diff --git a/beaconchain/beaconchain_handler.go b/beaconchain/beaconchain_handler.go
new file mode 100644
index 000000000..add8b08a9
--- /dev/null
+++ b/beaconchain/beaconchain_handler.go
@@ -0,0 +1,115 @@
+package beaconchain
+
+import (
+	"fmt"
+	"net"
+	"os"
+
+	"github.com/simple-rules/harmony-benchmark/p2p"
+	"github.com/simple-rules/harmony-benchmark/proto"
+	proto_identity "github.com/simple-rules/harmony-benchmark/proto/identity"
+)
+
+//BeaconChainHandler handles registration of new Identities
+// This could have been its seperate package like consensus, but am avoiding creating a lot of packages.
+func (IDC *BeaconChain) BeaconChainHandler(conn net.Conn) {
+	content, err := p2p.ReadMessageContent(conn)
+	if err != nil {
+		IDC.log.Error("Read p2p data failed")
+		return
+	}
+	msgCategory, err := proto.GetMessageCategory(content)
+	if err != nil {
+		IDC.log.Error("Read message category failed", "err", err)
+		return
+	}
+	if msgCategory != proto.Identity {
+		IDC.log.Error("Identity Chain Recieved incorrect protocol message")
+		os.Exit(1)
+	} else {
+		fmt.Println("Message category is correct")
+	}
+	msgType, err := proto.GetMessageType(content)
+	if err != nil {
+		IDC.log.Error("Read action type failed")
+		return
+	}
+	msgPayload, err := proto.GetMessagePayload(content)
+	if err != nil {
+		IDC.log.Error("Read message payload failed")
+		return
+	}
+	switch msgCategory {
+	case proto.Identity:
+		actionType := proto_identity.IdentityMessageType(msgType)
+		switch actionType {
+		case proto_identity.Identity:
+			idMsgType, err := proto_identity.GetIdentityMessageType(msgPayload)
+			if err != nil {
+				fmt.Println("Error finding the identity message type")
+			}
+			switch idMsgType {
+			case proto_identity.Register:
+				IDC.AcceptConnections(msgPayload)
+			case proto_identity.Acknowledge:
+				// IDC.acceptNewConnection(msgPayload)
+			}
+
+		}
+
+	}
+}
+
+// TODO(alok): You removed pow package.
+// func (IDC *IdentityChain) registerIdentity(msgPayload []byte) {
+// 	payload, err := proto_identity.GetIdentityMessagePayload(msgPayload)
+// 	if err != nil {
+// 		IDC.log.Error("identity payload not read")
+// 	} else {
+// 		fmt.Println("identity payload read")
+// 	}
+// 	fmt.Println("we are now registering identities")
+// 	offset := 0
+// 	proof := payload[offset : offset+32]
+// 	offset = offset + 32
+// 	Node := node.DeserializeWaitNode(payload[offset:])
+// 	req := IDC.PowMap[Node.Self]
+// 	ok, err := pow.Check(req, string(proof), []byte(""))
+// 	fmt.Println(err)
+// 	if ok {
+// 		fmt.Println("Proof of work accepted")
+// 		IDC.PendingIdentities = append(IDC.PendingIdentities, Node)
+// 		fmt.Println(len(IDC.PendingIdentities)) //Fix why IDC does not have log working.
+// 	} else {
+// 		fmt.Println("identity proof of work not accepted")
+// 	}
+// }
+
+// func (IDC *IdentityChain) acceptNewConnection(msgPayload []byte) {
+
+// 	identityPayload, err := proto_identity.GetIdentityMessagePayload(msgPayload)
+// 	if err != nil {
+// 		fmt.Println("There was a error in reading the identity payload")
+// 	} else {
+// 		fmt.Println("accepted new connection")
+// 	}
+// 	fmt.Println("Sleeping for 2 secs ...")
+// 	time.Sleep(2 * time.Second)
+// 	Node := node.DeserializeWaitNode(identityPayload)
+// 	buffer := bytes.NewBuffer([]byte{})
+// 	src := rand.NewSource(time.Now().UnixNano())
+// 	rnd := rand.New(src)
+// 	challengeNonce := int((rnd.Int31()))
+// 	req := pow.NewRequest(5, []byte(strconv.Itoa(challengeNonce)))
+// 	IDC.PowMap[Node.Self] = req
+// 	buffer.Write([]byte(req))
+// 	// 32 byte block hash
+// 	// buffer.Write(prevBlockHash)
+// 	// The message is missing previous BlockHash, this is because we don't actively maintain a identitychain
+// 	// This canbe included in the fulfill request.
+// 	// Message should be encrypted and then signed to follow PKE.
+// 	//IDC should accept node publickey, encrypt the nonce and blockhash
+// 	// Then sign the message by own private key and send the message back.
+// 	msgToSend := proto_identity.ConstructIdentityMessage(proto_identity.Register, buffer.Bytes())
+// 	p2p.SendMessage(Node.Self, msgToSend)
+// }
diff --git a/beaconchain/identitychain.go b/beaconchain/identitychain.go
new file mode 100644
index 000000000..db1f04d94
--- /dev/null
+++ b/beaconchain/identitychain.go
@@ -0,0 +1,98 @@
+package beaconchain
+
+import (
+	"fmt"
+	"net"
+	"os"
+	"sync"
+
+	"github.com/dedis/kyber"
+	"github.com/simple-rules/harmony-benchmark/crypto/pki"
+	"github.com/simple-rules/harmony-benchmark/log"
+	"github.com/simple-rules/harmony-benchmark/node"
+	"github.com/simple-rules/harmony-benchmark/p2p"
+	proto_identity "github.com/simple-rules/harmony-benchmark/proto/identity"
+)
+
+var mutex sync.Mutex
+var identityPerBlock = 100000
+
+// BeaconChain (Blockchain) keeps Identities per epoch, currently centralized!
+type BeaconChain struct {
+	//Identities            []*IdentityBlock //No need to have the identity block as of now
+	Identities           []*node.Node
+	log                  log.Logger
+	PeerToShardMap       map[*node.Node]int
+	ShardLeaderMap       map[int]*node.Node
+	PubKey               kyber.Point
+	NumberOfShards       int
+	NumberOfLeadersAdded int
+}
+
+//Init
+func Init(filename string) {
+	idc := BeaconChain{}
+	//idc.NumberOfShards = readConfigFile(filename)
+	idc.NumberOfShards = 2
+	idc.PubKey = generateIDCKeys()
+	idc.StartServer()
+}
+
+func readConfigFile(filename string) int {
+	return 2
+}
+
+func generateIDCKeys() kyber.Point {
+	priKey := pki.GetPrivateKeyFromInt(10)
+	pubkey := pki.GetPublicKeyFromPrivateKey(priKey)
+	return pubkey
+}
+
+//AcceptConnections welcomes new connections
+func (IDC *BeaconChain) AcceptConnections(b []byte) {
+	Node := node.DeserializeWaitNode(b)
+	IDC.registerNode(Node) //This copies lock value of sync.mutex, we need to have a way around it by creating auxiliary data struct.
+}
+
+func (IDC *BeaconChain) registerNode(Node *node.Node) {
+	IDC.Identities = append(IDC.Identities, Node)
+	IDC.CommunicatePublicKeyToNode(Node.Self)
+	return
+}
+
+func (IDC *BeaconChain) CommunicatePublicKeyToNode(Peer p2p.Peer) {
+	pbkey := pki.GetBytesFromPublicKey(IDC.PubKey)
+	msgToSend := proto_identity.ConstructIdentityMessage(proto_identity.Acknowledge, pbkey[:])
+	p2p.SendMessage(Peer, msgToSend)
+}
+
+//StartServer a server and process the request by a handler.
+func (IDC *BeaconChain) StartServer() {
+	fmt.Println("Starting server...")
+	fmt.Println(IDC.PubKey)
+	IDC.log.Info("Starting IDC server...") //log.Info does nothing for me! (ak)
+	IDC.listenOnPort()
+}
+
+func (IDC *BeaconChain) listenOnPort() {
+	addr := net.JoinHostPort("", "8081")
+	listen, err := net.Listen("tcp4", addr)
+	if err != nil {
+		IDC.log.Crit("Socket listen port failed")
+		os.Exit(1)
+	} else {
+		fmt.Println("Starting server...now listening")
+		IDC.log.Info("Identity chain is now listening ..") //log.Info does nothing for me! (ak) remove this
+	}
+	defer listen.Close()
+	for {
+		conn, err := listen.Accept()
+		if err != nil {
+			IDC.log.Crit("Error listening on port. Exiting", "8081")
+			continue
+		} else {
+			fmt.Println("I am accepting connections now")
+		}
+		go IDC.BeaconChainHandler(conn)
+	}
+}
diff --git a/proto/identity/identity.go b/proto/identity/identity.go
index 6f6a4bfa4..42457ba53 100644
--- a/proto/identity/identity.go
+++ b/proto/identity/identity.go
@@ -38,7 +38,6 @@ func (msgType MessageType) String() string {
 		"Register",
 		"Acknowledge",
 		"Leader",
-		"IDCKey",
 		"Node_Info",
 		"Peers",
 	}