diff --git a/blockstore/blockstore.tac b/blockstore/blockstore.tac
index 1917a7204..81264b8c3 100644
--- a/blockstore/blockstore.tac
+++ b/blockstore/blockstore.tac
@@ -1,8 +1,24 @@
+#!/usr/bin/env python
+# -*- coding: utf-8 -*-
 """
-    Blockstored tac (config) file used by Twisted for launching the server
+    Blockstore
     ~~~~~
-    :copyright: (c) 2014 by Openname.org
-    :license: MIT, see LICENSE for more details.
+    copyright: (c) 2014 by Halfmoon Labs, Inc.
+    copyright: (c) 2015 by Blockstack.org
+    
+    This file is part of Blockstore
+    
+    Blockstore is free software: you can redistribute it and/or modify
+    it under the terms of the GNU General Public License as published by
+    the Free Software Foundation, either version 3 of the License, or
+    (at your option) any later version.
+    
+    Blockstore is distributed in the hope that it will be useful,
+    but WITHOUT ANY WARRANTY; without even the implied warranty of
+    MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+    GNU General Public License for more details.
+    You should have received a copy of the GNU General Public License
+    along with Blockstore.  If not, see <http://www.gnu.org/licenses/>.
 """
 
 #hack around absolute paths
@@ -15,27 +31,44 @@ from txjsonrpc.netstring import jsonrpc
 from twisted.application import service, internet
 from twisted.internet.task import LoopingCall
 
-from kademlia.network import Server
-
-from dht.storage import BlockStorage, hostname_to_ip, DEFAULT_DHT_SERVERS, DHT_SERVER_PORT
-# from dht.plugin import DEFAULT_DHT_SERVERS, DHT_SERVER_PORT
-
-dht_server = Server(storage=BlockStorage())
-bootstrap_servers = hostname_to_ip(DEFAULT_DHT_SERVERS)
-dht_server.bootstrap(bootstrap_servers)
-
-from blockstored import BlockstoredRPC, reindex_blockchain
-from lib.config import REINDEX_FREQUENCY, RPC_SERVER_PORT
-
 application = service.Application("blockstored")
 
+# ------------
+# blockstore 
+# ------------
+from blockstored import BlockstoredRPC, reindex_blockchain
+import lib.config
+from lib.config import REINDEX_FREQUENCY, RPC_SERVER_PORT
+
 factory_blockstore = jsonrpc.RPCFactory(BlockstoredRPC())
 
 server_blockstore = internet.TCPServer(RPC_SERVER_PORT, factory_blockstore)
 server_blockstore.setServiceParent(application)
 
-server_dht = internet.UDPServer(DHT_SERVER_PORT, dht_server.protocol)
-server_dht.setServiceParent(application)
+# -----------
+# DHT 
+# -----------
+from kademlia.network import Server
+from dht.storage import BlockStorage, hostname_to_ip
+from lib import nameset as blockstore_state_engine
+import virtualchain 
+
+virtualchain.setup_virtualchain( blockstore_state_engine )
+dht_opts = lib.config.default_dht_opts()
+
+if not dht_opts['disable']:
+   
+   # start up Kademlia node
+   dht_servers = dht_opts['servers']
+   dht_port = dht_opts['port']
+
+   dht_server = Server(storage=BlockStorage())
+   bootstrap_servers = hostname_to_ip(dht_servers)
+   dht_server.bootstrap(bootstrap_servers)
+
+   server_dht = internet.UDPServer(dht_port, dht_server.protocol)
+   server_dht.setServiceParent(application)
+
 
 lc = LoopingCall(reindex_blockchain)
 lc.start(REINDEX_FREQUENCY)
\ No newline at end of file
diff --git a/blockstore/lib/config.py b/blockstore/lib/config.py
index cc771b753..d5fa6eb32 100644
--- a/blockstore/lib/config.py
+++ b/blockstore/lib/config.py
@@ -57,7 +57,19 @@ RPC_SERVER_PORT = 6264
 
 """ DHT configs
 """
+# 3 years
+STORAGE_TTL = 3 * 60 * 60 * 24 * 365
 
+DHT_SERVER_PORT = 6265  # blockstored default to port 6264
+
+DEFAULT_DHT_SERVERS = [('dht.openname.org', DHT_SERVER_PORT),
+                       ('dht.onename.com', DHT_SERVER_PORT),
+                       ('dht.halfmoonlabs.com', DHT_SERVER_PORT),
+                       ('127.0.0.1', DHT_SERVER_PORT)]
+
+
+""" Bitcoin configs 
+"""
 DEFAULT_BITCOIND_SERVER = 'btcd.onename.com'
 DEFAULT_BITCOIND_PORT = 8332 
 DEFAULT_BITCOIND_PORT_TESTNET = 18332
@@ -305,6 +317,84 @@ def default_chaincom_opts( config_file=None ):
    return chaincom_opts
 
 
+def default_dht_opts( config_file=None ):
+   """
+   Get our default DHT options from the config file.
+   """
+   
+   global DHT_SERVER_PORT, DEFAULT_DHT_SERVERS
+   
+   if config_file is None:
+      config_file = virtualchain.get_config_filename()
+   
+   
+   defaults = {
+      'disable': str(False),
+      'port': str(DHT_SERVER_PORT),
+      'servers': ",".join( ["%s:%s" % (host, port) for (host, port) in DEFAULT_DHT_SERVERS] )
+   }
+   
+   parser = SafeConfigParser( defaults )
+   parser.read( config_file )
+   
+   if parser.has_section('dht'):
+      
+      disable = parser.get('dht', 'disable')
+      port = parser.get('dht', 'port')
+      servers = parser.get('dht', 'servers')     # expect comma-separated list of host:port
+      
+      if disable is None:
+         disable = False 
+         
+      if port is None:
+         port = DHT_SERVER_PORT
+         
+      if servers is None:
+         servers = DEFAULT_DHT_SERVERS
+         
+      try:
+         disable = bool(disable)
+      except:
+         raise Exception("Invalid field value for dht.disable: expected bool")
+      
+      try:
+         port = int(port)
+      except:
+         raise Exception("Invalid field value for dht.port: expected int")
+      
+      parsed_servers = []
+      try:
+         server_list = servers.split(",")
+         for server in server_list:
+            server_host, server_port = server.split(":")
+            server_port = int(server_port)
+            
+            parsed_servers.append( (server_host, server_port) )
+            
+      except:
+         raise Exception("Invalid field value for dht.servers: expected 'HOST:PORT[,HOST:PORT...]'")
+      
+      dht_opts = {
+         'disable': disable,
+         'port': port,
+         'servers': parsed_servers
+      }
+      
+      return dht_opts 
+   
+   else:
+      
+      # use defaults
+      dht_opts = {
+         'disable': False,
+         'port': DHT_SERVER_PORT,
+         'servers': DEFAULT_DHT_SERVERS
+      }
+         
+      return dht_opts
+   
+      
+
 def opt_strip( prefix, opts ):
    """
    Given a dict of opts that start with prefix,