diff --git a/ethchain/state.go b/ethchain/state.go
index 9a9d0a27844ea67dd84086ba7091f39fa7feda64..f5a3d307185d71729270bf4671f1c39307d7a315 100644
--- a/ethchain/state.go
+++ b/ethchain/state.go
@@ -38,12 +38,16 @@ func (s *State) Reset() {
 
 		stateObject.state.Reset()
 	}
+
+	s.Empty()
 }
 
 // Syncs the trie and all siblings
 func (s *State) Sync() {
 	// Sync all nested states
 	for _, stateObject := range s.stateObjects {
+		s.UpdateStateObject(stateObject)
+
 		if stateObject.state == nil {
 			continue
 		}
@@ -52,6 +56,18 @@ func (s *State) Sync() {
 	}
 
 	s.trie.Sync()
+
+	s.Empty()
+}
+
+func (self *State) Empty() {
+	self.stateObjects = make(map[string]*StateObject)
+}
+
+func (self *State) Update() {
+	for _, stateObject := range self.stateObjects {
+		self.UpdateStateObject(stateObject)
+	}
 }
 
 // Purges the current trie.
@@ -68,6 +84,7 @@ func (self *State) UpdateStateObject(stateObject *StateObject) {
 	addr := stateObject.Address()
 
 	if self.stateObjects[string(addr)] == nil {
+		panic("?")
 		self.stateObjects[string(addr)] = stateObject
 	}
 
@@ -98,13 +115,19 @@ func (self *State) GetStateObject(addr []byte) *StateObject {
 func (self *State) GetOrNewStateObject(addr []byte) *StateObject {
 	stateObject := self.GetStateObject(addr)
 	if stateObject == nil {
-		stateObject = NewStateObject(addr)
-		self.stateObjects[string(addr)] = stateObject
+		stateObject = self.NewStateObject(addr)
 	}
 
 	return stateObject
 }
 
+func (self *State) NewStateObject(addr []byte) *StateObject {
+	stateObject := NewStateObject(addr)
+	self.stateObjects[string(addr)] = stateObject
+
+	return stateObject
+}
+
 func (self *State) GetAccount(addr []byte) *StateObject {
 	return self.GetOrNewStateObject(addr)
 }
diff --git a/ethchain/state_manager.go b/ethchain/state_manager.go
index 36bb1484682f1da90362688221765de58bd43af1..a0051181f2958779f33586911a46e2e857df127b 100644
--- a/ethchain/state_manager.go
+++ b/ethchain/state_manager.go
@@ -181,7 +181,6 @@ func (sm *StateManager) ProcessBlock(state *State, parent, block *Block, dontRea
 	coinbase.SetGasPool(block.CalcGasLimit(parent))
 
 	// Process the transactions on to current block
-	//sm.ApplyTransactions(block.Coinbase, state, parent, block.Transactions())
 	sm.ProcessTransactions(coinbase, state, block, parent, block.Transactions())
 
 	// Block validation
@@ -197,6 +196,9 @@ func (sm *StateManager) ProcessBlock(state *State, parent, block *Block, dontRea
 		return err
 	}
 
+	// Update the state with pending changes
+	state.Update()
+
 	if !block.State().Cmp(state) {
 		return fmt.Errorf("Invalid merkle root.\nrec: %x\nis:  %x", block.State().trie.Root, state.trie.Root)
 	}
diff --git a/ethchain/state_object.go b/ethchain/state_object.go
index 1445bcd82095ef9152679a955a651f332c55ad3e..5fc738fee61254bc32b794ad25f86f6c1f28bf7f 100644
--- a/ethchain/state_object.go
+++ b/ethchain/state_object.go
@@ -4,8 +4,15 @@ import (
 	"fmt"
 	"github.com/ethereum/eth-go/ethutil"
 	"math/big"
+	"strings"
 )
 
+type Code []byte
+
+func (self Code) String() string {
+	return strings.Join(Disassemble(self), " ")
+}
+
 type StateObject struct {
 	// Address of the object
 	address []byte
@@ -15,8 +22,8 @@ type StateObject struct {
 	Nonce      uint64
 	// Contract related attributes
 	state      *State
-	script     []byte
-	initScript []byte
+	script     Code
+	initScript Code
 
 	// Total gas pool is the total amount of gas currently
 	// left if this object is the coinbase. Gas is directly
@@ -30,12 +37,9 @@ func MakeContract(tx *Transaction, state *State) *StateObject {
 	if tx.IsContract() {
 		addr := tx.CreationAddress()
 
-		value := tx.Value
-		contract := NewContract(addr, value, ZeroHash256)
-
+		contract := state.NewStateObject(addr)
 		contract.initScript = tx.Data
-
-		state.UpdateStateObject(contract)
+		contract.state = NewState(ethutil.NewTrie(ethutil.Config.Db, ""))
 
 		return contract
 	}
@@ -120,13 +124,13 @@ func (c *StateObject) ReturnGas(gas, price *big.Int, state *State) {
 func (c *StateObject) AddAmount(amount *big.Int) {
 	c.SetAmount(new(big.Int).Add(c.Amount, amount))
 
-	ethutil.Config.Log.Printf(ethutil.LogLevelSystem, "%x: #%d %v (+ %v)\n", c.Address(), c.Nonce, c.Amount, amount)
+	ethutil.Config.Log.Printf(ethutil.LogLevelInfo, "%x: #%d %v (+ %v)\n", c.Address(), c.Nonce, c.Amount, amount)
 }
 
 func (c *StateObject) SubAmount(amount *big.Int) {
 	c.SetAmount(new(big.Int).Sub(c.Amount, amount))
 
-	ethutil.Config.Log.Printf(ethutil.LogLevelSystem, "%x: #%d %v (- %v)\n", c.Address(), c.Nonce, c.Amount, amount)
+	ethutil.Config.Log.Printf(ethutil.LogLevelInfo, "%x: #%d %v (- %v)\n", c.Address(), c.Nonce, c.Amount, amount)
 }
 
 func (c *StateObject) SetAmount(amount *big.Int) {
@@ -197,12 +201,12 @@ func (c *StateObject) Address() []byte {
 }
 
 // Returns the main script body
-func (c *StateObject) Script() []byte {
+func (c *StateObject) Script() Code {
 	return c.script
 }
 
 // Returns the initialization script
-func (c *StateObject) Init() []byte {
+func (c *StateObject) Init() Code {
 	return c.initScript
 }
 
diff --git a/ethchain/state_transition.go b/ethchain/state_transition.go
index 25efd64cc14d359c254cc460fb96aa6a6252eb9b..23175b0f32979e6f1ca45c6bb2009b610c7c3ec7 100644
--- a/ethchain/state_transition.go
+++ b/ethchain/state_transition.go
@@ -67,13 +67,8 @@ func (self *StateTransition) Receiver() *StateObject {
 
 func (self *StateTransition) MakeStateObject(state *State, tx *Transaction) *StateObject {
 	contract := MakeContract(tx, state)
-	if contract != nil {
-		state.states[string(tx.CreationAddress())] = contract.state
 
-		return contract
-	}
-
-	return nil
+	return contract
 }
 
 func (self *StateTransition) UseGas(amount *big.Int) error {
@@ -137,6 +132,8 @@ func (self *StateTransition) TransitionState() (err error) {
 		receiver *StateObject
 	)
 
+	ethutil.Config.Log.Printf(ethutil.LogLevelInfo, "(~) %x\n", tx.Hash())
+
 	// Make sure this transaction's nonce is correct
 	if sender.Nonce != tx.Nonce {
 		return NonceError(tx.Nonce, sender.Nonce)
@@ -152,15 +149,17 @@ func (self *StateTransition) TransitionState() (err error) {
 	defer func() {
 		self.RefundGas()
 
-		if sender != nil {
-			self.state.UpdateStateObject(sender)
-		}
+		/*
+			if sender != nil {
+				self.state.UpdateStateObject(sender)
+			}
 
-		if receiver != nil {
-			self.state.UpdateStateObject(receiver)
-		}
+			if receiver != nil {
+				self.state.UpdateStateObject(receiver)
+			}
 
-		self.state.UpdateStateObject(self.Coinbase())
+			self.state.UpdateStateObject(self.Coinbase())
+		*/
 	}()
 
 	// Increment the nonce for the next transaction
@@ -209,6 +208,7 @@ func (self *StateTransition) TransitionState() (err error) {
 		receiver.script = code
 	} else {
 		if len(receiver.Script()) > 0 {
+			fmt.Println(receiver.Script())
 			_, err := self.Eval(receiver.Script(), receiver)
 			if err != nil {
 				return fmt.Errorf("Error during code execution %v", err)
diff --git a/ethchain/vm.go b/ethchain/vm.go
index 2ba0e2ef37c6cffd387b32d719b826238e621a44..77a08faa6c327aaeb50914c801c3c966be5347f5 100644
--- a/ethchain/vm.go
+++ b/ethchain/vm.go
@@ -95,9 +95,7 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 	step := 0
 	prevStep := 0
 
-	if ethutil.Config.Debug {
-		ethutil.Config.Log.Debugf("#   op\n")
-	}
+	ethutil.Config.Log.Debugf("#   op\n")
 
 	for {
 		prevStep = step
@@ -109,9 +107,8 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 		val := closure.Get(pc)
 		// Get the opcode (it must be an opcode!)
 		op := OpCode(val.Uint())
-		if ethutil.Config.Debug {
-			ethutil.Config.Log.Debugf("%-3d %-4s", pc, op.String())
-		}
+
+		ethutil.Config.Log.Debugf("%-3d %-4s", pc, op.String())
 
 		gas := new(big.Int)
 		addStepGasUsage := func(amount *big.Int) {
@@ -525,8 +522,6 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 				vm.state.Revert(snapshot)
 			} else {
 				stack.Push(ethutil.BigD(addr))
-
-				vm.state.UpdateStateObject(contract)
 			}
 		case CALL:
 			// TODO RE-WRITE
@@ -569,8 +564,6 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 					} else {
 						stack.Push(ethutil.BigTrue)
 
-						vm.state.UpdateStateObject(contract)
-
 						mem.Set(retOffset.Int64(), retSize.Int64(), ret)
 					}
 				} else {
@@ -589,9 +582,11 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 
 			receiver := vm.state.GetAccount(stack.Pop().Bytes())
 			receiver.AddAmount(closure.object.Amount)
-			vm.state.UpdateStateObject(receiver)
 
-			closure.object.state.Purge()
+			trie := closure.object.state.trie
+			trie.NewIterator().Each(func(key string, v *ethutil.Value) {
+				trie.Delete(key)
+			})
 
 			fallthrough
 		case STOP: // Stop the closure
diff --git a/ethminer/miner.go b/ethminer/miner.go
index 1ef9ca2296dd0ee665938368a6f545c659edb74f..4343b433360b55f4a8dc26507479eae8c80757cb 100644
--- a/ethminer/miner.go
+++ b/ethminer/miner.go
@@ -154,6 +154,8 @@ func (self *Miner) mineNewBlock() {
 	// Accumulate the rewards included for this block
 	stateManager.AccumelateRewards(self.block.State(), self.block)
 
+	self.block.State().Update()
+
 	ethutil.Config.Log.Infoln("[MINER] Mining on block. Includes", len(self.txs), "transactions")
 
 	// Find a valid nonce