diff --git a/src/Makefile.am b/src/Makefile.am
index 59aff516bb..8280714e6e 100644
--- a/src/Makefile.am
+++ b/src/Makefile.am
@@ -163,17 +163,14 @@ libbitcoin_server_a_CPPFLAGS = $(BITCOIN_INCLUDES) $(MINIUPNPC_CPPFLAGS)
 libbitcoin_server_a_SOURCES = \
   addrman.cpp \
   alert.cpp \
-  bloom.cpp \
   chain.cpp \
   checkpoints.cpp \
   init.cpp \
   leveldbwrapper.cpp \
   main.cpp \
-  merkleblock.cpp \
   miner.cpp \
   net.cpp \
   noui.cpp \
-  pow.cpp \
   rest.cpp \
   rpcblockchain.cpp \
   rpcmining.cpp \
@@ -234,6 +231,7 @@ libbitcoin_common_a_SOURCES = \
   allocators.cpp \
   amount.cpp \
   base58.cpp \
+  bloom.cpp \
   chainparams.cpp \
   coins.cpp \
   compressor.cpp \
@@ -246,7 +244,9 @@ libbitcoin_common_a_SOURCES = \
   hash.cpp \
   key.cpp \
   keystore.cpp \
+  merkleblock.cpp \
   netbase.cpp \
+  pow.cpp \
   protocol.cpp \
   pubkey.cpp \
   script/interpreter.cpp \
diff --git a/src/script/bitcoinconsensus.h b/src/script/bitcoinconsensus.h
index 6f47ba5d41..31a5afe7fb 100644
--- a/src/script/bitcoinconsensus.h
+++ b/src/script/bitcoinconsensus.h
@@ -49,6 +49,7 @@ enum
     bitcoinconsensus_SCRIPT_FLAGS_VERIFY_NONE      = 0,
     bitcoinconsensus_SCRIPT_FLAGS_VERIFY_P2SH      = (1U << 0), // evaluate P2SH (BIP16) subscripts
     bitcoinconsensus_SCRIPT_FLAGS_VERIFY_DERSIG    = (1U << 2), // enforce strict DER (BIP66) compliance
+    bitcoinconsensus_SCRIPT_FLAGS_VERIFY_WITHDRAWS = (1U << 8), // evaluate withdrawproof opcodes
 };
 
 /// Returns 1 if the input nIn of the serialized transaction pointed to by
diff --git a/src/script/interpreter.cpp b/src/script/interpreter.cpp
index 0b48c7c9d7..ea97e89744 100644
--- a/src/script/interpreter.cpp
+++ b/src/script/interpreter.cpp
@@ -5,21 +5,43 @@
 
 #include "interpreter.h"
 
+#include <secp256k1.h>
+
+#define FEDERATED_PEG_SIDECHAIN_ONLY
+
 #include "primitives/transaction.h"
 #include "crypto/ripemd160.h"
 #include "crypto/sha1.h"
 #include "crypto/sha256.h"
+#include "crypto/hmac_sha256.h"
 #include "eccryptoverify.h"
+#include "merkleblock.h"
+#include "pow.h"
 #include "pubkey.h"
 #include "script/script.h"
+#include "script/standard.h"
+#include "streams.h"
 #include "uint256.h"
+#include "utilstrencodings.h"
 
 using namespace std;
 
 typedef vector<unsigned char> valtype;
 
+//! anonymous namespace
 namespace {
 
+class CSecp256k1Init {
+public:
+    CSecp256k1Init() {
+        secp256k1_start(SECP256K1_START_VERIFY);
+    }
+    ~CSecp256k1Init() {
+        secp256k1_stop();
+    }
+};
+static CSecp256k1Init instance_of_csecp256k1;
+
 inline bool set_success(ScriptError* ret)
 {
     if (ret)
@@ -235,6 +257,26 @@ bool static CheckMinimalPush(const valtype& data, opcodetype opcode) {
     return true;
 }
 
+bool static WithdrawProofReadStackItem(const vector<valtype>& stack, const bool fRequireMinimal, int *stackOffset, valtype& read)
+{
+    if (stack.size() < size_t(-(*stackOffset)))
+        return false;
+    int pushCount = CScriptNum(stacktop(*stackOffset), fRequireMinimal).getint();
+    if (pushCount < 0 || pushCount > 2000 || stack.size() < size_t(-(*stackOffset) + pushCount))
+        return false;
+    (*stackOffset)--;
+
+    read.reserve(pushCount > 1 ? pushCount * 520 : 0);
+    for (int i = pushCount - 1; i >= 0; i--) {
+        if (i != 0 && stacktop((*stackOffset) - i).size() != 520)
+            return false;
+        const valtype& stackElem = stacktop((*stackOffset) - i);
+        read.insert(read.end(), stackElem.begin(), stackElem.end());
+    }
+    (*stackOffset) -= pushCount;
+    return true;
+}
+
 bool EvalScript(vector<vector<unsigned char> >& stack, const CScript& script, unsigned int flags, const BaseSignatureChecker& checker, ScriptError* serror)
 {
     static const CScriptNum bnZero(0);
@@ -421,7 +463,6 @@ bool EvalScript(vector<vector<unsigned char> >& stack, const CScript& script, un
 
                 case OP_NOP1:
                 case OP_NOP6: case OP_NOP7: case OP_NOP8: case OP_NOP9: case OP_NOP10:
-                case OP_WITHDRAWPROOFVERIFY: case OP_REORGPROOFVERIFY:
                 {
                     if (flags & SCRIPT_VERIFY_DISCOURAGE_UPGRADABLE_NOPS)
                         return set_error(serror, SCRIPT_ERR_DISCOURAGE_UPGRADABLE_NOPS);
@@ -997,6 +1038,411 @@ bool EvalScript(vector<vector<unsigned char> >& stack, const CScript& script, un
                 }
                 break;
 
+                //TODO: Need strict size limits on txn so that you cant be overly-large and break ds. reorg proofs
+                case OP_WITHDRAWPROOFVERIFY:
+                {
+                    // In the make-withdraw case, reads the following from the stack:
+                    // 1. HASH160(<...>) script which is used to extend checks
+                    // 2. genesis block hash of the chain the withdraw is coming from
+#ifndef FEDERATED_PEG_SIDECHAIN_ONLY
+                    // TODO: 3. The compressed SPV proof
+#endif
+                    // 4. the coinbase tx within the locking block
+                    // 5. the index within the locking tx's outputs we are claiming
+                    // 6. the locking tx itself
+                    // 7. the merkle block structure which contains the block in which
+                    //    the locking transaction is present
+#ifdef FEDERATED_PEG_SIDECHAIN_ONLY
+                    // 8. The contract which we are expected to send coins to
+#endif
+                    // 8. The scriptSig used to satisfy the <...> script
+                    // 9. <...> script which is used to extend checks
+                    //
+                    // In the combine-outputs case, reads the following from the stack:
+                    // 1. HASH160(<...>) script which is used to extend checks
+                    // 2. genesis block hash of the chain the withdraw is coming from
+
+                    if (flags & SCRIPT_VERIFY_WITHDRAW) {
+                        if (stack.size() < 10 && stack.size() != 2)
+                            return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+
+                        const valtype &vsecondScriptPubKeyHash = stacktop(-1);
+                        if (vsecondScriptPubKeyHash.size() != 20)
+                            return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                        const valtype &vgenesisHash = stacktop(-2);
+                        if (vgenesisHash.size() != 32)
+                            return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                        assert(checker.GetValueIn() != -1); // Not using a NoWithdrawSignatureChecker
+
+                        if (stack.size() == 2) { // increasing value of locked coins
+                            CAmount minValue = checker.GetValueIn();
+                            CTxOut newOutput = checker.GetOutputOffsetFromCurrent(0);
+                            if (newOutput.IsNull()) {
+                                newOutput = checker.GetOutputOffsetFromCurrent(-1);
+                                minValue += checker.GetValueInPrevIn();
+                            }
+                            if (newOutput.scriptPubKey != script || newOutput.nValue < minValue)
+                                return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                        } else { // stack.size() == 10...ie regular withdraw
+                            int stackReadPos = -3;
+#ifndef FEDERATED_PEG_SIDECHAIN_ONLY
+                            valtype vspvProof;
+                            if (!WithdrawProofReadStackItem(stack, fRequireMinimal, &stackReadPos, vspvProof))
+                                return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+#endif
+
+                            valtype vlockCoinbaseTx;
+                            if (!WithdrawProofReadStackItem(stack, fRequireMinimal, &stackReadPos, vlockCoinbaseTx))
+                                return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+
+                            if (stack.size() < size_t(-stackReadPos))
+                                return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+                            const valtype &vlockTxOutIndex = stacktop(stackReadPos--);
+
+                            valtype vlockTx;
+                            if (!WithdrawProofReadStackItem(stack, fRequireMinimal, &stackReadPos, vlockTx))
+                                return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+
+                            valtype vmerkleBlock;
+                            if (!WithdrawProofReadStackItem(stack, fRequireMinimal, &stackReadPos, vmerkleBlock))
+                                return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+#ifdef FEDERATED_PEG_SIDECHAIN_ONLY
+                            if (stack.size() < size_t(-stackReadPos))
+                                return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+                            valtype vcontract = std::vector<unsigned char>(stacktop(stackReadPos--));
+#endif
+                            if (stack.size() < size_t(-stackReadPos))
+                                return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+                            const valtype &vsecondScriptSig = stacktop(stackReadPos--);
+                            if (stack.size() < size_t(-stackReadPos))
+                                return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+                            const valtype &vsecondScriptPubKey = stacktop(stackReadPos--);
+
+                            uint256 genesishash(vgenesisHash);
+
+                            try {
+                                CMerkleBlock merkleBlock;
+                                CDataStream(vmerkleBlock, SER_NETWORK, PROTOCOL_VERSION) >> merkleBlock;
+                                if (!CheckProofOfWork(merkleBlock.header.GetHash(), merkleBlock.header.nBits))
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                                vector<uint256> txHashes;
+                                if (merkleBlock.txn.ExtractMatches(txHashes) != merkleBlock.header.hashMerkleRoot || txHashes.size() != 2)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                                // We disallow returns from the genesis block, allowing sidechains to
+                                // make genesis outputs spendable with a 21m initially-locked-to-btc
+                                // distributing transaction.
+                                if (merkleBlock.header.GetHash() == genesishash)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+#ifndef FEDERATED_PEG_SIDECHAIN_ONLY
+                                //TODO: Check the SPV proof here (must point to genesishash, contain merkleBlock.header.GetHash())
+#endif
+
+                                CTransaction locktx;
+                                CDataStream(vlockTx, SER_NETWORK, PROTOCOL_VERSION) >> locktx;
+
+                                int nlocktxOut = CScriptNum(vlockTxOutIndex, fRequireMinimal).getint();
+                                if (nlocktxOut < 0 || (unsigned int)nlocktxOut >= locktx.vout.size())
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                                if (locktx.GetHash() != txHashes[1])
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                                CTransaction coinbasetx;
+                                CDataStream(vlockCoinbaseTx, SER_NETWORK, PROTOCOL_VERSION) >> coinbasetx;
+
+                                if (coinbasetx.GetHash() != txHashes[0] || !coinbasetx.IsCoinBase())
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                valtype vcoinbaseHeight;
+                                CScript::const_iterator coinbasepc = coinbasetx.vin[0].scriptSig.begin();
+                                opcodetype opcodeTmp;
+                                if (!coinbasetx.vin[0].scriptSig.GetOp(coinbasepc, opcodeTmp, vcoinbaseHeight) || vcoinbaseHeight.size() < 1)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                int nLockHeight = CScriptNum(vcoinbaseHeight, fRequireMinimal).getint();
+
+#ifdef FEDERATED_PEG_SIDECHAIN_ONLY
+                                if (vcontract.size() != 40)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                                CScript scriptDestination(CScript() << OP_1 << ParseHex("03a34b99f22c790c4e36b2b3c2c35a36db06226e41c692fc82b8b56ac1c540c5bd") << OP_1 << OP_CHECKMULTISIG);
+                                {
+                                    CScript::iterator sdpc = scriptDestination.begin();
+                                    vector<unsigned char> vch;
+                                    while (scriptDestination.GetOp(sdpc, opcodeTmp, vch))
+                                    {
+                                        assert((vch.size() == 33 && opcodeTmp < OP_PUSHDATA4) ||
+                                               (opcodeTmp <= OP_16 && opcodeTmp >= OP_1) || opcodeTmp == OP_CHECKMULTISIG);
+                                        if (vch.size() == 33)
+                                        {
+                                            unsigned char tweak[32];
+                                            unsigned char *pub_start = &(*(sdpc - 33));
+                                            CHMAC_SHA256(pub_start, 33).Write(&vcontract[0], 40).Finalize(tweak);
+                                            if (secp256k1_ec_pubkey_tweak_add(pub_start, 33, tweak) == 0)
+                                                return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                        }
+                                    }
+                                }
+
+                                CScriptID expectedP2SH(scriptDestination);
+                                if (locktx.vout[nlocktxOut].scriptPubKey != GetScriptForDestination(expectedP2SH))
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                                vcontract.erase(vcontract.begin() + 4, vcontract.begin() + 20); // Remove the nonce from the contract before further processing
+#else
+                                const CScript &lockingScriptPubKey = locktx.vout[nlocktxOut].scriptPubKey;
+                                //TODO: Make script checker expose GenesisBlockHash
+                                if (!lockingScriptPubKey.IsWithdrawLock(checker.GenesisBlockHash(), true, true))
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                valtype vcontract;
+                                CScript::const_iterator locktxpc = lockingScriptPubKey.begin();
+                                assert(lockingScriptPubKey.GetOp(locktxpc, opcodeTmp, vcontract));
+                                if (vcontract.size() != 24)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+#endif
+                                assert(vcontract.size() == 24);
+                                if (vcontract[0] != 'P' || vcontract[1] != '2' || vcontract[2] != 'S' || vcontract[3] != 'H')
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                                CAmount withdrawVal = locktx.vout[nlocktxOut].nValue;
+                                const CTxOut newLockOutput = checker.GetOutputOffsetFromCurrent(1);
+                                if (newLockOutput.scriptPubKey != script || newLockOutput.nValue < checker.GetValueIn() - withdrawVal)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                                const CTxOut withdrawOutput = checker.GetOutputOffsetFromCurrent(0);
+                                if (withdrawOutput.nValue < withdrawVal)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                                uint256 locktxHash = locktx.GetHash();
+                                std::vector<unsigned char> vlocktxHash(locktxHash.begin(), locktxHash.end());
+                                CScript expectedWithdrawScriptPubKeyStart = CScript() << OP_IF << nLockHeight
+                                    << std::vector<unsigned char>(vlocktxHash.rbegin(), vlocktxHash.rend()) << nlocktxOut
+#ifndef FEDERATED_PEG_SIDECHAIN_ONLY
+                                    << 42 // (TODO: Measure of work from genesis to proof tip)
+#endif
+                                    << CScriptNum(withdrawOutput.nValue - withdrawVal) // Fraud bounty
+                                    << vsecondScriptPubKeyHash << vgenesisHash << OP_REORGPROOFVERIFY << OP_ELSE;
+                                // << lockTime << OP_CHECKSEQUENCEVERIFY << OP_DROP << OP_HASH160
+                                // << std::vector<unsigned char>(vcontract.begin() + 4, vcontract.begin() + 24) << OP_EQUAL << OP_ENDIF;
+                                if (withdrawOutput.scriptPubKey.size() < expectedWithdrawScriptPubKeyStart.size() ||
+                                        memcmp(&withdrawOutput.scriptPubKey[0], &expectedWithdrawScriptPubKeyStart[0], expectedWithdrawScriptPubKeyStart.size()) != 0)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                CScript::const_iterator withdrawOutputpc = withdrawOutput.scriptPubKey.begin() + expectedWithdrawScriptPubKeyStart.size();
+                                valtype vlockTime;
+                                if (!withdrawOutput.scriptPubKey.GetOp(withdrawOutputpc, opcodeTmp, vlockTime))
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                int nWithdrawLockTime = CScriptNum(vlockTime, fRequireMinimal).getint();
+                                if ((unsigned int)nWithdrawLockTime >= LOCKTIME_THRESHOLD || nWithdrawLockTime < 1)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                                if (!withdrawOutput.scriptPubKey.GetOp(withdrawOutputpc, opcodeTmp, vlockTime) || opcodeTmp != OP_CHECKSEQUENCEVERIFY)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                if (!withdrawOutput.scriptPubKey.GetOp(withdrawOutputpc, opcodeTmp, vlockTime) || opcodeTmp != OP_DROP)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                if (!withdrawOutput.scriptPubKey.GetOp(withdrawOutputpc, opcodeTmp, vlockTime) || opcodeTmp != OP_HASH160)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                if (!withdrawOutput.scriptPubKey.GetOp(withdrawOutputpc, opcodeTmp, vlockTime) || vlockTime != std::vector<unsigned char>(vcontract.begin() + 4, vcontract.begin() + 24))
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                if (!withdrawOutput.scriptPubKey.GetOp(withdrawOutputpc, opcodeTmp, vlockTime) || opcodeTmp != OP_EQUAL)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                if (!withdrawOutput.scriptPubKey.GetOp(withdrawOutputpc, opcodeTmp, vlockTime) || opcodeTmp != OP_ENDIF)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                if (withdrawOutput.scriptPubKey.GetOp(withdrawOutputpc, opcodeTmp, vlockTime))
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                                valtype vsecondScriptPubKeyHashCmp(20);
+                                CHash160().Write(begin_ptr(vsecondScriptPubKey), vsecondScriptPubKey.size()).Finalize(begin_ptr(vsecondScriptPubKeyHashCmp));
+                                if (vsecondScriptPubKeyHash.size() != 20 || vsecondScriptPubKeyHashCmp != vsecondScriptPubKeyHash)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                                vector<vector<unsigned char> > withdrawStack;
+                                if (!EvalScript(withdrawStack, CScript(vsecondScriptSig), flags & ~SCRIPT_VERIFY_WITHDRAW, checker, serror))
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                // Push:
+                                // 1. fee of this transaction (int64)
+                                // 2. Fraud bounty (int64)
+                                // 3. relative locktime
+                                // 4. <1> indicating we are checking a withdraw proof
+                                withdrawStack.push_back(CScriptNum(checker.GetTransactionFee()).getvch());
+                                withdrawStack.push_back(CScriptNum(withdrawOutput.nValue - withdrawVal).getvch());
+                                withdrawStack.push_back(vlockTime);
+                                withdrawStack.push_back(std::vector<unsigned char>(1, 1));
+#ifndef FEDERATED_PEG_SIDECHAIN_ONLY
+                                //TODO: Push a bunch of other info onto the withdrawStack about the SPV proof
+#endif
+                                if (!EvalScript(withdrawStack, CScript(vsecondScriptPubKey), flags & ~SCRIPT_VERIFY_WITHDRAW, checker, serror))
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                                if (withdrawStack.empty() || CastToBool(withdrawStack.back()) == false)
+                                    return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+#ifdef FEDERATED_PEG_SIDECHAIN_ONLY
+                                //TODO: Check that we're spending from a valid, buried bitcoin block
+#endif
+                            } catch (std::exception& e) {
+                                // Probably invalid encoding of something which was deserialized
+                                return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                            }
+                        }
+                    } // else...OP_NOP3
+                }
+                break;
+
+                case OP_REORGPROOFVERIFY:
+                {
+                    if (flags & SCRIPT_VERIFY_WITHDRAW) {
+                        // Reads the following from the stack:
+                        // 1. Genesis block hash
+                        // 2. HASH160(<...>) script which is used to extend checks
+                        // 3. Fraud bounty value (64-bit CScriptNum!)
+#ifndef FEDERATED_PEG_SIDECHAIN_ONLY
+                        // 4. Work used to create original proof
+#endif
+                        // 5. lock transaction output spent
+                        // 6. lock transaction hash
+                        // 7. lock transaction block height
+                        // 8. proof type
+                        int stackReadPos = -1;
+                        if (stack.size() < 8)
+                            return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+
+                        assert(checker.GetValueIn() != -1); // Not using a NoWithdrawSignatureChecker
+
+                        const valtype &vgenesisHash = stacktop(stackReadPos--);
+                        if (vgenesisHash.size() != 32)
+                            return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                        const valtype &vsecondScriptPubKeyHash = stacktop(stackReadPos--);
+                        if (vsecondScriptPubKeyHash.size() != 20)
+                            return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+
+                        const valtype &vfraudBountyValue = stacktop(stackReadPos--);
+#ifndef FEDERATED_PEG_SIDECHAIN_ONLY
+                        const valtype &voriginalProofWork = stacktop(stackReadPos--);
+#endif
+                        int nlockTxOutIndex = CScriptNum(stacktop(stackReadPos--), fRequireMinimal).getint();
+                        const valtype &vlockTxHashStack = stacktop(stackReadPos--);
+                        if (vlockTxHashStack.size() != 32)
+                            return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+                        valtype vlockTxHash;
+                        vlockTxHash.resize(32);
+                        std::reverse_copy(vlockTxHashStack.begin(), vlockTxHashStack.end(), vlockTxHash.begin());
+
+                        const valtype &vlockBlockHeight = stacktop(stackReadPos--);
+                        int proofType = CScriptNum(stacktop(stackReadPos--), fRequireMinimal).getint();
+                        if (proofType == 1) { // Double-spent withdraw
+                            // We need to have complete proof that two transactions double-spent each other:
+                            // So we read the following from the stack:
+                            // 9. merkle block with tx we are proving against (ie our input tx)
+                            // 10. the full transaction of the original withdraw
+                            // 11. the input index in the transaction above which shows the double-spend
+                            // 12. the transaction which is spent in the above input
+                            // 13. merkle block containing the original withdraw tx, required only if they are not in the same block
+                            valtype vmerkleBlockInputTx;
+                            if (!WithdrawProofReadStackItem(stack, fRequireMinimal, &stackReadPos, vmerkleBlockInputTx))
+                                return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+
+                            valtype voriginalWithdrawTx;
+                            if (!WithdrawProofReadStackItem(stack, fRequireMinimal, &stackReadPos, voriginalWithdrawTx))
+                                return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+
+                            valtype voriginalWithdrawTxInIndex;
+                            if (!WithdrawProofReadStackItem(stack, fRequireMinimal, &stackReadPos, voriginalWithdrawTxInIndex))
+                                return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+
+                            valtype voriginalWithdrawOutputTx;
+                            if (!WithdrawProofReadStackItem(stack, fRequireMinimal, &stackReadPos, voriginalWithdrawOutputTx))
+                                return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+
+                            try {
+                                CMerkleBlock merkleBlockInputTx;
+                                CDataStream(vmerkleBlockInputTx, SER_NETWORK, PROTOCOL_VERSION) >> merkleBlockInputTx;
+                                if (!CheckProofOfWork(merkleBlockInputTx.header.GetHash(), merkleBlockInputTx.header.nBits))
+                                    return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+
+                                vector<uint256> inputTxHashes;
+                                if (merkleBlockInputTx.txn.ExtractMatches(inputTxHashes) != merkleBlockInputTx.header.hashMerkleRoot)
+                                    return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+                                if (inputTxHashes.size() != 1 && inputTxHashes.size() != 2)
+                                    return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+
+                                if (inputTxHashes[0] != checker.GetPrevOut().hash)
+                                    return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+
+                                CTransaction originalWithdrawTx;
+                                CDataStream(voriginalWithdrawTx, SER_NETWORK, PROTOCOL_VERSION) >> originalWithdrawTx;
+
+                                CMerkleBlock merkleBlockOriginalWithdrawTx;
+                                vector<uint256> originalWithdrawHashes;
+                                if (inputTxHashes.size() == 1) {
+                                    valtype vmerkleBlockOriginalWithdrawTx;
+                                    if (!WithdrawProofReadStackItem(stack, fRequireMinimal, &stackReadPos, vmerkleBlockOriginalWithdrawTx))
+                                        return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+
+                                    CDataStream(vmerkleBlockOriginalWithdrawTx, SER_NETWORK, PROTOCOL_VERSION) >> merkleBlockOriginalWithdrawTx;
+                                    if (!CheckProofOfWork(merkleBlockOriginalWithdrawTx.header.GetHash(), merkleBlockOriginalWithdrawTx.header.nBits))
+                                        return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+
+                                    if (merkleBlockOriginalWithdrawTx.txn.ExtractMatches(originalWithdrawHashes) != merkleBlockOriginalWithdrawTx.header.hashMerkleRoot)
+                                        return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+                                    if (originalWithdrawHashes.size() != 1 || merkleBlockOriginalWithdrawTx.header.GetHash() == merkleBlockInputTx.header.GetHash())
+                                        return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+
+                                    if (originalWithdrawHashes[0] != originalWithdrawTx.GetHash())
+                                        return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+                                } else if (inputTxHashes[1] != originalWithdrawTx.GetHash())
+                                    return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+
+                                int noriginalWithdrawTxIn = CScriptNum(voriginalWithdrawTxInIndex, fRequireMinimal).getint();
+                                if (noriginalWithdrawTxIn < 0 || (unsigned int)noriginalWithdrawTxIn >= originalWithdrawTx.vin.size())
+                                    return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+
+                                const CTxIn& originalWithdrawTxInput = originalWithdrawTx.vin[noriginalWithdrawTxIn];
+
+                                CTransaction originalWithdrawOutputTx;
+                                CDataStream(voriginalWithdrawOutputTx, SER_NETWORK, PROTOCOL_VERSION) >> originalWithdrawOutputTx;
+                                if (originalWithdrawTxInput.prevout.hash != originalWithdrawOutputTx.GetHash())
+                                    return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+                                if (originalWithdrawOutputTx.vout.size() <= originalWithdrawTxInput.prevout.n)
+                                    return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+
+                                const CTxOut& originalWithdrawOutputTxOut = originalWithdrawOutputTx.vout[originalWithdrawTxInput.prevout.n];
+
+                                if (!originalWithdrawOutputTxOut.scriptPubKey.IsWithdrawLock(0) || !originalWithdrawTxInput.scriptSig.IsWithdrawProof())
+                                    return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+
+                                COutPoint withdrawSpent = originalWithdrawTxInput.scriptSig.GetWithdrawSpent();
+                                uint256 withdrawGenesisHash = originalWithdrawOutputTxOut.scriptPubKey.GetWithdrawLockGenesisHash();
+                                if (withdrawGenesisHash != uint256(vgenesisHash) || withdrawSpent.hash != uint256(vlockTxHash) || withdrawSpent.n != uint32_t(nlockTxOutIndex) || nlockTxOutIndex < 0)
+                                    return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+
+                                const CTxOut newLockOutput = checker.GetOutputOffsetFromCurrent(0);
+                                if (newLockOutput.scriptPubKey != (CScript() << vgenesisHash << vsecondScriptPubKeyHash << OP_WITHDRAWPROOFVERIFY))
+                                    return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+                                CAmount fraudBounty = CScriptNum(vfraudBountyValue, fRequireMinimal, 8).getint64();
+                                if (newLockOutput.nValue < checker.GetValueIn() - fraudBounty)
+                                    return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+
+                                //TODO: if (!checker.IsInBlockTreeAboveMe(merkleBlock.header.GetHash()))
+                                //TODO:     return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+                            } catch (std::exception& e) {
+                                return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+                            }
+#ifndef FEDERATED_PEG_SIDECHAIN_ONLY
+                        } else if (proofType == 2) { // Longer SPV chain
+                            // Reads the following from the stack:
+                            // 8. SPV Proof
+                            // 9. <...> script which is used to extend checks
+                            // 10. The scriptSig used to satisfy the <...> script
+                            //TODO
+#endif
+                        } else
+                            return set_error(serror, SCRIPT_ERR_REORG_VERIFY);
+                    } // else...OP_NOP4
+                }
+                break;
+
                 default:
                     return set_error(serror, SCRIPT_ERR_BAD_OPCODE);
             }
@@ -1261,6 +1707,20 @@ bool VerifyScript(const CScript& scriptSig, const CScript& scriptPubKey, unsigne
         return set_error(serror, SCRIPT_ERR_SIG_PUSHONLY);
     }
 
+    // If the scriptPubKey is not in exactly the withdrawlock format we expect,
+    // we will not execute WITHDRAW-related opcodes (treating them as NOPs)
+    // Additionally, if the scriptPubKey is a withdraw lock, the scriptSig must
+    // be exactly a withdraw proof (push only, in the right format), otherwise
+    // it would either not be valid, or confuse the processing of double-spend
+    // fraud proofs later.
+    if ((flags & SCRIPT_VERIFY_WITHDRAW) != 0) {
+        if (scriptPubKey.IsWithdrawLock(0)) {
+            if (!scriptSig.IsWithdrawProof())
+                return set_error(serror, SCRIPT_ERR_WITHDRAW_VERIFY);
+        } else if (!scriptPubKey.IsWithdrawOutput())
+            flags &= ~SCRIPT_VERIFY_WITHDRAW;
+    }
+
     vector<vector<unsigned char> > stack, stackCopy;
     if (!EvalScript(stack, scriptSig, flags, checker, serror))
         // serror is set
@@ -1276,8 +1736,31 @@ bool VerifyScript(const CScript& scriptSig, const CScript& scriptPubKey, unsigne
     if (CastToBool(stack.back()) == false)
         return set_error(serror, SCRIPT_ERR_EVAL_FALSE);
 
+    bool checkP2SH = false;
+    // Additional P2SH setup for withdraw outputs
+    if ((flags & SCRIPT_VERIFY_WITHDRAW) != 0 && scriptPubKey.IsWithdrawOutput())
+    {
+        // stackCopy cannot be empty here, because if it was the
+        // OP_IF that starts off the scriptPubKey would have failed
+        assert(!stackCopy.empty());
+
+        // If the stackCopy top is true, then we ran the
+        // OP_REORGPROOFVERIFY branch, and do not need P2SH validation
+        if (CastToBool(stackCopy[stackCopy.size() - 1]))
+            return set_success(serror);
+
+        popstack(stackCopy);
+
+        if (stackCopy.empty())
+            return set_error(serror, SCRIPT_ERR_INVALID_STACK_OPERATION);
+
+        checkP2SH = true;
+    }
+
+    checkP2SH |= (flags & SCRIPT_VERIFY_P2SH) && scriptPubKey.IsPayToScriptHash();
+
     // Additional validation for spend-to-script-hash transactions:
-    if ((flags & SCRIPT_VERIFY_P2SH) && scriptPubKey.IsPayToScriptHash())
+    if (checkP2SH)
     {
         // scriptSig must be literals-only or validation fails
         if (!scriptSig.IsPushOnly())
diff --git a/src/script/interpreter.h b/src/script/interpreter.h
index bdb1390a50..bcb6ab53c5 100644
--- a/src/script/interpreter.h
+++ b/src/script/interpreter.h
@@ -13,10 +13,13 @@
 #include <stdint.h>
 #include <string>
 
+#include "amount.h"
+
 class CPubKey;
 class COutPoint;
 class CScript;
 class CTransaction;
+class CTxOut;
 class uint256;
 
 /** Signature hash types/flags */
@@ -75,7 +78,10 @@ enum
     SCRIPT_VERIFY_CHECKLOCKTIMEVERIFY = (1U << 9),
 
     // support CHECKSEQUENCEVERIFY opcode
-    SCRIPT_VERIFY_CHECKSEQUENCEVERIFY = (1U << 10)
+    SCRIPT_VERIFY_CHECKSEQUENCEVERIFY = (1U << 10),
+
+    // Execute sidechain-related opcodes instead of treating them as NOPs
+    SCRIPT_VERIFY_WITHDRAW = (1U << 11),
 };
 
 uint256 SignatureHash(const CScript &scriptCode, const CTransaction& txTo, unsigned int nIn, int nHashType);
diff --git a/src/script/script_error.cpp b/src/script/script_error.cpp
index 788d7ff468..3aeb198ee9 100644
--- a/src/script/script_error.cpp
+++ b/src/script/script_error.cpp
@@ -67,6 +67,10 @@ const char* ScriptErrorString(const ScriptError serror)
             return "NOPx reserved for soft-fork upgrades";
         case SCRIPT_ERR_PUBKEYTYPE:
             return "Public key is neither compressed or uncompressed";
+        case SCRIPT_ERR_WITHDRAW_VERIFY:
+            return "Withdraw proof validation failed";
+        case SCRIPT_ERR_REORG_VERIFY:
+            return "Reorg/Fraud proof validation failed";
         case SCRIPT_ERR_UNKNOWN_ERROR:
         case SCRIPT_ERR_ERROR_COUNT:
         default: break;
diff --git a/src/script/script_error.h b/src/script/script_error.h
index d29202b4e2..e74c906f86 100644
--- a/src/script/script_error.h
+++ b/src/script/script_error.h
@@ -51,6 +51,10 @@ typedef enum ScriptError_t
     /* softfork safeness */
     SCRIPT_ERR_DISCOURAGE_UPGRADABLE_NOPS,
 
+    /* sidechains */
+    SCRIPT_ERR_WITHDRAW_VERIFY,
+    SCRIPT_ERR_REORG_VERIFY,
+
     SCRIPT_ERR_ERROR_COUNT
 } ScriptError;