diff --git a/lib/cmds/blockchain/blockchain.js b/lib/cmds/blockchain/blockchain.js
index 51d6bf202..f784a1278 100644
--- a/lib/cmds/blockchain/blockchain.js
+++ b/lib/cmds/blockchain/blockchain.js
@@ -1,8 +1,9 @@
-var shelljs = require('shelljs');
+const async = require('async');
+const shelljs = require('shelljs');
 
-var fs = require('../../core/fs.js');
+const fs = require('../../core/fs.js');
 
-var GethCommands = require('./geth_commands.js');
+const GethCommands = require('./geth_commands.js');
 
 /*eslint complexity: ["error", 35]*/
 var Blockchain = function(options) {
@@ -10,6 +11,7 @@ var Blockchain = function(options) {
   this.env = options.env || 'development';
   this.client = options.client;
   this.isDev = options.isDev;
+  this.onReadyCallback = options.onReadyCallback;
 
   if ((this.blockchainConfig === {} || JSON.stringify(this.blockchainConfig) === '{"enabled":true}') && this.env !== 'development') {
     console.log("===> " + __("warning: running default config on a non-development environment"));
@@ -55,15 +57,12 @@ var Blockchain = function(options) {
   this.client = new options.client({config: this.config, env: this.env, isDev: this.isDev});
 };
 
-Blockchain.prototype.runCommand = function(cmd, options) {
+Blockchain.prototype.runCommand = function(cmd, options, callback) {
   console.log(__("running: %s", cmd.underline).green);
-  return shelljs.exec(cmd, options, (err, stdout, _stderr) => {
-    if (err && this.env === 'development' && stdout.indexOf('Failed to unlock') > 0) {
-      console.warn('\n' + __('Development blockchain has changed to use the --dev option.').yellow);
-      console.warn(__('You can reset your workspace to fix the problem with').yellow + ' embark reset'.cyan);
-      console.warn(__('Otherwise, you can change your data directory in blockchain.json (datadir)').yellow);
-    }
-  });
+  if (this.blockchainConfig.silent) {
+    options.silent = true;
+  }
+  return shelljs.exec(cmd, options, callback);
 };
 
 Blockchain.prototype.run = function() {
@@ -73,62 +72,121 @@ Blockchain.prototype.run = function() {
   console.log(__("Embark Blockchain Using: %s", this.client.name.underline).magenta);
   console.log("===============================================================================".magenta);
   console.log("===============================================================================".magenta);
-  if (!this.isClientInstalled()) {
-    console.log(__("could not find {{geth_bin}} command; is {{client_name}} installed or in the PATH?", {geth_bin: this.config.geth_bin, client_name: this.client.name}).green);
-    return;
-  }
+
   let address = '';
-  if (!this.isDev) {
-    address = this.initChainAndGetAddress();
-  }
-  this.client.mainCommand(address, function(cmd) {
-    self.runCommand(cmd, {async: true});
+  async.waterfall([
+    function checkInstallation(next) {
+      self.isClientInstalled((err) => {
+        if (err) {
+          console.log(__("could not find {{geth_bin}} command; is {{client_name}} installed or in the PATH?", {geth_bin: this.config.geth_bin, client_name: this.client.name}).green);
+          return next(err);
+        }
+        next();
+      });
+    },
+    function init(next) {
+      if (!self.isDev) {
+        return self.initChainAndGetAddress((err, addr) => {
+          address = addr;
+          next(err);
+        });
+      }
+      next();
+    },
+    function getMainCommand(next) {
+      self.client.mainCommand(address, function(cmd) {
+        console.log(cmd);
+        next(null, cmd);
+      });
+    }
+  ], function (err, cmd) {
+    if (err) {
+      console.error(err);
+      return;
+    }
+    const child = self.runCommand(cmd, {}, (err, stdout, _stderr) => {
+      if (err && self.env === 'development' && stdout.indexOf('Failed to unlock') > 0) {
+        console.warn('\n' + __('Development blockchain has changed to use the --dev option.').yellow);
+        console.warn(__('You can reset your workspace to fix the problem with').yellow + ' embark reset'.cyan);
+        console.warn(__('Otherwise, you can change your data directory in blockchain.json (datadir)').yellow);
+      }
+    });
+    if (self.onReadyCallback) {
+      // Geth logs appear in stderr somehow
+      child.stderr.on('data', (data) => {
+        if (!self.readyCalled && data.indexOf('Mapped network port') > -1) {
+          self.readyCalled = true;
+          return self.onReadyCallback();
+        }
+       console.log('Geth:' + data);
+      });
+    }
   });
 };
 
-Blockchain.prototype.isClientInstalled = function() {
+Blockchain.prototype.isClientInstalled = function(callback) {
   let versionCmd = this.client.determineVersion();
-  let result = this.runCommand(versionCmd);
-
-  if (result.output === undefined || result.output.indexOf("not found") >= 0) {
-    return false;
-  }
-  return true;
+  this.runCommand(versionCmd, {}, (err, stdout, stderr) => {
+    if (err || stderr || !stdout || stdout.indexOf("not found") >= 0) {
+      return callback('Geth not found');
+    }
+    callback();
+  });
 };
 
-Blockchain.prototype.initChainAndGetAddress = function() {
+Blockchain.prototype.initChainAndGetAddress = function(callback) {
+  const self = this;
   var address = null, result;
 
   // ensure datadir exists, bypassing the interactive liabilities prompt.
-  this.datadir = '.embark/' + this.env + '/datadir';
-  fs.mkdirpSync(this.datadir);
+  self.datadir = '.embark/' + self.env + '/datadir';
 
-  // copy mining script
-  fs.copySync(fs.embarkPath("js"), ".embark/" + this.env + "/js", {overwrite: true});
+  async.waterfall([
+    function makeDir(next) {
+      fs.mkdirp(self.datadir, next);
+    },
+    function copy(next) {
+      // copy mining script
+      fs.copy(fs.embarkPath("js"), ".embark/" + self.env + "/js", {overwrite: true}, next);
+    },
+    function listAccounts(next) {
+      self.runCommand(self.client.listAccountsCommand(), {}, (err, stdout, stderr) => {
+        if (err || stderr || stdout === undefined || stdout.match(/{(\w+)}/) === null || stdout.indexOf("Fatal") >= 0) {
+          console.log(__("no accounts found").green);
+          return next();
 
-  // check if an account already exists, create one if not, return address
-  result = this.runCommand(this.client.listAccountsCommand());
-  if (result.output === undefined || result.output.match(/{(\w+)}/) === null || result.output.indexOf("Fatal") >= 0) {
-    console.log(__("no accounts found").green);
-    if (this.config.genesisBlock) {
+        } else {
+          console.log(__("already initialized").green);
+          address = result.output.match(/{(\w+)}/)[1];
+        }
+      });
+    },
+    function genesisBlock(next) {
+      if (!self.config.genesisBlock) {
+        return next();
+      }
       console.log(__("initializing genesis block").green);
-      result = this.runCommand(this.client.initGenesisCommmand());
+      self.runCommand(self.client.initGenesisCommmand(), {}, (err, _stdout, _stderr) => {
+        next(err);
+      });
+    },
+    function newAccount(next) {
+      result = self.runCommand(self.client.newAccountCommand(), {}, (err, stdout, _stderr) => {
+        if (err) {
+          return next(err);
+        }
+        address = stdout.match(/{(\w+)}/)[1];
+      });
     }
-
-    result = this.runCommand(this.client.newAccountCommand());
-    address = result.output.match(/{(\w+)}/)[1];
-  } else {
-    console.log(__("already initialized").green);
-    address = result.output.match(/{(\w+)}/)[1];
-  }
-
-  return address;
+  ], (err) => {
+    callback(err, address);
+  });
 };
 
-var BlockchainClient = function(blockchainConfig, client, env, isDev) {
+var BlockchainClient = function(blockchainConfig, client, env, isDev, onReadyCallback) {
   // TODO add other clients at some point
   if (client === 'geth') {
-    return new Blockchain({blockchainConfig, client: GethCommands, env, isDev});
+    return new Blockchain({blockchainConfig, client: GethCommands, env, isDev, onReadyCallback});
   } else {
     throw new Error('unknown client');
   }
diff --git a/lib/cmds/blockchain/blockchainProcess.js b/lib/cmds/blockchain/blockchainProcess.js
index bc4f50c0a..421703e07 100644
--- a/lib/cmds/blockchain/blockchainProcess.js
+++ b/lib/cmds/blockchain/blockchainProcess.js
@@ -1,6 +1,9 @@
 const ProcessWrapper = require('../../process/processWrapper');
 const BlockchainClient = require('./blockchain');
 const i18n = require('../../i18n/i18n.js');
+const constants = require('../../constants');
+
+let blockchainProcess;
 
 class BlockchainProcess extends ProcessWrapper {
   constructor(options) {
@@ -12,15 +15,26 @@ class BlockchainProcess extends ProcessWrapper {
 
     i18n.setOrDetectLocale(options.locale);
 
-    this.blockchainConfig.verbosity = 0;
-    this.blockchain = BlockchainClient(this.blockchainConfig, this.client, this.env, this.isDev);
+    this.blockchainConfig.silent = true;
+    this.blockchain = BlockchainClient(
+      this.blockchainConfig,
+      this.client,
+      this.env,
+      this.isDev,
+      this.blockchainReady.bind(this)
+    );
+
     this.blockchain.run();
   }
+
+  blockchainReady() {
+    blockchainProcess.send({result: constants.blockchain.blockchainReady});
+  }
 }
 
 process.on('message', (msg) => {
-  if (msg.action === 'init') {
-    const blockchainProcess = new BlockchainProcess(msg.options);
-    return process.send({result: 'initiated'});
+  if (msg.action === constants.blockchain.init) {
+    blockchainProcess = new BlockchainProcess(msg.options);
+    return blockchainProcess.send({result: constants.blockchain.initiated});
   }
 });
diff --git a/lib/constants.json b/lib/constants.json
index b99d13873..16e13e308 100644
--- a/lib/constants.json
+++ b/lib/constants.json
@@ -29,5 +29,10 @@
     "build": "build",
     "initiated": "initiated",
     "built": "built"
+  },
+  "blockchain": {
+    "blockchainReady": "blockchainReady",
+    "init": "init",
+    "initiated": "initiated"
   }
 }
diff --git a/lib/core/engine.js b/lib/core/engine.js
index a99127d8b..347aa5b4d 100644
--- a/lib/core/engine.js
+++ b/lib/core/engine.js
@@ -17,6 +17,7 @@ const request = require('request');
 
 const ProcessLauncher = require('../process/processLauncher');
 const utils = require('../utils/utils');
+const constants = require('../constants');
 
 class Engine {
   constructor(options) {
@@ -339,7 +340,8 @@ class Engine {
   }
 
   startBlockchainNode() {
-    self.isRunningBlockchain = true;
+    this.logger.info('Starting Blockchain node in another process'.cyan);
+    this.isRunningBlockchain = true;
 
     this.blockchainProcess = new ProcessLauncher({
       modulePath: utils.joinPath(__dirname, '../cmds/blockchain/blockchainProcess.js'),
@@ -349,7 +351,7 @@ class Engine {
       silent: true
     });
     this.blockchainProcess.send({
-      action: 'init', options: {
+      action: constants.blockchain.init, options: {
         blockchainConfig: this.config.blockchainConfig,
         client: this.client,
         env: this.env,
@@ -358,11 +360,10 @@ class Engine {
       }
     });
 
-    // TODO use event from process to know when node is ready
-    setTimeout(() => {
-      // Wait a couple seconds for process to start
-      this.startService("web3");
-    }, 2000);
+    this.blockchainProcess.once('result', constants.blockchain.blockchainReady, () => {
+      this.logger.info('Blockchain node is ready'.cyan);
+      this.startService('web3');
+    });
   }
 
   libraryManagerService(_options) {
diff --git a/lib/process/processWrapper.js b/lib/process/processWrapper.js
index a22f15568..4bb093c93 100644
--- a/lib/process/processWrapper.js
+++ b/lib/process/processWrapper.js
@@ -45,6 +45,10 @@ class ProcessWrapper {
     }
     process.send({result: constants.process.log, message: messages, type});
   }
+
+  send() {
+    process.send(...arguments);
+  }
 }
 
 process.on('exit', () => {