diff --git a/internal/beaconchain/libs/beaconchain.go b/internal/beaconchain/libs/beaconchain.go
index 39cf4f78d..bc0856103 100644
--- a/internal/beaconchain/libs/beaconchain.go
+++ b/internal/beaconchain/libs/beaconchain.go
@@ -18,6 +18,8 @@ import (
 	"github.com/harmony-one/harmony/p2p/p2pimpl"
 )
 
+type BCState int
+
 var mutex sync.Mutex
 var identityPerBlock = 100000
 
@@ -35,10 +37,16 @@ type BeaconChain struct {
 	IP                 string
 	Port               string
 	host               host.Host
-
-	rpcServer *beaconchain.Server
+	state              BCState
+	rpcServer          *beaconchain.Server
 }
 
+// Followings are the set of states of that beaconchain can be in.
+const (
+	NodeInfoReceived BCState = iota
+	RandomInfoSent
+)
+
 // SupportRPC initializes and starts the rpc service
 func (bc *BeaconChain) SupportRPC() {
 	bc.InitRPCServer()
@@ -90,8 +98,8 @@ func generateBCKey() kyber.Point {
 	return pubkey
 }
 
-//AcceptConnections welcomes new connections
-func (bc *BeaconChain) AcceptConnections(b []byte) {
+//AcceptNodeInfo deserializes node information received via beaconchain handler
+func (bc *BeaconChain) AcceptNodeInfo(b []byte) *bcconn.NodeInfo {
 	Node := bcconn.DeserializeNodeInfo(b)
 	bc.log.Info("New Node Connection", "IP", Node.Self.IP, "Port", Node.Self.Port)
 	bc.NumberOfNodesAdded = bc.NumberOfNodesAdded + 1
@@ -99,11 +107,24 @@ func (bc *BeaconChain) AcceptConnections(b []byte) {
 	if isLeader {
 		bc.Leaders = append(bc.Leaders, Node)
 	}
+	bc.state = NodeInfoReceived
+	return Node
+}
+
+//RespondRandomness sends a randomness beacon to the node inorder for it process what shard it will be in
+func (bc *BeaconChain) RespondRandomness(Node *bcconn.NodeInfo) {
 	response := bcconn.ResponseRandomNumber{NumberOfShards: bc.NumberOfShards, NumberOfNodesAdded: bc.NumberOfNodesAdded, Leaders: bc.Leaders}
 	msg := bcconn.SerializeRandomInfo(response)
 	msgToSend := proto_identity.ConstructIdentityMessage(proto_identity.Acknowledge, msg)
 	bc.log.Info("Sent Out Msg", "# Nodes", response.NumberOfNodesAdded)
 	host.SendMessage(bc.host, Node.Self, msgToSend, nil)
+	bc.state = RandomInfoSent
+}
+
+//AcceptConnections welcomes new connections
+func (bc *BeaconChain) AcceptConnections(b []byte) {
+	node := bc.AcceptNodeInfo(b)
+	bc.RespondRandomness(node)
 }
 
 //StartServer a server and process the request by a handler.
diff --git a/internal/beaconchain/libs/beaconchain_test.go b/internal/beaconchain/libs/beaconchain_test.go
index 4322300c8..1ce95252e 100644
--- a/internal/beaconchain/libs/beaconchain_test.go
+++ b/internal/beaconchain/libs/beaconchain_test.go
@@ -8,6 +8,7 @@ import (
 	"github.com/harmony-one/harmony/api/proto/bcconn"
 	beaconchain "github.com/harmony-one/harmony/internal/beaconchain/rpc"
 	"github.com/harmony-one/harmony/p2p"
+	"github.com/stretchr/testify/assert"
 )
 
 var (
@@ -71,3 +72,41 @@ func TestFetchLeaders(t *testing.T) {
 	}
 
 }
+
+func TestAcceptNodeInfo(t *testing.T) {
+	var ip string
+	ip = "127.0.0.1"
+	beaconport := "8080"
+	numshards := 1
+	bc := New(numshards, ip, beaconport)
+	b := bcconn.SerializeNodeInfo(leader1)
+	node := bc.AcceptNodeInfo(b)
+	if !reflect.DeepEqual(node, leader1) {
+		t.Error("Beaconchain is unable to deserialize incoming node info")
+	}
+	if len(bc.Leaders) != 1 {
+		t.Error("Beaconchain was unable to update the leader array")
+	}
+
+}
+
+func TestRespondRandomness(t *testing.T) {
+	var ip string
+	ip = "127.0.0.1"
+	beaconport := "8080"
+	numshards := 1
+	bc := New(numshards, ip, beaconport)
+	bc.RespondRandomness(leader1)
+	assert.Equal(t, RandomInfoSent, bc.state)
+}
+
+func TestAcceptConnections(t *testing.T) {
+	var ip string
+	ip = "127.0.0.1"
+	beaconport := "8080"
+	numshards := 1
+	bc := New(numshards, ip, beaconport)
+	b := bcconn.SerializeNodeInfo(leader1)
+	bc.AcceptConnections(b)
+	assert.Equal(t, RandomInfoSent, bc.state)
+}