diff --git a/Transfer Virtual Connection.go b/Transfer Virtual Connection.go
new file mode 100644
index 0000000..27005e3
--- /dev/null
+++ b/Transfer Virtual Connection.go	
@@ -0,0 +1,172 @@
+/*
+File Name:  Transfer Virtual Connection.go
+Copyright:  2021 Peernet s.r.o.
+Author:     Peter Kleissner
+
+This file defines a virtual net.PacketConn which sends transfer messages and can be used to embed other transfer protocols.
+*/
+
+package core
+
+import (
+	"errors"
+	"io"
+	"net"
+	"sync"
+	"time"
+
+	"github.com/PeernetOfficial/core/protocol"
+)
+
+// virtualPacketConn is a virtual connection.
+// The required functions are ReadFrom, WriteTo, Close, LocalAddr, SetDeadline, SetReadDeadline, SetWriteDeadline.
+type virtualPacketConn struct {
+	peer *PeerInfo
+
+	// isListenMode puts this connection into listening mode (counterintuitively, a server).
+	isListenMode bool
+
+	// Transfer settings
+	transferProtocol uint8  // 0 = UDT
+	hash             []byte // The requested hash.
+	offset           uint64 // Offset to start reading.
+	limit            uint64 // Limit of bytes to read at the offset.
+
+	// Sequence number from the first outgoing or incoming packet.
+	sequenceNumber uint32
+
+	// data channel
+	incomingData chan []byte
+
+	// internal data
+	closed        bool
+	terminateChan chan struct{}
+	reason        int // Reason why it was closed
+	sync.Mutex
+}
+
+// newVirtualPacketConn creates a new virtual connection (both incomign and outgoing).
+func newVirtualPacketConn(peer *PeerInfo, protocol uint8, hash []byte, offset, limit uint64, isListen bool) (v *virtualPacketConn) {
+	return &virtualPacketConn{
+		transferProtocol: protocol,
+		peer:             peer,
+		hash:             hash,
+		offset:           offset,
+		limit:            limit,
+		isListenMode:     isListen,
+		incomingData:     make(chan []byte),
+		terminateChan:    make(chan struct{}),
+	}
+}
+
+// ReadFrom reads a packet from the connection, copying the payload into p. It returns the number of bytes copied into p and the return address that was on the packet.
+func (v *virtualPacketConn) ReadFrom(p []byte) (n int, addr net.Addr, err error) {
+	if v.closed {
+		return 0, nil, errors.New("connection closed")
+	}
+
+	// The underlying transfer messages feature a message sequence timeout (via Sequences.RegisterSequenceBi and Sequences.NewSequenceBi).
+	// The sequence timeout triggers the virtualPacketConn.Terminate function which closes terminateChan.
+	// Therefore an additional timeout here would be redundant. Instead, a transfer-wide timeout, that closes terminateChan upon expiration, shall be used.
+
+	select {
+	case data := <-v.incomingData:
+		n = copy(p, data)
+	case <-v.terminateChan:
+		return n, nil, io.EOF
+	}
+
+	return
+}
+
+// Write sends the data to the remote peer. It makes it possible to use virtualPacketConn as io.Writer.
+// Note: If the packet size exceed the limit from protocol.EncodeTransfer, this function fails.
+func (v *virtualPacketConn) Write(p []byte) (n int, err error) {
+	if v.IsTerminated() {
+		return 0, errors.New("connection closed")
+	}
+
+	// create a new packet
+	err = v.peer.sendTransfer(p, protocol.TransferControlActive, v.transferProtocol, v.hash, v.offset, v.limit, v.sequenceNumber)
+	if err == nil {
+		n = len(p)
+	}
+
+	return
+}
+
+// receiveData receives incoming data via an external message. Blocking until a read occurs or the connection is terminated!
+func (v *virtualPacketConn) receiveData(data []byte) (err error) {
+	if v.IsTerminated() {
+		return errors.New("connection closed")
+	}
+
+	// pass on the data
+	select {
+	case v.incomingData <- data:
+	case <-v.terminateChan:
+	}
+
+	return
+}
+
+// Terminate closes the connection and optionally sends a termination message to the remote peer. Multiple termination signals have no effect.
+// Reason: 404 = Remote peer does not store file, 1 = Local termination signal, 2 = Remote termination signal, 3 = Sequence invalidation or expiration
+func (v *virtualPacketConn) Terminate(sendSignal bool, reason int) (err error) {
+	v.Lock()
+	defer v.Unlock()
+
+	if v.closed { // if already closed, take no action
+		return
+	}
+
+	v.closed = true
+	v.reason = reason
+	close(v.terminateChan)
+
+	if sendSignal {
+		err = v.peer.sendTransfer(nil, protocol.TransferControlTerminate, v.transferProtocol, v.hash, 0, 0, v.sequenceNumber)
+	}
+
+	return
+}
+
+// IsTerminated checks if the connection is terminated
+func (v *virtualPacketConn) IsTerminated() bool {
+	return v.closed
+}
+
+// sequenceTerminate is a wrapper for sequenece termination (invalidation or expiration)
+func (v *virtualPacketConn) sequenceTerminate() {
+	v.Terminate(false, 3)
+}
+
+// Close closes the connection.
+func (v *virtualPacketConn) Close() (err error) {
+	return v.Terminate(true, 1)
+}
+
+// WriteTo writes a packet with payload p to addr.  WriteTo can be made to time out and return an Error after a fixed time limit.
+func (v *virtualPacketConn) WriteTo(p []byte, addr net.Addr) (n int, err error) {
+	return v.Write(p)
+}
+
+// LocalAddr returns the local network address
+func (v *virtualPacketConn) LocalAddr() (addr net.Addr) {
+	return
+}
+
+// SetDeadline sets the read and write deadlines associated with the connection. It is equivalent to calling both SetReadDeadline and SetWriteDeadline.
+func (v *virtualPacketConn) SetDeadline(t time.Time) (err error) {
+	return nil
+}
+
+// SetReadDeadline sets the deadline for future ReadFrom calls and any currently-blocked ReadFrom call.
+func (v *virtualPacketConn) SetReadDeadline(t time.Time) (err error) {
+	return nil
+}
+
+// SetWriteDeadline sets the deadline for future WriteTo calls and any currently-blocked WriteTo call.
+func (v *virtualPacketConn) SetWriteDeadline(t time.Time) (err error) {
+	return nil
+}
diff --git a/swarm/readme.md b/swarm/readme.md
new file mode 100644
index 0000000..6c13fb6
--- /dev/null
+++ b/swarm/readme.md
@@ -0,0 +1,4 @@
+# Swarm
+
+Peers enter into swarms to exchange files for a particular blockchain. The swarm identifier is the public key of the blockchain (which is the same as the peer ID who owns that blockchain).
+