diff --git a/crypto/spipe/Makefile b/crypto/spipe/Makefile
new file mode 100644
index 000000000..7e737b6d8
--- /dev/null
+++ b/crypto/spipe/Makefile
@@ -0,0 +1,8 @@
+
+all: message.pb.go
+
+message.pb.go: message.proto
+	protoc --gogo_out=. --proto_path=../../../../../:/usr/local/opt/protobuf/include:. $<
+
+clean:
+	rm message.pb.go
diff --git a/crypto/spipe/handshake.go b/crypto/spipe/handshake.go
new file mode 100644
index 000000000..8c09aff7a
--- /dev/null
+++ b/crypto/spipe/handshake.go
@@ -0,0 +1,310 @@
+// Package spipe handles establishing secure communication between two peers.
+
+package spipe
+
+import (
+	"bytes"
+	"errors"
+	"strings"
+
+	"crypto/aes"
+	"crypto/cipher"
+	"crypto/hmac"
+	"crypto/rand"
+	"crypto/sha1"
+	"crypto/sha256"
+	"crypto/sha512"
+	"hash"
+
+	proto "github.com/jbenet/go-ipfs/Godeps/_workspace/src/code.google.com/p/goprotobuf/proto"
+	ci "github.com/jbenet/go-ipfs/crypto"
+	peer "github.com/jbenet/go-ipfs/peer"
+	u "github.com/jbenet/go-ipfs/util"
+)
+
+// List of supported ECDH curves
+var SupportedExchanges = "P-256,P-224,P-384,P-521"
+
+// List of supported Ciphers
+var SupportedCiphers = "AES-256,AES-128"
+
+// List of supported Hashes
+var SupportedHashes = "SHA256,SHA512,SHA1"
+
+// ErrUnsupportedKeyType is returned when a private key cast/type switch fails.
+var ErrUnsupportedKeyType = errors.New("unsupported key type")
+
+// ErrClosed signals the closing of a connection.
+var ErrClosed = errors.New("connection closed")
+
+// handsahke performs initial communication over insecure channel to share
+// keys, IDs, and initiate communication.
+func (s *SecurePipe) handshake() error {
+	// Generate and send Hello packet.
+	// Hello = (rand, PublicKey, Supported)
+	nonce := make([]byte, 16)
+	_, err := rand.Read(nonce)
+	if err != nil {
+		return err
+	}
+
+	myPubKey, err := s.local.PubKey.Bytes()
+	if err != nil {
+		return err
+	}
+
+	proposeMsg := new(Propose)
+	proposeMsg.Rand = nonce
+	proposeMsg.Pubkey = myPubKey
+	proposeMsg.Exchanges = &SupportedExchanges
+	proposeMsg.Ciphers = &SupportedCiphers
+	proposeMsg.Hashes = &SupportedHashes
+
+	encoded, err := proto.Marshal(proposeMsg)
+	if err != nil {
+		return err
+	}
+
+	s.insecure.Out <- encoded
+
+	// Parse their Propose packet and generate an Exchange packet.
+	// Exchange = (EphemeralPubKey, Signature)
+	var resp []byte
+	select {
+	case <-s.ctx.Done():
+		return ErrClosed
+	case resp = <-s.Duplex.In:
+	}
+
+	proposeResp := new(Propose)
+	err = proto.Unmarshal(resp, proposeResp)
+	if err != nil {
+		return err
+	}
+
+	s.remote.PubKey, err = ci.UnmarshalPublicKey(proposeResp.GetPubkey())
+	if err != nil {
+		return err
+	}
+
+	s.remote.ID, err = IDFromPubKey(s.remote.PubKey)
+	if err != nil {
+		return err
+	}
+
+	exchange, err := selectBest(SupportedExchanges, proposeResp.GetExchanges())
+	if err != nil {
+		return err
+	}
+
+	cipherType, err := selectBest(SupportedCiphers, proposeResp.GetCiphers())
+	if err != nil {
+		return err
+	}
+
+	hashType, err := selectBest(SupportedHashes, proposeResp.GetHashes())
+	if err != nil {
+		return err
+	}
+
+	epubkey, done, err := ci.GenerateEKeyPair(exchange) // Generate EphemeralPubKey
+
+	var handshake bytes.Buffer // Gather corpus to sign.
+	handshake.Write(encoded)
+	handshake.Write(resp)
+	handshake.Write(epubkey)
+
+	exPacket := new(Exchange)
+
+	exPacket.Epubkey = epubkey
+	exPacket.Signature, err = s.local.PrivKey.Sign(handshake.Bytes())
+	if err != nil {
+		return err
+	}
+
+	exEncoded, err := proto.Marshal(exPacket)
+
+	s.insecure.Out <- exEncoded
+
+	// Parse their Exchange packet and generate a Finish packet.
+	// Finish = E('Finish')
+	var resp1 []byte
+	select {
+	case <-s.ctx.Done():
+		return ErrClosed
+	case resp1 = <-s.insecure.In:
+	}
+
+	exchangeResp := new(Exchange)
+	err = proto.Unmarshal(resp1, exchangeResp)
+	if err != nil {
+		return err
+	}
+
+	var theirHandshake bytes.Buffer
+	theirHandshake.Write(resp)
+	theirHandshake.Write(encoded)
+	theirHandshake.Write(exchangeResp.GetEpubkey())
+
+	ok, err := s.remote.PubKey.Verify(theirHandshake.Bytes(), exchangeResp.GetSignature())
+	if err != nil {
+		return err
+	}
+
+	if !ok {
+		return errors.New("Bad signature!")
+	}
+
+	secret, err := done(exchangeResp.GetEpubkey())
+	if err != nil {
+		return err
+	}
+
+	cmp := bytes.Compare(myPubKey, proposeResp.GetPubkey())
+	mIV, tIV, mCKey, tCKey, mMKey, tMKey := ci.KeyStretcher(cmp, cipherType, hashType, secret)
+
+	go s.handleSecureIn(hashType, tIV, tCKey, tMKey)
+	go s.handleSecureOut(hashType, mIV, mCKey, mMKey)
+
+	finished := []byte("Finished")
+
+	s.Out <- finished
+	var resp2 []byte
+	select {
+	case <-s.ctx.Done():
+		return ErrClosed
+	case resp2 = <-s.Duplex.In:
+	}
+
+	if bytes.Compare(resp2, finished) != 0 {
+		return errors.New("Negotiation failed.")
+	}
+
+	u.DOut("[%s] identify: Got node id: %s\n", s.local.ID.Pretty(), s.remote.ID.Pretty())
+	return nil
+}
+
+func makeMac(hashType string, key []byte) (hash.Hash, int) {
+	switch hashType {
+	case "SHA1":
+		return hmac.New(sha1.New, key), sha1.Size
+	case "SHA512":
+		return hmac.New(sha512.New, key), sha512.Size
+	default:
+		return hmac.New(sha256.New, key), sha256.Size
+	}
+}
+
+func (s *SecurePipe) handleSecureIn(hashType string, tIV, tCKey, tMKey []byte) {
+	theirBlock, _ := aes.NewCipher(tCKey)
+	theirCipher := cipher.NewCTR(theirBlock, tIV)
+
+	theirMac, macSize := makeMac(hashType, tMKey)
+
+	for {
+		data, ok := <-s.insecure.In
+		if !ok {
+			return
+		}
+
+		if len(data) <= macSize {
+			continue
+		}
+
+		mark := len(data) - macSize
+		buff := make([]byte, mark)
+
+		theirCipher.XORKeyStream(buff, data[0:mark])
+
+		theirMac.Write(data[0:mark])
+		expected := theirMac.Sum(nil)
+		theirMac.Reset()
+
+		hmacOk := hmac.Equal(data[mark:], expected)
+
+		if hmacOk {
+			s.Duplex.In <- buff
+		} else {
+			s.Duplex.In <- nil
+		}
+	}
+}
+
+func (s *SecurePipe) handleSecureOut(hashType string, mIV, mCKey, mMKey []byte) {
+	myBlock, _ := aes.NewCipher(mCKey)
+	myCipher := cipher.NewCTR(myBlock, mIV)
+
+	myMac, macSize := makeMac(hashType, mMKey)
+
+	for {
+		data, ok := <-s.Out
+		if !ok {
+			return
+		}
+
+		if len(data) == 0 {
+			continue
+		}
+
+		buff := make([]byte, len(data)+macSize)
+
+		myCipher.XORKeyStream(buff, data)
+
+		myMac.Write(buff[0:len(data)])
+		copy(buff[len(data):], myMac.Sum(nil))
+		myMac.Reset()
+
+		s.insecure.Out <- buff
+	}
+}
+
+// IDFromPubKey retrieves a Public Key from the peer given by pk
+func IDFromPubKey(pk ci.PubKey) (peer.ID, error) {
+	b, err := pk.Bytes()
+	if err != nil {
+		return nil, err
+	}
+	hash, err := u.Hash(b)
+	if err != nil {
+		return nil, err
+	}
+	return peer.ID(hash), nil
+}
+
+// Determines which algorithm to use.  Note:  f(a, b) = f(b, a)
+func selectBest(myPrefs, theirPrefs string) (string, error) {
+	// Person with greatest hash gets first choice.
+	myHash, err := u.Hash([]byte(myPrefs))
+	if err != nil {
+		return "", err
+	}
+
+	theirHash, err := u.Hash([]byte(theirPrefs))
+	if err != nil {
+		return "", err
+	}
+
+	cmp := bytes.Compare(myHash, theirHash)
+	var firstChoiceArr, secChoiceArr []string
+
+	if cmp == -1 {
+		firstChoiceArr = strings.Split(theirPrefs, ",")
+		secChoiceArr = strings.Split(myPrefs, ",")
+	} else if cmp == 1 {
+		firstChoiceArr = strings.Split(myPrefs, ",")
+		secChoiceArr = strings.Split(theirPrefs, ",")
+	} else { // Exact same preferences.
+		myPrefsArr := strings.Split(myPrefs, ",")
+		return myPrefsArr[0], nil
+	}
+
+	for _, secChoice := range secChoiceArr {
+		for _, firstChoice := range firstChoiceArr {
+			if firstChoice == secChoice {
+				return firstChoice, nil
+			}
+		}
+	}
+
+	return "", errors.New("No algorithms in common!")
+}
diff --git a/identify/identify_test.go b/crypto/spipe/identify_test.go
similarity index 97%
rename from identify/identify_test.go
rename to crypto/spipe/identify_test.go
index 3d529f3e4..210d0cfcc 100644
--- a/identify/identify_test.go
+++ b/crypto/spipe/identify_test.go
@@ -1,4 +1,4 @@
-package identify
+package spipe
 
 import (
 	"testing"
diff --git a/identify/message.pb.go b/crypto/spipe/message.pb.go
similarity index 50%
rename from identify/message.pb.go
rename to crypto/spipe/message.pb.go
index bd373c6e9..1c22bfa5f 100644
--- a/identify/message.pb.go
+++ b/crypto/spipe/message.pb.go
@@ -1,68 +1,70 @@
-// Code generated by protoc-gen-go.
+// Code generated by protoc-gen-gogo.
 // source: message.proto
 // DO NOT EDIT!
 
 /*
-Package identify is a generated protocol buffer package.
+Package spipe is a generated protocol buffer package.
 
 It is generated from these files:
 	message.proto
 
 It has these top-level messages:
-	Hello
+	Propose
 	Exchange
 */
-package identify
+package spipe
 
-import proto "github.com/jbenet/go-ipfs/Godeps/_workspace/src/code.google.com/p/goprotobuf/proto"
+import proto "code.google.com/p/gogoprotobuf/proto"
+import json "encoding/json"
 import math "math"
 
-// Reference imports to suppress errors if they are not otherwise used.
+// Reference proto, json, and math imports to suppress error if they are not otherwise used.
 var _ = proto.Marshal
+var _ = &json.SyntaxError{}
 var _ = math.Inf
 
-type Hello struct {
-	Rand             []byte  `protobuf:"bytes,1,req,name=rand" json:"rand,omitempty"`
-	Pubkey           []byte  `protobuf:"bytes,2,req,name=pubkey" json:"pubkey,omitempty"`
-	Exchanges        *string `protobuf:"bytes,3,req,name=exchanges" json:"exchanges,omitempty"`
-	Ciphers          *string `protobuf:"bytes,4,req,name=ciphers" json:"ciphers,omitempty"`
-	Hashes           *string `protobuf:"bytes,5,req,name=hashes" json:"hashes,omitempty"`
+type Propose struct {
+	Rand             []byte  `protobuf:"bytes,1,opt,name=rand" json:"rand,omitempty"`
+	Pubkey           []byte  `protobuf:"bytes,2,opt,name=pubkey" json:"pubkey,omitempty"`
+	Exchanges        *string `protobuf:"bytes,3,opt,name=exchanges" json:"exchanges,omitempty"`
+	Ciphers          *string `protobuf:"bytes,4,opt,name=ciphers" json:"ciphers,omitempty"`
+	Hashes           *string `protobuf:"bytes,5,opt,name=hashes" json:"hashes,omitempty"`
 	XXX_unrecognized []byte  `json:"-"`
 }
 
-func (m *Hello) Reset()         { *m = Hello{} }
-func (m *Hello) String() string { return proto.CompactTextString(m) }
-func (*Hello) ProtoMessage()    {}
+func (m *Propose) Reset()         { *m = Propose{} }
+func (m *Propose) String() string { return proto.CompactTextString(m) }
+func (*Propose) ProtoMessage()    {}
 
-func (m *Hello) GetRand() []byte {
+func (m *Propose) GetRand() []byte {
 	if m != nil {
 		return m.Rand
 	}
 	return nil
 }
 
-func (m *Hello) GetPubkey() []byte {
+func (m *Propose) GetPubkey() []byte {
 	if m != nil {
 		return m.Pubkey
 	}
 	return nil
 }
 
-func (m *Hello) GetExchanges() string {
+func (m *Propose) GetExchanges() string {
 	if m != nil && m.Exchanges != nil {
 		return *m.Exchanges
 	}
 	return ""
 }
 
-func (m *Hello) GetCiphers() string {
+func (m *Propose) GetCiphers() string {
 	if m != nil && m.Ciphers != nil {
 		return *m.Ciphers
 	}
 	return ""
 }
 
-func (m *Hello) GetHashes() string {
+func (m *Propose) GetHashes() string {
 	if m != nil && m.Hashes != nil {
 		return *m.Hashes
 	}
@@ -70,8 +72,8 @@ func (m *Hello) GetHashes() string {
 }
 
 type Exchange struct {
-	Epubkey          []byte `protobuf:"bytes,1,req,name=epubkey" json:"epubkey,omitempty"`
-	Signature        []byte `protobuf:"bytes,2,req,name=signature" json:"signature,omitempty"`
+	Epubkey          []byte `protobuf:"bytes,1,opt,name=epubkey" json:"epubkey,omitempty"`
+	Signature        []byte `protobuf:"bytes,2,opt,name=signature" json:"signature,omitempty"`
 	XXX_unrecognized []byte `json:"-"`
 }
 
diff --git a/crypto/spipe/message.proto b/crypto/spipe/message.proto
new file mode 100644
index 000000000..191dd0b80
--- /dev/null
+++ b/crypto/spipe/message.proto
@@ -0,0 +1,14 @@
+package spipe;
+
+message Propose {
+	optional bytes rand = 1;
+	optional bytes pubkey = 2;
+	optional string exchanges = 3;
+	optional string ciphers = 4;
+	optional string hashes = 5;
+}
+
+message Exchange {
+	optional bytes epubkey = 1;
+	optional bytes signature = 2;
+}
diff --git a/crypto/spipe/pipe.go b/crypto/spipe/pipe.go
new file mode 100644
index 000000000..caa539275
--- /dev/null
+++ b/crypto/spipe/pipe.go
@@ -0,0 +1,76 @@
+package spipe
+
+import (
+	"errors"
+
+	context "github.com/jbenet/go-ipfs/Godeps/_workspace/src/code.google.com/p/go.net/context"
+	peer "github.com/jbenet/go-ipfs/peer"
+)
+
+// Duplex is a simple duplex channel
+type Duplex struct {
+	In  chan []byte
+	Out chan []byte
+}
+
+// SecurePipe objects represent a bi-directional message channel.
+type SecurePipe struct {
+	Duplex
+	insecure Duplex
+
+	local  *peer.Peer
+	remote *peer.Peer
+
+	params params
+
+	ctx    context.Context
+	cancel context.CancelFunc
+}
+
+// options in a secure pipe
+type params struct {
+}
+
+// NewSecurePipe constructs a pipe with channels of a given buffer size.
+func NewSecurePipe(ctx context.Context, bufsize int, local,
+	remote *peer.Peer) (*SecurePipe, error) {
+
+	sp := &SecurePipe{
+		Duplex: Duplex{
+			In:  make(chan []byte, bufsize),
+			Out: make(chan []byte, bufsize),
+		},
+		local:  local,
+		remote: remote,
+	}
+	return sp, nil
+}
+
+// Wrap creates a secure connection on top of an insecure duplex channel.
+func (s *SecurePipe) Wrap(ctx context.Context, insecure Duplex) error {
+	if s.ctx != nil {
+		return errors.New("Pipe in use")
+	}
+
+	s.insecure = insecure
+	s.ctx, s.cancel = context.WithCancel(ctx)
+
+	if err := s.handshake(); err != nil {
+		s.cancel()
+		return err
+	}
+
+	return nil
+}
+
+// Close closes the secure pipe
+func (s *SecurePipe) Close() error {
+	if s.cancel == nil {
+		return errors.New("pipe already closed")
+	}
+
+	s.cancel()
+	s.cancel = nil
+	close(s.In)
+	return nil
+}
diff --git a/identify/message.proto b/identify/message.proto
deleted file mode 100644
index 4c3e032e5..000000000
--- a/identify/message.proto
+++ /dev/null
@@ -1,14 +0,0 @@
-package identify;
-
-message Hello {
-	required bytes rand = 1;
-	required bytes pubkey = 2;
-    required string exchanges = 3;
-    required string ciphers = 4;
-    required string hashes = 5;
-}
-
-message Exchange {
-    required bytes epubkey = 1;
-    required bytes signature = 2;
-}