diff --git a/go.mod b/go.mod
index a838712d43511b98bdcd369ec46a791d14904901..5cbc7fa9b22bb6fd8c9595d570bf2091c9e45d08 100644
--- a/go.mod
+++ b/go.mod
@@ -23,6 +23,7 @@ require (
 	github.com/spf13/viper v1.6.2
 	github.com/stretchr/testify v1.5.1
 	github.com/valyala/fasttemplate v1.1.0 // indirect
+	go.dedis.ch/kyber/v3 v3.0.12
 	go.uber.org/atomic v1.6.0
 	go.uber.org/zap v1.14.0
 	golang.org/x/crypto v0.0.0-20200302210943-78000ba7a073
diff --git a/go.sum b/go.sum
index 9fca25e7e54c8f86f4d906784e0aa79f4f34d934..af601bdf46103e7eb133b073fe777dc340cddce7 100644
--- a/go.sum
+++ b/go.sum
@@ -311,6 +311,15 @@ github.com/xdg/scram v0.0.0-20180814205039-7eeb5667e42c/go.mod h1:lB8K/P019DLNhe
 github.com/xdg/stringprep v1.0.0/go.mod h1:Jhud4/sHMO4oL310DaZAKk9ZaJ08SJfe+sJh0HrGL1Y=
 github.com/xiang90/probing v0.0.0-20190116061207-43a291ad63a2/go.mod h1:UETIi67q53MR2AWcXfiuqkDkRtnGDLqkBTpCHuJHxtU=
 github.com/xordataexchange/crypt v0.0.3-0.20170626215501-b2862e3d0a77/go.mod h1:aYKd//L2LvnjZzWKhF00oedf4jCCReLcmhLdhm1A27Q=
+go.dedis.ch/fixbuf v1.0.3 h1:hGcV9Cd/znUxlusJ64eAlExS+5cJDIyTyEG+otu5wQs=
+go.dedis.ch/fixbuf v1.0.3/go.mod h1:yzJMt34Wa5xD37V5RTdmp38cz3QhMagdGoem9anUalw=
+go.dedis.ch/kyber/v3 v3.0.4/go.mod h1:OzvaEnPvKlyrWyp3kGXlFdp7ap1VC6RkZDTaPikqhsQ=
+go.dedis.ch/kyber/v3 v3.0.9/go.mod h1:rhNjUUg6ahf8HEg5HUvVBYoWY4boAafX8tYxX+PS+qg=
+go.dedis.ch/kyber/v3 v3.0.12 h1:15d61EyBcBoFIS97kS2c/Vz4o3FR8ALnZ2ck9J/ebYM=
+go.dedis.ch/kyber/v3 v3.0.12/go.mod h1:kXy7p3STAurkADD+/aZcsznZGKVHEqbtmdIzvPfrs1U=
+go.dedis.ch/protobuf v1.0.5/go.mod h1:eIV4wicvi6JK0q/QnfIEGeSFNG0ZeB24kzut5+HaRLo=
+go.dedis.ch/protobuf v1.0.7/go.mod h1:pv5ysfkDX/EawiPqcW3ikOxsL5t+BqnV6xHSmE79KI4=
+go.dedis.ch/protobuf v1.0.11/go.mod h1:97QR256dnkimeNdfmURz0wAMNVbd1VmLXhG1CrTYrJ4=
 go.etcd.io/bbolt v1.3.2/go.mod h1:IbVyRI1SCnLcuJnV2u8VeU0CEYM7e686BmAb1XKL+uU=
 go.mongodb.org/mongo-driver v1.0.0/go.mod h1:u7ryQJ+DOzQmeO7zB6MHyr8jkEQvC8vH7qLUO4lqsUM=
 go.opencensus.io v0.18.0/go.mod h1:vKdFvxhtzZ9onBp9VKHK8z/sRpBMnKAsufL7wlDrCOA=
@@ -334,6 +343,7 @@ golang.org/x/build v0.0.0-20190111050920-041ab4dc3f9d/go.mod h1:OWs+y06UdEOHN4y+
 golang.org/x/crypto v0.0.0-20180904163835-0709b304e793/go.mod h1:6SG95UA2DQfeDnfUPMdvaQW0Q7yPrPDi9nlGo2tz2b4=
 golang.org/x/crypto v0.0.0-20181030102418-4d3f4d9ffa16/go.mod h1:6SG95UA2DQfeDnfUPMdvaQW0Q7yPrPDi9nlGo2tz2b4=
 golang.org/x/crypto v0.0.0-20181203042331-505ab145d0a9/go.mod h1:6SG95UA2DQfeDnfUPMdvaQW0Q7yPrPDi9nlGo2tz2b4=
+golang.org/x/crypto v0.0.0-20190123085648-057139ce5d2b/go.mod h1:6SG95UA2DQfeDnfUPMdvaQW0Q7yPrPDi9nlGo2tz2b4=
 golang.org/x/crypto v0.0.0-20190211182817-74369b46fc67/go.mod h1:6SG95UA2DQfeDnfUPMdvaQW0Q7yPrPDi9nlGo2tz2b4=
 golang.org/x/crypto v0.0.0-20190219172222-a4c6cb3142f2/go.mod h1:6SG95UA2DQfeDnfUPMdvaQW0Q7yPrPDi9nlGo2tz2b4=
 golang.org/x/crypto v0.0.0-20190308221718-c2843e01d9a2/go.mod h1:djNgcEr1/C05ACkg1iLfiJU5Ep61QUkGW8qpdssI0+w=
@@ -386,6 +396,7 @@ golang.org/x/sys v0.0.0-20181029174526-d69651ed3497/go.mod h1:STP8DvDyc/dI5b8T5h
 golang.org/x/sys v0.0.0-20181107165924-66b7b1311ac8/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
 golang.org/x/sys v0.0.0-20181116152217-5ac8a444bdc5/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
 golang.org/x/sys v0.0.0-20181205085412-a5c9d58dba9a/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
+golang.org/x/sys v0.0.0-20190124100055-b90733256f2e/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
 golang.org/x/sys v0.0.0-20190215142949-d0b11bdaac8a/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
 golang.org/x/sys v0.0.0-20190221075227-b4e8571b14e0/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
 golang.org/x/sys v0.0.0-20190222072716-a9d3bda3a223/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
diff --git a/packages/binary/valuetransfer/address/address.go b/packages/binary/valuetransfer/address/address.go
index 265fbf0cd394b153480ac557fc1c99bc8d310803..3af046a4e1534aa63c82d4f200a3a10e0894b503 100644
--- a/packages/binary/valuetransfer/address/address.go
+++ b/packages/binary/valuetransfer/address/address.go
@@ -3,7 +3,6 @@ package address
 import (
 	"crypto/rand"
 	"fmt"
-
 	"github.com/mr-tron/base58"
 	"golang.org/x/crypto/blake2b"
 
@@ -17,7 +16,15 @@ type Digest = []byte
 
 type Address [Length]byte
 
+const (
+	// every signature scheme has a version byte associated to it.
+	VERSION_ED25519 = byte(1)
+	VERSION_BLS_BDN = byte(2)
+)
+
 // Random creates a random address, which can for example be used in unit tests.
+// first byte (version) is also random
+
 func Random() (address Address) {
 	// generate a random sequence of bytes
 	addressBytes := make([]byte, Length)
@@ -31,6 +38,22 @@ func Random() (address Address) {
 	return
 }
 
+// Random creates a random address of the given type,
+// first byte (version) is given
+
+func RandomOfType(addrVersion byte) (address Address) {
+	// generate a random sequence of bytes
+	addressBytes := make([]byte, Length-1)
+	if _, err := rand.Read(addressBytes); err != nil {
+		panic(err)
+	}
+
+	// copy the generated bytes into the result
+	copy(address[1:], addressBytes)
+	addressBytes[0] = addrVersion
+	return
+}
+
 // FromBase58 creates an address from a base58 encoded string.
 func FromBase58(base58String string) (address Address, err error) {
 	// decode string
@@ -56,7 +79,19 @@ func FromBase58(base58String string) (address Address, err error) {
 func FromED25519PubKey(key ed25119.PublicKey) (address Address) {
 	digest := blake2b.Sum256(key[:])
 
-	address[0] = 0
+	address[0] = VERSION_ED25519
+	copy(address[1:], digest[:])
+
+	return
+}
+
+// FromBLSPubKey creates an address from marshaled BLS public key
+// unmarshaled BLS public key conforms to interface kyber.Point
+
+func FromBLSPubKey(pubKey []byte) (address Address) {
+	digest := blake2b.Sum256(pubKey)
+
+	address[0] = VERSION_BLS_BDN
 	copy(address[1:], digest[:])
 
 	return
diff --git a/packages/binary/valuetransfer/address/signaturescheme/bls-bdn.go b/packages/binary/valuetransfer/address/signaturescheme/bls-bdn.go
new file mode 100644
index 0000000000000000000000000000000000000000..fd3bb53550ffa71e98c4e5782f3bc7ccb1f15920
--- /dev/null
+++ b/packages/binary/valuetransfer/address/signaturescheme/bls-bdn.go
@@ -0,0 +1,99 @@
+package signaturescheme
+
+import (
+	"bytes"
+	"github.com/iotaledger/goshimmer/packages/binary/valuetransfer/address"
+	"go.dedis.ch/kyber/v3"
+	"go.dedis.ch/kyber/v3/pairing/bn256"
+	"go.dedis.ch/kyber/v3/sign/bdn"
+	"go.dedis.ch/kyber/v3/util/random"
+)
+
+// BLS_BDN implements BLS signature scheme which is robust agains rogue public key attacks
+// it uses go.dedis/kyber library
+// more info https://github.com/dedis/kyber/blob/master/sign/bdn/bdn.go
+// usually BLS signatures are used as threshold signatures.
+// This package don't implement any threshold signature related primitives.
+// it only implements what is needed for the node to check validity of the BLS signatures against addresses
+// and also minimum signing required for testing
+
+var suite = bn256.NewSuite()
+
+// blsBdnSignatureScheme defines an interface for the BLS signatures.
+// here it is unmarshaled because only used for testing
+
+type blsBdnSignatureScheme struct {
+	privKey kyber.Scalar
+	pubKey  kyber.Point
+}
+
+// RandBLS_BDN creates an RANDOM instance of a signature scheme, that is used to sign the corresponding address.
+// mostly intended for testing.
+func RandBLS_BDN() SignatureScheme {
+	ret := &blsBdnSignatureScheme{}
+	ret.privKey, ret.pubKey = bdn.NewKeyPair(suite, random.New()) // only for testing: deterministic!
+	return ret
+}
+
+func (sigscheme *blsBdnSignatureScheme) Version() byte {
+	suite.ScalarLen()
+	return address.VERSION_BLS_BDN
+}
+
+func (sigscheme *blsBdnSignatureScheme) Address() address.Address {
+	b, err := sigscheme.pubKey.MarshalBinary()
+	if err != nil {
+		panic(err)
+	}
+	return address.FromBLSPubKey(b)
+}
+
+func (sigscheme *blsBdnSignatureScheme) Sign(data []byte) Signature {
+	sig, err := bdn.Sign(suite, sigscheme.privKey, data)
+	if err != nil {
+		panic(err)
+	}
+	pubKeyBin, err := sigscheme.pubKey.MarshalBinary()
+	if err != nil {
+		panic(err)
+	}
+	return &blsBdnSignature{
+		pubKey:    pubKeyBin,
+		signature: sig,
+	}
+}
+
+// interface contract (allow the compiler to check if the implementation has all of the required methods).
+var _ SignatureScheme = &blsBdnSignatureScheme{}
+
+// BLS-BDN signature, in binary marshaled form
+
+type blsBdnSignature struct {
+	pubKey    []byte
+	signature []byte
+}
+
+func (sig *blsBdnSignature) IsValid(signedData []byte) bool {
+	// unmarshal public key
+	pubKey := suite.G2().Point()
+	if err := pubKey.UnmarshalBinary(sig.pubKey); err != nil {
+		return false
+	}
+	return bdn.Verify(suite, pubKey, signedData, sig.signature) == nil
+}
+
+func (sig *blsBdnSignature) Bytes() []byte {
+	b := make([]byte, 1+len(sig.pubKey)+len(sig.signature))
+	buf := bytes.NewBuffer(b)
+	buf.WriteByte(address.VERSION_BLS_BDN)
+	buf.Write(sig.pubKey)
+	buf.Write(sig.signature)
+	return b
+}
+
+func (sig *blsBdnSignature) Address() address.Address {
+	return address.FromBLSPubKey(sig.pubKey)
+}
+
+// interface contract (allow the compiler to check if the implementation has all of the required methods).
+var _ Signature = &blsBdnSignature{}
diff --git a/packages/binary/valuetransfer/address/signaturescheme/bls_test.go b/packages/binary/valuetransfer/address/signaturescheme/bls_test.go
new file mode 100644
index 0000000000000000000000000000000000000000..b181fc5926477c20586cf29fe0a05f92fe327773
--- /dev/null
+++ b/packages/binary/valuetransfer/address/signaturescheme/bls_test.go
@@ -0,0 +1,16 @@
+package signaturescheme
+
+import (
+	"github.com/magiconair/properties/assert"
+	"testing"
+)
+
+func TestBLS_BDN(t *testing.T) {
+	dataToSign := []byte("testtesttest")
+
+	blsSigScheme := RandBLS_BDN()
+	signature := blsSigScheme.Sign(dataToSign)
+
+	assert.Equal(t, blsSigScheme.Address() == signature.Address(), true)
+	assert.Equal(t, signature.IsValid(dataToSign), true)
+}
diff --git a/packages/binary/valuetransfer/address/signaturescheme/ed25519.go b/packages/binary/valuetransfer/address/signaturescheme/ed25519.go
index 997de93a6391b5dbb511091c0d69b7960d8d8fe3..4a3db62f31091ec1ab9d092a1c66049f586c6ca8 100644
--- a/packages/binary/valuetransfer/address/signaturescheme/ed25519.go
+++ b/packages/binary/valuetransfer/address/signaturescheme/ed25519.go
@@ -10,11 +10,6 @@ import (
 
 // region PUBLIC API ///////////////////////////////////////////////////////////////////////////////////////////////////
 
-const (
-	// every signature scheme has a version byte associated to it.
-	VERSION_ED25519 = byte(1)
-)
-
 // ED25519 creates an instance of a signature scheme, that is used to sign the corresponding address.
 func ED25519(keyPair ed25119.KeyPair) SignatureScheme {
 	return &ed25519SignatureScheme{
@@ -33,7 +28,7 @@ type ed25519SignatureScheme struct {
 
 // Version returns the version byte that is associated to this signature scheme.
 func (signatureScheme *ed25519SignatureScheme) Version() byte {
-	return VERSION_ED25519
+	return address.VERSION_ED25519
 }
 
 // Address returns the address that this signature scheme instance is securing.
@@ -82,7 +77,7 @@ func Ed25519SignatureFromBytes(bytes []byte, optionalTargetObject ...*ed25519Sig
 	versionByte, err := marshalUtil.ReadByte()
 	if err != nil {
 		return
-	} else if versionByte != VERSION_ED25519 {
+	} else if versionByte != address.VERSION_ED25519 {
 		err = fmt.Errorf("invalid version byte when parsing ed25519 signature")
 
 		return
@@ -116,7 +111,7 @@ func (signature *ed25519Signature) IsValid(signedData []byte) bool {
 // Bytes returns a marshaled version of the signature.
 func (signature *ed25519Signature) Bytes() []byte {
 	marshalUtil := marshalutil.New(1 + ed25119.PublicKeySize + ed25119.SignatureSize)
-	marshalUtil.WriteByte(VERSION_ED25519)
+	marshalUtil.WriteByte(address.VERSION_ED25519)
 	marshalUtil.WriteBytes(signature.publicKey[:])
 	marshalUtil.WriteBytes(signature.signature[:])
 
diff --git a/packages/binary/valuetransfer/transaction/signatures.go b/packages/binary/valuetransfer/transaction/signatures.go
index 26f3f45f468fc2a45e35fb56f3bacb70fbc3f362..ca2faf3fb70b295fb17e49189b76b5272085d99a 100644
--- a/packages/binary/valuetransfer/transaction/signatures.go
+++ b/packages/binary/valuetransfer/transaction/signatures.go
@@ -47,7 +47,7 @@ func SignaturesFromBytes(bytes []byte, optionalTargetObject ...*Signatures) (res
 	for versionByte != 0 {
 		// perform signature scheme specific decoding
 		switch versionByte {
-		case signaturescheme.VERSION_ED25519:
+		case address.VERSION_ED25519:
 			marshalUtil.ReadSeek(-1)
 			signature, signatureErr := marshalUtil.Parse(func(data []byte) (interface{}, error, int) { return signaturescheme.Ed25519SignatureFromBytes(data) })
 			if signatureErr != nil {