diff --git a/api/service/discovery/service.go b/api/service/discovery/service.go
index 2e0d35a4f..34c287ecf 100644
--- a/api/service/discovery/service.go
+++ b/api/service/discovery/service.go
@@ -106,7 +106,7 @@ func (s *Service) contactP2pPeers() {
 				}
 
 				if a == p2p.ActionStart || a == p2p.ActionResume || a == p2p.ActionPause {
-					if g == p2p.GroupIDBeacon {
+					if g == p2p.GroupIDBeacon || g == p2p.GroupIDBeaconClient {
 						if s.config.IsBeacon {
 							// beacon chain node
 							err = s.host.SendMessageToGroups([]p2p.GroupID{s.config.Beacon}, regMsgBuf)
diff --git a/api/service/networkinfo/service.go b/api/service/networkinfo/service.go
index 318fcb913..b40b2d725 100644
--- a/api/service/networkinfo/service.go
+++ b/api/service/networkinfo/service.go
@@ -133,7 +133,9 @@ func (s *Service) DoService() {
 				}
 				p := p2p.Peer{IP: ip, Port: port, PeerID: peer.ID, Addrs: peer.Addrs}
 				utils.GetLogInstance().Info("Notify peerChan", "peer", p)
-				s.peerChan <- p
+				if s.peerChan != nil {
+					s.peerChan <- p
+				}
 			}
 		case <-s.stopChan:
 			return
diff --git a/cmd/client/txgen/main.go b/cmd/client/txgen/main.go
index 44be6f380..a784d0264 100644
--- a/cmd/client/txgen/main.go
+++ b/cmd/client/txgen/main.go
@@ -19,6 +19,7 @@ import (
 	"github.com/harmony-one/harmony/internal/utils"
 	"github.com/harmony-one/harmony/node"
 	"github.com/harmony-one/harmony/p2p"
+	p2p_host "github.com/harmony-one/harmony/p2p/host"
 	"github.com/harmony-one/harmony/p2p/p2pimpl"
 	peerstore "github.com/libp2p/go-libp2p-peerstore"
 	multiaddr "github.com/multiformats/go-multiaddr"
@@ -70,40 +71,65 @@ func main() {
 	// Add GOMAXPROCS to achieve max performance.
 	runtime.GOMAXPROCS(1024)
 
-	var bcPeer *p2p.Peer
-	var shardIDLeaderMap map[uint32]p2p.Peer
-	priKey, _, err := utils.LoadKeyFromFile(*keyFile)
-	if err != nil {
-		panic(err)
-	}
+	// Logging setup
+	utils.SetPortAndIP(*port, *ip)
 
-	if *bcAddr != "" {
-		// Turn the destination into a multiaddr.
-		maddr, err := multiaddr.NewMultiaddr(*bcAddr)
+	if len(utils.BootNodes) == 0 {
+		bootNodeAddrs, err := utils.StringsToAddrs(utils.DefaultBootNodeAddrStrings)
 		if err != nil {
 			panic(err)
 		}
+		utils.BootNodes = bootNodeAddrs
+	}
 
-		// Extract the peer ID from the multiaddr.
-		info, err := peerstore.InfoFromP2pAddr(maddr)
-		if err != nil {
-			panic(err)
-		}
+	var shardIDLeaderMap map[uint32]p2p.Peer
+	nodePriKey, _, err := utils.LoadKeyFromFile(*keyFile)
+	if err != nil {
+		panic(err)
+	}
 
-		bcPeer = &p2p.Peer{IP: *bcIP, Port: *bcPort, Addrs: info.Addrs, PeerID: info.ID}
-	} else {
-		bcPeer = &p2p.Peer{IP: *bcIP, Port: *bcPort}
+	peerPriKey, peerPubKey := utils.GenKey(*ip, *port)
+	if peerPriKey == nil || peerPubKey == nil {
+		panic(fmt.Errorf("generate key error"))
 	}
 
-	candidateNode := newnode.New(*ip, *port, priKey)
-	candidateNode.AddPeer(bcPeer)
-	candidateNode.ContactBeaconChain(*bcPeer)
-	selfPeer := candidateNode.GetSelfPeer()
-	selfPeer.PubKey = candidateNode.PubK
+	selfPeer := p2p.Peer{IP: *ip, Port: *port, ValidatorID: -1, PubKey: peerPubKey}
 
-	shardIDLeaderMap = candidateNode.Leaders
+	if !*libp2pPD {
+		var bcPeer *p2p.Peer
+		if *bcAddr != "" {
+			// Turn the destination into a multiaddr.
+			maddr, err := multiaddr.NewMultiaddr(*bcAddr)
+			if err != nil {
+				panic(err)
+			}
 
-	debugPrintShardIDLeaderMap(shardIDLeaderMap)
+			// Extract the peer ID from the multiaddr.
+			info, err := peerstore.InfoFromP2pAddr(maddr)
+			if err != nil {
+				panic(err)
+			}
+
+			bcPeer = &p2p.Peer{IP: *bcIP, Port: *bcPort, Addrs: info.Addrs, PeerID: info.ID}
+		} else {
+			bcPeer = &p2p.Peer{IP: *bcIP, Port: *bcPort}
+		}
+
+		candidateNode := newnode.New(*ip, *port, nodePriKey)
+		candidateNode.AddPeer(bcPeer)
+		candidateNode.ContactBeaconChain(*bcPeer)
+		selfPeer := candidateNode.GetSelfPeer()
+		selfPeer.PubKey = candidateNode.PubK
+
+		shardIDLeaderMap = candidateNode.Leaders
+
+		debugPrintShardIDLeaderMap(shardIDLeaderMap)
+	} else {
+		// Init with LibP2P enabled, FIXME: (leochen) right now we support only one shard
+		shardIDLeaderMap = make(map[uint32]p2p.Peer)
+		shardIDLeaderMap[0] = p2p.Peer{}
+		utils.UseLibP2P = true
+	}
 
 	// Do cross shard tx if there are more than one shard
 	setting := txgen.Settings{
@@ -124,7 +150,7 @@ func main() {
 
 	// Nodes containing blockchain data to mirror the shards' data in the network
 	nodes := []*node.Node{}
-	host, err := p2pimpl.NewHost(&selfPeer, priKey)
+	host, err := p2pimpl.NewHost(&selfPeer, nodePriKey)
 	if err != nil {
 		panic("unable to new host in txgen")
 	}
@@ -147,15 +173,15 @@ func main() {
 	}()
 	// This func is used to update the client's blockchain when new blocks are received from the leaders
 	updateBlocksFunc := func(blocks []*types.Block) {
-		log.Info("[Txgen] Received new block", "block", blocks)
+		utils.GetLogInstance().Info("[Txgen] Received new block", "block", blocks)
 		for _, block := range blocks {
 			for _, node := range nodes {
 				shardID := block.ShardID()
 
 				if node.Consensus.ShardID == shardID {
 					// Add it to blockchain
-					log.Info("Current Block", "hash", node.Blockchain().CurrentBlock().Hash().Hex())
-					log.Info("Adding block from leader", "txNum", len(block.Transactions()), "shardID", shardID, "preHash", block.ParentHash().Hex())
+					utils.GetLogInstance().Info("Current Block", "hash", node.Blockchain().CurrentBlock().Hash().Hex())
+					utils.GetLogInstance().Info("Adding block from leader", "txNum", len(block.Transactions()), "shardID", shardID, "preHash", block.ParentHash().Hex())
 					node.AddNewBlock(block)
 					stateMutex.Lock()
 					node.Worker.UpdateCurrent()
@@ -169,24 +195,24 @@ func main() {
 	}
 	clientNode.Client.UpdateBlocks = updateBlocksFunc
 
-	// Start the client server to listen to leader's message
-	go clientNode.StartServer()
-
 	for _, leader := range shardIDLeaderMap {
-		log.Debug("Client Join Shard", "leader", leader)
-		clientNode.GetHost().AddPeer(&leader)
 		if *libp2pPD {
 			clientNode.Role = node.NewNode
 		} else {
+			clientNode.GetHost().AddPeer(&leader)
+			utils.GetLogInstance().Debug("Client Join Shard", "leader", leader)
 			go clientNode.JoinShard(leader)
 		}
 		clientNode.State = node.NodeReadyForConsensus
 	}
+
 	if *libp2pPD {
 		clientNode.ServiceManagerSetup()
 		clientNode.RunServices()
-		clientNode.StartServer()
+		go clientNode.StartServer()
 	} else {
+		// Start the client server to listen to leader's message
+		go clientNode.StartServer()
 		// wait for 1 seconds for client to send ping message to leader
 		time.Sleep(time.Second)
 		clientNode.StopPing <- struct{}{}
@@ -194,14 +220,14 @@ func main() {
 	clientNode.State = node.NodeReadyForConsensus
 
 	// Transaction generation process
-	time.Sleep(2 * time.Second) // wait for nodes to be ready
+	time.Sleep(5 * time.Second) // wait for nodes to be ready
 	start := time.Now()
 	totalTime := float64(*duration)
 
 	for {
 		t := time.Now()
 		if totalTime > 0 && t.Sub(start).Seconds() >= totalTime {
-			log.Debug("Generator timer ended.", "duration", (int(t.Sub(start))), "startTime", start, "totalTime", totalTime)
+			utils.GetLogInstance().Debug("Generator timer ended.", "duration", (int(t.Sub(start))), "startTime", start, "totalTime", totalTime)
 			break
 		}
 		select {
@@ -210,7 +236,7 @@ func main() {
 			lock := sync.Mutex{}
 
 			stateMutex.Lock()
-			log.Warn("STARTING TX GEN", "gomaxprocs", runtime.GOMAXPROCS(0))
+			utils.GetLogInstance().Warn("STARTING TX GEN", "gomaxprocs", runtime.GOMAXPROCS(0))
 			txs, _ := txgen.GenerateSimulatedTransactionsAccount(int(shardID), nodes, setting)
 
 			lock.Lock()
@@ -226,26 +252,34 @@ func main() {
 				}(shardID, txs)
 			}
 			lock.Unlock()
-		case <-time.After(2 * time.Second):
-			log.Warn("No new block is received so far")
+		case <-time.After(10 * time.Second):
+			utils.GetLogInstance().Warn("No new block is received so far")
 		}
 	}
 
 	// Send a stop message to stop the nodes at the end
 	msg := proto_node.ConstructStopMessage()
-	clientNode.BroadcastMessage(clientNode.Client.GetLeaders(), msg)
+	if utils.UseLibP2P {
+		clientNode.GetHost().SendMessageToGroups([]p2p.GroupID{p2p.GroupIDBeaconClient}, p2p_host.ConstructP2pMessage(byte(0), msg))
+	} else {
+		clientNode.BroadcastMessage(clientNode.Client.GetLeaders(), msg)
+	}
 	time.Sleep(3000 * time.Millisecond)
 }
 
 // SendTxsToLeader sends txs to leader account.
 func SendTxsToLeader(clientNode *node.Node, leader p2p.Peer, txs types.Transactions) {
-	log.Debug("[Generator] Sending account-based txs to...", "leader", leader, "numTxs", len(txs))
+	utils.GetLogInstance().Debug("[Generator] Sending account-based txs to...", "leader", leader, "numTxs", len(txs))
 	msg := proto_node.ConstructTransactionListMessageAccount(txs)
-	clientNode.SendMessage(leader, msg)
+	if utils.UseLibP2P {
+		clientNode.GetHost().SendMessageToGroups([]p2p.GroupID{p2p.GroupIDBeaconClient}, p2p_host.ConstructP2pMessage(byte(0), msg))
+	} else {
+		clientNode.SendMessage(leader, msg)
+	}
 }
 
 func debugPrintShardIDLeaderMap(leaderMap map[uint32]p2p.Peer) {
 	for k, v := range leaderMap {
-		log.Debug("Leader", "ShardID", k, "Leader", v)
+		utils.GetLogInstance().Debug("Leader", "ShardID", k, "Leader", v)
 	}
 }
diff --git a/consensus/consensus_leader.go b/consensus/consensus_leader.go
index da05f522c..478bae0ae 100644
--- a/consensus/consensus_leader.go
+++ b/consensus/consensus_leader.go
@@ -31,13 +31,24 @@ var (
 
 // WaitForNewBlock waits for the next new block to run consensus on
 func (consensus *Consensus) WaitForNewBlock(blockChannel chan *types.Block, stopChan chan struct{}, stoppedChan chan struct{}, startChannel chan struct{}) {
+	// gensis block is the first block to be processed.
+	// But we shouldn't start consensus yet, as we need to wait for all validators
+	// received the leader's pub key which will be propogated via Pong message.
+	// After we started the first consensus, we will go back to normal case to wait
+	// for new blocks.
+	// The signal to start the first consensus right now is the sending of Pong message (SendPongMessage function in node/node_handler.go
+	// but it can be changed to other conditions later
+	first := true
 	go func() {
 		defer close(stoppedChan)
 		for {
 			select {
 			default:
-				// got the signal to start consensus
-				_ = <-startChannel
+				if first && startChannel != nil {
+					// got the signal to start consensus
+					_ = <-startChannel
+					first = false
+				}
 
 				utils.GetLogInstance().Debug("Waiting for block", "consensus", consensus)
 				// keep waiting for new blocks
diff --git a/drand/drand.go b/drand/drand.go
index 492b09792..561d76a52 100644
--- a/drand/drand.go
+++ b/drand/drand.go
@@ -37,7 +37,7 @@ type DRand struct {
 	validators sync.Map // key is uint16, value is p2p.Peer
 
 	// Leader's address
-	leader p2p.Peer
+	Leader p2p.Peer
 
 	// Public keys of the committee including leader and validators
 	PublicKeys []*bls.PublicKey
@@ -85,7 +85,7 @@ func New(host p2p.Host, ShardID string, peers []p2p.Peer, leader p2p.Peer, confi
 		dRand.IsLeader = false
 	}
 
-	dRand.leader = leader
+	dRand.Leader = leader
 	for _, peer := range peers {
 		dRand.validators.Store(utils.GetUniqueIDFromPeer(peer), peer)
 	}
@@ -101,7 +101,7 @@ func New(host p2p.Host, ShardID string, peers []p2p.Peer, leader p2p.Peer, confi
 
 	dRand.PublicKeys = allPublicKeys
 
-	bitmap, _ := bls_cosi.NewMask(dRand.PublicKeys, dRand.leader.PubKey)
+	bitmap, _ := bls_cosi.NewMask(dRand.PublicKeys, dRand.Leader.PubKey)
 	dRand.bitmap = bitmap
 
 	dRand.pRand = nil
@@ -145,6 +145,7 @@ func (dRand *DRand) AddPeers(peers []*p2p.Peer) int {
 			dRand.pubKeyLock.Lock()
 			dRand.PublicKeys = append(dRand.PublicKeys, peer.PubKey)
 			dRand.pubKeyLock.Unlock()
+			utils.GetLogInstance().Debug("[DRAND]", "AddPeers", *peer)
 		}
 		count++
 	}
@@ -241,7 +242,7 @@ func (dRand *DRand) getValidatorPeerByID(validatorID uint32) *p2p.Peer {
 func (dRand *DRand) ResetState() {
 	dRand.vrfs = &map[uint32][]byte{}
 
-	bitmap, _ := bls_cosi.NewMask(dRand.PublicKeys, dRand.leader.PubKey)
+	bitmap, _ := bls_cosi.NewMask(dRand.PublicKeys, dRand.Leader.PubKey)
 	dRand.bitmap = bitmap
 	dRand.pRand = nil
 	dRand.rand = nil
diff --git a/drand/drand_leader.go b/drand/drand_leader.go
index 43479a67b..0753152e9 100644
--- a/drand/drand_leader.go
+++ b/drand/drand_leader.go
@@ -9,6 +9,7 @@ import (
 	"github.com/harmony-one/harmony/core/types"
 	"github.com/harmony-one/harmony/crypto/vrf/p256"
 	"github.com/harmony-one/harmony/internal/utils"
+	"github.com/harmony-one/harmony/p2p"
 	"github.com/harmony-one/harmony/p2p/host"
 )
 
@@ -45,7 +46,11 @@ func (dRand *DRand) init(epochBlock *types.Block) {
 
 	(*dRand.vrfs)[dRand.nodeID] = append(rand[:], proof...)
 
-	host.BroadcastMessageFromLeader(dRand.host, dRand.GetValidatorPeers(), msgToSend, nil)
+	if utils.UseLibP2P {
+		dRand.host.SendMessageToGroups([]p2p.GroupID{p2p.GroupIDBeacon}, host.ConstructP2pMessage(byte(17), msgToSend))
+	} else {
+		host.BroadcastMessageFromLeader(dRand.host, dRand.GetValidatorPeers(), msgToSend, nil)
+	}
 }
 
 // ProcessMessageLeader dispatches messages for the leader to corresponding processors.
@@ -86,7 +91,7 @@ func (dRand *DRand) processCommitMessage(message drand_proto.Message) {
 	// Verify message signature
 	err := verifyMessageSig(validatorPeer.PubKey, message)
 	if err != nil {
-		utils.GetLogInstance().Warn("Failed to verify the message signature", "Error", err)
+		utils.GetLogInstance().Warn("[DRAND] failed to verify the message signature", "Error", err, "PubKey", validatorPeer.PubKey)
 		return
 	}
 
@@ -99,18 +104,18 @@ func (dRand *DRand) processCommitMessage(message drand_proto.Message) {
 	expectedRand, err := pubKey.ProofToHash(dRand.blockHash[:], proof)
 
 	if err != nil || !bytes.Equal(expectedRand[:], rand) {
-		utils.GetLogInstance().Error("Failed to verify the VRF", "error", err, "validatorID", validatorID, "expectedRand", expectedRand, "receivedRand", rand)
+		utils.GetLogInstance().Error("[DRAND] Failed to verify the VRF", "error", err, "validatorID", validatorID, "expectedRand", expectedRand, "receivedRand", rand)
 		return
 	}
 
-	utils.GetLogInstance().Debug("Received new commit", "numReceivedSoFar", len((*vrfs)), "validatorID", validatorID, "PublicKeys", len(dRand.PublicKeys))
+	utils.GetLogInstance().Debug("Received new VRF commit", "numReceivedSoFar", len((*vrfs)), "validatorID", validatorID, "PublicKeys", len(dRand.PublicKeys))
 
 	(*vrfs)[validatorID] = message.Payload
 	dRand.bitmap.SetKey(validatorPeer.PubKey, true) // Set the bitmap indicating that this validator signed.
 
 	if len((*vrfs)) >= ((len(dRand.PublicKeys))/3 + 1) {
 		// Construct pRand and initiate consensus on it
-		utils.GetLogInstance().Debug("Received enough randomness commit", "numReceivedSoFar", len((*vrfs)), "validatorID", validatorID, "PublicKeys", len(dRand.PublicKeys))
+		utils.GetLogInstance().Debug("[DRAND] {BINGO} Received enough randomness commit", "numReceivedSoFar", len((*vrfs)), "validatorID", validatorID, "PublicKeys", len(dRand.PublicKeys))
 
 		pRnd := [32]byte{}
 		// Bitwise XOR on all the submitted vrfs
diff --git a/drand/drand_validator.go b/drand/drand_validator.go
index 116533f69..d025ca288 100644
--- a/drand/drand_validator.go
+++ b/drand/drand_validator.go
@@ -4,6 +4,7 @@ import (
 	protobuf "github.com/golang/protobuf/proto"
 	drand_proto "github.com/harmony-one/harmony/api/drand"
 	"github.com/harmony-one/harmony/internal/utils"
+	"github.com/harmony-one/harmony/p2p"
 	"github.com/harmony-one/harmony/p2p/host"
 )
 
@@ -34,9 +35,9 @@ func (dRand *DRand) processInitMessage(message drand_proto.Message) {
 	blockHash := message.BlockHash
 
 	// Verify message signature
-	err := verifyMessageSig(dRand.leader.PubKey, message)
+	err := verifyMessageSig(dRand.Leader.PubKey, message)
 	if err != nil {
-		utils.GetLogInstance().Warn("Failed to verify the message signature", "Error", err)
+		utils.GetLogInstance().Warn("Failed to verify the message signature", "Error", err, "Leader.PubKey", dRand.Leader.PubKey)
 		return
 	}
 
@@ -48,5 +49,9 @@ func (dRand *DRand) processInitMessage(message drand_proto.Message) {
 	msgToSend := dRand.constructCommitMessage(rand, proof)
 
 	// Send the commit message back to leader
-	host.SendMessage(dRand.host, dRand.leader, msgToSend, nil)
+	if utils.UseLibP2P {
+		dRand.host.SendMessageToGroups([]p2p.GroupID{p2p.GroupIDBeacon}, host.ConstructP2pMessage(byte(17), msgToSend))
+	} else {
+		host.SendMessage(dRand.host, dRand.Leader, msgToSend, nil)
+	}
 }
diff --git a/node/node.go b/node/node.go
index b7c7f0ea9..571ec7129 100644
--- a/node/node.go
+++ b/node/node.go
@@ -35,7 +35,6 @@ import (
 	"github.com/harmony-one/harmony/api/service/networkinfo"
 	randomness_service "github.com/harmony-one/harmony/api/service/randomness"
 
-	"github.com/harmony-one/harmony/api/service/staking"
 	"github.com/harmony-one/harmony/api/service/syncing"
 	"github.com/harmony-one/harmony/api/service/syncing/downloader"
 	downloader_pb "github.com/harmony-one/harmony/api/service/syncing/downloader/proto"
@@ -197,6 +196,10 @@ type Node struct {
 	// Group Message Receiver
 	groupReceiver p2p.GroupReceiver
 
+	// Client Message Receiver to handle light client messages
+	// Beacon leader needs to use this receiver to talk to new node
+	clientReceiver p2p.GroupReceiver
+
 	// Duplicated Ping Message Received
 	duplicatedPing map[string]bool
 
@@ -205,6 +208,9 @@ type Node struct {
 
 	// My GroupID
 	MyShardGroupID p2p.GroupID
+
+	// My ShardClient GroupID
+	MyClientGroupID p2p.GroupID
 }
 
 // Blockchain returns the blockchain from node
@@ -229,7 +235,7 @@ func (node *Node) getTransactionsForNewBlock(maxNumTxs int) types.Transactions {
 
 	utils.GetLogInstance().Debug("Invalid transactions discarded", "number", len(invalid))
 	node.pendingTransactions = unselected
-	utils.GetLogInstance().Debug("Remaining pending transactions", "number", len(node.pendingTransactions))
+	utils.GetLogInstance().Debug("Remaining pending transactions", "number", len(node.pendingTransactions), "selected", len(selected))
 	node.pendingTxMutex.Unlock()
 	return selected
 }
@@ -313,6 +319,7 @@ func New(host p2p.Host, consensus *bft.Consensus, db ethdb.Database) *Node {
 
 	if consensus != nil && consensus.IsLeader {
 		node.State = NodeLeader
+		go node.ReceiveClientGroupMessage()
 	} else {
 		node.State = NodeInit
 	}
@@ -329,7 +336,11 @@ func New(host p2p.Host, consensus *bft.Consensus, db ethdb.Database) *Node {
 
 	node.duplicatedPing = make(map[string]bool)
 
-	node.startConsensus = make(chan struct{})
+	if utils.UseLibP2P {
+		node.startConsensus = make(chan struct{})
+	} else {
+		node.startConsensus = nil
+	}
 
 	return &node
 }
@@ -716,25 +727,45 @@ func decodeFuncSign(data []byte) string {
 	return funcSign
 }
 
-func (node *Node) setupForShardLeader() {
+func (node *Node) initNodeConfiguration() (service.NodeConfig, chan p2p.Peer) {
 	chanPeer := make(chan p2p.Peer)
 
 	nodeConfig := service.NodeConfig{
 		IsBeacon: false,
-		IsClient: false,
+		IsClient: true,
 		Beacon:   p2p.GroupIDBeacon,
 		Group:    p2p.GroupIDUnknown,
 		Actions:  make(map[p2p.GroupID]p2p.ActionType),
 	}
-	nodeConfig.Actions[p2p.GroupIDBeacon] = p2p.ActionStart
+	nodeConfig.Actions[p2p.GroupIDBeaconClient] = p2p.ActionStart
 
 	var err error
-	node.groupReceiver, err = node.host.GroupReceiver(p2p.GroupIDBeacon)
+	node.groupReceiver, err = node.host.GroupReceiver(p2p.GroupIDBeaconClient)
 	if err != nil {
 		utils.GetLogInstance().Error("create group receiver error", "msg", err)
-		return
 	}
 
+	return nodeConfig, chanPeer
+}
+
+func (node *Node) initBeaconNodeConfiguration() (service.NodeConfig, chan p2p.Peer) {
+	nodeConfig, chanPeer := node.initNodeConfiguration()
+	nodeConfig.IsBeacon = true
+
+	var err error
+	// All beacon chain node will subscribe to BeaconClient topic
+	node.clientReceiver, err = node.host.GroupReceiver(p2p.GroupIDBeaconClient)
+	if err != nil {
+		utils.GetLogInstance().Error("create client receiver error", "msg", err)
+	}
+	node.MyClientGroupID = p2p.GroupIDBeaconClient
+
+	return nodeConfig, chanPeer
+}
+
+func (node *Node) setupForShardLeader() {
+	nodeConfig, chanPeer := node.initNodeConfiguration()
+
 	// Register peer discovery service. No need to do staking for beacon chain node.
 	node.serviceManager.RegisterService(service_manager.PeerDiscovery, discovery.New(node.host, nodeConfig, chanPeer))
 	// Register networkinfo service. "0" is the beacon shard ID
@@ -753,47 +784,16 @@ func (node *Node) setupForShardLeader() {
 }
 
 func (node *Node) setupForShardValidator() {
-	chanPeer := make(chan p2p.Peer)
-	nodeConfig := service.NodeConfig{
-		IsBeacon: false,
-		IsClient: false,
-		Beacon:   p2p.GroupIDBeacon,
-		Group:    p2p.GroupIDUnknown,
-		Actions:  make(map[p2p.GroupID]p2p.ActionType),
-	}
-	nodeConfig.Actions[p2p.GroupIDBeacon] = p2p.ActionStart
-
-	var err error
-	node.groupReceiver, err = node.host.GroupReceiver(p2p.GroupIDBeacon)
-	if err != nil {
-		utils.GetLogInstance().Error("create group receiver error", "msg", err)
-		return
-	}
+	nodeConfig, chanPeer := node.initNodeConfiguration()
 
 	// Register peer discovery service. "0" is the beacon shard ID. No need to do staking for beacon chain node.
 	node.serviceManager.RegisterService(service_manager.PeerDiscovery, discovery.New(node.host, nodeConfig, chanPeer))
 	// Register networkinfo service. "0" is the beacon shard ID
 	node.serviceManager.RegisterService(service_manager.NetworkInfo, networkinfo.New(node.host, p2p.GroupIDBeacon, chanPeer))
-
 }
 
 func (node *Node) setupForBeaconLeader() {
-	chanPeer := make(chan p2p.Peer)
-	nodeConfig := service.NodeConfig{
-		IsBeacon: true,
-		IsClient: false,
-		Beacon:   p2p.GroupIDBeacon,
-		Group:    p2p.GroupIDUnknown,
-		Actions:  make(map[p2p.GroupID]p2p.ActionType),
-	}
-	nodeConfig.Actions[p2p.GroupIDBeacon] = p2p.ActionStart
-
-	var err error
-	node.groupReceiver, err = node.host.GroupReceiver(p2p.GroupIDBeacon)
-	if err != nil {
-		utils.GetLogInstance().Error("create group receiver error", "msg", err)
-		return
-	}
+	nodeConfig, chanPeer := node.initBeaconNodeConfiguration()
 
 	// Register peer discovery service. No need to do staking for beacon chain node.
 	node.serviceManager.RegisterService(service_manager.PeerDiscovery, discovery.New(node.host, nodeConfig, chanPeer))
@@ -808,26 +808,10 @@ func (node *Node) setupForBeaconLeader() {
 	node.serviceManager.RegisterService(service_manager.ClientSupport, clientsupport.New(node.blockchain.State, node.CallFaucetContract, node.getDeployedStakingContract, node.SelfPeer.IP, node.SelfPeer.Port))
 	// Register randomness service
 	node.serviceManager.RegisterService(service_manager.Randomness, randomness_service.New(node.DRand))
-
 }
 
 func (node *Node) setupForBeaconValidator() {
-	chanPeer := make(chan p2p.Peer)
-	nodeConfig := service.NodeConfig{
-		IsBeacon: true,
-		IsClient: false,
-		Beacon:   p2p.GroupIDBeacon,
-		Group:    p2p.GroupIDUnknown,
-		Actions:  make(map[p2p.GroupID]p2p.ActionType),
-	}
-	nodeConfig.Actions[p2p.GroupIDBeacon] = p2p.ActionStart
-
-	var err error
-	node.groupReceiver, err = node.host.GroupReceiver(p2p.GroupIDBeacon)
-	if err != nil {
-		utils.GetLogInstance().Error("create group receiver error", "msg", err)
-		return
-	}
+	nodeConfig, chanPeer := node.initBeaconNodeConfiguration()
 
 	// Register peer discovery service. No need to do staking for beacon chain node.
 	node.serviceManager.RegisterService(service_manager.PeerDiscovery, discovery.New(node.host, nodeConfig, chanPeer))
@@ -838,28 +822,12 @@ func (node *Node) setupForBeaconValidator() {
 }
 
 func (node *Node) setupForNewNode() {
-	chanPeer := make(chan p2p.Peer)
-	stakingPeer := make(chan p2p.Peer)
-
-	nodeConfig := service.NodeConfig{
-		IsBeacon: false,
-		IsClient: false,
-		Beacon:   p2p.GroupIDBeacon,
-		Group:    p2p.GroupIDUnknown,
-		Actions:  make(map[p2p.GroupID]p2p.ActionType),
-	}
-	nodeConfig.Actions[p2p.GroupIDBeacon] = p2p.ActionStart
-
-	var err error
-	node.groupReceiver, err = node.host.GroupReceiver(p2p.GroupIDBeacon)
-	if err != nil {
-		utils.GetLogInstance().Error("create group receiver error", "msg", err)
-		return
-	}
+	nodeConfig, chanPeer := node.initNodeConfiguration()
 
 	// Register staking service.
-	node.serviceManager.RegisterService(service_manager.Staking, staking.New(node.AccountKey, 0, stakingPeer))
-	// Register peer discovery service. "0" is the beacon shard ID
+	// node.serviceManager.RegisterService(service_manager.Staking, staking.New(node.AccountKey, 0, stakingPeer))
+	// TODO: (leo) no need to start discovery service for new node until we received the sharding info
+	// Register peer discovery service.
 	node.serviceManager.RegisterService(service_manager.PeerDiscovery, discovery.New(node.host, nodeConfig, chanPeer))
 	// Register networkinfo service. "0" is the beacon shard ID
 	node.serviceManager.RegisterService(service_manager.NetworkInfo, networkinfo.New(node.host, p2p.GroupIDBeacon, chanPeer))
diff --git a/node/node.md b/node/node.md
index 2a00f1273..34a71cf2d 100644
--- a/node/node.md
+++ b/node/node.md
@@ -43,3 +43,17 @@ type Action struct {
 ### Resharding
 
 Service Manager is very handy to transform a node role from validator to leader or anything else. All we need to do is to stop all current services and start all services of the new role.
+
+### LibP2P Integration
+
+We have enabled libp2p based gossiping using pubsub. Nodes no longer send messages to individual nodes.
+All message communication is via SendMessageToGroups function.
+
+* Beacon chain nodes need to subscribe to TWO topics
+** one is beacon chain topic itself: GroupIDBeacon
+** another one is beacon client topic: GroupIDBeaconClient. Only Beacon Chain leader needs to send to this topic.
+
+* Every new node other than beacon chain nodes needs to subscribe to THREE topic. This also include txgen program.
+** one is beacon chain client topic => It is used to send staking transaction, and receive beacon chain blocks to determine the sharding info and randomness
+** one is shard consensus itself => It is used for within shard consensus, pingpong messages
+** one is client of the shard => It is used to receive tx from client, and send block back to client like txgen. Only shard Leader needs to send to this topic.
diff --git a/node/node_handler.go b/node/node_handler.go
index 19a155a74..ae09f6134 100644
--- a/node/node_handler.go
+++ b/node/node_handler.go
@@ -69,6 +69,26 @@ func (node *Node) ReceiveGroupMessage() {
 	}
 }
 
+// ReceiveClientGroupMessage use libp2p pubsub mechanism to receive broadcast messages for client
+func (node *Node) ReceiveClientGroupMessage() {
+	ctx := context.Background()
+	for {
+		if node.clientReceiver == nil {
+			// check less frequent on client messages
+			time.Sleep(1000 * time.Millisecond)
+			continue
+		}
+		msg, sender, err := node.clientReceiver.Receive(ctx)
+		if sender != node.host.GetID() {
+			utils.GetLogInstance().Info("[CLIENT]", "received group msg", len(msg), "sender", sender)
+			if err == nil {
+				// skip the first 5 bytes, 1 byte is p2p type, 4 bytes are message size
+				node.messageHandler(msg[5:], string(sender))
+			}
+		}
+	}
+}
+
 // messageHandler parses the message and dispatch the actions
 func (node *Node) messageHandler(content []byte, sender string) {
 	//	node.MaybeBroadcastAsValidator(content)
@@ -231,7 +251,7 @@ func (node *Node) BroadcastNewBlock(newBlock *types.Block) {
 	if node.ClientPeer != nil {
 		utils.GetLogInstance().Debug("Sending new block to client", "client", node.ClientPeer)
 		if utils.UseLibP2P {
-			node.host.SendMessageToGroups([]p2p.GroupID{node.MyShardGroupID}, proto_node.ConstructBlocksSyncMessage([]*types.Block{newBlock}))
+			node.host.SendMessageToGroups([]p2p.GroupID{node.MyClientGroupID}, host.ConstructP2pMessage(byte(0), proto_node.ConstructBlocksSyncMessage([]*types.Block{newBlock})))
 		} else {
 			node.SendMessage(*node.ClientPeer, proto_node.ConstructBlocksSyncMessage([]*types.Block{newBlock}))
 		}
@@ -389,8 +409,7 @@ func (node *Node) SendPongMessage() {
 				if !sentMessage {
 					pong := proto_discovery.NewPongMessage(peers, node.Consensus.PublicKeys, node.Consensus.Leader.PubKey)
 					buffer := pong.ConstructPongMessage()
-					content := host.ConstructP2pMessage(byte(0), buffer)
-					err := node.host.SendMessageToGroups([]p2p.GroupID{node.MyShardGroupID}, content)
+					err := node.host.SendMessageToGroups([]p2p.GroupID{node.MyShardGroupID}, host.ConstructP2pMessage(byte(0), buffer))
 					if err != nil {
 						utils.GetLogInstance().Error("[PONG] failed to send pong message", "group", node.MyShardGroupID)
 						continue
@@ -441,7 +460,12 @@ func (node *Node) pongMessageHandler(msgPayload []byte) int {
 	node.Consensus.Leader.PubKey = &bls.PublicKey{}
 	err = node.Consensus.Leader.PubKey.Deserialize(pong.LeaderPubKey)
 	if err != nil {
-		utils.GetLogInstance().Error("Unmarshal Leader PubKey Failed", "error", err)
+		utils.GetLogInstance().Error("Unmarshal Consensus Leader PubKey Failed", "error", err)
+	}
+	node.DRand.Leader.PubKey = &bls.PublicKey{}
+	err = node.DRand.Leader.PubKey.Deserialize(pong.LeaderPubKey)
+	if err != nil {
+		utils.GetLogInstance().Error("Unmarshal DRand Leader PubKey Failed", "error", err)
 	}
 
 	// Reset Validator PublicKeys every time we receive PONG message from Leader
diff --git a/p2p/group.go b/p2p/group.go
index 68304969d..43aa473dd 100644
--- a/p2p/group.go
+++ b/p2p/group.go
@@ -24,9 +24,10 @@ func (id GroupID) String() string {
 
 // Const of group ID
 const (
-	GroupIDBeacon  GroupID = "harmony/0.0.1/beacon"
-	GroupIDGlobal  GroupID = "harmony/0.0.1/global"
-	GroupIDUnknown GroupID = "B1acKh0lE"
+	GroupIDBeacon       GroupID = "harmony/0.0.1/beacon"
+	GroupIDBeaconClient GroupID = "harmony/0.0.1/beacon/client"
+	GroupIDGlobal       GroupID = "harmony/0.0.1/global"
+	GroupIDUnknown      GroupID = "B1acKh0lE"
 )
 
 // ActionType lists action on group