diff --git a/internal/beaconchain/README.md b/internal/beaconchain/README.md
index e69de29bb..bb5016f53 100644
--- a/internal/beaconchain/README.md
+++ b/internal/beaconchain/README.md
@@ -0,0 +1,3 @@
+The beaconchain package currently is a centralized service that allocates every potential new node (uses newnode package) a specific shard. 
+If N is the number of shards, supplied as a parameter at bootup, then first N joining nodes are assigned to be the leaders of those N shards.  The nodes that come after that  are then assigned shards based on their order of entry.
+In the future, the generation of randomness would be decentralized. Such randomness would be provided to a new node once its PoS has been verified and then the node would be able to calculate its own shard automatically.
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diff --git a/internal/newnode/README.md b/internal/newnode/README.md
index e69de29bb..e1b7061ea 100644
--- a/internal/newnode/README.md
+++ b/internal/newnode/README.md
@@ -0,0 +1 @@
+Newnode package is for handling the interactions of a new candidate node that wants to join the network. Such interaction at the moment is about contacting the beaconchain and getting assigned a shard and findingout the shardleader. In future this package will be merged into the node package.
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