err != nil {
-		return err
-	}
-	fmt.Printf("read %d bytes\n", n)
-	slice = slice[:n]
-	if err != nil {
-		fmt.Printf("Read error: %s\n", err.Error())
-		err2 := lndc.Close()
-		if err2 != nil {
-			return err2
-		}
-		return err
-	}
-
-	authmsg := slice
-	if len(authmsg) != 53 && len(authmsg) != 73 {
-		err = lndc.Close()
-		if err != nil {
-			return err
-		}
-		return fmt.Errorf(
-			"Got auth message of %d bytes, expect 53 or 73", len(authmsg))
-	}
-	theirPub, err := btcec.ParsePubKey(authmsg[:33], btcec.S256())
-	if err != nil {
-		return err
-	}
-	myPKH := H160(myId.PubKey().SerializeCompressed())
-	if bytes.Equal(myPKH, authmsg[33:53]) == false {
-		err = lndc.Close()
-		if err != nil {
-			return err
-		}
-		return fmt.Errorf(
-			"remote host asking for PKH %x, that's not me", authmsg[33:53])
-	}
-
-	// do DH with id keys
-	idDH := fastsha256.Sum256(btcec.GenerateSharedSecret(myId, theirPub))
-	myDHproof := H160(append(lndc.RemotePub.SerializeCompressed(), idDH[:]...))
-	theirDHproof := H160(append(localEphPubBytes, idDH[:]...))
-	if len(authmsg) == 73 { // quick mode
-		// verify their DH proof
-		if bytes.Equal(authmsg[53:], theirDHproof) == false {
-			err = lndc.Close()
-			if err != nil {
-				return err
-			}
-			return fmt.Errorf(
-				"Invalid DH proof from %s", lndc.Cn.RemoteAddr().String())
-		}
-		// looks good, send my own
-		_, err = lndc.Write(myDHproof)
-		if err != nil {
-			err2 := lndc.Close()
-			if err2 != nil {
-				return err2
-			}
-			return err
-		}
-		// and we're authed
-	} else { // 53 byte, they don't know my pubkey
-		msg := append(myId.PubKey().SerializeCompressed(), myDHproof...)
-		_, err = lndc.Write(msg)
-		if err != nil {
-			err2 := lndc.Close()
-			if err2 != nil {
-				return err2
-			}
-			return err
-		}
-		resp := make([]byte, 65535)
-		n, err := lndc.Read(resp)
-		if err != nil {
-			return err
-		}
-		resp = resp[:n]
-
-		if n != 20 {
-			err2 := lndc.Close()
-			if err2 != nil {
-				return err2
-			}
-			fmt.Errorf("expected 20 byte DH proof, got %d", n)
-		}
-
-		// verify their DH proof
-		if bytes.Equal(resp, theirDHproof) == false {
-			err = lndc.Close()
-			if err != nil {
-				return err
-			}
-			return fmt.Errorf("Invalid DH proof %x", theirDHproof)
-		}
-		//proof looks good, auth
-	}
-	lndc.RemotePub = theirPub
-	theirAdr := H160(theirPub.SerializeCompressed())
-	copy(lndc.RemoteLNId[:], theirAdr[:16])
-	lndc.Authed = true
-	return nil
-}
-
-func (lndc *LNDConn) AuthPKH(
-	myId *btcec.PrivateKey, theirPKH, localEphPubBytes []byte) error {
-	var err error
-
-	if myId == nil {
-		return fmt.Errorf("can't auth: supplied privkey is nil")
-	}
-	if lndc.Authed {
-		return fmt.Errorf("%s already authed", lndc.RemotePub)
-	}
-	if len(theirPKH) != 20 {
-		return fmt.Errorf("remote PKH must be 20 bytes, got %d", len(theirPKH))
-	}
-
-	// send 53 bytes; my pubkey, and remote pubkey hash
-	msg := myId.PubKey().SerializeCompressed()
-	msg = append(msg, theirPKH...)
-
-	_, err = lndc.Write(msg)
-	if err != nil {
-		return err
-	}
-	// wait for their response.
-	// TODO add timeout here
-	resp := make([]byte, 65535)
-	n, err := lndc.Read(resp)
-	if err != nil {
-		return err
-	}
-	resp = resp[:n]
-	// response should be 53 bytes, their pubkey and DH proof
-	if n != 53 {
-		return fmt.Errorf(
-			"PKH auth response should be 53 bytes, got %d", len(resp))
-	}
-	theirPub, err := btcec.ParsePubKey(resp[:33], btcec.S256())
-	if err != nil {
-		return err
-	}
-	idDH := fastsha256.Sum256(btcec.GenerateSharedSecret(myId, theirPub))
-	fmt.Printf("made idDH %x\n", idDH)
-
-	theirDHproof := H160(append(localEphPubBytes, idDH[:]...))
-	// verify their DH proof
-	if bytes.Equal(resp[33:], theirDHproof) == false {
-		return fmt.Errorf("Invalid DH proof %x", theirDHproof)
-	}
-	// their DH proof checks out, send our own
-	myDHproof := H160(append(lndc.RemotePub.SerializeCompressed(), idDH[:]...))
-	_, err = lndc.Write(myDHproof)
-	if err != nil {
-		return err
-	}
-	// proof sent, auth complete
-	lndc.RemotePub = theirPub
-	theirAdr := H160(theirPub.SerializeCompressed())
-	copy(lndc.RemoteLNId[:], theirAdr[:16])
-	lndc.Authed = true
-	return nil
-}
-
-func (lndc *LNDConn) AuthPubKey(
-	myId *btcec.PrivateKey, remotePubBytes, localEphPubBytes []byte) error {
-
-	var err error
-	if myId == nil {
-		return fmt.Errorf("can't auth: supplied privkey is nil")
-	}
-	if lndc.Authed {
-		return fmt.Errorf("%s already authed", lndc.RemotePub)
-	}
-	theirPub, err := btcec.ParsePubKey(remotePubBytes, btcec.S256())
-	if err != nil {
-		return err
-	}
-	theirPKH := H160(remotePubBytes)
-	// I know enough to generate DH, do so
-	idDH := fastsha256.Sum256(btcec.GenerateSharedSecret(myId, theirPub))
-	myDHproof := H160(append(lndc.RemotePub.SerializeCompressed(), idDH[:]...))
-	// message is 73 bytes; my pubkey, their pubkey hash, DH proof
-	msg := myId.PubKey().SerializeCompressed()
-	msg = append(msg, theirPKH...)
-	msg = append(msg, myDHproof...)
-
-	_, err = lndc.Write(msg)
-	if err != nil {
-		return err
-	}
-	resp := make([]byte, 65535)
-	n, err := lndc.Read(resp)
-	if err != nil {
-		return err
-	}
-	resp = resp[:n]
-	if n != 20 {
-		fmt.Errorf("expected 20 byte DH proof, got %d", len(resp))
-	}
-
-	theirDHproof := H160(append(localEphPubBytes, idDH[:]...))
-	// verify their DH proof
-	if bytes.Equal(resp, theirDHproof) == false {
-		return fmt.Errorf("Invalid DH proof %x", theirDHproof)
-	}
-	// proof checks out, auth complete
-	lndc.RemotePub = theirPub
-	theirAdr := H160(theirPub.SerializeCompressed())
-	copy(lndc.RemoteLNId[:], theirAdr[:16])
-	lndc.Authed = true
-	return nil
-}
-
-func (lndc *LNDConn) WhoAreYou(host string) (*btcec.PublicKey, error) {
-	var err error
-	if lndc.Cn == nil {
-		return nil, fmt.Errorf("no connection to ask on")
-	}
-	fmt.Printf("connecting to address %s\n", host)
-	//		make TCP connection to listening host
-	lndc.Cn, err = net.Dial("tcp", host)
-	if err != nil {
-		return nil, err
-	}
-	err = lndc.writeClear([]byte("WHOAREYOU"))
-	if err != nil {
-		return nil, err
-	}
-	var b bytes.Buffer
-	lndc.Read(b.Bytes())
-
-	IamResp, err := lndc.readClear()
-	if err != nil {
-		return nil, err
-	}
-	return btcec.ParsePubKey(IamResp[:33], btcec.S256())
-}
-
-/*
-Make ETcpCons adhere to Conn interface.
-need:
-Read(b []byte) (n int, err error)
-Write(b []byte) (n int, err error)
-Close() error
-LocalAddr() Addr
-RemoteAddr() Addr
-SetDeadline(t time.Time) error
-SetReadDeadline(t time.Time) error
-SetWriteDeadline(t time.Time) error
-
-ETcpCons can be either regular TCP connections, which is good, or PBX-routed
-connections, which is worse, but there are levels of connectivity we are
-prepared to accept.
-
-When it's PBX, don't try to use Cn
-*/
-
-func (lndc *LNDConn) Read(b []byte) (n int, err error) {
-	// first get message length from first 2 bytes
-	var ctext []byte
-	ctext, err = lndc.readClear()
-	if err != nil {
-		return 0, err
-	}
-
-	// now decrypt
-	nonceBuf := new(bytes.Buffer)
-	err = binary.Write(nonceBuf, binary.BigEndian, lndc.RemoteNonceInt)
-	fmt.Printf("decrypt %d byte from %x nonce %d\n",
-		len(ctext), lndc.RemoteLNId, lndc.RemoteNonceInt)
-	lndc.RemoteNonceInt++ // increment remote nonce, no matter what...
-
-	msg, err := lndc.chachaStream.Open(nil, nonceBuf.Bytes(), ctext, nil)
-	if err != nil {
-		fmt.Printf("decrypt %d byte ciphertext failed\n", len(ctext))
-		return 0, err
-	}
-
-	n = copy(b, msg)
-	if n < len(msg) {
-		return 0, fmt.Errorf(
-			"Can't read from %x: Slice provided too small.  %d bytes, need %d",
-			lndc.RemoteLNId, len(b), len(msg))
-	}
-
-	return n, nil
-}
-
-func (lndc *LNDConn) Write(b []byte) (n int, err error) {
-	if b == nil {
-		return 0, fmt.Errorf("Write to %x nil", lndc.RemoteLNId)
-	}
-	fmt.Printf("Encrypt %d byte plaintext to %x nonce %d\n",
-		len(b), lndc.RemoteLNId, lndc.MyNonceInt)
-	// first encrypt message with shared key
-	nonceBuf := new(bytes.Buffer)
-	err = binary.Write(nonceBuf, binary.BigEndian, lndc.MyNonceInt)
-	if err != nil {
-		return 0, err
-	}
-	lndc.MyNonceInt++ // increment mine
-
-	ctext := lndc.chachaStream.Seal(nil, nonceBuf.Bytes(), b, nil)
-	if err != nil {
-		return 0, err
-	}
-	if len(ctext) > 65530 {
-		return 0, fmt.Errorf("Write to %x too long, %d bytes",
-			lndc.RemoteLNId, len(ctext))
-	}
-
-	// use writeClear to prepend length / destination header
-	err = lndc.writeClear(ctext)
-	// returns len of how much you put in, not how much written on the wire
-	return len(b), err
-}
-
-func (lndc *LNDConn) Close() error {
-	//	return lndc.Cn.Close()
-	//	return nil
-	lndc.MyNonceInt = 0
-	lndc.RemoteNonceInt = 0
-	lndc.RemotePub = nil
-
-	//	if lndc.ViaPbx {
-	//		return nil // don't close pbx connection
-	//	}
-	err := lndc.Cn.Close()
-
-	return err
-}
-
-// network address; if PBX reports address of pbx host
-func (lndc *LNDConn) LocalAddr() net.Addr {
-	return lndc.Cn.LocalAddr()
-}
-func (lndc *LNDConn) RemoteAddr() net.Addr {
-	return lndc.Cn.RemoteAddr()
-}
-
-// timing stuff for net.conn compatibility
-func (lndc *LNDConn) SetDeadline(t time.Time) error {
-	return lndc.Cn.SetDeadline(t)
-}
-func (lndc *LNDConn) SetReadDeadline(t time.Time) error {
-
-	return lndc.Cn.SetReadDeadline(t)
-}
-func (lndc *LNDConn) SetWriteDeadline(t time.Time) error {
-	return lndc.Cn.SetWriteDeadline(t)
-}
-
-/* ReadClear and WriteClear don't encrypt but directly read and write to the
-underlying data link, only adding or subtracting a 2 byte length header.
-All Read() and Write() calls for lndc's use these functions internally
-(they aren't exported).  They're also used in the key agreement phase.
-*/
-
-// encapsulation for sending to Pbx host.
-// put FWDMSG, then 16 byte destination ID, then message (with msgtype)
-func (lndc *LNDConn) PbxEncapsulate(b *[]byte) {
-	fmt.Printf("PbxEncapsulate %d byte message, dest ID %x\n",
-		len(*b), lndc.RemoteLNId)
-	*b = append(lndc.RemoteLNId[:], *b...)
-	*b = append([]byte{lnwire.MSGID_FWDMSG}, *b...)
-}
-
-func (lndc *LNDConn) readClear() ([]byte, error) {
+// New & improved tcp open session.
+// There's connector A and listener B.  Once the connection is set up there's no
+// difference, but there can be during the setup.
+// Setup:
+// 1 -> A sends B ephemeral secp256k1 pubkey (33 bytes)
+// 2 <- B sends A ephemeral secp256k1 pubkey (33 bytes)
+// A and B do DH, get a shared secret.
+// ==========
+// Seesion is open!  Done!  Well not quite.  Session is confidential but not
+// yet authenticated.  From here on, can use the Send() and Recv() functions with
+// chacha20poly1305.
+// ==========
+
+// Nodes authenticate by doing a DH with their persistent identity keys, and then
+// exchanging hash based proofs that they got the same shared IDDH secret.
+// The DH proof is h160(remote eph pubkey, IDDH secret)
+// A initiates auth.
+//
+// If A does not know B's pubkey but only B's pubkey hash:
+//
+// 1 -> A sends [PubKeyA, PubKeyHashB] (53 bytes)
+// B computes ID pubkey DH
+// 2 <- B sends [PubkeyB, DH proof] (53 bytes)
+// 3 -> A sends DH proof (20 bytes)
+// done.
+//
+// This exchange can be sped up if A already knows B's pubkey:
+//
+// A already knows who they're talking to, or trying to talk to
+// 1 -> A sends [PubKeyA, PubkeyHashB, DH proof] (73 bytes)
+// 2 <- B sends DH proof (20 bytes)
+//
+// A and B both verify those H160 hashes, and if matching consider their
+// session counterparty authenticated.
+//
+// A possible weakness of the DH proof is if B re-uses eph keys.  That potentially
+// makes *A*'s proof weaker though.  A gets to choose the proof B creates.  As
+// long as your software makes new eph keys each time, you should be OK.
+
+// readClear and writeClear don't encrypt but directly read and write to the
+// underlying data link, only adding or subtracting a 2 byte length header.
+// All Read() and Write() calls for lndc's use these functions internally
+// (they aren't exported).  They're also used in the key agreement phase.
+
+// readClear reads the next length-prefixed message from the underlying raw
+// TCP connection.
+func readClear(c net.Conn) ([]byte, error) {
 	var msgLen uint16
-	// needs to be pointer or will silently not do anything.
-	var msg []byte
 
-	if lndc.ViaPbx { //pbx mode
-		msg = <-lndc.PbxIncoming
-	} else { // normal tcp mode
-		err := binary.Read(lndc.Cn, binary.BigEndian, &msgLen)
-		if err != nil {
-			return nil, err
-		}
-		//	fmt.Printf("%d byte LMsg incoming\n", msgLen)
-		msg = make([]byte, msgLen)
-		_, err = io.ReadFull(lndc.Cn, msg)
-		if err != nil {
-			return nil, err
-		}
+	if err := binary.Read(c, binary.BigEndian, &msgLen); err != nil {
+		return nil, err
 	}
+
+	msg := make([]byte, msgLen)
+	if _, err := io.ReadFull(c, msg); err != nil {
+		return nil, err
+	}
+
 	return msg, nil
 }
 
-func (lndc *LNDConn) writeClear(msg []byte) error {
-	var err error
+// TODO(roasbeef): incorporate buffer pool
+
+// writeClear writes the passed message with a prefixed 2-byte length header.
+func writeClear(conn net.Conn, msg []byte) (int, error) {
 	if len(msg) > 65530 {
-		return fmt.Errorf("LMsg too long, %d bytes", len(msg))
+		return 0, fmt.Errorf("lmsg too long, %d bytes", len(msg))
 	}
-	if msg == nil {
-		return fmt.Errorf("LMsg nil")
+
+	// Add 2 byte length header (pbx doesn't need it) and send over TCP.
+	var msgBuf bytes.Buffer
+	if err := binary.Write(&msgBuf, binary.BigEndian, uint16(len(msg))); err != nil {
+		return 0, err
 	}
-	if lndc.ViaPbx {
-		lndc.PbxEncapsulate(&msg)
-		lndc.PbxOutgoing <- msg
-	} else {
-		// add 2 byte length header (pbx doesn't need it) and send over TCP
-		hdr := new(bytes.Buffer)
-		err = binary.Write(hdr, binary.BigEndian, uint16(len(msg)))
-		if err != nil {
-			return err
-		}
-		msg = append(hdr.Bytes(), msg...)
-		_, err = lndc.Cn.Write(msg)
-		return err
+
+	if _, err := msgBuf.Write(msg); err != nil {
+		return 0, err
 	}
-	return nil
+
+	return conn.Write(msgBuf.Bytes())
 }