diff --git a/.deny.toml b/.deny.toml
index b02f2046..b6680ba6 100644
--- a/.deny.toml
+++ b/.deny.toml
@@ -62,6 +62,7 @@ allow-git = [
   "https://github.com/logos-blockchain/logos-blockchain-rust-rapidsnark.git",
   "https://github.com/logos-blockchain/sponges",
   "https://github.com/arkworks-rs/spongefish.git",
+  "https://github.com/keycard-tech/keycard-rs",
 ]
 unknown-git = "deny"
 unknown-registry = "deny"
diff --git a/.github/docker/ci.Dockerfile b/.github/docker/ci.Dockerfile
index a79be15f..7d5dd538 100644
--- a/.github/docker/ci.Dockerfile
+++ b/.github/docker/ci.Dockerfile
@@ -21,6 +21,7 @@ RUN apt-get update && apt-get install -y --no-install-recommends \
     libclang-dev \
     libssl-dev \
     pkg-config \
+    libpcsclite-dev \
     curl \
     git \
     jq \
diff --git a/.gitignore b/.gitignore
index 4c1a18c8..f32b258c 100644
--- a/.gitignore
+++ b/.gitignore
@@ -17,9 +17,5 @@ result
 wallet-ffi/wallet_ffi.h
 bedrock_signing_key
 integration_tests/configs/debug/
-venv/
-
-keycard_wallet/python/__pycache__/
-keycard_wallet/python/keycard-py/
 
 .DS_Store
diff --git a/Cargo.lock b/Cargo.lock
index ea1c7782..b470cdb3 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -45,6 +45,16 @@ dependencies = [
  "generic-array 0.14.7",
 ]
 
+[[package]]
+name = "aead"
+version = "0.6.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "1973cfbc1a2daf9cf550e74e1f088c28e7f7d8c1e1418fb6c9dc5184b7e84c99"
+dependencies = [
+ "crypto-common 0.2.2",
+ "inout 0.2.2",
+]
+
 [[package]]
 name = "aes"
 version = "0.8.4"
@@ -56,16 +66,27 @@ dependencies = [
  "cpufeatures 0.2.17",
 ]
 
+[[package]]
+name = "aes"
+version = "0.9.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "f1fc76eaeac4c9164506c466d4ffdd8ec9d0c5bf57ee97177c4d8eceb3a0e138"
+dependencies = [
+ "cipher 0.5.2",
+ "cpubits",
+ "cpufeatures 0.3.0",
+]
+
 [[package]]
 name = "aes-gcm"
 version = "0.10.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "831010a0f742e1209b3bcea8fab6a8e149051ba6099432c8cb2cc117dec3ead1"
 dependencies = [
- "aead",
- "aes",
+ "aead 0.5.2",
+ "aes 0.8.4",
  "cipher 0.4.4",
- "ctr",
+ "ctr 0.9.2",
  "ghash",
  "subtle",
 ]
@@ -268,7 +289,7 @@ dependencies = [
  "digest 0.10.7",
  "fnv",
  "merlin",
- "sha2",
+ "sha2 0.10.9",
 ]
 
 [[package]]
@@ -716,7 +737,7 @@ version = "0.30.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "16e2cdb6d5ed835199484bb92bb8b3edd526effe995c61732580439c1a67e2e9"
 dependencies = [
- "base64",
+ "base64 0.22.1",
  "http 1.4.1",
  "log",
  "url",
@@ -813,7 +834,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "31b698c5f9a010f6573133b09e0de5408834d0c82f8d7475a89fc1867a71cd90"
 dependencies = [
  "axum-core 0.5.6",
- "base64",
+ "base64 0.22.1",
  "bytes",
  "form_urlencoded",
  "futures-util",
@@ -910,6 +931,12 @@ version = "0.2.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "4c7f02d4ea65f2c1853089ffd8d2787bdbc63de2f0d29dedbcf8ccdfa0ccd4cf"
 
+[[package]]
+name = "base16ct"
+version = "1.0.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "fd307490d624467aa6f74b0eabb77633d1f758a7b25f12bceb0b22e08d9726f6"
+
 [[package]]
 name = "base256emoji"
 version = "1.0.2"
@@ -926,6 +953,12 @@ version = "0.2.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "6107fe1be6682a68940da878d9e9f5e90ca5745b3dec9fd1bb393c8777d4f581"
 
+[[package]]
+name = "base64"
+version = "0.21.7"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "9d297deb1925b89f2ccc13d7635fa0714f12c87adce1c75356b39ca9b7178567"
+
 [[package]]
 name = "base64"
 version = "0.22.1"
@@ -1048,6 +1081,15 @@ dependencies = [
  "hybrid-array",
 ]
 
+[[package]]
+name = "block-padding"
+version = "0.4.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "710f1dd022ef4e93f8a438b4ba958de7f64308434fa6a87104481645cc30068b"
+dependencies = [
+ "hybrid-array",
+]
+
 [[package]]
 name = "bollard"
 version = "0.20.2"
@@ -1055,7 +1097,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "ee04c4c84f1f811b017f2fbb7dd8815c976e7ca98593de9c1e2afad0f636bff4"
 dependencies = [
  "async-stream",
- "base64",
+ "base64 0.22.1",
  "bitflags 2.12.1",
  "bollard-buildkit-proto",
  "bollard-stubs",
@@ -1112,7 +1154,7 @@ version = "1.52.1-rc.29.1.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "0f0a8ca8799131c1837d1282c3f81f31e76ceb0ce426e04a7fe1ccee3287c066"
 dependencies = [
- "base64",
+ "base64 0.22.1",
  "bollard-buildkit-proto",
  "bytes",
  "prost 0.14.3",
@@ -1298,6 +1340,15 @@ version = "0.3.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "37b2a672a2cb129a2e41c10b1224bb368f9f37a2b16b612598138befd7b37eb5"
 
+[[package]]
+name = "cbc"
+version = "0.2.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "ce2dc9ee5f88d11e0beb842c88b33c8a5cf0d1329c4b19494af42b07dbfe8896"
+dependencies = [
+ "cipher 0.5.2",
+]
+
 [[package]]
 name = "cbindgen"
 version = "0.29.3"
@@ -1329,6 +1380,18 @@ dependencies = [
  "shlex 2.0.1",
 ]
 
+[[package]]
+name = "ccm"
+version = "0.6.0-rc.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "4edea5ea70a1285565ac264767613d6c88351a9a0557e7af793a0942590baaed"
+dependencies = [
+ "aead 0.6.1",
+ "cipher 0.5.2",
+ "ctr 0.10.1",
+ "subtle",
+]
+
 [[package]]
 name = "cesu8"
 version = "1.1.0"
@@ -1369,7 +1432,7 @@ dependencies = [
 ]
 
 [[package]]
-name = "chain_consistency"
+name = "chain_state"
 version = "0.1.0"
 dependencies = [
  "anyhow",
@@ -1383,6 +1446,7 @@ dependencies = [
  "logos-blockchain-zone-sdk",
  "serde",
  "serde_json",
+ "testnet_initial_state",
  "thiserror 2.0.18",
  "tokio",
 ]
@@ -1579,7 +1643,7 @@ version = "0.1.0"
 dependencies = [
  "anyhow",
  "authenticated_transfer_core",
- "base64",
+ "base64 0.22.1",
  "borsh",
  "clock_core",
  "hex",
@@ -1590,7 +1654,7 @@ dependencies = [
  "programs",
  "serde",
  "serde_with",
- "sha2",
+ "sha2 0.10.9",
  "system_accounts",
  "thiserror 2.0.18",
 ]
@@ -1803,6 +1867,12 @@ dependencies = [
  "cfg-if",
 ]
 
+[[package]]
+name = "cpubits"
+version = "0.1.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "15b85f9c39137c3a891689859392b1bd49812121d0d61c9caf00d46ed5ce06ae"
+
 [[package]]
 name = "cpufeatures"
 version = "0.2.17"
@@ -1995,6 +2065,22 @@ dependencies = [
  "zeroize",
 ]
 
+[[package]]
+name = "crypto-bigint"
+version = "0.7.5"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "1a52aa3fcda4e6302a9f48734f234d35d4721b96f8fe07d073f07ce9df4f0271"
+dependencies = [
+ "cpubits",
+ "ctutils",
+ "getrandom 0.4.2",
+ "hybrid-array",
+ "num-traits",
+ "rand_core 0.10.1",
+ "subtle",
+ "zeroize",
+]
+
 [[package]]
 name = "crypto-common"
 version = "0.1.7"
@@ -2035,6 +2121,15 @@ dependencies = [
  "cipher 0.4.4",
 ]
 
+[[package]]
+name = "ctr"
+version = "0.10.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "baaca1c4b237092596f64d571e9db6ce4109c4ef9742e27590f1709594461f21"
+dependencies = [
+ "cipher 0.5.2",
+]
+
 [[package]]
 name = "ctutils"
 version = "0.4.2"
@@ -2042,6 +2137,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "7d5515a3834141de9eafb9717ad39eea8247b5674e6066c404e8c4b365d2a29e"
 dependencies = [
  "cmov",
+ "subtle",
 ]
 
 [[package]]
@@ -2340,7 +2436,9 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "f1dd6dbb5841937940781866fa1281a1ff7bd3bf827091440879f9994983d5c2"
 dependencies = [
  "block-buffer 0.12.0",
+ "const-oid 0.10.2",
  "crypto-common 0.2.2",
+ "ctutils",
 ]
 
 [[package]]
@@ -2419,7 +2517,7 @@ version = "1.4.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "29547a1dc60885a552306986316bc9701ba120c1a8db6769fa68691529ad373d"
 dependencies = [
- "base64",
+ "base64 0.22.1",
  "serde",
  "serde_json",
 ]
@@ -2470,13 +2568,28 @@ checksum = "ee27f32b5c5292967d2d4a9d7f1e0b0aed2c15daded5a60300e4abb9d8020bca"
 dependencies = [
  "der 0.7.10",
  "digest 0.10.7",
- "elliptic-curve",
- "rfc6979",
- "serdect",
- "signature",
+ "elliptic-curve 0.13.8",
+ "rfc6979 0.4.0",
+ "serdect 0.2.0",
+ "signature 2.2.0",
  "spki 0.7.3",
 ]
 
+[[package]]
+name = "ecdsa"
+version = "0.17.0-rc.22"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b7c72d1455753a703ad4b90ed2a759f2bc4562024a303176439cf6e593b5ade4"
+dependencies = [
+ "der 0.8.0",
+ "digest 0.11.3",
+ "elliptic-curve 0.14.0",
+ "rfc6979 0.6.0-pre.0",
+ "signature 3.0.0",
+ "spki 0.8.0",
+ "zeroize",
+]
+
 [[package]]
 name = "ed25519"
 version = "2.2.3"
@@ -2485,7 +2598,7 @@ checksum = "115531babc129696a58c64a4fef0a8bf9e9698629fb97e9e40767d235cfbcd53"
 dependencies = [
  "pkcs8 0.10.2",
  "serde",
- "signature",
+ "signature 2.2.0",
 ]
 
 [[package]]
@@ -2498,7 +2611,7 @@ dependencies = [
  "ed25519",
  "rand_core 0.6.4",
  "serde",
- "sha2",
+ "sha2 0.10.9",
  "subtle",
  "zeroize",
 ]
@@ -2543,17 +2656,38 @@ version = "0.13.8"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "b5e6043086bf7973472e0c7dff2142ea0b680d30e18d9cc40f267efbf222bd47"
 dependencies = [
- "base16ct",
- "crypto-bigint",
+ "base16ct 0.2.0",
+ "crypto-bigint 0.5.5",
  "digest 0.10.7",
- "ff",
+ "ff 0.13.1",
  "generic-array 0.14.7",
- "group",
+ "group 0.13.0",
  "pem-rfc7468",
  "pkcs8 0.10.2",
  "rand_core 0.6.4",
- "sec1",
- "serdect",
+ "sec1 0.7.3",
+ "serdect 0.2.0",
+ "subtle",
+ "zeroize",
+]
+
+[[package]]
+name = "elliptic-curve"
+version = "0.14.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "3273f1195b6f6253ebda493d6742c8baa9b26a291674cd96d92a0f09e90e9b46"
+dependencies = [
+ "base16ct 1.0.0",
+ "crypto-bigint 0.7.5",
+ "crypto-common 0.2.2",
+ "digest 0.11.3",
+ "ff 0.14.0",
+ "group 0.14.0",
+ "hkdf 0.13.0",
+ "hybrid-array",
+ "pkcs8 0.11.0",
+ "rand_core 0.10.1",
+ "sec1 0.8.1",
  "subtle",
  "zeroize",
 ]
@@ -2833,6 +2967,16 @@ dependencies = [
  "subtle",
 ]
 
+[[package]]
+name = "ff"
+version = "0.14.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "a1f686ab92a9fb0eaf188f6c6c87b89490baa6fdb0db4544ba4dc47f7942489f"
+dependencies = [
+ "rand_core 0.10.1",
+ "subtle",
+]
+
 [[package]]
 name = "ff_derive"
 version = "0.13.1"
@@ -3246,11 +3390,22 @@ version = "0.13.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "f0f9ef7462f7c099f518d754361858f86d8a07af53ba9af0fe635bbccb151a63"
 dependencies = [
- "ff",
+ "ff 0.13.1",
  "rand_core 0.6.4",
  "subtle",
 ]
 
+[[package]]
+name = "group"
+version = "0.14.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "7fd1a1c7a5206c5b7a3f5a0d7ccd3ff85d0c8f5133d62a02680255b0004af5f4"
+dependencies = [
+ "ff 0.14.0",
+ "rand_core 0.10.1",
+ "subtle",
+]
+
 [[package]]
 name = "guardian"
 version = "1.3.0"
@@ -3458,7 +3613,16 @@ version = "0.12.4"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "7b5f8eb2ad728638ea2c7d47a21db23b7b58a72ed6a38256b8a1849f15fbbdf7"
 dependencies = [
- "hmac",
+ "hmac 0.12.1",
+]
+
+[[package]]
+name = "hkdf"
+version = "0.13.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "4aaa26c720c68b866f2c96ef5c1264b3e6f473fe5d4ce61cd44bbe913e553018"
+dependencies = [
+ "hmac 0.13.0",
 ]
 
 [[package]]
@@ -3470,6 +3634,15 @@ dependencies = [
  "digest 0.10.7",
 ]
 
+[[package]]
+name = "hmac"
+version = "0.13.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "6303bc9732ae41b04cb554b844a762b4115a61bfaa81e3e83050991eeb56863f"
+dependencies = [
+ "digest 0.11.3",
+]
+
 [[package]]
 name = "hmac-sha512"
 version = "1.1.12"
@@ -3590,7 +3763,9 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "9155a582abd142abc056962c29e3ce5ff2ad5469f4246b537ed42c5deba857da"
 dependencies = [
  "ctutils",
+ "subtle",
  "typenum",
+ "zeroize",
 ]
 
 [[package]]
@@ -3698,7 +3873,7 @@ version = "0.1.20"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "96547c2556ec9d12fb1578c4eaf448b04993e7fb79cbaad930a656880a6bdfa0"
 dependencies = [
- "base64",
+ "base64 0.22.1",
  "bytes",
  "futures-channel",
  "futures-util",
@@ -3960,7 +4135,7 @@ dependencies = [
  "arc-swap",
  "async-stream",
  "borsh",
- "chain_consistency",
+ "chain_state",
  "common",
  "cross_zone",
  "cross_zone_inbox_core",
@@ -4024,7 +4199,7 @@ version = "0.1.0"
 dependencies = [
  "anyhow",
  "base58",
- "base64",
+ "base64 0.22.1",
  "common",
  "hex",
  "indexer_core",
@@ -4097,6 +4272,7 @@ version = "0.2.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "4250ce6452e92010fdf7268ccc5d14faa80bb12fc741938534c58f16804e03c7"
 dependencies = [
+ "block-padding",
  "hybrid-array",
 ]
 
@@ -4159,6 +4335,7 @@ dependencies = [
  "tempfile",
  "test_fixtures",
  "test_programs",
+ "testnet_initial_state",
  "token_core",
  "tokio",
  "vault_core",
@@ -4388,7 +4565,7 @@ version = "0.26.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "cf36eb27f8e13fa93dcb50ccb44c417e25b818cfa1a481b5470cd07b19c60b98"
 dependencies = [
- "base64",
+ "base64 0.22.1",
  "futures-channel",
  "futures-util",
  "gloo-net",
@@ -4441,7 +4618,7 @@ version = "0.26.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "790bedefcec85321e007ff3af84b4e417540d5c87b3c9779b9e247d1bcc3dab8"
 dependencies = [
- "base64",
+ "base64 0.22.1",
  "http-body",
  "hyper",
  "hyper-rustls",
@@ -4543,12 +4720,27 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "f6e3919bbaa2945715f0bb6d3934a173d1e9a59ac23767fbaaef277265a7411b"
 dependencies = [
  "cfg-if",
- "ecdsa",
- "elliptic-curve",
+ "ecdsa 0.16.9",
+ "elliptic-curve 0.13.8",
  "once_cell",
- "serdect",
- "sha2",
- "signature",
+ "serdect 0.2.0",
+ "sha2 0.10.9",
+ "signature 2.2.0",
+]
+
+[[package]]
+name = "k256"
+version = "0.14.0-rc.14"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "905d38bdbb43bb506efa0a428b3e969ff244549832a86b18591492f503adfe37"
+dependencies = [
+ "cpubits",
+ "ecdsa 0.17.0-rc.22",
+ "elliptic-curve 0.14.0",
+ "primeorder",
+ "sha2 0.11.0",
+ "signature 3.0.0",
+ "wnaf",
 ]
 
 [[package]]
@@ -4593,25 +4785,53 @@ dependencies = [
  "hex",
  "hmac-sha512",
  "itertools 0.14.0",
- "k256",
+ "k256 0.13.4",
  "lee",
  "lee_core",
  "ml-kem",
  "rand 0.8.6",
  "serde",
- "sha2",
+ "sha2 0.10.9",
  "thiserror 2.0.18",
 ]
 
+[[package]]
+name = "keycard-rs"
+version = "0.1.0"
+source = "git+https://github.com/keycard-tech/keycard-rs?rev=9535a657ba04b1e6916de51777e22b4837c1a84d#9535a657ba04b1e6916de51777e22b4837c1a84d"
+dependencies = [
+ "aes 0.9.1",
+ "base64 0.21.7",
+ "cbc",
+ "ccm",
+ "generic-array 0.14.7",
+ "getrandom 0.2.17",
+ "getrandom 0.4.2",
+ "hkdf 0.13.0",
+ "hmac 0.13.0",
+ "k256 0.14.0-rc.14",
+ "pbkdf2",
+ "pcsc",
+ "rand_core 0.6.4",
+ "sha2 0.11.0",
+ "sha3 0.12.0",
+ "thiserror 1.0.69",
+ "typenum",
+ "zeroize",
+]
+
 [[package]]
 name = "keycard_wallet"
 version = "0.1.0"
 dependencies = [
+ "bip39",
+ "hex",
+ "keycard-rs",
  "lee",
  "log",
- "pyo3",
- "serde",
- "serde_json",
+ "pcsc",
+ "rand 0.8.6",
+ "thiserror 2.0.18",
  "zeroize",
 ]
 
@@ -4677,7 +4897,7 @@ dependencies = [
  "build_utils",
  "hex",
  "hex-literal 1.1.0",
- "k256",
+ "k256 0.13.4",
  "lee_core",
  "log",
  "rand 0.8.6",
@@ -4685,7 +4905,7 @@ dependencies = [
  "risc0-zkvm",
  "serde",
  "serde_with",
- "sha2",
+ "sha2 0.10.9",
  "test-case",
  "test_methods",
  "thiserror 2.0.18",
@@ -4715,7 +4935,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "efa3982e7fe36c1de68f91f3c9083124f389a975523881f3d7e3363362feda41"
 dependencies = [
  "any_spawner",
- "base64",
+ "base64 0.22.1",
  "cfg-if",
  "either_of",
  "futures",
@@ -4917,7 +5137,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "da974775c5ccbb6bd64be7f53f75e8321542e28f21563a416574dbe4d5447eae"
 dependencies = [
  "any_spawner",
- "base64",
+ "base64 0.22.1",
  "codee",
  "futures",
  "hydration_context",
@@ -5108,7 +5328,7 @@ checksum = "d558548fa3b5a8e9b66392f785921e363c57c05dcadfda4db0d41ae82d313e4a"
 dependencies = [
  "async-channel",
  "asynchronous-codec",
- "base64",
+ "base64 0.22.1",
  "byteorder",
  "bytes",
  "either",
@@ -5127,7 +5347,7 @@ dependencies = [
  "rand 0.8.6",
  "regex",
  "serde",
- "sha2",
+ "sha2 0.10.9",
  "tracing",
  "web-time",
 ]
@@ -5162,13 +5382,13 @@ dependencies = [
  "asn1_der",
  "bs58",
  "ed25519-dalek",
- "hkdf",
- "k256",
+ "hkdf 0.12.4",
+ "k256 0.13.4",
  "multihash",
  "prost 0.14.3",
  "rand 0.8.6",
  "serde",
- "sha2",
+ "sha2 0.10.9",
  "thiserror 2.0.18",
  "tracing",
  "zeroize",
@@ -5194,7 +5414,7 @@ dependencies = [
  "quick-protobuf-codec",
  "rand 0.8.6",
  "serde",
- "sha2",
+ "sha2 0.10.9",
  "smallvec",
  "thiserror 2.0.18",
  "tracing",
@@ -7229,13 +7449,42 @@ version = "0.2.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "df94ce210e5bc13cb6651479fa48d14f601d9858cfe0467f43ae157023b938d3"
 
+[[package]]
+name = "pbkdf2"
+version = "0.13.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "112d82ceb8c5bf524d9af484d4e4970c9fd5a0cc15ba14ad93dccd28873b0629"
+dependencies = [
+ "digest 0.11.3",
+ "hmac 0.13.0",
+]
+
+[[package]]
+name = "pcsc"
+version = "2.9.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "7dd833ecf8967e65934c49d3521a175929839bf6d0e497f3bd0d3a2ca08943da"
+dependencies = [
+ "bitflags 2.12.1",
+ "pcsc-sys",
+]
+
+[[package]]
+name = "pcsc-sys"
+version = "1.3.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "e14ef017e15d2e5592a9e39a346c1dbaea5120bab7ed7106b210ef58ebd97003"
+dependencies = [
+ "pkg-config",
+]
+
 [[package]]
 name = "pem"
 version = "3.0.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "1d30c53c26bc5b31a98cd02d20f25a7c8567146caf63ed593a9d87b2775291be"
 dependencies = [
- "base64",
+ "base64 0.22.1",
  "serde_core",
 ]
 
@@ -7475,6 +7724,32 @@ dependencies = [
  "syn 2.0.117",
 ]
 
+[[package]]
+name = "primefield"
+version = "0.14.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "c555a6e4eb7d4e158fcb028c835c3b8642206ddc279b5c6b202ef9a8bdb592f4"
+dependencies = [
+ "crypto-bigint 0.7.5",
+ "crypto-common 0.2.2",
+ "ff 0.14.0",
+ "rand_core 0.10.1",
+ "subtle",
+ "zeroize",
+]
+
+[[package]]
+name = "primeorder"
+version = "0.14.0-rc.14"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "4e56e6d67fdf5744e9e245ae571450fe584b91f5af261d0e40163b618e53a1f6"
+dependencies = [
+ "elliptic-curve 0.14.0",
+ "once_cell",
+ "primefield",
+ "serdect 0.4.3",
+]
+
 [[package]]
 name = "privacy_preserving_circuit_program"
 version = "0.1.0"
@@ -7725,63 +8000,6 @@ dependencies = [
  "parking_lot",
 ]
 
-[[package]]
-name = "pyo3"
-version = "0.29.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "cd274650b21d4bfc26a0a47587962c1edb425f69287324355cd040c3ea66071c"
-dependencies = [
- "libc",
- "once_cell",
- "portable-atomic",
- "pyo3-build-config",
- "pyo3-ffi",
- "pyo3-macros",
-]
-
-[[package]]
-name = "pyo3-build-config"
-version = "0.29.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "c5e2a7d2f0d013342f295c048ad19237add5154a55b1c5a254c0ec93d4109078"
-dependencies = [
- "target-lexicon",
-]
-
-[[package]]
-name = "pyo3-ffi"
-version = "0.29.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "ca85c467da1bbc8d866eea5deff9cf29ea5f7785054a17da36e65bda9c05845b"
-dependencies = [
- "libc",
- "pyo3-build-config",
-]
-
-[[package]]
-name = "pyo3-macros"
-version = "0.29.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "9ac53762fd065daa3194dd09337a38bd793a188100fd1a9304c4ab312d901771"
-dependencies = [
- "proc-macro2",
- "pyo3-macros-backend",
- "quote",
- "syn 2.0.117",
-]
-
-[[package]]
-name = "pyo3-macros-backend"
-version = "0.29.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "4ca3a1557399783172dc5bf39cfca835157732532cba56b71d2292161e53b362"
-dependencies = [
- "heck",
- "proc-macro2",
- "quote",
- "syn 2.0.117",
-]
-
 [[package]]
 name = "quick-protobuf"
 version = "0.8.1"
@@ -8162,7 +8380,7 @@ version = "0.12.28"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "eddd3ca559203180a307f12d114c268abf583f59b03cb906fd0b3ff8646c1147"
 dependencies = [
- "base64",
+ "base64 0.22.1",
  "bytes",
  "encoding_rs",
  "futures-core",
@@ -8215,10 +8433,20 @@ version = "0.4.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "f8dd2a808d456c4a54e300a23e9f5a67e122c3024119acbfd73e3bf664491cb2"
 dependencies = [
- "hmac",
+ "hmac 0.12.1",
  "subtle",
 ]
 
+[[package]]
+name = "rfc6979"
+version = "0.6.0-pre.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "9935425142ac6e252364413291d96c8bc9898d0876a801824c7af4eae397b689"
+dependencies = [
+ "ctutils",
+ "hmac 0.13.0",
+]
+
 [[package]]
 name = "ring"
 version = "0.17.14"
@@ -8295,7 +8523,7 @@ dependencies = [
  "directories",
  "hex",
  "rayon",
- "sha2",
+ "sha2 0.10.9",
  "tempfile",
 ]
 
@@ -8355,7 +8583,7 @@ dependencies = [
  "risc0-sys",
  "risc0-zkp",
  "serde",
- "sha2",
+ "sha2 0.10.9",
  "tracing",
  "zip",
 ]
@@ -8492,7 +8720,7 @@ dependencies = [
  "bytemuck",
  "cfg-if",
  "digest 0.10.7",
- "ff",
+ "ff 0.13.1",
  "hex",
  "hex-literal 0.4.1",
  "metal",
@@ -8506,7 +8734,7 @@ dependencies = [
  "risc0-sys",
  "risc0-zkvm-platform",
  "serde",
- "sha2",
+ "sha2 0.10.9",
  "stability",
  "tracing",
 ]
@@ -8553,7 +8781,7 @@ dependencies = [
  "rzup",
  "semver",
  "serde",
- "sha2",
+ "sha2 0.10.9",
  "stability",
  "tempfile",
  "tracing",
@@ -8657,7 +8885,7 @@ dependencies = [
  "pkcs1",
  "pkcs8 0.10.2",
  "rand_core 0.6.4",
- "signature",
+ "signature 2.2.0",
  "spki 0.7.3",
  "subtle",
  "zeroize",
@@ -8901,7 +9129,7 @@ dependencies = [
  "semver",
  "serde",
  "serde_with",
- "sha2",
+ "sha2 0.10.9",
  "strum",
  "tempfile",
  "thiserror 2.0.18",
@@ -8985,11 +9213,25 @@ version = "0.7.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "d3e97a565f76233a6003f9f5c54be1d9c5bdfa3eccfb189469f11ec4901c47dc"
 dependencies = [
- "base16ct",
+ "base16ct 0.2.0",
  "der 0.7.10",
  "generic-array 0.14.7",
  "pkcs8 0.10.2",
- "serdect",
+ "serdect 0.2.0",
+ "subtle",
+ "zeroize",
+]
+
+[[package]]
+name = "sec1"
+version = "0.8.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "d56d437c2f19203ce5f7122e507831de96f3d2d4d3be5af44a0b0a09d8a80e4d"
+dependencies = [
+ "base16ct 1.0.0",
+ "ctutils",
+ "der 0.8.0",
+ "hybrid-array",
  "subtle",
  "zeroize",
 ]
@@ -9044,7 +9286,7 @@ dependencies = [
  "borsh",
  "bridge_core",
  "bytesize",
- "chain_consistency",
+ "chain_state",
  "chrono",
  "common",
  "cross_zone",
@@ -9075,6 +9317,7 @@ dependencies = [
  "testnet_initial_state",
  "token_core",
  "tokio",
+ "tokio-util",
  "url",
  "vault_core",
 ]
@@ -9090,6 +9333,7 @@ dependencies = [
  "common",
  "env_logger",
  "futures",
+ "hex",
  "jsonrpsee",
  "lee",
  "log",
@@ -9263,7 +9507,7 @@ version = "3.20.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "e72c1c2cb7b223fafb600a619537a871c2818583d619401b785e7c0b746ccde2"
 dependencies = [
- "base64",
+ "base64 0.22.1",
  "bs58",
  "chrono",
  "hex",
@@ -9308,7 +9552,17 @@ version = "0.2.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "a84f14a19e9a014bb9f4512488d9829a68e04ecabffb0f9904cd1ace94598177"
 dependencies = [
- "base16ct",
+ "base16ct 0.2.0",
+ "serde",
+]
+
+[[package]]
+name = "serdect"
+version = "0.4.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "66cf8fedced2fcf12406bcb34223dffb92eaf34908ede12fed414c82b7f00b3e"
+dependencies = [
+ "base16ct 1.0.0",
  "serde",
 ]
 
@@ -9319,7 +9573,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "5d60e4c1dfccd91fe0990141f69f1d5cf5679797ad53aa1b45e5bd658eb119f0"
 dependencies = [
  "axum 0.8.9",
- "base64",
+ "base64 0.22.1",
  "bytes",
  "const-str 1.1.0",
  "const_format",
@@ -9399,6 +9653,17 @@ dependencies = [
  "digest 0.10.7",
 ]
 
+[[package]]
+name = "sha2"
+version = "0.11.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "446ba717509524cb3f22f17ecc096f10f4822d76ab5c0b9822c5f9c284e825f4"
+dependencies = [
+ "cfg-if",
+ "cpufeatures 0.3.0",
+ "digest 0.11.3",
+]
+
 [[package]]
 name = "sha3"
 version = "0.10.9"
@@ -9419,6 +9684,17 @@ dependencies = [
  "keccak 0.2.0",
 ]
 
+[[package]]
+name = "sha3"
+version = "0.12.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "bc9bad02c26382724b2d2692c6f179285e4b54eeecd7968f52a50059c3c11759"
+dependencies = [
+ "digest 0.11.3",
+ "keccak 0.2.0",
+ "sponge-cursor",
+]
+
 [[package]]
 name = "sharded-slab"
 version = "0.1.7"
@@ -9460,6 +9736,16 @@ dependencies = [
  "rand_core 0.6.4",
 ]
 
+[[package]]
+name = "signature"
+version = "3.0.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "28d567dcbaf0049cb8ac2608a76cd95ff9e4412e1899d389ee400918ca7537f5"
+dependencies = [
+ "digest 0.11.3",
+ "rand_core 0.10.1",
+]
+
 [[package]]
 name = "simd-adler32"
 version = "0.3.9"
@@ -9529,7 +9815,7 @@ version = "0.8.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "2e859df029d160cb88608f5d7df7fb4753fd20fdfb4de5644f3d8b8440841721"
 dependencies = [
- "base64",
+ "base64 0.22.1",
  "bytes",
  "futures",
  "http 1.4.1",
@@ -9568,6 +9854,12 @@ dependencies = [
  "der 0.8.0",
 ]
 
+[[package]]
+name = "sponge-cursor"
+version = "0.1.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "3a0219bd7d979d58245a4f41f695e1ac9f8befdffadd7f61f1bae9e39abc6620"
+
 [[package]]
 name = "spongefish"
 version = "0.2.0"
@@ -9838,12 +10130,6 @@ dependencies = [
  "xattr",
 ]
 
-[[package]]
-name = "target-lexicon"
-version = "0.13.5"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "adb6935a6f5c20170eeceb1a3835a49e12e19d792f6dd344ccc76a985ca5a6ca"
-
 [[package]]
 name = "tempfile"
 version = "3.27.0"
@@ -9851,7 +10137,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "32497e9a4c7b38532efcdebeef879707aa9f794296a4f0244f6f69e9bc8574bd"
 dependencies = [
  "fastrand",
- "getrandom 0.4.2",
+ "getrandom 0.3.4",
  "once_cell",
  "rustix",
  "windows-sys 0.61.2",
@@ -10358,7 +10644,7 @@ checksum = "ac2a5518c70fa84342385732db33fb3f44bc4cc748936eb5833d2df34d6445ef"
 dependencies = [
  "async-trait",
  "axum 0.8.9",
- "base64",
+ "base64 0.22.1",
  "bytes",
  "h2",
  "http 1.4.1",
@@ -10809,7 +11095,7 @@ version = "3.3.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "dea7109cdcd5864d4eeb1b58a1648dc9bf520360d7af16ec26d0a9354bafcfc0"
 dependencies = [
- "base64",
+ "base64 0.22.1",
  "flate2",
  "log",
  "percent-encoding",
@@ -10826,7 +11112,7 @@ version = "0.6.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "e994ba84b0bd1b1b0cf92878b7ef898a5c1760108fe7b6010327e274917a808c"
 dependencies = [
- "base64",
+ "base64 0.22.1",
  "http 1.4.1",
  "httparse",
  "log",
@@ -11016,13 +11302,12 @@ dependencies = [
  "log",
  "optfield",
  "programs",
- "pyo3",
  "rand 0.8.6",
  "rpassword",
  "sequencer_service_rpc",
  "serde",
  "serde_json",
- "sha2",
+ "sha2 0.10.9",
  "system_accounts",
  "tempfile",
  "testnet_initial_state",
@@ -11205,7 +11490,7 @@ checksum = "d0a659ffe5c7f4538aa6357c07e3d73221cc61eba03bd9a081e14bc91ed09b8c"
 dependencies = [
  "base16",
  "quote",
- "sha2",
+ "sha2 0.10.9",
  "syn 2.0.117",
 ]
 
@@ -11705,6 +11990,17 @@ dependencies = [
  "wasmparser",
 ]
 
+[[package]]
+name = "wnaf"
+version = "0.14.0-rc.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "f86421f2a70c9e6cab8d84c99fb62d8761d355bd1285443a7e7ccad15aa515f2"
+dependencies = [
+ "ff 0.14.0",
+ "group 0.14.0",
+ "hybrid-array",
+]
+
 [[package]]
 name = "wrapped_token_core"
 version = "0.1.0"
diff --git a/Cargo.toml b/Cargo.toml
index bac0ea4f..0b4964d2 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -16,6 +16,7 @@ members = [
 
   "lez",
   "lez/system_accounts",
+  "lez/chain_state",
   "lez/sequencer/core",
   "lez/sequencer/service",
   "lez/sequencer/service/protocol",
@@ -32,7 +33,6 @@ members = [
   "lez/wallet",
   "lez/wallet-ffi",
   "lez/common",
-  "lez/chain_consistency",
   "lez/programs",
   "lez/programs/amm",
   "lez/programs/associated_token_account",
@@ -73,7 +73,7 @@ members = [
 lee = { path = "lee/state_machine" }
 lee_core = { path = "lee/state_machine/core" }
 common = { path = "lez/common" }
-chain_consistency = { path = "lez/chain_consistency" }
+chain_state = { path = "lez/chain_state" }
 mempool = { path = "lez/mempool" }
 storage = { path = "lez/storage" }
 key_protocol = { path = "lee/key_protocol" }
@@ -180,11 +180,14 @@ logos-blockchain-chain-service = { git = "https://github.com/logos-blockchain/lo
 logos-blockchain-zone-sdk = { git = "https://github.com/logos-blockchain/logos-blockchain.git", rev = "d8711bbc3d43d3ef9755ef9b73af32fd0f703160" }
 logos-blockchain-http-api-common = { git = "https://github.com/logos-blockchain/logos-blockchain.git", rev = "d8711bbc3d43d3ef9755ef9b73af32fd0f703160" }
 
+keycard-rs = { git = "https://github.com/keycard-tech/keycard-rs", rev = "9535a657ba04b1e6916de51777e22b4837c1a84d" }
+
 rocksdb = { version = "0.24.0", default-features = false, features = [
   "snappy",
   "bindgen-runtime",
 ] }
 rand = { version = "0.8.5", features = ["std", "std_rng", "getrandom"] }
+pcsc = "2"
 k256 = { version = "0.13.3", features = [
   "ecdsa-core",
   "arithmetic",
@@ -201,7 +204,6 @@ actix-web = { version = "4.13.0", default-features = false, features = [
 axum = "0.8.4"
 clap = { version = "4.5.42", features = ["derive", "env"] }
 reqwest = { version = "0.12", features = ["json", "rustls-tls", "stream"] }
-pyo3 = { version = "0.29", features = ["auto-initialize"] }
 zeroize = "1"
 criterion = { version = "0.8", features = ["html_reports"] }
 
diff --git a/Justfile b/Justfile
index b838f4fc..b65c7ff3 100644
--- a/Justfile
+++ b/Justfile
@@ -64,15 +64,17 @@ run-bedrock:
     docker compose up
 
 # Run Sequencer. Run with RISC0_DEV_MODE=1 to disable proof verification for faster iteration.
+# Optional home/port let a second instance run off the same config, e.g.
+# `just run-sequencer "" "$TMPDIR/lez-sequencer2" 3041` for the multi-sequencer demo.
 [working-directory: 'lez/sequencer/service']
-run-sequencer standalone="":
+run-sequencer standalone="" home="" port="3040":
     @echo "🧠 Running sequencer"
     @if [ "{{standalone}}" = "standalone" ]; then \
         echo "🧪 Running in standalone mode"; \
-        RUST_LOG=info cargo run --features standalone --release -p sequencer_service configs/debug/sequencer_config.json; \
+        RUST_LOG=info cargo run --features standalone --release -p sequencer_service -- configs/debug/sequencer_config.json --port {{port}} {{ if home != "" { "--home " + quote(home) } else { "" } }}; \
     else \
         echo "🚀 Running in normal mode"; \
-        RUST_LOG=info cargo run --release -p sequencer_service configs/debug/sequencer_config.json; \
+        RUST_LOG=info cargo run --release -p sequencer_service -- configs/debug/sequencer_config.json --port {{port}} {{ if home != "" { "--home " + quote(home) } else { "" } }}; \
     fi
 
 # Run Indexer. Run with RISC0_DEV_MODE=1 to disable proof verification for faster iteration.
diff --git a/artifacts/lee/privacy_preserving_circuit/privacy_preserving_circuit.bin b/artifacts/lee/privacy_preserving_circuit/privacy_preserving_circuit.bin
index 4eafd160..58454db6 100644
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diff --git a/docs/LEZ testnet v0.1 tutorials/keycard.md b/docs/LEZ testnet v0.1 tutorials/keycard.md
index 47573f12..66d5aacf 100644
--- a/docs/LEZ testnet v0.1 tutorials/keycard.md	
+++ b/docs/LEZ testnet v0.1 tutorials/keycard.md	
@@ -6,46 +6,45 @@ This tutorial walks you through using Keycard with Wallet CLI. Keycard is option
 ### Required hardware
 - Keycard (Blank) - a Keycard, directly, from Keycard.tech cannot (currently) be updated to support LEE.
 - Smartcard reader
-- Applets (`math.cap` and `LEE_keycard.cap`). Eventually, both of these applets will be available in separate repos.
-  - `math.cap` is an applet to speed up computations on Keycard; developed by Bitgamma (Keycard-tech team).
-  - `LEE_keycard.cap` is an applet that contains LEE keycard protocol; developed by Bitgamma (Keycard-tech team)
 
 ### Firmware installation
-Installation:
 
-1. Install math applet on your keycard; this process only needs to be done once. In the root of repo:
-    ```
-    sudo apt-get install -y default-jdk
-    wget https://github.com/martinpaljak/GlobalPlatformPro/releases/download/v25.10.20/gp.jar -P lez/keycard_wallet/keycard_applets
-    cd lez/keycard_wallet/keycard_applets
-    java -jar gp.jar --key c212e073ff8b4bbfaff4de8ab655221f --load math.cap
-    ```
-2. Install `keycard-desktop` from [github](https://github.com/choppu/keycard-desktop)
-    - Keycard Desktop is used to install the LEE key protocol to a blank keycard.
-    - Select (Re)Install Applet and upload the key binary (`lez/keycard_wallet/keycard_applets/LEE_keycard.cap`).
-    ![keycard-desktop.png](keycard-desktop.png)
-    - **Important:** keycard can only connect with one application at a time; if Keycard-Desktop is using keycard then Wallet CLI cannot access the same keycard, and vice-versa.
-
-## Wallet with Keycard
-Keycard functionality is available to Wallet CLI by setting up the following Python virtual environment. The steps below can also be run via `lez/keycard_wallet/wallet_with_keycard.sh`.
+LEE key protocol support (on top of standard Status Keycard commands) is built from source, from [`keycard-tech/status-keycard`](https://github.com/keycard-tech/status-keycard)'s default branch:
 
 ```bash
-# Install appropriate version of `keycard-py`.
-git clone --branch lee-schnorr --single-branch https://github.com/bitgamma/keycard-py.git lez/keycard_wallet/python/keycard-py
-
-# Set up virtual environment.
-python3 -m venv venv
-source venv/bin/activate
-pip install pyscard mnemonic ecdsa pyaes
-pip install -e lez/keycard_wallet/python/keycard-py
+git clone --recurse-submodules https://github.com/keycard-tech/status-keycard.git
+cd status-keycard
 ```
 
-**Important**: Keycard wallet commands only work within the virtual environment.
+The build requires **OpenJDK 11 specifically** (newer JDKs aren't compatible with its Gradle/plugin versions):
+
 ```bash
-# In the root of LEE repo:
-source venv/bin/activate
+sudo apt-get install -y openjdk-11-jdk
+export JAVA_HOME=/usr/lib/jvm/java-11-openjdk-amd64
 ```
 
+Gradle's default heap is too small for this build and will OOM during `buildSrc` compilation; bump it once:
+
+```bash
+echo "org.gradle.jvmargs=-Xmx2g" >> gradle.properties
+```
+
+Build and install onto a connected, blank card (disconnect all other card readers first):
+
+```bash
+./gradlew install
+```
+
+This uses the GlobalPlatform default keys (`404142434445464748494a4b4c4d4e4f`) or the Keycard development-card key (`c212e073ff8b4bbfaff4de8ab655221f`) to load it onto the card.
+
+**Warning: `./gradlew install` uninstalls and reinstalls the applet, which erases any existing personalization.** If you run this against a card that's already personalized (identity certificate, PIN, PUK, and any loaded keys), all of that is wiped, regardless of whether the firmware source changed at all — reinstalling the exact same build twice has the same effect.
+
+### Personalizing your card
+
+**Personalization is mandatory, not optional — every card requires it before any command will work, immediately after installing the firmware.** A freshly installed (or freshly reinstalled) card has no identity certificate, and refuses every command.
+
+**Important:** keycard can only connect with one application at a time; if another tool is using the keycard then Wallet CLI cannot access the same keycard, and vice-versa.
+
 ## PIN entry
 
 Each Keycard command prompts for a PIN interactively. To avoid re-entering it across multiple commands, export it as an environment variable:
@@ -60,43 +59,36 @@ Unset it when done:
 unset KEYCARD_PIN
 ```
 
-## Pairing password
+## Default CA public key
 
-The pairing password is used to establish a secure channel between the wallet and the card. It is set permanently on the card during `wallet keycard init` and must match on every subsequent re-pair.
+`keycard-rs` verifies every card's identity certificate against a trusted CA public key before anything else happens — no match, no commands, regardless of whether the firmware or PIN is correct. The baked-in default is:
 
-The default password (`KeycardDefaultPairing`) is [recommended](https://docs.keycard.tech/en/developers/core) for most users. Wallet CLI allows advance users the flexibility to set their own pairing password.
-
-To use a custom pairing password, set it before `init`:
-
-```bash
-# Note: Keep the leading space before this command.
-# Leading space prevents this command from being stored in shell history
-# (when HISTCONTROL=ignorespace is enabled).
- export KEYCARD_PAIRING_PASSWORD=my-custom-password
-wallet keycard init
+```
+029ab99ee1e7a71bdf45b3f9c58c99866ff1294d2c1e304e228a86e10c3343501c
 ```
 
-After a successful initializaation, subsequent commands (`connect`, transfers) use the cached pairing index and key — the pairing password is not needed again until the pairing is cleared.
-
-**Important:** if you initialized with a custom password, `KEYCARD_PAIRING_PASSWORD` must be set in every session where re-pairing can occur (after `disconnect`, or on a new machine). If the env var is missing then wallet CLI will attempt to use the default password. As a result, pairing will fail.
-
-Unset the pairing password variable when done:
+Cards personalized for development/testing (see "Personalizing the card" above) are signed by a different, throwaway CA instead, so the wallet needs to be told to trust it explicitly:
 
 ```bash
-unset KEYCARD_PAIRING_PASSWORD
+export KEYCARD_CA_PUBLIC_KEY=025877220aaae6e54a6f974602d5995c0fe24a3ea7ddabd8644bec795b9da00743
+# unset KEYCARD_CA_PUBLIC_KEY when done testing against a dev card
 ```
 
+If the card's certificate doesn't match whichever CA is in effect, every command reports the card as simply "not available."
+
 ## Keycard Commands
 
+Keycard uses Secure Channel V2 (applet version >= 4.0) — the wallet authenticates the card via its identity certificate and opens a fresh ECDHE-derived channel every session. There's no pairing step and nothing cached between commands; you'll enter your PIN each time you connect.
+
 ### Keycard
 
 | Command                          | Description                                                           |
 |----------------------------------|-----------------------------------------------------------------------|
 | `wallet keycard available`       | Checks whether a Keycard reader and card are accessible               |
 | `wallet keycard init`            | Initializes a blank Keycard with a PIN and a generated PUK            |
-| `wallet keycard connect`         | Establishes and saves a pairing with the Keycard                      |
-| `wallet keycard disconnect`      | Unpairs the Keycard and clears the saved pairing                      |
+| `wallet keycard connect`         | Opens a secure channel with the Keycard and verifies the PIN          |
 | `wallet keycard load`            | Loads a mnemonic phrase onto the Keycard                              |
+| `wallet keycard factory-reset`   | Wipes PIN/PUK/keys back to uninitialized, for re-`init` — **debug builds only** (see below) |
 | `wallet keycard get-private-keys`| Prints NSK and VSK for a BIP-32 path — **debug builds only** (see below) |
 
 1. Check keycard availability
@@ -118,13 +110,13 @@ Record this PUK and store it somewhere safe. It cannot be recovered.
 ✅ Keycard initialized successfully.
 ```
 
-3. Connect (pair and save pairing for subsequent commands)
+3. Connect (open a secure channel and verify the PIN)
 ```bash
 wallet keycard connect
 
 # Output:
 Keycard PIN:
-✅ Keycard paired and ready.
+✅ Keycard connected and PIN verified.
 ```
 
 4. Load a mnemonic phrase
@@ -140,25 +132,24 @@ Keycard PIN:
 ✅ Mnemonic phrase loaded successfully.
 ```
 
-5. Disconnect (unpair and clear saved pairing)
+5. `factory-reset`
+
+Wipes the card's PIN, PUK, and loaded keys back to an uninitialized state, so it can be re-`init`ialized — the counterpart to `init`. It does **not** remove the identity certificate, so the card doesn't need re-personalizing afterward. Irreversibly destroys any keys currently on the card, so it requires `--confirm`:
 ```bash
-wallet keycard disconnect
+wallet keycard factory-reset --confirm
 
 # Output:
-Keycard PIN:
-✅ Keycard unpaired and pairing cleared.
+✅ Keycard factory-reset. Run `wallet keycard init` to reinitialize it.
 ```
 
-6. Get private keys for a BIP-32 path (**debug builds only**)
+6. `get-private-keys` (**debug builds only**)
 
-`get-private-keys` exports the raw NSK and VSK for a derivation path. NSK gates nullifier creation and VSK gates note decryption — either key is sufficient to fully compromise that account's privacy. The command is only available in debug builds and requires `--reveal` to confirm intent.
-
-First install the wallet with the `keycard-debug` feature:
+Requires building the wallet with the `keycard-debug` feature:
 ```bash
 cargo install --path lez/wallet --force --features keycard-debug
 ```
 
-Then run the command:
+Exports the raw NSK and VSK for a derivation path. NSK gates nullifier creation and VSK gates note decryption — either key is sufficient to fully compromise that account's privacy. Requires `--reveal` to confirm intent:
 ```bash
 wallet keycard get-private-keys --key-path "m/44'/60'/0'/0/0" --reveal
 
@@ -515,20 +506,4 @@ bash lez/keycard_wallet/tests/keycard_tests.sh
 bash lez/keycard_wallet/tests/keycard_tests_2.sh
 bash lez/keycard_wallet/tests/keycard_test_3.sh
 bash lez/keycard_wallet/tests/keycard_power_recovery_tests.sh
-```
-
-## SigningGroup
-
-`SigningGroup` (`lez/wallet/src/signing.rs`) partitions a transaction's signers into two buckets — local accounts and Keycard accounts. This ensures that Python GIL is only used at most once per transaction, regardless of how many Keycard accounts are involved.
-
-Local signers are resolved and signed in pure Rust. Keycard signers store only their BIP32 key path; all of them are signed inside a single Python session (`connect` / `close_session`) when `sign_all` is called. The command calls `needs_pin` to decide whether to prompt for a PIN before signing.
-
-Foreign recipient accounts — those with no local key and no Keycard path — are silently skipped and require neither a signature nor a nonce.
-
-```
-SigningGroup {
-    local:   [(AccountId, PrivateKey)],   // signed in pure Rust
-    keycard: [(AccountId, BIP32Path)],    // signed via a single Python/Keycard session
-}
-```
 ```
\ No newline at end of file
diff --git a/integration_tests/Cargo.toml b/integration_tests/Cargo.toml
index a225d657..060e10f3 100644
--- a/integration_tests/Cargo.toml
+++ b/integration_tests/Cargo.toml
@@ -36,6 +36,7 @@ indexer_service_protocol.workspace = true
 system_accounts.workspace = true
 programs.workspace = true
 test_programs.workspace = true
+testnet_initial_state.workspace = true
 
 logos-blockchain-http-api-common.workspace = true
 logos-blockchain-core.workspace = true
diff --git a/integration_tests/tests/cross_zone_bridge.rs b/integration_tests/tests/cross_zone_bridge.rs
index f68301c3..919b3dbc 100644
--- a/integration_tests/tests/cross_zone_bridge.rs
+++ b/integration_tests/tests/cross_zone_bridge.rs
@@ -16,7 +16,7 @@
 //! needs source verification, where a value-bearing target checks the message
 //! originated from `bridge_lock`; that is out of scope for the demo.
 
-use std::{net::SocketAddr, time::Duration};
+use std::time::Duration;
 
 use anyhow::{Context as _, Result};
 use common::transaction::LeeTransaction;
@@ -24,14 +24,14 @@ use cross_zone_outbox_core::outbox_pda;
 use integration_tests::{
     config::{self, SequencerPartialConfig},
     indexer_client::IndexerClient,
-    setup::{SequencerSetup, setup_bedrock_node, setup_indexer},
+    setup::{SequencerSetup, indexer_client, sequencer_client, setup_bedrock_node, setup_indexer},
 };
 use lee::{
     AccountId, PrivateKey, PublicKey, PublicTransaction,
     public_transaction::{Message, WitnessSet},
 };
 use sequencer_core::config::{CrossZoneConfig, CrossZonePeer, GenesisAction};
-use sequencer_service_rpc::{RpcClient as _, SequencerClient, SequencerClientBuilder};
+use sequencer_service_rpc::RpcClient as _;
 use tokio::test;
 
 const DELIVERY_TIMEOUT: Duration = Duration::from_secs(600);
@@ -95,9 +95,7 @@ async fn lock_on_zone_a_mints_wrapped_token_on_zone_b() -> Result<()> {
 
     // Wait until zone B's indexer reflects the verified mint.
     let holding_id = wrapped_token_core::holding_account_id(wrapped_token_id, &RECIPIENT);
-    let indexer_url = config::addr_to_url(config::UrlProtocol::Ws, idx_b.addr())
-        .context("Failed to build indexer URL")?;
-    let indexer = IndexerClient::new(&indexer_url)
+    let indexer = indexer_client(idx_b.addr())
         .await
         .context("Failed to build indexer client")?;
 
@@ -171,14 +169,6 @@ fn build_lock_tx(
     LeeTransaction::Public(PublicTransaction::new(message, witness))
 }
 
-fn sequencer_client(addr: SocketAddr) -> Result<SequencerClient> {
-    let url = config::addr_to_url(config::UrlProtocol::Http, addr)
-        .context("Failed to build sequencer URL")?;
-    SequencerClientBuilder::default()
-        .build(url)
-        .context("Failed to build sequencer client")
-}
-
 /// Polls zone B's indexer until the recipient's wrapped holding is non-zero.
 async fn wait_for_mint(indexer: &IndexerClient, holding_id: AccountId) -> Result<u128> {
     let account_id = indexer_service_protocol::AccountId {
diff --git a/integration_tests/tests/cross_zone_ingress_guard.rs b/integration_tests/tests/cross_zone_ingress_guard.rs
index fe5fe7fc..86731477 100644
--- a/integration_tests/tests/cross_zone_ingress_guard.rs
+++ b/integration_tests/tests/cross_zone_ingress_guard.rs
@@ -9,8 +9,6 @@
 //! inbox guest's caller-is-none assertion passes for a top-level user tx, so the
 //! sequencer ingress guard is the only thing that stops this.
 
-use std::net::SocketAddr;
-
 use anyhow::{Context as _, Result};
 use common::transaction::LeeTransaction;
 use cross_zone_inbox_core::{
@@ -18,13 +16,13 @@ use cross_zone_inbox_core::{
 };
 use integration_tests::{
     config::{self, SequencerPartialConfig},
-    setup::{SequencerSetup, setup_bedrock_node},
+    setup::{SequencerSetup, sequencer_client, setup_bedrock_node},
 };
 use lee::{
     PublicTransaction,
     public_transaction::{Message, WitnessSet},
 };
-use sequencer_service_rpc::{RpcClient as _, SequencerClient, SequencerClientBuilder};
+use sequencer_service_rpc::RpcClient as _;
 use tokio::test;
 
 #[test]
@@ -73,11 +71,3 @@ async fn user_origin_inbox_call_rejected() -> Result<()> {
     );
     Ok(())
 }
-
-fn sequencer_client(addr: SocketAddr) -> Result<SequencerClient> {
-    let url = config::addr_to_url(config::UrlProtocol::Http, addr)
-        .context("Failed to build sequencer URL")?;
-    SequencerClientBuilder::default()
-        .build(url)
-        .context("Failed to build sequencer client")
-}
diff --git a/integration_tests/tests/cross_zone_ping.rs b/integration_tests/tests/cross_zone_ping.rs
index a3ed0c0c..f106bda1 100644
--- a/integration_tests/tests/cross_zone_ping.rs
+++ b/integration_tests/tests/cross_zone_ping.rs
@@ -11,20 +11,20 @@
 //! inbox dispatch, and zone B's sequencer delivers it. This is the M3 milestone,
 //! sequencer-trusted, with no indexer re-derivation (that is M4).
 
-use std::{net::SocketAddr, time::Duration};
+use std::time::Duration;
 
 use anyhow::{Context as _, Result};
 use common::transaction::LeeTransaction;
 use cross_zone_outbox_core::outbox_pda;
 use integration_tests::{
     config::{self, SequencerPartialConfig},
-    setup::{SequencerSetup, setup_bedrock_node},
+    setup::{SequencerSetup, sequencer_client, setup_bedrock_node},
 };
 use lee::{AccountId, PublicTransaction, public_transaction::Message};
 use lee_core::program::ProgramId;
 use ping_core::{ReceiverInstruction, SenderInstruction, ping_record_pda};
 use sequencer_core::config::{CrossZoneConfig, CrossZonePeer};
-use sequencer_service_rpc::{RpcClient as _, SequencerClient, SequencerClientBuilder};
+use sequencer_service_rpc::{RpcClient as _, SequencerClient};
 use tokio::test;
 
 const DELIVERY_TIMEOUT: Duration = Duration::from_secs(480);
@@ -123,14 +123,6 @@ fn build_ping_tx(target_zone: [u8; 32], receiver_id: ProgramId) -> LeeTransactio
     ))
 }
 
-fn sequencer_client(addr: SocketAddr) -> Result<SequencerClient> {
-    let url = config::addr_to_url(config::UrlProtocol::Http, addr)
-        .context("Failed to build sequencer URL")?;
-    SequencerClientBuilder::default()
-        .build(url)
-        .context("Failed to build sequencer client")
-}
-
 /// Polls zone B's sequencer until the ping record PDA holds a payload.
 async fn wait_for_delivery(client: SequencerClient, record_id: AccountId) -> Result<Vec<u8>> {
     let wait = async {
diff --git a/integration_tests/tests/cross_zone_verified.rs b/integration_tests/tests/cross_zone_verified.rs
index aa2ac06a..cc21c42a 100644
--- a/integration_tests/tests/cross_zone_verified.rs
+++ b/integration_tests/tests/cross_zone_verified.rs
@@ -9,7 +9,7 @@
 //! payload landing in the indexer's state proves verification passed; a forgery
 //! would have halted the indexer instead.
 
-use std::{net::SocketAddr, time::Duration};
+use std::time::Duration;
 
 use anyhow::{Context as _, Result};
 use common::transaction::LeeTransaction;
@@ -17,13 +17,13 @@ use cross_zone_outbox_core::outbox_pda;
 use integration_tests::{
     config::{self, SequencerPartialConfig},
     indexer_client::IndexerClient,
-    setup::{SequencerSetup, setup_bedrock_node, setup_indexer},
+    setup::{SequencerSetup, indexer_client, sequencer_client, setup_bedrock_node, setup_indexer},
 };
 use lee::{AccountId, PublicTransaction, public_transaction::Message};
 use lee_core::program::ProgramId;
 use ping_core::{ReceiverInstruction, SenderInstruction, ping_record_pda};
 use sequencer_core::config::{CrossZoneConfig, CrossZonePeer};
-use sequencer_service_rpc::{RpcClient as _, SequencerClient, SequencerClientBuilder};
+use sequencer_service_rpc::RpcClient as _;
 use tokio::test;
 
 const DELIVERY_TIMEOUT: Duration = Duration::from_secs(600);
@@ -83,9 +83,7 @@ async fn indexer_verifies_and_delivers_cross_zone_ping() -> Result<()> {
     // Wait until zone B's indexer records the delivered payload. The indexer only
     // applies the dispatch after re-deriving and verifying it.
     let record_id = ping_record_pda(receiver_id);
-    let indexer_url = config::addr_to_url(config::UrlProtocol::Ws, idx_b.addr())
-        .context("Failed to build indexer URL")?;
-    let indexer = IndexerClient::new(&indexer_url)
+    let indexer = indexer_client(idx_b.addr())
         .await
         .context("Failed to build indexer client")?;
 
@@ -130,14 +128,6 @@ fn build_ping_tx(target_zone: [u8; 32], receiver_id: ProgramId) -> LeeTransactio
     ))
 }
 
-fn sequencer_client(addr: SocketAddr) -> Result<SequencerClient> {
-    let url = config::addr_to_url(config::UrlProtocol::Http, addr)
-        .context("Failed to build sequencer URL")?;
-    SequencerClientBuilder::default()
-        .build(url)
-        .context("Failed to build sequencer client")
-}
-
 /// Polls zone B's indexer until the ping record PDA holds a payload.
 async fn wait_for_indexer_delivery(
     indexer: &IndexerClient,
diff --git a/integration_tests/tests/multi_sequencer.rs b/integration_tests/tests/multi_sequencer.rs
new file mode 100644
index 00000000..dfca2cf2
--- /dev/null
+++ b/integration_tests/tests/multi_sequencer.rs
@@ -0,0 +1,236 @@
+#![expect(
+    clippy::tests_outside_test_module,
+    reason = "top-level test functions are conventional for integration tests"
+)]
+
+//! Two sequencers share one channel: A starts solo as channel admin, live-
+//! accredits `[A, B]` with round-robin rotation, B joins and syncs, both
+//! produce on their turns, and A, B and an indexer converge on the same chain.
+
+use std::time::Duration;
+
+use anyhow::{Context as _, Result, ensure};
+use indexer_service_rpc::RpcClient as _;
+use integration_tests::{
+    config::{self, SequencerPartialConfig},
+    indexer_client::IndexerClient,
+    setup::{SequencerSetup, indexer_client, sequencer_client, setup_bedrock_node, setup_indexer},
+};
+use logos_blockchain_key_management_system_service::keys::{ED25519_SECRET_KEY_SIZE, Ed25519Key};
+use sequencer_core::{block_publisher::post_channel_config, config::BedrockConfig};
+use sequencer_service_rpc::{RpcClient as _, SequencerClient};
+use testnet_initial_state::{initial_pub_accounts_private_keys, initial_public_user_accounts};
+use tokio::test;
+
+/// 1 s bedrock slots: rotate the turn every ~20 s of tenure; steal a stalled
+/// turn after ~30 s (bounds the stall while B is accredited but not started).
+const POSTING_TIMEFRAME_SLOTS: u32 = 20;
+const POSTING_TIMEOUT_SLOTS: u32 = 30;
+const PHASE_TIMEOUT: Duration = Duration::from_secs(360);
+const POLL_INTERVAL: Duration = Duration::from_secs(2);
+const TRANSFER_AMOUNT: u128 = 10;
+/// ≈4 turn windows past B's join (5 s blocks, ~20 s turns → ~4 blocks/window).
+const ROTATION_BLOCKS: u64 = 8;
+
+#[test]
+async fn multi_sequencer_committee_converges() -> Result<()> {
+    let (_bedrock, bedrock_addr) = setup_bedrock_node()
+        .await
+        .context("Failed to set up Bedrock node")?;
+
+    // Fixed seeds so A can accredit B's public key before B exists.
+    let key_a = [0xA1_u8; ED25519_SECRET_KEY_SIZE];
+    let key_b = [0xB2_u8; ED25519_SECRET_KEY_SIZE];
+    let pub_a = Ed25519Key::from_bytes(&key_a).public_key();
+    let pub_b = Ed25519Key::from_bytes(&key_b).public_key();
+
+    let partial = SequencerPartialConfig {
+        block_create_timeout: Duration::from_secs(5),
+        ..SequencerPartialConfig::default()
+    };
+
+    // Phase 1: A solo (its first inscription creates the channel), plus an indexer.
+    let (seq_a, _a_home) = SequencerSetup::new(partial, bedrock_addr)
+        .with_genesis(vec![])
+        .with_bedrock_signing_key(key_a)
+        .setup()
+        .await
+        .context("Failed to set up sequencer A")?;
+    let a = sequencer_client(seq_a.addr())?;
+    let (idx, _idx_home) = setup_indexer(bedrock_addr, config::bedrock_channel_id(), None)
+        .await
+        .context("Failed to set up indexer")?;
+    let indexer = indexer_client(idx.addr()).await?;
+
+    wait_for_height(&a, 2, "sequencer A to produce past genesis").await?;
+
+    // Phase 2: live roster change to [A, B] with rotation enabled, posted
+    // straight to bedrock with A's admin key (the operator one-shot path).
+    post_channel_config(
+        &BedrockConfig {
+            channel_id: config::bedrock_channel_id(),
+            node_url: config::addr_to_url(config::UrlProtocol::Http, bedrock_addr)?,
+            auth: None,
+        },
+        &Ed25519Key::from_bytes(&key_a),
+        vec![pub_a, pub_b],
+        POSTING_TIMEFRAME_SLOTS,
+        POSTING_TIMEOUT_SLOTS,
+        1,
+        1,
+    )
+    .await
+    .context("Failed to configure the channel committee")?;
+
+    let height_at_config = a.get_last_block_id().await?;
+    wait_for_height(
+        &a,
+        height_at_config + 1,
+        "A to produce after the roster change",
+    )
+    .await?;
+
+    // Phase 3: B joins live and syncs the existing chain.
+    let (seq_b, _b_home) = SequencerSetup::new(partial, bedrock_addr)
+        .with_genesis(vec![])
+        .with_bedrock_signing_key(key_b)
+        .setup()
+        .await
+        .context("Failed to set up sequencer B")?;
+    let b = sequencer_client(seq_b.addr())?;
+
+    let join_height = a.get_last_block_id().await?;
+    wait_for_height(&b, join_height, "B to sync to A's height at join").await?;
+
+    // Phase 4: rotation + convergence over ≈4 turn windows.
+    let rotation_target = join_height + ROTATION_BLOCKS;
+    wait_for_height(
+        &a,
+        rotation_target,
+        "the chain to advance across turn windows",
+    )
+    .await?;
+    wait_for_height(&b, rotation_target, "B to follow across turn windows").await?;
+    assert_same_chain(&a, &b).await?;
+
+    // Phase 5: a tx submitted only to B is included by B and visible on A.
+    let accounts = initial_public_user_accounts();
+    let from = accounts[0].account_id;
+    let to = accounts[1].account_id;
+    let sign_key = initial_pub_accounts_private_keys()[0].pub_sign_key.clone();
+
+    let to_balance_before = a.get_account_balance(to).await?;
+    let nonce = b.get_accounts_nonces(vec![from]).await?[0];
+    let tx = common::test_utils::create_transaction_native_token_transfer(
+        from,
+        nonce.0,
+        to,
+        TRANSFER_AMOUNT,
+        &sign_key,
+    );
+    b.send_transaction(tx)
+        .await
+        .context("Failed to submit the transfer to B")?;
+
+    wait_for_balance(&a, to, to_balance_before + TRANSFER_AMOUNT).await?;
+
+    // Phase 6: the indexer finalizes the same chain, with no stall.
+    wait_for_finalized(&indexer, join_height).await?;
+    let finalized = indexer.get_last_finalized_block_id().await?.unwrap_or(0);
+    for id in 1..=finalized {
+        let block_i = indexer
+            .get_block_by_id(id)
+            .await?
+            .with_context(|| format!("Indexer is missing finalized block {id}"))?;
+        let block_a = a
+            .get_block(id)
+            .await?
+            .with_context(|| format!("A is missing block {id}"))?;
+        ensure!(
+            block_i.header.hash == indexer_service_protocol::HashType::from(block_a.header.hash),
+            "Indexer diverges from A at block {id}"
+        );
+    }
+    let status = indexer.get_status().await?;
+    ensure!(
+        status.stall_reason.is_none(),
+        "Indexer is stalled: {:?}",
+        status.stall_reason
+    );
+
+    Ok(())
+}
+
+/// Polls the sequencer until its chain height reaches `target`.
+async fn wait_for_height(client: &SequencerClient, target: u64, what: &str) -> Result<()> {
+    let wait = async {
+        loop {
+            if client.get_last_block_id().await? >= target {
+                return Ok::<(), anyhow::Error>(());
+            }
+            tokio::time::sleep(POLL_INTERVAL).await;
+        }
+    };
+    tokio::time::timeout(PHASE_TIMEOUT, wait)
+        .await
+        .with_context(|| format!("Timed out waiting for {what} (target height {target})"))?
+}
+
+/// Polls the sequencer until `account`'s balance reaches `expected`.
+async fn wait_for_balance(
+    client: &SequencerClient,
+    account: lee::AccountId,
+    expected: u128,
+) -> Result<()> {
+    let wait = async {
+        loop {
+            if client.get_account_balance(account).await? == expected {
+                return Ok::<(), anyhow::Error>(());
+            }
+            tokio::time::sleep(POLL_INTERVAL).await;
+        }
+    };
+    tokio::time::timeout(PHASE_TIMEOUT, wait)
+        .await
+        .context("Timed out waiting for the cross-sequencer transfer to reach A")?
+}
+
+/// Polls the indexer until its finalized height reaches `target`.
+async fn wait_for_finalized(indexer: &IndexerClient, target: u64) -> Result<()> {
+    let wait = async {
+        loop {
+            if indexer.get_last_finalized_block_id().await?.unwrap_or(0) >= target {
+                return Ok::<(), anyhow::Error>(());
+            }
+            tokio::time::sleep(POLL_INTERVAL).await;
+        }
+    };
+    tokio::time::timeout(PHASE_TIMEOUT, wait)
+        .await
+        .context("Timed out waiting for the indexer to finalize")?
+}
+
+/// Asserts A and B hold byte-identical block hashes over their common prefix.
+async fn assert_same_chain(a: &SequencerClient, b: &SequencerClient) -> Result<()> {
+    let common = a
+        .get_last_block_id()
+        .await?
+        .min(b.get_last_block_id().await?);
+    for id in 1..=common {
+        let block_a = a
+            .get_block(id)
+            .await?
+            .with_context(|| format!("A is missing block {id}"))?;
+        let block_b = b
+            .get_block(id)
+            .await?
+            .with_context(|| format!("B is missing block {id}"))?;
+        ensure!(
+            block_a.header.hash == block_b.header.hash,
+            "Chain divergence at block {id}: A {:?} vs B {:?}",
+            block_a.header.hash,
+            block_b.header.hash
+        );
+    }
+    Ok(())
+}
diff --git a/integration_tests/tests/sequencer_bootstrap.rs b/integration_tests/tests/sequencer_bootstrap.rs
index 5261c412..9dd2b586 100644
--- a/integration_tests/tests/sequencer_bootstrap.rs
+++ b/integration_tests/tests/sequencer_bootstrap.rs
@@ -8,7 +8,7 @@
     reason = "Integration tests live at crate root and don't care about these lints"
 )]
 
-use std::{net::SocketAddr, path::Path, time::Duration};
+use std::{path::Path, time::Duration};
 
 use anyhow::{Context as _, Result, bail};
 use indexer_service_rpc::RpcClient as _;
@@ -16,11 +16,11 @@ use integration_tests::L2_TO_L1_TIMEOUT;
 use lee::{AccountId, PrivateKey, PublicKey};
 use logos_blockchain_core::mantle::ops::channel::ChannelId;
 use sequencer_core::config::GenesisAction;
-use sequencer_service_rpc::{RpcClient as _, SequencerClient, SequencerClientBuilder};
+use sequencer_service_rpc::{RpcClient as _, SequencerClient};
 use test_fixtures::{
     config::{SequencerPartialConfig, UrlProtocol, addr_to_url},
     indexer_client::IndexerClient,
-    setup::{SequencerSetup, setup_bedrock_node, setup_indexer},
+    setup::{SequencerSetup, sequencer_client, setup_bedrock_node, setup_indexer},
 };
 use tokio::test;
 
@@ -41,13 +41,6 @@ fn slow_blocks() -> SequencerPartialConfig {
     }
 }
 
-fn sequencer_client(addr: SocketAddr) -> Result<SequencerClient> {
-    let url = addr_to_url(UrlProtocol::Http, addr).context("Failed to build sequencer URL")?;
-    SequencerClientBuilder::default()
-        .build(url)
-        .context("Failed to build sequencer client")
-}
-
 /// Polls the indexer's last finalized block id until it reaches `target`. The
 /// indexer reads finalized channel history, so this is our oracle for "block
 /// `target` is finalized on Bedrock" — exactly what a reconstructing sequencer
diff --git a/integration_tests/tests/tps.rs b/integration_tests/tests/tps.rs
index 71fb132b..7141303e 100644
--- a/integration_tests/tests/tps.rs
+++ b/integration_tests/tests/tps.rs
@@ -294,6 +294,7 @@ fn build_privacy_transaction() -> PrivacyPreservingTransaction {
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_vpk,
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: sender_nsk,
                 membership_proof: proof,
                 identifier: 0,
diff --git a/lee/privacy_preserving_circuit/src/output.rs b/lee/privacy_preserving_circuit/src/output.rs
index c9543e05..c5d962d6 100644
--- a/lee/privacy_preserving_circuit/src/output.rs
+++ b/lee/privacy_preserving_circuit/src/output.rs
@@ -4,7 +4,7 @@ use lee_core::{
     PrivacyPreservingCircuitOutput, PrivateAccountKind, SharedSecretKey,
     account::{Account, AccountId, Nonce},
     compute_digest_for_path,
-    encryption::ViewingPublicKey,
+    encryption::{ViewTag, ViewingPublicKey},
 };
 
 use crate::execution_state::ExecutionState;
@@ -66,6 +66,7 @@ pub fn compute_circuit_output(
                     *commitment_root,
                 );
                 let new_nonce = Nonce::private_account_nonce_init(&account_id);
+                let view_tag = EncryptedAccountData::compute_view_tag(&npk, vpk);
 
                 emit_private_output(
                     &mut output,
@@ -73,7 +74,7 @@ pub fn compute_circuit_output(
                     post_state,
                     &account_id,
                     &PrivateAccountKind::Regular(*identifier),
-                    &npk,
+                    view_tag,
                     vpk,
                     random_seed,
                     new_nullifier,
@@ -83,6 +84,7 @@ pub fn compute_circuit_output(
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk,
                 random_seed,
+                view_tag,
                 nsk,
                 membership_proof,
                 identifier,
@@ -110,7 +112,7 @@ pub fn compute_circuit_output(
                     post_state,
                     &account_id,
                     &PrivateAccountKind::Regular(*identifier),
-                    &npk,
+                    *view_tag,
                     vpk,
                     random_seed,
                     new_nullifier,
@@ -142,6 +144,7 @@ pub fn compute_circuit_output(
                     *commitment_root,
                 );
                 let new_nonce = Nonce::private_account_nonce_init(&account_id);
+                let view_tag = EncryptedAccountData::compute_view_tag(npk, vpk);
 
                 emit_private_output(
                     &mut output,
@@ -149,7 +152,7 @@ pub fn compute_circuit_output(
                     post_state,
                     &account_id,
                     &PrivateAccountKind::Regular(*identifier),
-                    npk,
+                    view_tag,
                     vpk,
                     random_seed,
                     new_nullifier,
@@ -190,6 +193,7 @@ pub fn compute_circuit_output(
                 let (authority_program_id, seed) = pda_seed_by_position
                     .get(&pos)
                     .expect("PrivatePdaInit position must be in pda_seed_by_position");
+                let view_tag = EncryptedAccountData::compute_view_tag(npk, vpk);
                 emit_private_output(
                     &mut output,
                     &mut output_index,
@@ -200,7 +204,7 @@ pub fn compute_circuit_output(
                         seed: *seed,
                         identifier: *identifier,
                     },
-                    npk,
+                    view_tag,
                     vpk,
                     random_seed,
                     new_nullifier,
@@ -210,6 +214,7 @@ pub fn compute_circuit_output(
             InputAccountIdentity::PrivatePdaUpdate {
                 vpk,
                 random_seed,
+                view_tag,
                 nsk,
                 membership_proof,
                 identifier,
@@ -234,7 +239,6 @@ pub fn compute_circuit_output(
                 let new_nonce = pre_state.account.nonce.private_account_nonce_increment(nsk);
 
                 let account_id = pre_state.account_id;
-                let npk = NullifierPublicKey::from(nsk);
                 let (authority_program_id, seed) = pda_seed_by_position
                     .get(&pos)
                     .expect("PrivatePdaUpdate position must be in pda_seed_by_position");
@@ -248,7 +252,7 @@ pub fn compute_circuit_output(
                         seed: *seed,
                         identifier: *identifier,
                     },
-                    &npk,
+                    *view_tag,
                     vpk,
                     random_seed,
                     new_nullifier,
@@ -271,7 +275,7 @@ fn emit_private_output(
     post_state: Account,
     account_id: &AccountId,
     kind: &PrivateAccountKind,
-    npk: &NullifierPublicKey,
+    view_tag: ViewTag,
     vpk: &ViewingPublicKey,
     random_seed: &[u8; 32],
     new_nullifier: (Nullifier, CommitmentSetDigest),
@@ -287,15 +291,6 @@ fn emit_private_output(
     let esk = EphemeralSecretKey::new(account_id, random_seed, &new_nonce);
     let (shared_secret, epk) = SharedSecretKey::encapsulate_deterministic(vpk, &esk);
 
-    // Currently the view tag is properlty generated for all accounts.
-    // To increase privacy, this will be changed in the later version
-    // to only be generated explicitly for initialized accounts and
-    // fed by the prover directly for updated accounts.
-    //
-    // See issue 573:
-    // https://github.com/logos-blockchain/logos-execution-zone/issues/573
-    let view_tag = EncryptedAccountData::compute_view_tag(npk, vpk);
-
     let encrypted_account = EncryptionScheme::encrypt(
         &post_with_updated_nonce,
         kind,
diff --git a/lee/state_machine/core/src/circuit_io.rs b/lee/state_machine/core/src/circuit_io.rs
index d441ff19..8db29342 100644
--- a/lee/state_machine/core/src/circuit_io.rs
+++ b/lee/state_machine/core/src/circuit_io.rs
@@ -4,7 +4,7 @@ use crate::{
     Commitment, CommitmentSetDigest, Identifier, MembershipProof, Nullifier, NullifierPublicKey,
     NullifierSecretKey,
     account::{Account, AccountWithMetadata},
-    encryption::{EncryptedAccountData, ViewingPublicKey},
+    encryption::{EncryptedAccountData, ViewTag, ViewingPublicKey},
     program::{BlockValidityWindow, PdaSeed, ProgramId, ProgramOutput, TimestampValidityWindow},
 };
 
@@ -42,6 +42,7 @@ pub enum InputAccountIdentity {
     PrivateAuthorizedUpdate {
         vpk: ViewingPublicKey,
         random_seed: [u8; 32],
+        view_tag: ViewTag,
         nsk: NullifierSecretKey,
         membership_proof: MembershipProof,
         identifier: Identifier,
@@ -79,6 +80,7 @@ pub enum InputAccountIdentity {
     PrivatePdaUpdate {
         vpk: ViewingPublicKey,
         random_seed: [u8; 32],
+        view_tag: ViewTag,
         nsk: NullifierSecretKey,
         membership_proof: MembershipProof,
         identifier: Identifier,
diff --git a/lee/state_machine/src/error.rs b/lee/state_machine/src/error.rs
index 2f073746..94e66e8b 100644
--- a/lee/state_machine/src/error.rs
+++ b/lee/state_machine/src/error.rs
@@ -131,6 +131,11 @@ pub enum InvalidProgramBehaviorError {
 
     #[error("Called program {program_id:?} which is not listed in dependencies")]
     UndeclaredProgramDependency { program_id: ProgramId },
+
+    #[error(
+        "Account {account_id} was declared in the transaction but is missing from the program output"
+    )]
+    DeclaredAccountMissingFromOutput { account_id: AccountId },
 }
 
 #[cfg(test)]
diff --git a/lee/state_machine/src/lib.rs b/lee/state_machine/src/lib.rs
index 238ac5a7..86f357e1 100644
--- a/lee/state_machine/src/lib.rs
+++ b/lee/state_machine/src/lib.rs
@@ -77,6 +77,14 @@ mod test_methods {
         )
     }
 
+    #[must_use]
+    pub const fn dropped_account() -> Program {
+        Program::new_unchecked(
+            test_methods::DROPPED_ACCOUNT_ID,
+            Cow::Borrowed(test_methods::DROPPED_ACCOUNT_ELF),
+        )
+    }
+
     #[must_use]
     pub const fn program_owner_changer() -> Program {
         Program::new_unchecked(
diff --git a/lee/state_machine/src/merkle_tree/mod.rs b/lee/state_machine/src/merkle_tree/mod.rs
index ee8106c5..37e706f7 100644
--- a/lee/state_machine/src/merkle_tree/mod.rs
+++ b/lee/state_machine/src/merkle_tree/mod.rs
@@ -8,8 +8,8 @@ mod default_values;
 type Value = [u8; 32];
 type Node = [u8; 32];
 
-#[cfg_attr(test, derive(Debug, PartialEq, Eq))]
-#[derive(Clone, BorshSerialize, BorshDeserialize)]
+#[cfg_attr(test, derive(Debug))]
+#[derive(Clone, PartialEq, Eq, BorshSerialize, BorshDeserialize)]
 pub struct MerkleTree {
     nodes: Vec<Node>,
     capacity: usize,
diff --git a/lee/state_machine/src/privacy_preserving_transaction/circuit/tests.rs b/lee/state_machine/src/privacy_preserving_transaction/circuit/tests.rs
index 005a9230..fb66186b 100644
--- a/lee/state_machine/src/privacy_preserving_transaction/circuit/tests.rs
+++ b/lee/state_machine/src/privacy_preserving_transaction/circuit/tests.rs
@@ -1,8 +1,8 @@
 #![expect(clippy::shadow_unrelated, reason = "We don't care about it in tests")]
 
 use lee_core::{
-    Commitment, DUMMY_COMMITMENT_HASH, EncryptionScheme, EphemeralSecretKey, Nullifier,
-    PrivacyPreservingCircuitOutput, SharedSecretKey,
+    Commitment, DUMMY_COMMITMENT_HASH, EncryptedAccountData, EncryptionScheme, EphemeralSecretKey,
+    Nullifier, PrivacyPreservingCircuitOutput, SharedSecretKey,
     account::{Account, AccountId, AccountWithMetadata, Nonce, data::Data},
     program::{PdaSeed, PrivateAccountKind},
 };
@@ -198,6 +198,7 @@ fn prove_privacy_preserving_execution_circuit_fully_private() {
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: sender_keys.nsk,
                 membership_proof: commitment_set
                     .get_proof_for(&commitment_sender)
@@ -242,6 +243,76 @@ fn prove_privacy_preserving_execution_circuit_fully_private() {
     assert_eq!(recipient_post, expected_private_account_2);
 }
 
+#[test]
+fn init_note_view_tag_is_derived_from_account_keys() {
+    let program = crate::test_methods::noop();
+    let keys = test_private_account_keys_1();
+    let identifier: u128 = 0;
+    let account_id = AccountId::for_regular_private_account(&keys.npk(), &keys.vpk(), identifier);
+    let account = AccountWithMetadata::new(Account::default(), false, account_id);
+
+    let (output, proof) = execute_and_prove(
+        vec![account],
+        Program::serialize_instruction(()).unwrap(),
+        vec![InputAccountIdentity::PrivateUnauthorized {
+            vpk: keys.vpk(),
+            random_seed: [0; 32],
+            npk: keys.npk(),
+            identifier,
+            commitment_root: DUMMY_COMMITMENT_HASH,
+        }],
+        &program.into(),
+    )
+    .unwrap();
+
+    assert!(proof.is_valid_for(&output));
+    assert_eq!(output.encrypted_private_post_states.len(), 1);
+    assert_eq!(
+        output.encrypted_private_post_states[0].view_tag,
+        EncryptedAccountData::compute_view_tag(&keys.npk(), &keys.vpk()),
+    );
+}
+
+#[test]
+fn update_note_view_tag_is_the_supplied_value() {
+    let program = crate::test_methods::noop();
+    let keys = test_private_account_keys_1();
+    let identifier: u128 = 99;
+    let account_id = AccountId::for_regular_private_account(&keys.npk(), &keys.vpk(), identifier);
+    let account = Account {
+        program_owner: program.id(),
+        balance: 1,
+        ..Account::default()
+    };
+    let commitment = Commitment::new(&account_id, &account);
+    let mut commitment_set = CommitmentSet::with_capacity(1);
+    commitment_set.extend(std::slice::from_ref(&commitment));
+    let sender = AccountWithMetadata::new(account, true, account_id);
+
+    // A tag deliberately different from the address-derived one, so a passthrough is
+    // distinguishable from re-derivation.
+    let fed_tag = EncryptedAccountData::compute_view_tag(&keys.npk(), &keys.vpk()).wrapping_add(1);
+
+    let (output, proof) = execute_and_prove(
+        vec![sender],
+        Program::serialize_instruction(()).unwrap(),
+        vec![InputAccountIdentity::PrivateAuthorizedUpdate {
+            vpk: keys.vpk(),
+            random_seed: [0; 32],
+            view_tag: fed_tag,
+            nsk: keys.nsk,
+            membership_proof: commitment_set.get_proof_for(&commitment).unwrap(),
+            identifier,
+        }],
+        &program.into(),
+    )
+    .unwrap();
+
+    assert!(proof.is_valid_for(&output));
+    assert_eq!(output.encrypted_private_post_states.len(), 1);
+    assert_eq!(output.encrypted_private_post_states[0].view_tag, fed_tag);
+}
+
 #[test]
 fn circuit_fails_when_chained_validity_windows_have_empty_intersection() {
     let account_keys = test_private_account_keys_1();
@@ -574,6 +645,7 @@ fn private_authorized_update_encrypts_regular_kind_with_identifier() {
         vec![InputAccountIdentity::PrivateAuthorizedUpdate {
             vpk: keys.vpk(),
             random_seed: [0; 32],
+            view_tag: 0,
             nsk: keys.nsk,
             membership_proof: commitment_set.get_proof_for(&commitment).unwrap(),
             identifier,
@@ -630,6 +702,7 @@ fn private_pda_update_encrypts_pda_kind_with_identifier() {
             InputAccountIdentity::PrivatePdaUpdate {
                 vpk: keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: keys.nsk,
                 membership_proof: commitment_set.get_proof_for(&pda_commitment).unwrap(),
                 identifier,
@@ -708,6 +781,7 @@ fn private_pda_update_identifier_mismatch_fails() {
             InputAccountIdentity::PrivatePdaUpdate {
                 vpk: keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: keys.nsk,
                 membership_proof: commitment_set.get_proof_for(&pda_commitment).unwrap(),
                 identifier: 99,
diff --git a/lee/state_machine/src/state/mod.rs b/lee/state_machine/src/state/mod.rs
index a011c422..8d278ea5 100644
--- a/lee/state_machine/src/state/mod.rs
+++ b/lee/state_machine/src/state/mod.rs
@@ -20,8 +20,8 @@ use crate::{
 
 pub const MAX_NUMBER_CHAINED_CALLS: usize = 10;
 
-#[derive(Clone, BorshSerialize, BorshDeserialize)]
-#[cfg_attr(test, derive(Debug, PartialEq, Eq))]
+#[derive(Clone, PartialEq, Eq, BorshSerialize, BorshDeserialize)]
+#[cfg_attr(test, derive(Debug))]
 pub struct CommitmentSet {
     merkle_tree: MerkleTree,
     commitments: HashMap<Commitment, usize>,
@@ -67,8 +67,8 @@ impl CommitmentSet {
     }
 }
 
-#[cfg_attr(test, derive(Debug, PartialEq, Eq))]
-#[derive(Clone)]
+#[cfg_attr(test, derive(Debug))]
+#[derive(Clone, PartialEq, Eq)]
 struct NullifierSet(BTreeSet<Nullifier>);
 
 impl NullifierSet {
@@ -109,8 +109,8 @@ impl BorshDeserialize for NullifierSet {
     }
 }
 
-#[derive(Clone, BorshSerialize, BorshDeserialize)]
-#[cfg_attr(test, derive(Debug, PartialEq, Eq))]
+#[derive(Clone, PartialEq, Eq, BorshSerialize, BorshDeserialize)]
+#[cfg_attr(test, derive(Debug))]
 pub struct V03State {
     public_state: HashMap<AccountId, Account>,
     private_state: (CommitmentSet, NullifierSet),
diff --git a/lee/state_machine/src/state/tests/changer_claimer.rs b/lee/state_machine/src/state/tests/changer_claimer.rs
index 9a581c63..f6bb4932 100644
--- a/lee/state_machine/src/state/tests/changer_claimer.rs
+++ b/lee/state_machine/src/state/tests/changer_claimer.rs
@@ -74,6 +74,7 @@ fn private_changer_claimer_no_data_change_no_claim_succeeds() {
         vec![InputAccountIdentity::PrivateAuthorizedUpdate {
             vpk: sender_keys.vpk(),
             random_seed: [0; 32],
+            view_tag: 0,
             nsk: sender_keys.nsk,
             membership_proof: (0, vec![]),
             identifier: 0,
@@ -104,6 +105,7 @@ fn private_changer_claimer_data_change_no_claim_fails() {
         vec![InputAccountIdentity::PrivateAuthorizedUpdate {
             vpk: sender_keys.vpk(),
             random_seed: [0; 32],
+            view_tag: 0,
             nsk: sender_keys.nsk,
             membership_proof: (0, vec![]),
             identifier: 0,
diff --git a/lee/state_machine/src/state/tests/circuit.rs b/lee/state_machine/src/state/tests/circuit.rs
index c13a7370..0b234b30 100644
--- a/lee/state_machine/src/state/tests/circuit.rs
+++ b/lee/state_machine/src/state/tests/circuit.rs
@@ -64,6 +64,7 @@ fn circuit_fails_if_invalid_auth_keys_are_provided() {
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: recipient_keys.nsk,
                 membership_proof: (0, vec![]),
                 identifier: 0,
@@ -113,6 +114,7 @@ fn circuit_should_fail_if_new_private_account_with_non_default_balance_is_provid
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: sender_keys.nsk,
                 membership_proof: (0, vec![]),
                 identifier: 0,
@@ -162,6 +164,7 @@ fn circuit_should_fail_if_new_private_account_with_non_default_program_owner_is_
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: sender_keys.nsk,
                 membership_proof: (0, vec![]),
                 identifier: 0,
@@ -211,6 +214,7 @@ fn circuit_should_fail_if_new_private_account_with_non_default_data_is_provided(
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: sender_keys.nsk,
                 membership_proof: (0, vec![]),
                 identifier: 0,
@@ -260,6 +264,7 @@ fn circuit_should_fail_if_new_private_account_with_non_default_nonce_is_provided
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: sender_keys.nsk,
                 membership_proof: (0, vec![]),
                 identifier: 0,
@@ -307,6 +312,7 @@ fn circuit_should_fail_if_new_private_account_is_provided_with_default_values_bu
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: sender_keys.nsk,
                 membership_proof: (0, vec![]),
                 identifier: 0,
@@ -694,6 +700,7 @@ fn circuit_should_fail_if_there_are_repeated_ids() {
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: sender_keys.nsk,
                 membership_proof: (1, vec![]),
                 identifier: 0,
@@ -701,6 +708,7 @@ fn circuit_should_fail_if_there_are_repeated_ids() {
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: sender_keys.nsk,
                 membership_proof: (1, vec![]),
                 identifier: 0,
@@ -1020,6 +1028,7 @@ fn two_private_pda_family_members_receive_and_spend() {
                 InputAccountIdentity::PrivatePdaUpdate {
                     vpk: alice_keys.vpk(),
                     random_seed: [0; 32],
+                    view_tag: 0,
                     nsk: alice_keys.nsk,
                     membership_proof: state
                         .get_proof_for_commitment(&commitment_pda_0)
@@ -1057,6 +1066,7 @@ fn two_private_pda_family_members_receive_and_spend() {
                 InputAccountIdentity::PrivatePdaUpdate {
                     vpk: alice_keys.vpk(),
                     random_seed: [0; 32],
+                    view_tag: 0,
                     nsk: alice_keys.nsk,
                     membership_proof: state
                         .get_proof_for_commitment(&commitment_pda_1)
@@ -1108,6 +1118,7 @@ fn two_private_pda_family_members_receive_and_spend() {
                 InputAccountIdentity::PrivatePdaUpdate {
                     vpk: alice_keys.vpk(),
                     random_seed: [0; 32],
+                    view_tag: 0,
                     nsk: alice_keys.nsk,
                     membership_proof: state
                         .get_proof_for_commitment(&commitment_pda_1_after_spend)
diff --git a/lee/state_machine/src/state/tests/claiming.rs b/lee/state_machine/src/state/tests/claiming.rs
index d45f39bd..3bdc315c 100644
--- a/lee/state_machine/src/state/tests/claiming.rs
+++ b/lee/state_machine/src/state/tests/claiming.rs
@@ -328,6 +328,7 @@ fn authorized_public_account_claiming_succeeds_when_executed_privately() {
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: sender_keys.nsk,
                 membership_proof: state
                     .get_proof_for_commitment(&sender_commitment)
@@ -443,6 +444,7 @@ fn private_chained_call(number_of_calls: u32) {
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: from_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: from_keys.nsk,
                 membership_proof: state
                     .get_proof_for_commitment(&from_commitment)
@@ -452,6 +454,7 @@ fn private_chained_call(number_of_calls: u32) {
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: to_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: to_keys.nsk,
                 membership_proof: state
                     .get_proof_for_commitment(&to_commitment)
diff --git a/lee/state_machine/src/state/tests/mod.rs b/lee/state_machine/src/state/tests/mod.rs
index 55a99ead..d6acaa2e 100644
--- a/lee/state_machine/src/state/tests/mod.rs
+++ b/lee/state_machine/src/state/tests/mod.rs
@@ -48,6 +48,7 @@ impl V03State {
         self.insert_program(crate::test_methods::nonce_changer());
         self.insert_program(crate::test_methods::extra_output());
         self.insert_program(crate::test_methods::missing_output());
+        self.insert_program(crate::test_methods::dropped_account());
         self.insert_program(crate::test_methods::program_owner_changer());
         self.insert_program(crate::test_methods::data_changer());
         self.insert_program(crate::test_methods::minter());
@@ -330,6 +331,7 @@ fn private_balance_transfer_for_tests(
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: sender_keys.nsk,
                 membership_proof: state
                     .get_proof_for_commitment(&sender_commitment)
@@ -384,6 +386,7 @@ fn deshielded_balance_transfer_for_tests(
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: sender_keys.nsk,
                 membership_proof: state
                     .get_proof_for_commitment(&sender_commitment)
diff --git a/lee/state_machine/src/state/tests/privacy_preserving.rs b/lee/state_machine/src/state/tests/privacy_preserving.rs
index 174aa1b3..bc51ce4f 100644
--- a/lee/state_machine/src/state/tests/privacy_preserving.rs
+++ b/lee/state_machine/src/state/tests/privacy_preserving.rs
@@ -524,6 +524,7 @@ fn malicious_authorization_changer_should_fail_in_privacy_preserving_circuit() {
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: recipient_keys.vpk(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: recipient_keys.nsk,
                 membership_proof: state
                     .get_proof_for_commitment(&recipient_commitment)
diff --git a/lee/state_machine/src/state/tests/public_program_rules.rs b/lee/state_machine/src/state/tests/public_program_rules.rs
index 1c67aeff..236bddcf 100644
--- a/lee/state_machine/src/state/tests/public_program_rules.rs
+++ b/lee/state_machine/src/state/tests/public_program_rules.rs
@@ -79,6 +79,58 @@ fn program_should_fail_with_missing_output_accounts() {
     ));
 }
 
+/// A program can drop an entire account from its own output — both its `pre_state` and
+/// `post_state` together, not just one side — while staying internally consistent
+/// (`pre_states.len() == post_states.len()` within its own report, so `validate_execution`'s
+/// length check alone can't catch it). This must still be rejected: every account the caller
+/// declared in the transaction must appear somewhere in the final diff.
+#[test]
+fn program_should_fail_if_it_drops_a_declared_account() {
+    // Both accounts need a non-default program_owner: an account left at DEFAULT_PROGRAM_ID with
+    // non-default data would itself violate the (separate, pre-existing) "claim before mutating a
+    // default-owned account" rule the moment it's echoed back — unrelated to what this test
+    // targets. `with_public_account_balances` leaves program_owner at DEFAULT_PROGRAM_ID, so use
+    // `with_public_accounts` to set it explicitly instead.
+    let mut state = V03State::new()
+        .with_public_accounts([
+            (
+                AccountId::new([1; 32]),
+                Account {
+                    program_owner: crate::test_methods::dropped_account().id(),
+                    balance: 100,
+                    ..Account::default()
+                },
+            ),
+            (
+                AccountId::new([2; 32]),
+                Account {
+                    program_owner: crate::test_methods::dropped_account().id(),
+                    balance: 0,
+                    ..Account::default()
+                },
+            ),
+        ])
+        .with_test_programs();
+    let account_ids = vec![AccountId::new([1; 32]), AccountId::new([2; 32])];
+    let program_id = crate::test_methods::dropped_account().id();
+    let message =
+        public_transaction::Message::try_new(program_id, account_ids, vec![], ()).unwrap();
+    let witness_set = public_transaction::WitnessSet::for_message(&message, &[]);
+    let tx = PublicTransaction::new(message, witness_set);
+
+    let result = state.transition_from_public_transaction(&tx, 1, 0);
+
+    assert!(
+        matches!(
+            result,
+            Err(LeeError::InvalidProgramBehavior(
+                InvalidProgramBehaviorError::DeclaredAccountMissingFromOutput { account_id }
+            )) if account_id == AccountId::new([2; 32])
+        ),
+        "expected DeclaredAccountMissingFromOutput for the dropped account, got {result:?}"
+    );
+}
+
 #[test]
 fn program_should_fail_if_modifies_program_owner_with_only_non_default_program_owner() {
     let initial_data = [(
diff --git a/lee/state_machine/src/validated_state_diff/mod.rs b/lee/state_machine/src/validated_state_diff/mod.rs
index 8fae4fee..e4a92d63 100644
--- a/lee/state_machine/src/validated_state_diff/mod.rs
+++ b/lee/state_machine/src/validated_state_diff/mod.rs
@@ -293,6 +293,17 @@ impl ValidatedStateDiff {
             );
         }
 
+        // Every account the caller declared as part of the transaction must appear in the final
+        // diff.
+        for account_id in &message.account_ids {
+            ensure!(
+                state_diff.contains_key(account_id),
+                InvalidProgramBehaviorError::DeclaredAccountMissingFromOutput {
+                    account_id: *account_id
+                }
+            );
+        }
+
         Ok(Self(StateDiff {
             signer_account_ids,
             public_diff: state_diff,
diff --git a/lee/state_machine/src/validated_state_diff/tests.rs b/lee/state_machine/src/validated_state_diff/tests.rs
index c471676c..e8bb3f14 100644
--- a/lee/state_machine/src/validated_state_diff/tests.rs
+++ b/lee/state_machine/src/validated_state_diff/tests.rs
@@ -167,6 +167,7 @@ fn privacy_malicious_programs_cannot_drain_public_victim() {
         InputAccountIdentity::PrivateAuthorizedUpdate {
             vpk: attacker_keys.vpk(),
             random_seed: [0; 32],
+            view_tag: 0,
             nsk: attacker_keys.nsk,
             membership_proof,
             identifier: 0,
@@ -327,6 +328,7 @@ fn privacy_malicious_programs_cannot_drain_private_victim() {
         InputAccountIdentity::PrivateAuthorizedUpdate {
             vpk: attacker_keys.vpk(),
             random_seed: [0; 32],
+            view_tag: 0,
             nsk: attacker_keys.nsk,
             membership_proof,
             identifier: 0,
diff --git a/lee/state_machine/test_methods/guest/src/bin/dropped_account.rs b/lee/state_machine/test_methods/guest/src/bin/dropped_account.rs
new file mode 100644
index 00000000..348eefa8
--- /dev/null
+++ b/lee/state_machine/test_methods/guest/src/bin/dropped_account.rs
@@ -0,0 +1,35 @@
+use lee_core::program::{AccountPostState, ProgramInput, ProgramOutput, read_lee_inputs};
+
+type Instruction = ();
+
+/// Silently drops the second account entirely from its own output: given two `pre_states`, it
+/// returns only one `(pre, post)` pair, echoing the first account back unchanged.
+///
+/// Differs from `missing_output` because the `pre_state` and `post_states` lengths match. We
+/// simply drop the account from both before returning them as part of the program's output.
+fn main() {
+    let (
+        ProgramInput {
+            self_program_id,
+            caller_program_id,
+            pre_states,
+            ..
+        },
+        instruction_words,
+    ) = read_lee_inputs::<Instruction>();
+
+    let Ok([pre1, _pre2]) = <[_; 2]>::try_from(pre_states) else {
+        return;
+    };
+
+    let account_pre1 = pre1.account.clone();
+
+    ProgramOutput::new(
+        self_program_id,
+        caller_program_id,
+        instruction_words,
+        vec![pre1],
+        vec![AccountPostState::new(account_pre1)],
+    )
+    .write();
+}
diff --git a/lez/chain_consistency/src/apply.rs b/lez/chain_consistency/src/apply.rs
deleted file mode 100644
index 28961502..00000000
--- a/lez/chain_consistency/src/apply.rs
+++ /dev/null
@@ -1,196 +0,0 @@
-//! Validating and applying channel L2 blocks to a `V03State`.
-//!
-//! These primitives are shared by the consumers that reconstruct L2 state from
-//! the Bedrock channel.
-
-use common::{
-    HashType,
-    block::Block,
-    transaction::{LeeTransaction, clock_invocation},
-};
-use lee::{GENESIS_BLOCK_ID, V03State};
-use lee_core::BlockId;
-use serde::{Deserialize, Serialize};
-
-/// Why a channel L2 block could not be validated or applied.
-///
-/// Persisted in `RocksDB` (via the Indexer's stall reason), so every variant
-/// must be `Clone + Serialize + Deserialize`.
-#[derive(Debug, Clone, Serialize, Deserialize, thiserror::Error)]
-pub enum BlockIngestError {
-    #[error("Failed to deserialize L2 block: {0}")]
-    /// Here we store the error string that is derived from [`borsh::from_slice`]'s [`Err`].
-    Deserialize(String),
-    #[error("Unexpected block id: expected {expected}, got {got}")]
-    UnexpectedBlockId { expected: BlockId, got: BlockId },
-    #[error("Broken chain link: expected prev {expected_prev}, got {got_prev}")]
-    BrokenChainLink {
-        expected_prev: HashType,
-        got_prev: HashType,
-    },
-    #[error("Block hash mismatch: computed {computed}, header {header}")]
-    HashMismatch {
-        computed: HashType,
-        header: HashType,
-    },
-    #[error("Block has no transactions")]
-    EmptyBlock,
-    #[error("Last transaction must be the public clock invocation for the block timestamp")]
-    InvalidClockTransaction,
-    #[error("Genesis block must contain only public transactions")]
-    NonPublicGenesisTransaction,
-    #[error("State transition failed at transaction {tx_index}: {reason}")]
-    StateTransition {
-        /// Index of the failing transaction within the block body.
-        tx_index: u64,
-        /// Reason string from `lee::Error` to `anyhow::Error` to `{:#}`.
-        ///
-        /// This is required because `lee::Error` is not `Clone + Serialize + Deserialize`, so we
-        /// cannot store it directly.
-        reason: String,
-    },
-}
-
-impl BlockIngestError {
-    /// Whether the failure may be transient rather than a property of the block.
-    ///
-    /// FIXME: `StateTransition` is too coarse — its `reason` string mixes genuine
-    /// state-transition rejections with infra failures (risc0 executor teardown,
-    /// storage errors). Once it carries a structured cause, narrow this so only
-    /// infra failures retry.
-    #[must_use]
-    pub const fn is_retryable(&self) -> bool {
-        matches!(self, Self::StateTransition { .. })
-    }
-}
-
-/// The last successfully applied block a candidate must extend.
-#[derive(Debug, Copy, Clone)]
-pub struct Tip {
-    pub block_id: BlockId,
-    pub hash: HashType,
-}
-
-/// Checks that `block` is the valid continuation of `tip`: hash integrity,
-/// then block-id continuity, then `prev_block_hash` linkage. A `None` tip
-/// (cold store) expects the genesis block.
-pub fn validate_against_tip(tip: Option<Tip>, block: &Block) -> Result<(), BlockIngestError> {
-    let computed = block.recompute_hash();
-    if computed != block.header.hash {
-        return Err(BlockIngestError::HashMismatch {
-            computed,
-            header: block.header.hash,
-        });
-    }
-
-    match tip {
-        None => {
-            if block.header.block_id != GENESIS_BLOCK_ID {
-                return Err(BlockIngestError::UnexpectedBlockId {
-                    expected: GENESIS_BLOCK_ID,
-                    got: block.header.block_id,
-                });
-            }
-        }
-        Some(tip) => {
-            let expected = tip
-                .block_id
-                .checked_add(1)
-                .expect("block id should not overflow");
-            if block.header.block_id != expected {
-                return Err(BlockIngestError::UnexpectedBlockId {
-                    expected,
-                    got: block.header.block_id,
-                });
-            }
-            if block.header.prev_block_hash != tip.hash {
-                return Err(BlockIngestError::BrokenChainLink {
-                    expected_prev: tip.hash,
-                    got_prev: block.header.prev_block_hash,
-                });
-            }
-        }
-    }
-    Ok(())
-}
-
-/// Applies a block's transactions to `state`.
-pub fn apply_block(block: &Block, state: &mut V03State) -> Result<(), BlockIngestError> {
-    let (clock_tx, user_txs) = block
-        .body
-        .transactions
-        .split_last()
-        .ok_or(BlockIngestError::EmptyBlock)?;
-
-    let expected_clock = LeeTransaction::Public(clock_invocation(block.header.timestamp));
-    if *clock_tx != expected_clock {
-        return Err(BlockIngestError::InvalidClockTransaction);
-    }
-
-    let is_genesis = block.header.block_id == GENESIS_BLOCK_ID;
-    for (tx_index, transaction) in user_txs.iter().enumerate() {
-        let state_transition = |err: anyhow::Error| BlockIngestError::StateTransition {
-            tx_index: tx_index.try_into().expect("tx index fits in u64"),
-            reason: format!("{err:#}"),
-        };
-        if is_genesis {
-            let LeeTransaction::Public(public_tx) = transaction else {
-                return Err(BlockIngestError::NonPublicGenesisTransaction);
-            };
-            state
-                .transition_from_public_transaction(
-                    public_tx,
-                    block.header.block_id,
-                    block.header.timestamp,
-                )
-                .map_err(|err| state_transition(err.into()))?;
-        } else {
-            transaction
-                .clone()
-                .execute_on_state(state, block.header.block_id, block.header.timestamp)
-                .map_err(|err| state_transition(err.into()))?;
-        }
-    }
-
-    let LeeTransaction::Public(clock_public_tx) = clock_tx else {
-        return Err(BlockIngestError::InvalidClockTransaction);
-    };
-    state
-        .transition_from_public_transaction(
-            clock_public_tx,
-            block.header.block_id,
-            block.header.timestamp,
-        )
-        .map_err(|err| BlockIngestError::StateTransition {
-            tx_index: user_txs.len().try_into().expect("tx index fits in u64"),
-            reason: format!("{:#}", anyhow::Error::from(err)),
-        })?;
-
-    Ok(())
-}
-
-#[cfg(test)]
-mod tests {
-    use super::*;
-
-    #[test]
-    fn serializes_and_round_trips_externally_tagged() {
-        let err = BlockIngestError::UnexpectedBlockId {
-            expected: 5,
-            got: 7,
-        };
-        let value = serde_json::to_value(&err).expect("serialize");
-        assert_eq!(
-            value,
-            serde_json::json!({ "UnexpectedBlockId": { "expected": 5, "got": 7 } })
-        );
-        let back: BlockIngestError = serde_json::from_value(value).expect("deserialize");
-        assert!(matches!(
-            back,
-            BlockIngestError::UnexpectedBlockId {
-                expected: 5,
-                got: 7
-            }
-        ));
-    }
-}
diff --git a/lez/chain_consistency/src/lib.rs b/lez/chain_consistency/src/lib.rs
deleted file mode 100644
index d2b45ca9..00000000
--- a/lez/chain_consistency/src/lib.rs
+++ /dev/null
@@ -1,9 +0,0 @@
-//! Reconstructing and verifying L2 chain state from a Bedrock (L1) channel.
-
-pub use apply::{BlockIngestError, Tip, apply_block, validate_against_tip};
-pub use consistency::{
-    Anchor, AnchorConsistencyCheck, ChainConsistency, ChainMismatch, verify_chain_consistency,
-};
-
-pub mod apply;
-pub mod consistency;
diff --git a/lez/chain_consistency/Cargo.toml b/lez/chain_state/Cargo.toml
similarity index 83%
rename from lez/chain_consistency/Cargo.toml
rename to lez/chain_state/Cargo.toml
index 02bf0ea0..0a0610a5 100644
--- a/lez/chain_consistency/Cargo.toml
+++ b/lez/chain_state/Cargo.toml
@@ -1,8 +1,8 @@
 [package]
-name = "chain_consistency"
+name = "chain_state"
 version = "0.1.0"
 edition = "2024"
-license.workspace = true
+license = { workspace = true }
 
 [lints]
 workspace = true
@@ -11,9 +11,9 @@ workspace = true
 common.workspace = true
 lee.workspace = true
 lee_core.workspace = true
-
-logos-blockchain-zone-sdk.workspace = true
 logos-blockchain-core.workspace = true
+logos-blockchain-zone-sdk.workspace = true
+
 anyhow.workspace = true
 borsh.workspace = true
 futures.workspace = true
@@ -23,4 +23,5 @@ thiserror.workspace = true
 tokio.workspace = true
 
 [dev-dependencies]
+testnet_initial_state.workspace = true
 serde_json.workspace = true
diff --git a/lez/chain_state/src/apply.rs b/lez/chain_state/src/apply.rs
new file mode 100644
index 00000000..05134b88
--- /dev/null
+++ b/lez/chain_state/src/apply.rs
@@ -0,0 +1,308 @@
+//! The single validate-then-apply entry point shared by the sequencer and the
+//! indexer. Pure and storage-free: callers apply on a scratch clone of state and
+//! commit only on `Ok`.
+
+use common::{
+    HashType,
+    block::{Block, BlockMeta},
+    transaction::{LeeTransaction, clock_invocation},
+};
+use lee::{GENESIS_BLOCK_ID, V03State};
+
+use crate::ingest_error::BlockIngestError;
+
+/// The parent the next block must chain on.
+// `l1_slot` will be added here when the `ChainState` anchor layer lands.
+#[derive(Debug, Clone)]
+pub struct Tip {
+    pub block_id: u64,
+    pub hash: HashType,
+}
+
+impl From<&Block> for Tip {
+    fn from(block: &Block) -> Self {
+        Self {
+            block_id: block.header.block_id,
+            hash: block.header.hash,
+        }
+    }
+}
+
+impl From<BlockMeta> for Tip {
+    fn from(meta: BlockMeta) -> Self {
+        Self {
+            block_id: meta.id,
+            hash: meta.hash,
+        }
+    }
+}
+
+impl From<&Tip> for BlockMeta {
+    fn from(tip: &Tip) -> Self {
+        Self {
+            id: tip.block_id,
+            hash: tip.hash,
+        }
+    }
+}
+
+/// Outcome of feeding a parsed L2 block to a validated tip.
+pub enum AcceptOutcome {
+    /// Chained and applied; the tip advances.
+    Applied,
+    /// A duplicate re-delivery of an already-applied block. No state change.
+    AlreadyApplied,
+    /// Did not chain or failed to apply; the tip stays frozen.
+    Parked(BlockIngestError),
+    /// Chained but failed to apply, possibly transiently
+    /// ([`BlockIngestError::is_retryable`]); nothing recorded, tip and state
+    /// untouched. The caller retries and parks once it gives up.
+    ///
+    /// TODO: Only the indexer's `accept_block` emits this today; the sequencer's
+    /// `ChainState` parks on all failures without retrying (see `on_follow`).
+    RetryableFailure(BlockIngestError),
+}
+
+/// Validates `block` against `tip`, then applies it to `state`.
+///
+/// Mutates `state` in place, so callers pass a scratch clone and commit on `Ok`.
+pub fn apply_block(
+    tip: Option<&Tip>,
+    block: &Block,
+    state: &mut V03State,
+) -> Result<(), BlockIngestError> {
+    validate_against_tip(tip, block)?;
+    apply_block_to_state(block, state)?;
+    Ok(())
+}
+
+/// Checks that `block` is the valid continuation of `tip`: hash integrity,
+/// then block-id continuity, then `prev_block_hash` linkage. A `None` tip
+/// (cold state) expects the genesis block.
+pub fn validate_against_tip(tip: Option<&Tip>, block: &Block) -> Result<(), BlockIngestError> {
+    let computed = block.recompute_hash();
+    if computed != block.header.hash {
+        return Err(BlockIngestError::HashMismatch {
+            computed,
+            header: block.header.hash,
+        });
+    }
+
+    match tip {
+        None => {
+            if block.header.block_id != GENESIS_BLOCK_ID {
+                return Err(BlockIngestError::UnexpectedBlockId {
+                    expected: GENESIS_BLOCK_ID,
+                    got: block.header.block_id,
+                });
+            }
+        }
+        Some(tip) => {
+            let expected = tip
+                .block_id
+                .checked_add(1)
+                .expect("block id should not overflow");
+            if block.header.block_id != expected {
+                return Err(BlockIngestError::UnexpectedBlockId {
+                    expected,
+                    got: block.header.block_id,
+                });
+            }
+            if block.header.prev_block_hash != tip.hash {
+                return Err(BlockIngestError::BrokenChainLink {
+                    expected_prev: tip.hash,
+                    got_prev: block.header.prev_block_hash,
+                });
+            }
+        }
+    }
+    Ok(())
+}
+
+/// Applies a block's transactions to `state`, mapping every failure to a
+/// [`BlockIngestError`] so the caller can park rather than crash. Operates in
+/// place; the caller commits only on `Ok`.
+pub fn apply_block_to_state(block: &Block, state: &mut V03State) -> Result<(), BlockIngestError> {
+    let (clock_tx, user_txs) = block
+        .body
+        .transactions
+        .split_last()
+        .ok_or(BlockIngestError::EmptyBlock)?;
+
+    let LeeTransaction::Public(clock_tx) = clock_tx else {
+        return Err(BlockIngestError::InvalidClockTransaction);
+    };
+    if *clock_tx != clock_invocation(block.header.timestamp) {
+        return Err(BlockIngestError::InvalidClockTransaction);
+    }
+
+    let is_genesis = block.header.block_id == GENESIS_BLOCK_ID;
+    for (tx_index, transaction) in user_txs.iter().enumerate() {
+        let state_transition = |err: anyhow::Error| BlockIngestError::StateTransition {
+            tx_index: tx_index.try_into().expect("tx index fits in u64"),
+            reason: format!("{err:#}"),
+        };
+        if is_genesis {
+            let LeeTransaction::Public(public_tx) = transaction else {
+                return Err(BlockIngestError::NonPublicGenesisTransaction);
+            };
+            state
+                .transition_from_public_transaction(
+                    public_tx,
+                    block.header.block_id,
+                    block.header.timestamp,
+                )
+                .map_err(|err| state_transition(err.into()))?;
+        } else {
+            transaction
+                .clone()
+                .execute_on_state(state, block.header.block_id, block.header.timestamp)
+                .map_err(|err| state_transition(err.into()))?;
+        }
+    }
+
+    state
+        .transition_from_public_transaction(clock_tx, block.header.block_id, block.header.timestamp)
+        .map_err(|err| BlockIngestError::StateTransition {
+            tx_index: user_txs.len().try_into().expect("tx index fits in u64"),
+            reason: format!("{:#}", anyhow::Error::from(err)),
+        })?;
+
+    Ok(())
+}
+
+#[cfg(test)]
+mod tests {
+    use common::{
+        block::HashableBlockData,
+        test_utils::{
+            create_transaction_native_token_transfer, produce_dummy_block,
+            produce_dummy_empty_transaction, sequencer_sign_key_for_testing,
+        },
+    };
+    use testnet_initial_state::{initial_pub_accounts_private_keys, initial_state};
+
+    use super::*;
+
+    fn tip_of(block: &Block) -> Tip {
+        Tip::from(block)
+    }
+
+    #[test]
+    fn genesis_applies_on_empty_tip() {
+        let mut state = initial_state();
+        let genesis = produce_dummy_block(1, None, vec![]);
+        apply_block(None, &genesis, &mut state).expect("genesis applies");
+    }
+
+    #[test]
+    fn non_genesis_first_block_is_unexpected_id() {
+        let mut state = initial_state();
+        let block = produce_dummy_block(2, None, vec![]);
+        let err = apply_block(None, &block, &mut state).expect_err("should reject");
+        assert!(matches!(
+            err,
+            BlockIngestError::UnexpectedBlockId {
+                expected: 1,
+                got: 2
+            }
+        ));
+    }
+
+    #[test]
+    fn skip_ahead_block_is_unexpected_id() {
+        let mut state = initial_state();
+        let genesis = produce_dummy_block(1, None, vec![]);
+        apply_block(None, &genesis, &mut state).expect("genesis applies");
+
+        // Tip is at 1; a block with id 3 skips ahead.
+        let bad = produce_dummy_block(3, Some(genesis.header.hash), vec![]);
+        let err =
+            apply_block(Some(&tip_of(&genesis)), &bad, &mut state).expect_err("should reject");
+        assert!(matches!(
+            err,
+            BlockIngestError::UnexpectedBlockId {
+                expected: 2,
+                got: 3
+            }
+        ));
+    }
+
+    #[test]
+    fn broken_chain_link_detected() {
+        let mut state = initial_state();
+        let genesis = produce_dummy_block(1, None, vec![]);
+        apply_block(None, &genesis, &mut state).expect("genesis applies");
+
+        // Correct id (2), wrong parent hash.
+        let block2 = produce_dummy_block(2, Some(HashType([9_u8; 32])), vec![]);
+        let err =
+            apply_block(Some(&tip_of(&genesis)), &block2, &mut state).expect_err("should reject");
+        assert!(matches!(err, BlockIngestError::BrokenChainLink { .. }));
+    }
+
+    #[test]
+    fn hash_mismatch_detected() {
+        let mut state = initial_state();
+        let mut genesis = produce_dummy_block(1, None, vec![]);
+        // Tampering with the header invalidates the stored hash.
+        genesis.header.timestamp = 999;
+        let err = apply_block(None, &genesis, &mut state).expect_err("should reject");
+        assert!(matches!(err, BlockIngestError::HashMismatch { .. }));
+    }
+
+    #[test]
+    fn empty_block_rejected() {
+        let mut state = initial_state();
+        // A block with no transactions at all (not even the mandatory clock tx).
+        let block = HashableBlockData {
+            block_id: 1,
+            prev_block_hash: HashType([0_u8; 32]),
+            timestamp: 0,
+            transactions: vec![],
+        }
+        .into_pending_block(&sequencer_sign_key_for_testing());
+        let err = apply_block(None, &block, &mut state).expect_err("should reject");
+        assert!(matches!(err, BlockIngestError::EmptyBlock));
+    }
+
+    #[test]
+    fn missing_clock_tail_is_invalid_clock() {
+        let mut state = initial_state();
+        // Last tx is not the expected clock invocation for the timestamp.
+        let block = HashableBlockData {
+            block_id: 1,
+            prev_block_hash: HashType([0_u8; 32]),
+            timestamp: 50,
+            transactions: vec![produce_dummy_empty_transaction()],
+        }
+        .into_pending_block(&sequencer_sign_key_for_testing());
+        let err = apply_block(None, &block, &mut state).expect_err("should reject");
+        assert!(matches!(err, BlockIngestError::InvalidClockTransaction));
+    }
+
+    #[test]
+    fn applies_transfers_and_advances_state() {
+        let mut state = initial_state();
+        let accounts = initial_pub_accounts_private_keys();
+        let from = accounts[0].account_id;
+        let to = accounts[1].account_id;
+        let sign_key = accounts[0].pub_sign_key.clone();
+
+        // Genesis (block 1): clock-only.
+        let genesis = produce_dummy_block(1, None, vec![]);
+        apply_block(None, &genesis, &mut state).expect("genesis applies");
+        let mut tip = tip_of(&genesis);
+
+        // Blocks 2..=11: one native transfer of 10 each (nonces 0..=9).
+        for i in 0..10_u64 {
+            let tx = create_transaction_native_token_transfer(from, i.into(), to, 10, &sign_key);
+            let block = produce_dummy_block(i + 2, Some(tip.hash), vec![tx]);
+            apply_block(Some(&tip), &block, &mut state).expect("transfer applies");
+            tip = tip_of(&block);
+        }
+
+        assert_eq!(state.get_account_by_id(from).balance, 9900);
+        assert_eq!(state.get_account_by_id(to).balance, 20100);
+    }
+}
diff --git a/lez/chain_state/src/chain.rs b/lez/chain_state/src/chain.rs
new file mode 100644
index 00000000..39e1efba
--- /dev/null
+++ b/lez/chain_state/src/chain.rs
@@ -0,0 +1,1034 @@
+//! Two-tier chain state: a reorg-able `head` the sequencer builds on, plus an
+//! irreversible `final` tier.
+
+use common::block::Block;
+use lee::V03State;
+use log::warn;
+use logos_blockchain_core::mantle::ops::channel::MsgId;
+use logos_blockchain_zone_sdk::Slot;
+
+use crate::{
+    AcceptOutcome, BlockIngestError, StallReason,
+    apply::{Tip, apply_block},
+};
+
+/// A head block plus the channel message that carried it.
+pub struct HeadEntry {
+    pub this_msg: MsgId,
+    pub block: Block,
+}
+
+/// The head tier (reorg-able, from `adopted`/`orphaned`) over the final tier
+/// (irreversible, from `finalized`).
+///
+/// `head_state` is given by `final_state` replayed through `head_blocks`.
+///
+/// Only the final tier stalls: an invalid `adopted` block just freezes the
+/// head tip and self-heals via reorg or finalization.
+pub struct ChainState {
+    final_state: V03State,
+    final_tip: Option<Tip>,
+    final_stall: Option<StallReason>,
+
+    head_state: V03State,
+    head_blocks: Vec<HeadEntry>,
+}
+
+impl ChainState {
+    /// Fresh state anchored at the genesis/initial state, no blocks applied.
+    #[must_use]
+    pub fn new(initial_state: V03State) -> Self {
+        Self::from_final(initial_state, None)
+    }
+
+    /// State restored from a persisted final tier; head mirrors final.
+    #[must_use]
+    pub fn from_final(final_state: V03State, final_tip: Option<Tip>) -> Self {
+        Self {
+            head_state: final_state.clone(),
+            final_state,
+            final_tip,
+            head_blocks: Vec::new(),
+            final_stall: None,
+        }
+    }
+
+    /// State the sequencer builds its next block on.
+    #[must_use]
+    pub const fn head_state(&self) -> &V03State {
+        &self.head_state
+    }
+
+    /// Mutable access to the head state. Bypasses the `head_blocks` invariant, so
+    /// it is meant for tests and low-level callers.
+    #[must_use]
+    pub const fn head_state_mut(&mut self) -> &mut V03State {
+        &mut self.head_state
+    }
+
+    #[must_use]
+    pub const fn final_state(&self) -> &V03State {
+        &self.final_state
+    }
+
+    /// Parent the next produced block must chain on.
+    #[must_use]
+    pub fn head_tip(&self) -> Option<Tip> {
+        self.head_blocks
+            .last()
+            .map(|entry| Tip::from(&entry.block))
+            .or_else(|| self.final_tip.clone())
+    }
+
+    #[must_use]
+    pub fn final_tip(&self) -> Option<Tip> {
+        self.final_tip.clone()
+    }
+
+    #[must_use]
+    pub const fn final_stall(&self) -> Option<&StallReason> {
+        self.final_stall.as_ref()
+    }
+
+    /// Position of a head entry, matched by `MsgId` or block hash (restored
+    /// entries carry sentinel `MsgId`s; re-inscriptions arrive under fresh ones)
+    /// — always at the same claimed height: a hash or `MsgId` collision with a
+    /// different `block_id` is malformed and must fall through to validation.
+    fn head_position_of(&self, this_msg: MsgId, block: &Block) -> Option<usize> {
+        self.head_blocks.iter().position(|entry| {
+            entry.block.header.block_id == block.header.block_id
+                && (entry.this_msg == this_msg || entry.block.header.hash == block.header.hash)
+        })
+    }
+
+    /// Applies an adopted head block.
+    ///
+    /// The adopted stream is authoritative: a competitor at a height
+    /// the head already holds reorgs the head back to that height with
+    /// no orphan event required.
+    ///
+    /// On failure the head stays unchanged and no stall is recorded.
+    pub fn apply_adopted(&mut self, this_msg: MsgId, block: &Block) -> AcceptOutcome {
+        if self.head_position_of(this_msg, block).is_some() {
+            return AcceptOutcome::AlreadyApplied;
+        }
+
+        // If we receive a pre-final adoption, its an SDK fault; just log and ignore it
+        if let Some(final_tip) = &self.final_tip
+            && block.header.block_id <= final_tip.block_id
+        {
+            // The final tier is irreversible: a matching block here is a stale
+            // re-delivery, a conflicting one an SDK contract breach.
+            if block.header.block_id == final_tip.block_id && block.header.hash != final_tip.hash {
+                warn!(
+                    "Ignoring adopted block {} with hash {} conflicting with the \
+                     finalized block ({}) at this height",
+                    block.header.block_id, block.header.hash, final_tip.hash
+                );
+            }
+            return AcceptOutcome::AlreadyApplied;
+        }
+
+        // A tip extension applies on the current head state, a lower-or-equal
+        // id rebuilds the state at the competitor's parent instead.
+        //
+        // If adoptions are over the current head, `reorg_at` is None.
+        let reorg_at = self
+            .head_blocks
+            .iter()
+            .position(|entry| entry.block.header.block_id >= block.header.block_id);
+        let (mut scratch, tip) = match reorg_at {
+            // continue from the tip
+            None => (self.head_state.clone(), self.head_tip()),
+            // reorg upto `idx`
+            Some(idx) => self.replay_head_prefix(idx),
+        };
+
+        match apply_block(tip.as_ref(), block, &mut scratch) {
+            Ok(()) => {
+                // now that `apply_block` succeeded, actually reorg the head
+                if let Some(idx) = reorg_at {
+                    self.head_blocks.truncate(idx);
+                }
+                self.head_state = scratch;
+                self.head_blocks.push(HeadEntry {
+                    this_msg,
+                    block: block.to_owned(),
+                });
+                AcceptOutcome::Applied
+            }
+            Err(err) => AcceptOutcome::Parked(err),
+        }
+    }
+
+    /// Applies a block we produced ourselves.
+    ///
+    /// Unlike [`Self::apply_adopted`] this never reorgs: our block is not on
+    /// the channel yet, so it may only *extend* the head. A head already at
+    /// (or past) this height means a peer's block won the race on the
+    /// channel — ours is stale and the caller drops it.
+    pub fn apply_produced(&mut self, this_msg: MsgId, block: &Block) -> AcceptOutcome {
+        if self
+            .head_tip()
+            .is_some_and(|tip| block.header.block_id <= tip.block_id)
+        {
+            return AcceptOutcome::AlreadyApplied;
+        }
+        self.apply_adopted(this_msg, block)
+    }
+
+    /// Reverts an orphaned head block and everything after it, then re-derives head.
+    pub fn revert_orphan(&mut self, this_msg: MsgId, block: &Block) {
+        if let Some(idx) = self.head_position_of(this_msg, block) {
+            self.head_blocks.truncate(idx);
+            self.rederive_head();
+        }
+    }
+
+    /// One channel update: revert every `orphaned` (one truncate + re-derive),
+    /// then apply every `adopted` in order. Outcomes align with `adopted`.
+    pub fn apply_channel_update(
+        &mut self,
+        orphaned: &[(MsgId, Block)],
+        adopted: &[(MsgId, Block)],
+    ) -> Vec<AcceptOutcome> {
+        let earliest = orphaned
+            .iter()
+            .filter_map(|(msg, block)| self.head_position_of(*msg, block))
+            .min();
+        if let Some(idx) = earliest {
+            self.head_blocks.truncate(idx);
+            self.rederive_head();
+        }
+        adopted
+            .iter()
+            .map(|(msg, block)| self.apply_adopted(*msg, block))
+            .collect()
+    }
+
+    /// Rebuilds one head entry from a persisted block, applying it in place (the
+    /// caller treats `Err` as fatal).
+    ///
+    /// The entry gets a hash-derived sentinel `MsgId` (the real one is not
+    /// persisted — that would need a sidecar `block_id -> MsgId` cell); later
+    /// orphan/finalize events correlate by block hash.
+    pub fn restore_head_block(&mut self, block: Block) -> Result<(), BlockIngestError> {
+        apply_block(self.head_tip().as_ref(), &block, &mut self.head_state)?;
+        let this_msg = MsgId::from(block.header.hash.0);
+        self.head_blocks.push(HeadEntry { this_msg, block });
+        Ok(())
+    }
+
+    /// A finalized inscription. In steady state the block is already in head and is
+    /// moved into `final`; on backfill (not in head) it is applied directly and may
+    /// set `final_stall`.
+    pub fn apply_finalized(
+        &mut self,
+        this_msg: MsgId,
+        block: &Block,
+        l1_slot: Slot,
+    ) -> AcceptOutcome {
+        // Match by `MsgId` or block hash (re-inscriptions, restored entries).
+        if let Some(idx) = self.head_position_of(this_msg, block) {
+            self.finalize_through(idx);
+            return AcceptOutcome::Applied;
+        }
+
+        // Finality is prefix-monotone: a finalized block chaining on an
+        // unfinalized head entry finalizes that prefix too.
+        if let Some(idx) = self
+            .head_blocks
+            .iter()
+            .position(|entry| entry.block.header.hash == block.header.prev_block_hash)
+        {
+            self.finalize_through(idx);
+        }
+        self.apply_finalized_direct(block, l1_slot)
+    }
+
+    /// Moves `head_blocks[0..=idx]` into the final tier (already validated in head).
+    fn finalize_through(&mut self, idx: usize) {
+        let finalized: Vec<HeadEntry> = self.head_blocks.drain(0..=idx).collect();
+        for entry in finalized {
+            apply_block(self.final_tip.as_ref(), &entry.block, &mut self.final_state)
+                .expect("validated head block must apply to the final tier");
+            self.final_tip = Some(Tip::from(&entry.block));
+        }
+        self.final_stall = None;
+    }
+
+    /// Applies a finalized block straight to the final tier. On success the
+    /// finalized chain is authoritative, so head rebases onto it.
+    fn apply_finalized_direct(&mut self, block: &Block, l1_slot: Slot) -> AcceptOutcome {
+        // A finalized block at or below the final tip is a re-delivery:
+        // idempotent. A *different* block at the tip height falls through
+        // to validation and parks.
+        if let Some(tip) = &self.final_tip
+            && (block.header.block_id < tip.block_id
+                || (block.header.block_id == tip.block_id && block.header.hash == tip.hash))
+        {
+            return AcceptOutcome::AlreadyApplied;
+        }
+
+        let mut scratch = self.final_state.clone();
+        match apply_block(self.final_tip.as_ref(), block, &mut scratch) {
+            Ok(()) => {
+                self.final_state = scratch;
+                self.final_tip = Some(Tip::from(block));
+                self.final_stall = None;
+                // Any head suffix dropped here was already reverted as
+                // `orphaned` earlier in the same channel update (the sdk
+                // orders orphans before their finalized replacement), so its
+                // txs are back in the caller's mempool.
+                self.head_blocks.clear();
+                self.head_state = self.final_state.clone();
+                AcceptOutcome::Applied
+            }
+            Err(err) => {
+                self.record_final_stall(block, l1_slot, err.clone());
+                AcceptOutcome::Parked(err)
+            }
+        }
+    }
+
+    /// Rebuilds `head_state` from the final tier plus the current `head_blocks`.
+    fn rederive_head(&mut self) {
+        self.head_state = self.replay_head_prefix(self.head_blocks.len()).0;
+    }
+
+    /// State and tip after replaying `head_blocks[..count]` on the final tier.
+    fn replay_head_prefix(&self, count: usize) -> (V03State, Option<Tip>) {
+        let mut state = self.final_state.clone();
+        let mut tip = self.final_tip.clone();
+        for entry in &self.head_blocks[..count] {
+            apply_block(tip.as_ref(), &entry.block, &mut state)
+                .expect("validated head blocks must replay");
+            tip = Some(Tip::from(&entry.block));
+        }
+        (state, tip)
+    }
+
+    /// First stall is stored verbatim; later ones only bump `orphans_since`.
+    fn record_final_stall(&mut self, block: &Block, l1_slot: Slot, error: BlockIngestError) {
+        self.final_stall = Some(self.final_stall.take().map_or_else(
+            || StallReason::new(Some(&block.header), l1_slot, error),
+            StallReason::escalate,
+        ));
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use common::{
+        HashType,
+        test_utils::{create_transaction_native_token_transfer, produce_dummy_block},
+    };
+    use testnet_initial_state::{initial_pub_accounts_private_keys, initial_state};
+
+    use super::*;
+
+    fn msg(n: u8) -> MsgId {
+        MsgId::from([n; 32])
+    }
+
+    fn slot(n: u64) -> Slot {
+        Slot::from(n)
+    }
+
+    /// `head_state` equals `final_state` replayed through `head_blocks`.
+    fn assert_head_matches_replay(chain: &ChainState) {
+        let mut state = chain.final_state.clone();
+        let mut tip = chain.final_tip.clone();
+        for entry in &chain.head_blocks {
+            apply_block(tip.as_ref(), &entry.block, &mut state).expect("head blocks must replay");
+            tip = Some(Tip::from(&entry.block));
+        }
+        assert_eq!(
+            borsh::to_vec(&state).expect("state serializes"),
+            borsh::to_vec(chain.head_state()).expect("state serializes"),
+            "head_state must equal final_state replayed through head_blocks"
+        );
+    }
+
+    #[test]
+    fn adopted_blocks_advance_head() {
+        let mut chain = ChainState::new(initial_state());
+
+        let genesis = produce_dummy_block(1, None, vec![]);
+        assert!(matches!(
+            chain.apply_adopted(msg(1), &genesis),
+            AcceptOutcome::Applied
+        ));
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        assert!(matches!(
+            chain.apply_adopted(msg(2), &block2),
+            AcceptOutcome::Applied
+        ));
+
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 2);
+        // Nothing finalized yet.
+        assert!(chain.final_tip().is_none());
+    }
+
+    #[test]
+    fn adopted_bad_block_freezes_head_without_stall() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+
+        // Skips ahead (id 3 while head tip is 1).
+        let bad = produce_dummy_block(3, Some(genesis.header.hash), vec![]);
+        assert!(matches!(
+            chain.apply_adopted(msg(3), &bad),
+            AcceptOutcome::Parked(BlockIngestError::UnexpectedBlockId {
+                expected: 2,
+                got: 3
+            })
+        ));
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 1);
+        assert!(
+            chain.final_stall().is_none(),
+            "head freeze records no stall"
+        );
+    }
+
+    #[test]
+    fn adopted_is_idempotent() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+
+        assert!(matches!(
+            chain.apply_adopted(msg(1), &genesis),
+            AcceptOutcome::AlreadyApplied
+        ));
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 1);
+    }
+
+    #[test]
+    fn orphan_reverts_head() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+        chain.apply_adopted(msg(2), &block2);
+        chain.apply_adopted(msg(3), &block3);
+
+        chain.revert_orphan(msg(3), &block3);
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 2);
+
+        // A competing block 3 now applies cleanly on block 2.
+        let block3_prime = produce_dummy_block(3, Some(block2.header.hash), vec![]);
+        assert!(matches!(
+            chain.apply_adopted(msg(13), &block3_prime),
+            AcceptOutcome::Applied
+        ));
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 3);
+    }
+
+    #[test]
+    fn channel_update_reverts_then_applies() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+        chain.apply_adopted(msg(2), &block2);
+        chain.apply_adopted(msg(3), &block3);
+
+        let block3_prime = produce_dummy_block(3, Some(block2.header.hash), vec![]);
+        let outcomes = chain.apply_channel_update(&[(msg(3), block3)], &[(msg(13), block3_prime)]);
+        assert!(matches!(outcomes.as_slice(), [AcceptOutcome::Applied]));
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 3);
+    }
+
+    #[test]
+    fn finalize_moves_head_into_final() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+        chain.apply_adopted(msg(2), &block2);
+        chain.apply_adopted(msg(3), &block3);
+
+        // Finalize through block 2.
+        assert!(matches!(
+            chain.apply_finalized(msg(2), &block2, slot(100)),
+            AcceptOutcome::Applied
+        ));
+        assert_eq!(chain.final_tip().expect("final tip").block_id, 2);
+        // Head tip unchanged; head still ends at 3.
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 3);
+    }
+
+    #[test]
+    fn backfill_applies_directly_to_final() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        assert!(matches!(
+            chain.apply_finalized(msg(1), &genesis, slot(10)),
+            AcceptOutcome::Applied
+        ));
+        assert_eq!(chain.final_tip().expect("final tip").block_id, 1);
+        // Head mirrors final during backfill.
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 1);
+    }
+
+    #[test]
+    fn invalid_finalized_block_sets_final_stall() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_finalized(msg(1), &genesis, slot(10));
+
+        // Skip-ahead finalized block, not in head: parks the final tier.
+        let bad = produce_dummy_block(3, Some(genesis.header.hash), vec![]);
+        assert!(matches!(
+            chain.apply_finalized(msg(3), &bad, slot(20)),
+            AcceptOutcome::Parked(_)
+        ));
+        let stall = chain.final_stall().expect("final stall recorded");
+        assert_eq!(stall.block_id, Some(3));
+    }
+
+    #[test]
+    fn orphaning_a_suffix_rederives_head_state() {
+        let accounts = initial_pub_accounts_private_keys();
+        let from = accounts[0].account_id;
+        let to = accounts[1].account_id;
+        let sign_key = accounts[0].pub_sign_key.clone();
+
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+
+        let tx2 = create_transaction_native_token_transfer(from, 0, to, 10, &sign_key);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![tx2]);
+        chain.apply_adopted(msg(2), &block2);
+        let tx3 = create_transaction_native_token_transfer(from, 1, to, 10, &sign_key);
+        let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![tx3]);
+        chain.apply_adopted(msg(3), &block3);
+        let tx4 = create_transaction_native_token_transfer(from, 2, to, 10, &sign_key);
+        let block4 = produce_dummy_block(4, Some(block3.header.hash), vec![tx4]);
+        chain.apply_adopted(msg(4), &block4);
+
+        // Orphaning block 3 drops the whole suffix (3 and 4).
+        chain.revert_orphan(msg(3), &block3);
+
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 2);
+        assert_eq!(chain.head_state().get_account_by_id(from).balance, 9990);
+        assert_eq!(chain.head_state().get_account_by_id(to).balance, 20010);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn channel_update_replaces_multi_block_suffix() {
+        let accounts = initial_pub_accounts_private_keys();
+        let from = accounts[0].account_id;
+        let to = accounts[1].account_id;
+        let sign_key = accounts[0].pub_sign_key.clone();
+
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+
+        let tx2 = create_transaction_native_token_transfer(from, 0, to, 10, &sign_key);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![tx2]);
+        chain.apply_adopted(msg(2), &block2);
+        let tx3 = create_transaction_native_token_transfer(from, 1, to, 10, &sign_key);
+        let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![tx3]);
+        chain.apply_adopted(msg(3), &block3);
+        let tx4 = create_transaction_native_token_transfer(from, 2, to, 10, &sign_key);
+        let block4 = produce_dummy_block(4, Some(block3.header.hash), vec![tx4]);
+        chain.apply_adopted(msg(4), &block4);
+
+        // A competing branch replaces blocks 3 and 4; orphans arrive unordered.
+        let tx3_prime = create_transaction_native_token_transfer(from, 1, to, 20, &sign_key);
+        let block3_prime = produce_dummy_block(3, Some(block2.header.hash), vec![tx3_prime]);
+        let tx4_prime = create_transaction_native_token_transfer(from, 2, to, 30, &sign_key);
+        let block4_prime = produce_dummy_block(4, Some(block3_prime.header.hash), vec![tx4_prime]);
+
+        let outcomes = chain.apply_channel_update(
+            &[(msg(4), block4), (msg(3), block3)],
+            &[(msg(13), block3_prime), (msg(14), block4_prime)],
+        );
+
+        assert!(matches!(
+            outcomes.as_slice(),
+            [AcceptOutcome::Applied, AcceptOutcome::Applied]
+        ));
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 4);
+        assert_eq!(chain.head_state().get_account_by_id(from).balance, 9940);
+        assert_eq!(chain.head_state().get_account_by_id(to).balance, 20060);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn adopted_only_channel_update_replaces_suffix() {
+        let accounts = initial_pub_accounts_private_keys();
+        let from = accounts[0].account_id;
+        let to = accounts[1].account_id;
+        let sign_key = accounts[0].pub_sign_key.clone();
+
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+        let tx2 = create_transaction_native_token_transfer(from, 0, to, 10, &sign_key);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![tx2]);
+        chain.apply_adopted(msg(2), &block2);
+        let tx3 = create_transaction_native_token_transfer(from, 1, to, 10, &sign_key);
+        let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![tx3]);
+        chain.apply_adopted(msg(3), &block3);
+
+        // The replacement branch arrives with no orphan events: the adopted
+        // list alone reorgs the head.
+        let tx2_prime = create_transaction_native_token_transfer(from, 0, to, 20, &sign_key);
+        let block2_prime = produce_dummy_block(2, Some(genesis.header.hash), vec![tx2_prime]);
+        let tx3_prime = create_transaction_native_token_transfer(from, 1, to, 30, &sign_key);
+        let block3_prime = produce_dummy_block(3, Some(block2_prime.header.hash), vec![tx3_prime]);
+
+        let outcomes =
+            chain.apply_channel_update(&[], &[(msg(12), block2_prime), (msg(13), block3_prime)]);
+
+        assert!(matches!(
+            outcomes.as_slice(),
+            [AcceptOutcome::Applied, AcceptOutcome::Applied]
+        ));
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 3);
+        assert_eq!(chain.head_state().get_account_by_id(to).balance, 20050);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn channel_update_ignores_unknown_orphan() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+        chain.apply_adopted(msg(2), &block2);
+
+        let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![]);
+        let unknown = produce_dummy_block(9, Some(HashType([7; 32])), vec![]);
+        let outcomes = chain.apply_channel_update(&[(msg(99), unknown)], &[(msg(3), block3)]);
+
+        assert!(matches!(outcomes.as_slice(), [AcceptOutcome::Applied]));
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 3);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn adopted_competitor_reorgs_head_without_orphan_event() {
+        let accounts = initial_pub_accounts_private_keys();
+        let from = accounts[0].account_id;
+        let to = accounts[1].account_id;
+        let sign_key = accounts[0].pub_sign_key.clone();
+
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+        let tx2 = create_transaction_native_token_transfer(from, 0, to, 10, &sign_key);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![tx2]);
+        chain.apply_adopted(msg(2), &block2);
+        let tx3 = create_transaction_native_token_transfer(from, 1, to, 10, &sign_key);
+        let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![tx3]);
+        chain.apply_adopted(msg(3), &block3);
+
+        // A valid competitor at height 2, no orphan events: the head reorgs
+        // back onto it, dropping the old 2..=3 suffix and its transfers.
+        let block2_prime = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        assert!(matches!(
+            chain.apply_adopted(msg(12), &block2_prime),
+            AcceptOutcome::Applied
+        ));
+        let tip = chain.head_tip().expect("head tip");
+        assert_eq!(tip.block_id, 2);
+        assert_eq!(tip.hash, block2_prime.header.hash);
+        assert_eq!(chain.head_state().get_account_by_id(to).balance, 20000);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn produced_block_losing_a_race_does_not_reorg_the_head() {
+        let accounts = initial_pub_accounts_private_keys();
+        let from = accounts[0].account_id;
+        let to = accounts[1].account_id;
+        let sign_key = accounts[0].pub_sign_key.clone();
+
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+
+        // A peer's block wins height 2 on the channel.
+        let peer = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        chain.apply_adopted(msg(2), &peer);
+
+        // Our own block at that height is not on the channel, so — unlike an
+        // adopted competitor — it must not reorg the head onto itself.
+        let tx = create_transaction_native_token_transfer(from, 0, to, 10, &sign_key);
+        let ours = produce_dummy_block(2, Some(genesis.header.hash), vec![tx]);
+        assert!(matches!(
+            chain.apply_produced(msg(12), &ours),
+            AcceptOutcome::AlreadyApplied
+        ));
+        assert_eq!(chain.head_tip().expect("head tip").hash, peer.header.hash);
+        assert_eq!(chain.head_state().get_account_by_id(to).balance, 20000);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn produced_block_extending_the_head_applies() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+
+        let ours = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        assert!(matches!(
+            chain.apply_produced(msg(2), &ours),
+            AcceptOutcome::Applied
+        ));
+        assert_eq!(chain.head_tip().expect("head tip").hash, ours.header.hash);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn invalid_adopted_competitor_leaves_head_intact() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+        chain.apply_adopted(msg(2), &block2);
+        chain.apply_adopted(msg(3), &block3);
+
+        // A competitor at height 2 with a bogus parent parks; the truncation
+        // is not committed, so the 2..=3 suffix survives.
+        let bad = produce_dummy_block(2, Some(HashType([9; 32])), vec![]);
+        assert!(matches!(
+            chain.apply_adopted(msg(12), &bad),
+            AcceptOutcome::Parked(BlockIngestError::BrokenChainLink { .. })
+        ));
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 3);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn adopted_conflicting_with_final_tip_is_ignored() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        chain.apply_finalized(msg(1), &genesis, slot(10));
+        chain.apply_finalized(msg(2), &block2, slot(20));
+
+        // Finalized is irreversible: an adopted competitor at (or below) the
+        // final tip is ignored, not reorged onto.
+        let block2_prime = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        assert!(matches!(
+            chain.apply_adopted(msg(12), &block2_prime),
+            AcceptOutcome::AlreadyApplied
+        ));
+        assert_eq!(
+            chain.final_tip().expect("final tip").hash,
+            block2.header.hash
+        );
+        assert_eq!(chain.head_tip().expect("head tip").hash, block2.header.hash);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn restore_head_block_rebuilds_head_and_correlates_by_hash() {
+        let accounts = initial_pub_accounts_private_keys();
+        let from = accounts[0].account_id;
+        let to = accounts[1].account_id;
+        let sign_key = accounts[0].pub_sign_key.clone();
+
+        // Restart shape: final tier from a persisted snapshot, head rebuilt from
+        // stored blocks under hash-derived sentinel MsgIds.
+        let mut state = initial_state();
+        let genesis = produce_dummy_block(1, None, vec![]);
+        apply_block(None, &genesis, &mut state).expect("genesis applies");
+        let mut chain = ChainState::from_final(state, Some(Tip::from(&genesis)));
+
+        let tx2 = create_transaction_native_token_transfer(from, 0, to, 10, &sign_key);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![tx2]);
+        let tx3 = create_transaction_native_token_transfer(from, 1, to, 10, &sign_key);
+        let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![tx3]);
+        for block in [&block2, &block3] {
+            chain
+                .restore_head_block(block.clone())
+                .expect("stored blocks must replay");
+        }
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 3);
+        assert_head_matches_replay(&chain);
+
+        // The L1 orphans restored block 3 under its real (unknown-to-us) MsgId:
+        // correlated by hash, the revert works and a competitor applies.
+        chain.revert_orphan(msg(33), &block3);
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 2);
+
+        let block3_prime = produce_dummy_block(3, Some(block2.header.hash), vec![]);
+        assert!(matches!(
+            chain.apply_adopted(msg(13), &block3_prime),
+            AcceptOutcome::Applied
+        ));
+        assert_eq!(chain.head_state().get_account_by_id(to).balance, 20010);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn restore_head_block_rejects_non_chaining_block() {
+        let mut chain = ChainState::new(initial_state());
+        let skipped = produce_dummy_block(3, Some(HashType([9; 32])), vec![]);
+        assert!(chain.restore_head_block(skipped).is_err());
+    }
+
+    #[test]
+    fn finalized_hash_alias_with_wrong_id_is_not_absorbed() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+
+        // A malformed message reusing genesis's hash under a different claimed
+        // id must not match the held entry as a re-delivery; it falls through
+        // to validation and parks.
+        let mut alias = genesis.clone();
+        alias.header.block_id = 6;
+        assert!(matches!(
+            chain.apply_finalized(msg(66), &alias, slot(10)),
+            AcceptOutcome::Parked(_)
+        ));
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 1);
+        assert!(chain.final_tip().is_none());
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn finalized_reinscription_matches_by_block_hash() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+        chain.apply_adopted(msg(2), &block2);
+        chain.apply_adopted(msg(3), &block3);
+
+        // Block 2 finalizes re-inscribed under a fresh MsgId: matched by hash,
+        // finalized through, and the head above it survives.
+        assert!(matches!(
+            chain.apply_finalized(msg(42), &block2, slot(5)),
+            AcceptOutcome::Applied
+        ));
+        assert_eq!(chain.final_tip().expect("final tip").block_id, 2);
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 3);
+        assert!(chain.final_stall().is_none());
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn finalize_through_preserves_head_state_and_advances_final_state() {
+        let accounts = initial_pub_accounts_private_keys();
+        let from = accounts[0].account_id;
+        let to = accounts[1].account_id;
+        let sign_key = accounts[0].pub_sign_key.clone();
+
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+        let tx2 = create_transaction_native_token_transfer(from, 0, to, 10, &sign_key);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![tx2]);
+        chain.apply_adopted(msg(2), &block2);
+        let tx3 = create_transaction_native_token_transfer(from, 1, to, 10, &sign_key);
+        let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![tx3]);
+        chain.apply_adopted(msg(3), &block3);
+
+        chain.apply_finalized(msg(2), &block2, slot(10));
+
+        // Head still reflects both transfers
+        assert_eq!(chain.head_state().get_account_by_id(to).balance, 20020);
+        // ...while final reflects only the finalized prefix.
+        assert_eq!(chain.final_state().get_account_by_id(to).balance, 20010);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn head_self_heals_with_valid_competitor_after_park() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+
+        // Correct id, wrong parent: parked, head frozen at 1, no stall.
+        let bad = produce_dummy_block(2, Some(HashType([9; 32])), vec![]);
+        assert!(matches!(
+            chain.apply_adopted(msg(2), &bad),
+            AcceptOutcome::Parked(BlockIngestError::BrokenChainLink { .. })
+        ));
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 1);
+        assert!(chain.final_stall().is_none());
+
+        // A valid competitor at the same height applies without any reorg event.
+        let good = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        assert!(matches!(
+            chain.apply_adopted(msg(12), &good),
+            AcceptOutcome::Applied
+        ));
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 2);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn repeated_invalid_finalized_bumps_orphans_since() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_finalized(msg(1), &genesis, slot(10));
+
+        let bad3 = produce_dummy_block(3, Some(genesis.header.hash), vec![]);
+        chain.apply_finalized(msg(3), &bad3, slot(20));
+        let bad5 = produce_dummy_block(5, Some(bad3.header.hash), vec![]);
+        assert!(matches!(
+            chain.apply_finalized(msg(5), &bad5, slot(30)),
+            AcceptOutcome::Parked(_)
+        ));
+
+        let stall = chain.final_stall().expect("final stall recorded");
+        assert_eq!(stall.block_id, Some(3), "first stall reason is preserved");
+        assert_eq!(stall.orphans_since, 1);
+    }
+
+    #[test]
+    fn valid_finalized_successor_clears_final_stall() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_finalized(msg(1), &genesis, slot(10));
+
+        let bad = produce_dummy_block(3, Some(genesis.header.hash), vec![]);
+        chain.apply_finalized(msg(3), &bad, slot(20));
+        assert!(chain.final_stall().is_some());
+
+        // The valid successor of the frozen final tip finalizes: stall clears.
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        assert!(matches!(
+            chain.apply_finalized(msg(2), &block2, slot(30)),
+            AcceptOutcome::Applied
+        ));
+        assert!(chain.final_stall().is_none());
+        assert_eq!(chain.final_tip().expect("final tip").block_id, 2);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn finalized_successor_of_head_entry_finalizes_the_prefix() {
+        // Head holds unfinalized blocks 1..=2 (e.g. restored after a restart);
+        // a peer block 3 we never saw adopted arrives finalized. Its ancestry
+        // finalizes our prefix implicitly, then 3 applies to final directly.
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+        chain.apply_adopted(msg(2), &block2);
+        assert!(chain.final_tip().is_none());
+
+        let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![]);
+        assert!(matches!(
+            chain.apply_finalized(msg(3), &block3, slot(10)),
+            AcceptOutcome::Applied
+        ));
+        assert_eq!(chain.final_tip().expect("final tip").block_id, 3);
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 3);
+        assert!(chain.final_stall().is_none());
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn finalized_redelivery_at_or_below_final_tip_is_already_applied() {
+        // Restart shape: the store's tip (incl. not-yet-finalized blocks) is
+        // restored as the final tier, so their later finalization arrives for
+        // blocks that were never in `head_blocks`.
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        chain.apply_finalized(msg(1), &genesis, slot(10));
+        chain.apply_finalized(msg(2), &block2, slot(20));
+
+        // Below the tip, and at the tip with a matching hash: idempotent.
+        assert!(matches!(
+            chain.apply_finalized(msg(41), &genesis, slot(30)),
+            AcceptOutcome::AlreadyApplied
+        ));
+        assert!(matches!(
+            chain.apply_finalized(msg(42), &block2, slot(30)),
+            AcceptOutcome::AlreadyApplied
+        ));
+        assert!(chain.final_stall().is_none());
+        assert_eq!(chain.final_tip().expect("final tip").block_id, 2);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn conflicting_finalized_at_final_tip_parks() {
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        chain.apply_finalized(msg(1), &genesis, slot(10));
+        chain.apply_finalized(msg(2), &block2, slot(20));
+
+        // A different finalized block at the final height: finalized is
+        // irreversible, so this is a genuine stall, not a re-delivery.
+        let block2_prime = produce_dummy_block(2, Some(HashType([9; 32])), vec![]);
+        assert!(matches!(
+            chain.apply_finalized(msg(22), &block2_prime, slot(30)),
+            AcceptOutcome::Parked(_)
+        ));
+        assert!(chain.final_stall().is_some());
+        assert_eq!(chain.final_tip().expect("final tip").block_id, 2);
+    }
+
+    #[test]
+    fn finalized_unknown_block_rebases_head() {
+        let accounts = initial_pub_accounts_private_keys();
+        let from = accounts[0].account_id;
+        let to = accounts[1].account_id;
+        let sign_key = accounts[0].pub_sign_key.clone();
+
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+        chain.apply_finalized(msg(1), &genesis, slot(10));
+
+        // Head advances on a competing branch…
+        let block2a = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+        chain.apply_adopted(msg(2), &block2a);
+
+        // …but a different block 2 finalizes. The finalized chain is
+        // authoritative, so head rebases onto it.
+        let tx = create_transaction_native_token_transfer(from, 0, to, 10, &sign_key);
+        let block2b = produce_dummy_block(2, Some(genesis.header.hash), vec![tx]);
+        assert!(matches!(
+            chain.apply_finalized(msg(22), &block2b, slot(20)),
+            AcceptOutcome::Applied
+        ));
+
+        assert_eq!(chain.final_tip().expect("final tip").block_id, 2);
+        assert_eq!(chain.head_tip().expect("head tip").block_id, 2);
+        assert_eq!(chain.head_state().get_account_by_id(to).balance, 20010);
+        assert_head_matches_replay(&chain);
+    }
+
+    #[test]
+    fn head_state_reflects_applied_transfers() {
+        let accounts = initial_pub_accounts_private_keys();
+        let from = accounts[0].account_id;
+        let to = accounts[1].account_id;
+        let sign_key = accounts[0].pub_sign_key.clone();
+
+        let mut chain = ChainState::new(initial_state());
+        let genesis = produce_dummy_block(1, None, vec![]);
+        chain.apply_adopted(msg(1), &genesis);
+
+        let tx = create_transaction_native_token_transfer(from, 0, to, 10, &sign_key);
+        let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![tx]);
+        chain.apply_adopted(msg(2), &block2);
+
+        assert_eq!(chain.head_state().get_account_by_id(from).balance, 9990);
+        assert_eq!(chain.head_state().get_account_by_id(to).balance, 20010);
+    }
+}
diff --git a/lez/chain_consistency/src/consistency.rs b/lez/chain_state/src/consistency.rs
similarity index 100%
rename from lez/chain_consistency/src/consistency.rs
rename to lez/chain_state/src/consistency.rs
diff --git a/lez/chain_state/src/ingest_error.rs b/lez/chain_state/src/ingest_error.rs
new file mode 100644
index 00000000..d259b5f7
--- /dev/null
+++ b/lez/chain_state/src/ingest_error.rs
@@ -0,0 +1,80 @@
+use common::HashType;
+use serde::{Deserialize, Serialize};
+
+/// Why an L2 block from the channel could not be applied.
+///
+/// Persisted in `RocksDB` (as part of [`crate::StallReason`]), so every variant
+/// must be `Clone + Serialize + Deserialize`.
+#[derive(Debug, Clone, Serialize, Deserialize, thiserror::Error)]
+pub enum BlockIngestError {
+    #[error("Failed to deserialize L2 block: {0}")]
+    /// Here we store the error string that is derived from [`borsh::from_slice`]'s [`Err`].
+    Deserialize(String),
+    #[error("Unexpected block id: expected {expected}, got {got}")]
+    UnexpectedBlockId { expected: u64, got: u64 },
+    #[error("Broken chain link: expected prev {expected_prev}, got {got_prev}")]
+    BrokenChainLink {
+        expected_prev: HashType,
+        got_prev: HashType,
+    },
+    #[error("Block hash mismatch: computed {computed}, header {header}")]
+    HashMismatch {
+        computed: HashType,
+        header: HashType,
+    },
+    #[error("Block has no transactions")]
+    EmptyBlock,
+    #[error("Last transaction must be the public clock invocation for the block timestamp")]
+    InvalidClockTransaction,
+    #[error("Genesis block must contain only public transactions")]
+    NonPublicGenesisTransaction,
+    #[error("State transition failed at transaction {tx_index}: {reason}")]
+    StateTransition {
+        /// Index of the failing transaction within the block body.
+        tx_index: u64,
+        /// Reason string from `lee::Error` to `anyhow::Error` to `{:#}`.
+        ///
+        /// This is required because `lee::Error` is not `Clone + Serialize + Deserialize`, so we
+        /// cannot store it directly.
+        reason: String,
+    },
+}
+
+impl BlockIngestError {
+    /// Whether the failure may be transient rather than a property of the block.
+    ///
+    /// FIXME: `StateTransition` is too coarse — its `reason` string mixes genuine
+    /// state-transition rejections with infra failures (risc0 executor teardown,
+    /// storage errors). Once it carries a structured cause, narrow this so only
+    /// infra failures retry.
+    #[must_use]
+    pub const fn is_retryable(&self) -> bool {
+        matches!(self, Self::StateTransition { .. })
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn serializes_and_round_trips_externally_tagged() {
+        let err = BlockIngestError::UnexpectedBlockId {
+            expected: 5,
+            got: 7,
+        };
+        let value = serde_json::to_value(&err).expect("serialize");
+        assert_eq!(
+            value,
+            serde_json::json!({ "UnexpectedBlockId": { "expected": 5, "got": 7 } })
+        );
+        let back: BlockIngestError = serde_json::from_value(value).expect("deserialize");
+        assert!(matches!(
+            back,
+            BlockIngestError::UnexpectedBlockId {
+                expected: 5,
+                got: 7
+            }
+        ));
+    }
+}
diff --git a/lez/chain_state/src/lib.rs b/lez/chain_state/src/lib.rs
new file mode 100644
index 00000000..89357af0
--- /dev/null
+++ b/lez/chain_state/src/lib.rs
@@ -0,0 +1,17 @@
+//! Storage-free chain-state core shared by the LEZ sequencer and indexer:
+//! the [`apply_block`] entry point plus [`BlockIngestError`], [`StallReason`],
+//! [`Tip`], and [`AcceptOutcome`]. See [`ChainState`] for the two-tier model.
+
+pub use apply::{AcceptOutcome, Tip, apply_block, apply_block_to_state, validate_against_tip};
+pub use chain::{ChainState, HeadEntry};
+pub use consistency::{
+    Anchor, AnchorConsistencyCheck, ChainConsistency, ChainMismatch, verify_chain_consistency,
+};
+pub use ingest_error::BlockIngestError;
+pub use stall_reason::StallReason;
+
+pub mod apply;
+pub mod chain;
+pub mod consistency;
+pub mod ingest_error;
+pub mod stall_reason;
diff --git a/lez/chain_state/src/stall_reason.rs b/lez/chain_state/src/stall_reason.rs
new file mode 100644
index 00000000..e1d9b3ac
--- /dev/null
+++ b/lez/chain_state/src/stall_reason.rs
@@ -0,0 +1,50 @@
+use common::{HashType, block::BlockHeader};
+use logos_blockchain_zone_sdk::Slot;
+use serde::{Deserialize, Serialize};
+
+use crate::ingest_error::BlockIngestError;
+
+/// Diagnostic record of the first block that broke the L2 chain.
+///
+/// The block-derived fields are `None` for a deserialize break (no header was
+/// ever parsed). `l1_slot` is the L1 slot the breaking inscription was read at.
+/// `first_seen` is the breaking block's L2 timestamp (`None` for a deserialize break).
+#[derive(Debug, Clone, Serialize, Deserialize)]
+pub struct StallReason {
+    pub block_id: Option<u64>,
+    pub block_hash: Option<HashType>,
+    pub prev_block_hash: Option<HashType>,
+    pub l1_slot: Slot,
+    pub error: BlockIngestError,
+    pub first_seen: Option<u64>,
+    /// Number of later non-chaining blocks (orphans, since the tip is frozen).
+    ///
+    /// TODO: We could store a different "branch" of blocks following this break, but for now we
+    /// just count them.
+    pub orphans_since: u64,
+}
+
+impl StallReason {
+    /// First stall for a break, built from the breaking block's header
+    /// (`None` for a deserialize break).
+    #[must_use]
+    pub fn new(header: Option<&BlockHeader>, l1_slot: Slot, error: BlockIngestError) -> Self {
+        Self {
+            block_id: header.map(|header| header.block_id),
+            block_hash: header.map(|header| header.hash),
+            prev_block_hash: header.map(|header| header.prev_block_hash),
+            first_seen: header.map(|header| header.timestamp),
+            l1_slot,
+            error,
+            orphans_since: 0,
+        }
+    }
+
+    /// A later stall on the same break: bumps `orphans_since`, preserving the
+    /// original cause.
+    #[must_use]
+    pub const fn escalate(mut self) -> Self {
+        self.orphans_since = self.orphans_since.saturating_add(1);
+        self
+    }
+}
diff --git a/lez/common/src/block.rs b/lez/common/src/block.rs
index b22eec9f..53a2f033 100644
--- a/lez/common/src/block.rs
+++ b/lez/common/src/block.rs
@@ -13,6 +13,15 @@ pub struct BlockMeta {
     pub hash: BlockHash,
 }
 
+impl From<&Block> for BlockMeta {
+    fn from(block: &Block) -> Self {
+        Self {
+            id: block.header.block_id,
+            hash: block.header.hash,
+        }
+    }
+}
+
 #[derive(Debug, Clone)]
 /// Our own hasher.
 /// Currently it is SHA256 hasher wrapper. May change in a future.
diff --git a/lez/indexer/core/Cargo.toml b/lez/indexer/core/Cargo.toml
index cbe0b7e8..afba6f29 100644
--- a/lez/indexer/core/Cargo.toml
+++ b/lez/indexer/core/Cargo.toml
@@ -12,8 +12,8 @@ default = []
 testnet = []
 
 [dependencies]
+chain_state.workspace = true
 common.workspace = true
-chain_consistency.workspace = true
 logos-blockchain-zone-sdk.workspace = true
 lee.workspace = true
 lee_core.workspace = true
diff --git a/lez/indexer/core/src/block_store.rs b/lez/indexer/core/src/block_store.rs
index 16dc266d..ce6cfc61 100644
--- a/lez/indexer/core/src/block_store.rs
+++ b/lez/indexer/core/src/block_store.rs
@@ -1,7 +1,9 @@
 use std::{path::Path, sync::Arc};
 
 use anyhow::{Context as _, Result};
-use chain_consistency::{BlockIngestError, Tip};
+use chain_state::{
+    AcceptOutcome, BlockIngestError, StallReason, Tip, apply_block_to_state, validate_against_tip,
+};
 use common::{
     block::{BedrockStatus, Block, BlockHeader},
     transaction::LeeTransaction,
@@ -14,23 +16,6 @@ use logos_blockchain_zone_sdk::Slot;
 use storage::indexer::RocksDBIO;
 use tokio::sync::RwLock;
 
-use crate::status::StallReason;
-
-/// Outcome of feeding a parsed L2 block to the validated tip.
-pub enum AcceptOutcome {
-    /// Chained and applied; tip and L1 read cursor both advance.
-    Applied,
-    /// A duplicate re-delivery of the current tip. Just L2 advances.
-    AlreadyApplied,
-    /// Did not chain or failed to apply; tip stays frozen, stall recorded.
-    Parked(BlockIngestError),
-    /// Chained but failed to apply, possibly transiently
-    /// ([`BlockIngestError::is_retryable`]); nothing recorded, tip and state
-    /// untouched. The caller retries and parks via
-    /// [`IndexerStore::record_stall`] once it gives up.
-    RetryableFailure(BlockIngestError),
-}
-
 #[derive(Clone)]
 pub struct IndexerStore {
     dbio: Arc<RocksDBIO>,
@@ -201,10 +186,7 @@ impl IndexerStore {
         let Some(block) = self.dbio.get_block(block_id)? else {
             return Ok(None);
         };
-        Ok(Some(Tip {
-            block_id,
-            hash: block.header.hash,
-        }))
+        Ok(Some(Tip::from(&block)))
     }
 
     /// Record the stall reason.
@@ -217,22 +199,10 @@ impl IndexerStore {
         l1_slot: Slot,
         error: BlockIngestError,
     ) -> Result<()> {
-        let stall = match self.get_stall_reason()? {
-            Some(mut existing) => {
-                existing.orphans_since = existing.orphans_since.saturating_add(1);
-                existing
-            }
-            None => StallReason {
-                // need to map out of `header` because they are not ser/de
-                block_id: header.map(|h| h.block_id),
-                block_hash: header.map(|h| h.hash),
-                prev_block_hash: header.map(|h| h.prev_block_hash),
-                first_seen: header.map(|h| h.timestamp),
-                l1_slot,
-                error,
-                orphans_since: 0,
-            },
-        };
+        let stall = self.get_stall_reason()?.map_or_else(
+            || StallReason::new(header, l1_slot, error),
+            StallReason::escalate,
+        );
         self.set_stall_reason(&Some(stall))
     }
 
@@ -252,14 +222,16 @@ impl IndexerStore {
             return Ok(AcceptOutcome::AlreadyApplied);
         }
 
-        if let Err(err) = chain_consistency::validate_against_tip(tip, block) {
+        // Validate before paying for the scratch clone; validation failures
+        // are never retryable, so parking immediately is exact.
+        if let Err(err) = validate_against_tip(tip.as_ref(), block) {
             self.record_stall(Some(&block.header), l1_slot, err.clone())?;
             return Ok(AcceptOutcome::Parked(err));
         }
 
         // TODO: we use scratch state to be atomic, but need to revisit how expensive a clone is
         let mut scratch = self.current_state.read().await.clone();
-        if let Err(err) = chain_consistency::apply_block(block, &mut scratch) {
+        if let Err(err) = apply_block_to_state(block, &mut scratch) {
             if err.is_retryable() {
                 return Ok(AcceptOutcome::RetryableFailure(err));
             }
@@ -434,7 +406,6 @@ mod tests {
 
 #[cfg(test)]
 mod accept_tests {
-    use chain_consistency::BlockIngestError;
     use common::{HashType, block::HashableBlockData, test_utils::produce_dummy_block};
 
     use super::*;
diff --git a/lez/indexer/core/src/lib.rs b/lez/indexer/core/src/lib.rs
index e6cd9191..4cf7d58f 100644
--- a/lez/indexer/core/src/lib.rs
+++ b/lez/indexer/core/src/lib.rs
@@ -2,8 +2,8 @@ use std::{path::Path, sync::Arc};
 
 use anyhow::Result;
 use arc_swap::ArcSwap;
-pub use chain_consistency::BlockIngestError;
-use chain_consistency::{Anchor, ChainConsistency};
+pub use chain_state::{AcceptOutcome, BlockIngestError, StallReason};
+use chain_state::{Anchor, ChainConsistency};
 use common::block::Block;
 // TODO: Remove after testnet
 use futures::StreamExt as _;
@@ -12,10 +12,9 @@ use logos_blockchain_zone_sdk::{
     CommonHttpClient, Slot, ZoneMessage, adapter::NodeHttpClient, indexer::ZoneIndexer,
 };
 use retry::ApplyRetryGate;
-pub use status::StallReason;
 
 use crate::{
-    block_store::{AcceptOutcome, IndexerStore},
+    block_store::IndexerStore,
     config::IndexerConfig,
     cross_zone_verifier::CrossZoneVerifier,
     status::{IndexerStatus, IndexerSyncStatus},
@@ -128,8 +127,7 @@ impl IndexerCore {
             return Ok(ChainConsistency::Inconclusive);
         };
 
-        chain_consistency::verify_chain_consistency(&self.node, self.config.channel_id, &anchor)
-            .await
+        chain_state::verify_chain_consistency(&self.node, self.config.channel_id, &anchor).await
     }
 
     /// Builds the anchor for the startup check.
diff --git a/lez/indexer/core/src/status.rs b/lez/indexer/core/src/status.rs
index 1307238b..aa182c23 100644
--- a/lez/indexer/core/src/status.rs
+++ b/lez/indexer/core/src/status.rs
@@ -1,27 +1,5 @@
-use chain_consistency::BlockIngestError;
-use common::HashType;
-use logos_blockchain_zone_sdk::Slot;
-use serde::{Deserialize, Serialize};
-
-/// Diagnostic record of the first block that broke the L2 chain.
-///
-/// The block-derived fields are `None` for a deserialize break (no header was
-/// ever parsed). `l1_slot` is the L1 slot the breaking inscription was read at.
-/// `first_seen` is the breaking block's L2 timestamp (`None` for a deserialize break).
-#[derive(Debug, Clone, Serialize, Deserialize)]
-pub struct StallReason {
-    pub block_id: Option<u64>,
-    pub block_hash: Option<HashType>,
-    pub prev_block_hash: Option<HashType>,
-    pub l1_slot: Slot,
-    pub error: BlockIngestError,
-    pub first_seen: Option<u64>,
-    /// Number of later non-chaining blocks (orphans, since the tip is frozen).
-    ///
-    /// TODO: We could store a different "branch" of blocks following this break, but for now we
-    /// just count them.
-    pub orphans_since: u64,
-}
+use chain_state::StallReason;
+use serde::Serialize;
 
 /// Coarse lifecycle state of the indexer's ingestion loop, so a client can tell
 /// "still catching up" apart from "something went wrong".
@@ -138,6 +116,7 @@ mod tests {
 
     #[test]
     fn stalled_status_serializes_with_stall_reason() {
+        use chain_state::{BlockIngestError, StallReason};
         use logos_blockchain_zone_sdk::Slot;
 
         let status = IndexerStatus {
diff --git a/lez/keycard_wallet/Cargo.toml b/lez/keycard_wallet/Cargo.toml
index 4abff1f1..33fabfb4 100644
--- a/lez/keycard_wallet/Cargo.toml
+++ b/lez/keycard_wallet/Cargo.toml
@@ -9,8 +9,11 @@ workspace = true
 
 [dependencies]
 lee.workspace = true
-pyo3.workspace = true
+keycard-rs.workspace = true
+bip39.workspace = true
+hex.workspace = true
 log.workspace = true
-serde = { workspace = true, features = ["derive"] }
-serde_json.workspace = true
+pcsc.workspace = true
+rand.workspace = true
+thiserror.workspace = true
 zeroize.workspace = true
diff --git a/lez/keycard_wallet/keycard_applets/LEE_keycard.cap b/lez/keycard_wallet/keycard_applets/LEE_keycard.cap
deleted file mode 100644
index b2e71d56..00000000
Binary files a/lez/keycard_wallet/keycard_applets/LEE_keycard.cap and /dev/null differ
diff --git a/lez/keycard_wallet/keycard_applets/math.cap b/lez/keycard_wallet/keycard_applets/math.cap
deleted file mode 100644
index b9c0e99f..00000000
Binary files a/lez/keycard_wallet/keycard_applets/math.cap and /dev/null differ
diff --git a/lez/keycard_wallet/python/keycard_wallet.py b/lez/keycard_wallet/python/keycard_wallet.py
deleted file mode 100644
index 21e966cb..00000000
--- a/lez/keycard_wallet/python/keycard_wallet.py
+++ /dev/null
@@ -1,221 +0,0 @@
-from smartcard.System import readers
-from keycard.exceptions import APDUError, TransportError
-from ecdsa import VerifyingKey, SECP256k1
-
-from keycard.keycard import KeyCard
-from keycard.commands.export_lee_key import export_lee_key
-from mnemonic import Mnemonic
-from keycard import constants
-
-import os
-import secrets
-
-DEFAULT_PAIRING_PASSWORD = "KeycardDefaultPairing"
-
-def _pairing_password() -> str:
-    return os.environ.get("KEYCARD_PAIRING_PASSWORD", DEFAULT_PAIRING_PASSWORD)
-
-class KeycardWallet:
-    def __init__(self):
-        self.card = KeyCard()
-
-    def _is_smart_card_reader_detected(self) -> bool:  
-        try:  
-            return len(readers()) > 0  
-        except Exception:
-            return False
-    
-    def _is_keycard_detected(self) -> bool:
-        try:
-            KeyCard().select()
-            return True
-        except (TransportError, APDUError, Exception):  
-            # No readers, no card, or card doesn't respond.  
-            return False
-  
-    def is_unpaired_keycard_available(self) -> bool:
-        if not self._is_smart_card_reader_detected():
-            return False
-        elif not self._is_keycard_detected():
-            return False
-        return True
-
-    def initialize(self, pin: str, pairing_password: str | None = None) -> bool:
-        try:
-            self.card.select()
-
-            if self.card.is_initialized:
-                raise RuntimeError("Card is already initialized")
-
-            puk = ''.join(secrets.choice('0123456789') for _ in range(12))
-            self.card.init(pin, puk, pairing_password or _pairing_password())
-            print(f"Keycard PUK: {puk}")
-            print("Record this PUK and store it somewhere safe. It cannot be recovered.")
-            return True
-        except Exception as e:
-            raise RuntimeError(f"Error initializing keycard: {e}") from e
-
-    def _reconnect(self) -> None:
-        self.card = KeyCard()
-        self.card.select()
-
-    def _pair(self, pin: str, password: str) -> tuple[int, bytes]:
-        self.card.select()
-
-        if not self.card.is_initialized:
-            raise RuntimeError("Card is not initialized — run 'wallet keycard init' first")
-
-        pairing_index, pairing_key = self.card.pair(password)
-        self.pairing_index = pairing_index
-        self.pairing_key = pairing_key
-
-        try:
-            self.card.open_secure_channel(pairing_index, pairing_key)
-            self.card.verify_pin(pin)
-        except Exception as e:
-            try:
-                self.card.unpair(pairing_index)
-            except Exception:
-                pass
-            raise RuntimeError(f"Error opening secure channel after fresh pair: {e}") from e
-
-        return pairing_index, pairing_key
-
-    def pair(self, pin: str, password: str | None = None) -> tuple[int, bytes]:
-        password = password or _pairing_password()
-        try:
-            return self._pair(pin, password)
-        except TransportError as e:
-            print(f"Transport error during fresh pair ({e}), attempting card reset and retry...")
-            try:
-                self._reconnect()
-                result = self._pair(pin, password)
-                print("Retry succeeded after card reset.")
-                return result
-            except TransportError as e2:
-                raise RuntimeError(
-                    "Card lost power and did not recover after reset. "
-                    "Try reseating the card in the reader."
-                ) from e2
-
-    def _setup_communication_with_pairing(self, pin: str, pairing_index: int, pairing_key: bytes) -> bool:
-        self.card.select()
-
-        if not self.card.is_initialized:
-            raise RuntimeError("Card is not initialized — run 'wallet keycard init' first")
-
-        self.pairing_index = pairing_index
-        self.pairing_key = pairing_key
-
-        try:
-            self.card.open_secure_channel(pairing_index, pairing_key)
-            self.card.verify_pin(pin)
-        except Exception as e:
-            raise RuntimeError(f"Error setting up communication with stored pairing: {e}") from e
-
-        return True
-
-    def setup_communication_with_pairing(self, pin: str, pairing_index: int, pairing_key: bytes) -> bool:
-        try:
-            return self._setup_communication_with_pairing(pin, pairing_index, pairing_key)
-        except TransportError as e:
-            print(f"Transport error during stored pairing ({e}), attempting card reset and retry...")
-            try:
-                self._reconnect()
-                result = self._setup_communication_with_pairing(pin, pairing_index, pairing_key)
-                print("Retry succeeded after card reset.")
-                return result
-            except TransportError as e2:
-                raise RuntimeError(
-                    "Card lost power and did not recover after reset. "
-                    "Try reseating the card in the reader."
-                ) from e2
-
-    def close_session(self) -> bool:
-        return True
-
-    def load_mnemonic(self, mnemonic: str) -> bool:
-        try:
-            # Convert mnemonic to seed  
-            mnemo = Mnemonic("english")
-            if not mnemo.check(mnemonic):
-                raise RuntimeError("Invalid mnemonic phrase — check spelling and word count")
-            seed = mnemo.to_seed(mnemonic)
-
-            # Load the LEE seed onto the card  
-            result = self.card.load_key(  
-                key_type = constants.LoadKeyType.LEE_SEED,  
-                lee_seed = seed  
-            )
-            return True
-        except Exception as e:
-            raise RuntimeError(f"Error loading mnemonic: {e}") from e
-
-    def disconnect(self) -> bool:
-        try:
-            if not self.card.is_secure_channel_open:
-                return False
-            
-            self.card.unpair(self.pairing_index)
-
-            return True
-        except Exception as e:
-            raise RuntimeError(f"Error during disconnect: {e}") from e
-        
-    def get_public_key_for_path(self, path: str = "m/44'/60'/0'/0/0") -> bytes | None:
-        try:
-            if not self.card.is_secure_channel_open or not self.card.is_pin_verified:
-                return None
-
-            public_key = self.card.export_key(  
-                derivation_option = constants.DerivationOption.DERIVE,  
-                public_only = True,  
-                keypath = path  
-            )   
-
-            public_key = public_key.public_key
-            public_key = VerifyingKey.from_string(public_key[1:], curve=SECP256k1)  
-            public_key = public_key.to_string("compressed")[1:]
-
-            return public_key
-        
-        except Exception as e:
-            raise RuntimeError(f"Error getting public key: {e}") from e
-
-
-    def sign_message_for_path(self, message: bytes, path: str = "m/44'/60'/0'/0/0") -> bytes | None:
-        try:
-            if not self.card.is_secure_channel_open or not self.card.is_pin_verified:
-                return None
-
-            signature = self.card.sign_with_path(
-                digest = message,
-                path = path,
-                algorithm = constants.SigningAlgorithm.SCHNORR_BIP340,
-                make_current = False
-            )
-
-            return signature.signature
-
-        except Exception as e:
-            raise RuntimeError(f"Error signing message: {e}") from e
-
-    def get_private_keys_for_path(self, path: str = "m/44'/60'/0'/0/0") -> bytes | None:
-        try:
-            if not self.card.is_secure_channel_open or not self.card.is_pin_verified:
-                return None
-
-            private_keys = export_lee_key(
-                self.card,
-                constants.DerivationOption.DERIVE,
-                path
-            )
-
-            nsk = private_keys.lee_nsk
-            vsk = private_keys.lee_vsk
-
-            return (nsk, vsk)
-        
-        except Exception as e:
-            raise RuntimeError(f"Error getting private keys: {e}") from e
-            
diff --git a/lez/keycard_wallet/src/bin/force_unpower.rs b/lez/keycard_wallet/src/bin/force_unpower.rs
new file mode 100644
index 00000000..9cf07f1b
--- /dev/null
+++ b/lez/keycard_wallet/src/bin/force_unpower.rs
@@ -0,0 +1,52 @@
+#![expect(
+    clippy::print_stdout,
+    reason = "This is a CLI test helper, printing to stdout is expected and convenient"
+)]
+
+//! Forces the card in the first available reader into the unpowered state via PC/SC
+//! `SCARD_UNPOWER_CARD`. Run immediately before a wallet command to simulate the power-loss
+//! condition reported on some USB reader/driver combinations.
+//!
+//! Either:
+//! - pcscd re-powers the card on the next `SCardConnect`, so wallet commands will succeed without
+//!   triggering the retry path.
+//! - the card stays unpowered, triggering a PC/SC transport error (`keycard_rs::Error::Io`) and
+//!   exercising the reconnect-and-retry wrapper in `KeycardWallet::connect()`.
+
+fn main() {
+    let context = match pcsc::Context::establish(pcsc::Scope::User) {
+        Ok(context) => context,
+        Err(e) => {
+            println!("force_unpower: failed to establish PC/SC context ({e}), skipping.");
+            return;
+        }
+    };
+
+    let readers = match context.list_readers_owned() {
+        Ok(readers) => readers,
+        Err(e) => {
+            println!("force_unpower: failed to list readers ({e}), skipping.");
+            return;
+        }
+    };
+
+    let Some(reader) = readers.first() else {
+        println!("force_unpower: no readers found, skipping.");
+        return;
+    };
+
+    let card = match context.connect(reader, pcsc::ShareMode::Shared, pcsc::Protocols::ANY) {
+        Ok(card) => card,
+        Err(e) => {
+            println!("force_unpower: connect failed ({e}), skipping.");
+            return;
+        }
+    };
+
+    if let Err((_card, e)) = card.disconnect(pcsc::Disposition::UnpowerCard) {
+        println!("force_unpower: disconnect failed ({e}), skipping.");
+        return;
+    }
+
+    println!("force_unpower: card powered down.");
+}
diff --git a/lez/keycard_wallet/src/lib.rs b/lez/keycard_wallet/src/lib.rs
index a3ecd140..f7d521cd 100644
--- a/lez/keycard_wallet/src/lib.rs
+++ b/lez/keycard_wallet/src/lib.rs
@@ -1,159 +1,230 @@
-use std::path::PathBuf;
+use std::str::FromStr as _;
 
+use keycard_rs::{
+    KeycardCommandSet, PcscChannel,
+    constants::sign_p2,
+    parsing::Bip32KeyPair,
+    secure_channel::SecureChannelVersion,
+    tlv::{BerTlvReader, TLV_KEY_TEMPLATE, TLV_PUB_KEY, TLV_SIGNATURE_TEMPLATE},
+};
 use lee::{AccountId, PublicKey, Signature};
-use pyo3::{prelude::*, types::PyAny};
-use serde::{Deserialize, Serialize};
+use rand::Rng as _;
 use zeroize::Zeroizing;
 
-pub mod python_path;
+/// LEE-applet extension tags. `keycard-rs` implements *sending* the LEE commands
+/// (`load_lee_key`, `export_lee_key`) but never added parsing for their LEE-specific responses,
+/// so these tag values — owned by the applet, not either client library — have to be hardcoded
+/// here. Matches `KeycardApplet.TLV_LEE_NSK`/`TLV_LEE_VSK` in `status-keycard`
+/// (`KeycardApplet.java:97-98`), the applet `LEE_keycard.cap` was almost certainly built from.
+const TLV_LEE_NSK: u8 = 0x83;
+const TLV_LEE_VSK: u8 = 0x84;
+/// Raw Schnorr signature (64 bytes: `r || s`, no ASN.1/DER wrapping) nested inside the standard
+/// `TLV_SIGNATURE_TEMPLATE` alongside the usual `TLV_PUB_KEY`. Confirmed against real hardware —
+/// the LEE applet's `SIGN` response for `sign_p2::BIP340_SCHNORR` is
+/// `0xA0 { 0x80 <65-byte pubkey>, 0x88 <64-byte r||s> }` — and matches
+/// `SECP256k1.TLV_RAW_SIGNATURE` in `status-keycard` (`SECP256k1.java:64`).
+const TLV_LEE_RAW_SIGNATURE: u8 = 0x88;
 
 /// NSK (32 bytes) and VSK (64 bytes, the ML-KEM-768 seed `d || z`) as fixed-length zeroizing byte
 /// arrays.
 type PrivateKeyPair = (Zeroizing<[u8; 32]>, Zeroizing<[u8; 64]>);
 
-// TODO: encrypt at rest alongside broader wallet storage encryption work.
-#[derive(Serialize, Deserialize)]
-pub struct KeycardPairingData {
-    pub index: u8,
-    pub key: Vec<u8>,
+#[derive(Debug, thiserror::Error)]
+pub enum KeycardWalletError {
+    #[error(transparent)]
+    Keycard(#[from] keycard_rs::Error),
+    #[error("keycard is already initialized")]
+    AlreadyInitialized,
+    #[error(
+        "this wallet only supports Secure Channel V2 keycards (applet version >= 4.0); detected {0:?}"
+    )]
+    UnsupportedSecureChannel(Option<SecureChannelVersion>),
+    #[error("invalid mnemonic phrase: {0}")]
+    InvalidMnemonic(String),
+    #[error("invalid key material from keycard: {0}")]
+    InvalidKeyMaterial(String),
+    #[error("keycard returned a signature that does not verify against its own public key")]
+    SignatureVerificationFailed,
+    #[error("invalid KEYCARD_CA_PUBLIC_KEY: {0}")]
+    InvalidCaPublicKey(String),
 }
 
-impl KeycardPairingData {
-    const fn is_valid(&self) -> bool {
-        self.key.len() == 32 && self.index <= 4
-    }
-}
-
-/// Rust wrapper around the Python `KeycardWallet` class.
+/// Rust wrapper around `keycard-rs`, talking to the LEE-flavored Keycard applet over PC/SC.
+/// Only Secure Channel V2 cards are supported — see `require_secure_channel_v2`.
 pub struct KeycardWallet {
-    instance: Py<PyAny>,
+    command_set: KeycardCommandSet,
 }
 
 impl KeycardWallet {
-    /// Create a new Python `KeycardWallet` instance.
-    pub fn new(py: Python) -> PyResult<Self> {
-        let module = py.import("keycard_wallet")?;
-        let class = module.getattr("KeycardWallet")?;
-
-        let instance = class.call0()?;
-
+    /// Connects to the first available PC/SC reader. Does not select the applet yet — callers
+    /// that need application info (`initialize`, `connect`, ...) do that themselves.
+    ///
+    /// Verifies the card's identity certificate against `keycard-rs`'s default production CA,
+    /// unless overridden via `KEYCARD_CA_PUBLIC_KEY` — see `ca_public_key_override`.
+    pub fn new() -> Result<Self, KeycardWalletError> {
+        let channel = PcscChannel::connect()?;
         Ok(Self {
-            instance: instance.into(),
+            command_set: Self::build_command_set(channel)?,
         })
     }
 
-    pub fn is_unpaired_keycard_available(&self, py: Python) -> PyResult<bool> {
-        self.instance
-            .bind(py)
-            .call_method0("is_unpaired_keycard_available")?
-            .extract()
+    fn build_command_set(channel: PcscChannel) -> Result<KeycardCommandSet, KeycardWalletError> {
+        Ok(match ca_public_key_override()? {
+            Some(ca) => KeycardCommandSet::new_with_ca(channel, ca),
+            None => KeycardCommandSet::new(channel),
+        })
     }
 
-    pub fn initialize(&self, py: Python<'_>, pin: &str) -> PyResult<bool> {
-        self.instance
-            .bind(py)
-            .call_method1("initialize", (pin,))?
-            .extract()
-    }
-
-    pub fn pair(&self, py: Python<'_>, pin: &str) -> PyResult<(u8, Vec<u8>)> {
-        self.instance
-            .bind(py)
-            .call_method1("pair", (pin,))?
-            .extract()
-    }
-
-    pub fn setup_communication_with_pairing(
-        &self,
-        py: Python<'_>,
-        pin: &str,
-        index: u8,
-        key: &[u8],
-    ) -> PyResult<bool> {
-        self.instance
-            .bind(py)
-            .call_method1(
-                "setup_communication_with_pairing",
-                (pin, index, key.to_vec()),
-            )?
-            .extract()
-    }
-
-    pub fn close_session(&self, py: Python<'_>) -> PyResult<bool> {
-        self.instance
-            .bind(py)
-            .call_method0("close_session")?
-            .extract()
-    }
-
-    /// Connect using a stored pairing if available, falling back to a fresh pair.
-    /// Saves any newly established pairing to disk.
-    pub fn connect(&self, py: Python<'_>, pin: &str) -> PyResult<()> {
-        if let Some(pairing) = load_pairing().filter(KeycardPairingData::is_valid)
-            && self
-                .setup_communication_with_pairing(py, pin, pairing.index, &pairing.key)
-                .is_ok()
-        {
-            return Ok(());
+    /// Returns whether a smart card reader and a selectable, Secure-Channel-V2 Keycard are both
+    /// present.
+    #[must_use]
+    pub fn is_keycard_available() -> bool {
+        let Ok(channel) = PcscChannel::connect() else {
+            return false;
+        };
+        let Ok(mut command_set) = Self::build_command_set(channel) else {
+            return false;
+        };
+        if !command_set.select().is_ok_and(|resp| resp.is_ok()) {
+            return false;
         }
-        let (index, key) = self.pair(py, pin)?;
-        save_pairing(&KeycardPairingData { index, key });
+        command_set.secure_channel_version() == Some(SecureChannelVersion::V2)
+    }
+
+    fn select(&mut self) -> Result<(), KeycardWalletError> {
+        self.command_set.select()?.check_ok()?;
         Ok(())
     }
 
-    pub fn disconnect(&self, py: Python) -> PyResult<bool> {
-        self.instance.bind(py).call_method0("disconnect")?.extract()
+    /// Rejects any card that isn't running Secure Channel V2 (older applets, or a card that
+    /// hasn't advertised a secure channel at all). Call right after `select()`.
+    fn require_secure_channel_v2(&self) -> Result<(), KeycardWalletError> {
+        match self.command_set.secure_channel_version() {
+            Some(SecureChannelVersion::V2) => Ok(()),
+            other => Err(KeycardWalletError::UnsupportedSecureChannel(other)),
+        }
     }
 
-    pub fn get_public_key_for_path(&self, py: Python, path: &str) -> PyResult<PublicKey> {
-        let public_key: Vec<u8> = self
-            .instance
-            .bind(py)
-            .call_method1("get_public_key_for_path", (path,))?
-            .extract()?;
-
-        let public_key: [u8; 32] = public_key.try_into().map_err(|vec: Vec<u8>| {
-            PyErr::new::<pyo3::exceptions::PyValueError, _>(format!(
-                "expected 32-byte public key from keycard, got {} bytes",
-                vec.len()
-            ))
-        })?;
-
-        PublicKey::try_new(public_key)
-            .map_err(|e| PyErr::new::<pyo3::exceptions::PyValueError, _>(e.to_string()))
+    /// Rebuilds the PC/SC channel and command set, then retries `op` once, if `op` failed with a
+    /// transport-level error (e.g. the card lost power mid-session).
+    fn with_reconnect_on_transport_error<T>(
+        &mut self,
+        op: impl Fn(&mut Self) -> Result<T, KeycardWalletError>,
+    ) -> Result<T, KeycardWalletError> {
+        match op(self) {
+            Err(KeycardWalletError::Keycard(keycard_rs::Error::Io(io_err))) => {
+                log::warn!(
+                    "transport error during keycard operation ({io_err}), reconnecting and retrying once"
+                );
+                *self = Self::new()?;
+                op(self)
+            }
+            result => result,
+        }
     }
 
-    pub fn get_public_key_for_path_with_connect(pin: &str, path: &str) -> PyResult<PublicKey> {
-        Python::attach(|py| {
-            python_path::add_python_path(py)?;
-            let wallet = Self::new(py)?;
-            wallet.connect(py, pin)?;
-            let pub_key = wallet.get_public_key_for_path(py, path);
-            drop(wallet.close_session(py));
-            pub_key
+    /// Initializes an uninitialized card, returning the generated PUK. The caller is responsible
+    /// for surfacing the PUK to the operator — it cannot be recovered afterward.
+    pub fn initialize(&mut self, pin: &str) -> Result<String, KeycardWalletError> {
+        self.select()?;
+        self.require_secure_channel_v2()?;
+        let already_initialized = self
+            .command_set
+            .app_info()
+            .expect("select() populates app_info on success")
+            .is_initialized();
+        if already_initialized {
+            return Err(KeycardWalletError::AlreadyInitialized);
+        }
+
+        // V2's INIT has no shared-secret field (confirmed against real hardware and the
+        // applet's own reference command set: a payload containing one is rejected outright) —
+        // pass an empty secret and let the card default the PIN/PUK retry counts.
+        let puk = generate_puk();
+        self.command_set
+            .init_with_secret(pin, None, &puk, &[], 0, 0)?
+            .check_ok()?;
+        Ok(puk)
+    }
+
+    /// Wipes the card's PIN, PUK, and loaded keys, returning it to an uninitialized state —
+    /// the counterpart to `initialize()`. Does **not** remove the identity certificate
+    /// provisioned via `IdentApplet`, so the card can be re-`initialize()`d afterward without
+    /// re-personalizing it. Irreversibly destroys any keys currently loaded on the card.
+    pub fn factory_reset(&mut self) -> Result<(), KeycardWalletError> {
+        self.select()?;
+        self.require_secure_channel_v2()?;
+        self.command_set.factory_reset()?.check_ok()?;
+        Ok(())
+    }
+
+    /// Opens the secure channel and verifies the PIN. Secure Channel V2 re-authenticates from
+    /// the card's certificate every session — there's no pairing step and nothing to persist.
+    pub fn connect(&mut self, pin: &str) -> Result<(), KeycardWalletError> {
+        self.with_reconnect_on_transport_error(|wallet| {
+            wallet.select()?;
+            wallet.require_secure_channel_v2()?;
+            wallet.command_set.auto_open_secure_channel()?;
+            wallet.command_set.verify_pin(pin)?.check_auth_ok()?;
+            Ok(())
         })
     }
 
+    pub fn get_public_key_for_path(&mut self, path: &str) -> Result<PublicKey, KeycardWalletError> {
+        let resp = self.command_set.export_key(path, false, true)?;
+        resp.check_ok()?;
+        let keypair = Bip32KeyPair::from_tlv(resp.data())?;
+
+        // Uncompressed SEC1 point (0x04 || X || Y); the BIP340 x-only public key is just its X
+        // coordinate, since secp256k1 (what the card signs with) and k256's Schnorr verifying key
+        // are the same curve.
+        let public_key = keypair.public_key();
+        let x_only: [u8; 32] = match public_key.split_first() {
+            Some((&0x04, xy)) if xy.len() == 64 => xy
+                .split_at(32)
+                .0
+                .try_into()
+                .expect("split_at(32) of a 64-byte slice"),
+            _ => {
+                return Err(KeycardWalletError::InvalidKeyMaterial(format!(
+                    "expected a 65-byte uncompressed secp256k1 public key from keycard, got {} bytes",
+                    public_key.len()
+                )));
+            }
+        };
+
+        PublicKey::try_new(x_only)
+            .map_err(|e| KeycardWalletError::InvalidKeyMaterial(e.to_string()))
+    }
+
+    pub fn get_public_key_for_path_with_connect(
+        pin: &str,
+        path: &str,
+    ) -> Result<PublicKey, KeycardWalletError> {
+        let mut wallet = Self::new()?;
+        wallet.connect(pin)?;
+        wallet.get_public_key_for_path(path)
+    }
+
     pub fn sign_message_for_path(
-        &self,
-        py: Python,
+        &mut self,
         path: &str,
         message: &[u8; 32],
-    ) -> PyResult<(Signature, PublicKey)> {
-        let py_signature: Vec<u8> = self
-            .instance
-            .bind(py)
-            .call_method1("sign_message_for_path", (message, path))?
-            .extract()?;
+    ) -> Result<(Signature, PublicKey), KeycardWalletError> {
+        let resp = self.command_set.sign_with_path_and_algo(
+            message,
+            path,
+            sign_p2::BIP340_SCHNORR,
+            false,
+        )?;
+        resp.check_ok()?;
 
         let sig = Signature {
-            value: normalize_keycard_signature(py_signature)?,
+            value: parse_schnorr_signature(resp.data())?,
         };
-        let pub_key = self.get_public_key_for_path(py, path)?;
+        let pub_key = self.get_public_key_for_path(path)?;
         if !sig.is_valid_for(message, &pub_key) {
-            return Err(PyErr::new::<pyo3::exceptions::PyValueError, _>(
-                "keycard returned a signature that does not verify against its own public key",
-            ));
+            return Err(KeycardWalletError::SignatureVerificationFailed);
         }
         Ok((sig, pub_key))
     }
@@ -162,39 +233,40 @@ impl KeycardWallet {
         pin: &str,
         path: &str,
         message: &[u8; 32],
-    ) -> PyResult<(Signature, PublicKey)> {
-        Python::attach(|py| {
-            python_path::add_python_path(py)?;
-            let wallet = Self::new(py)?;
-            wallet.connect(py, pin)?;
-            let result = wallet.sign_message_for_path(py, path, message);
-            drop(wallet.close_session(py));
-            result
-        })
+    ) -> Result<(Signature, PublicKey), KeycardWalletError> {
+        let mut wallet = Self::new()?;
+        wallet.connect(pin)?;
+        wallet.sign_message_for_path(path, message)
     }
 
-    pub fn load_mnemonic(&self, py: Python, mnemonic: &str) -> PyResult<()> {
-        self.instance
-            .bind(py)
-            .call_method1("load_mnemonic", (mnemonic,))?;
+    pub fn load_mnemonic(&mut self, mnemonic: &str) -> Result<(), KeycardWalletError> {
+        let mnemonic = bip39::Mnemonic::from_str(mnemonic)
+            .map_err(|e| KeycardWalletError::InvalidMnemonic(e.to_string()))?;
+        let seed = mnemonic.to_seed("");
+        self.command_set.load_lee_key(&seed)?.check_ok()?;
         Ok(())
     }
 
     pub fn get_public_account_id_for_path_with_connect(
         pin: &str,
         key_path: &str,
-    ) -> PyResult<String> {
+    ) -> Result<String, KeycardWalletError> {
         let public_key = Self::get_public_key_for_path_with_connect(pin, key_path)?;
 
         Ok(format!("Public/{}", AccountId::from(&public_key)))
     }
 
-    pub fn get_private_keys_for_path(&self, py: Python, path: &str) -> PyResult<PrivateKeyPair> {
-        let (raw_nsk, raw_vsk): (Vec<u8>, Vec<u8>) = self
-            .instance
-            .bind(py)
-            .call_method1("get_private_keys_for_path", (path,))?
-            .extract()?;
+    pub fn get_private_keys_for_path(
+        &mut self,
+        path: &str,
+    ) -> Result<PrivateKeyPair, KeycardWalletError> {
+        let resp = self.command_set.export_lee_key(path)?;
+        resp.check_ok()?;
+
+        let mut reader = BerTlvReader::new(resp.data());
+        reader.enter_constructed(TLV_KEY_TEMPLATE)?;
+        let raw_nsk = reader.read_primitive(TLV_LEE_NSK)?;
+        let raw_vsk = reader.read_primitive(TLV_LEE_VSK)?;
 
         let nsk = zeroizing_fixed_bytes::<32>("nullifier secret key", Zeroizing::new(raw_nsk))?;
         let vsk = zeroizing_fixed_bytes::<64>("view secret key", Zeroizing::new(raw_vsk))?;
@@ -205,46 +277,66 @@ impl KeycardWallet {
     pub fn get_private_keys_for_path_with_connect(
         pin: &str,
         path: &str,
-    ) -> PyResult<PrivateKeyPair> {
-        Python::attach(|py| {
-            python_path::add_python_path(py)?;
-            let wallet = Self::new(py)?;
-            wallet.connect(py, pin)?;
-            let result = wallet.get_private_keys_for_path(py, path);
-            drop(wallet.disconnect(py));
-            result
-        })
+    ) -> Result<PrivateKeyPair, KeycardWalletError> {
+        let mut wallet = Self::new()?;
+        wallet.connect(pin)?;
+        wallet.get_private_keys_for_path(path)
     }
 }
 
-/// The keycard Python library strips leading zeros from S when S < 2^(8k) for some k.
-/// Left-pad S back to 32 bytes so the full signature is always 64 bytes (R || S).
-#[expect(
-    clippy::arithmetic_side_effects,
-    reason = "64 - s_stripped.len() is safe: s_stripped.len() ≤ 31 because py_signature.len() is in [32, 63]"
-)]
-fn normalize_keycard_signature(py_signature: Vec<u8>) -> PyResult<[u8; 64]> {
-    if py_signature.len() < 64 {
-        if py_signature.len() < 32 {
-            return Err(PyErr::new::<pyo3::exceptions::PyValueError, _>(format!(
-                "signature from keycard too short: {} bytes",
-                py_signature.len()
-            )));
-        }
-        let s_stripped = &py_signature[32..];
-        let mut padded = [0_u8; 64];
-        padded[..32].copy_from_slice(&py_signature[..32]);
-        padded[(64 - s_stripped.len())..].copy_from_slice(s_stripped);
-        Ok(padded)
-    } else {
-        py_signature.try_into().map_err(|vec: Vec<u8>| {
-            PyErr::new::<pyo3::exceptions::PyValueError, _>(format!(
-                "Invalid signature length: expected 64 bytes, got {} (bytes: {:02x?})",
-                vec.len(),
-                vec
-            ))
-        })
+fn generate_puk() -> String {
+    let mut rng = rand::rngs::OsRng;
+    std::iter::repeat_with(|| char::from(rng.gen_range(b'0'..=b'9')))
+        .take(12)
+        .collect()
+}
+
+/// Optional override for the CA public key used to verify a card's identity certificate, read
+/// from `KEYCARD_CA_PUBLIC_KEY` as 66 hex characters (a 33-byte compressed secp256k1 key).
+/// Falls back to `keycard-rs`'s production default when unset.
+///
+/// This exists purely for testing against cards that weren't personalized through the real
+/// production process — e.g. `status-keycard`'s own `JUnit` suite signs test cards with a fixed,
+/// throwaway CA that will never match the production default. Real users' cards should need no
+/// override at all.
+fn ca_public_key_override() -> Result<Option<[u8; 33]>, KeycardWalletError> {
+    let Ok(hex_str) = std::env::var("KEYCARD_CA_PUBLIC_KEY") else {
+        return Ok(None);
+    };
+    let mut bytes = [0_u8; 33];
+    hex::decode_to_slice(hex_str.trim(), &mut bytes)
+        .map_err(|e| KeycardWalletError::InvalidCaPublicKey(e.to_string()))?;
+    Ok(Some(bytes))
+}
+
+/// Parses a BIP340 Schnorr signature from a LEE `SIGN` response.
+///
+/// Confirmed against real hardware: `TLV_SIGNATURE_TEMPLATE` (0xA0) contains the usual
+/// `TLV_PUB_KEY` (0x80, 65 bytes, unused here — the caller fetches the pubkey separately via
+/// `export_key`) followed by `TLV_LEE_RAW_SIGNATURE` (0x88, 64 bytes: `r || s` with no ASN.1/DER
+/// wrapping). `keycard-rs`'s own `RecoverableSignature` parser doesn't apply — it's ECDSA-only
+/// (attempts point recovery, which Schnorr doesn't have).
+fn parse_schnorr_signature(data: &[u8]) -> Result<[u8; 64], KeycardWalletError> {
+    parse_schnorr_signature_inner(data).map_err(|e| {
+        KeycardWalletError::InvalidKeyMaterial(format!(
+            "failed to parse schnorr signature response ({e}); raw response bytes: {data:02x?}"
+        ))
+    })
+}
+
+fn parse_schnorr_signature_inner(data: &[u8]) -> Result<[u8; 64], KeycardWalletError> {
+    let mut reader = BerTlvReader::new(data);
+    reader.enter_constructed(TLV_SIGNATURE_TEMPLATE)?;
+    if reader.next_tag_is(TLV_PUB_KEY) {
+        reader.read_primitive(TLV_PUB_KEY)?;
     }
+    let sig = reader.read_primitive(TLV_LEE_RAW_SIGNATURE)?;
+    sig.try_into().map_err(|v: Vec<u8>| {
+        KeycardWalletError::InvalidKeyMaterial(format!(
+            "expected a 64-byte raw schnorr signature, got {} bytes",
+            v.len()
+        ))
+    })
 }
 
 #[expect(
@@ -254,9 +346,9 @@ fn normalize_keycard_signature(py_signature: Vec<u8>) -> PyResult<[u8; 64]> {
 fn zeroizing_fixed_bytes<const N: usize>(
     label: &str,
     raw: Zeroizing<Vec<u8>>,
-) -> PyResult<Zeroizing<[u8; N]>> {
+) -> Result<Zeroizing<[u8; N]>, KeycardWalletError> {
     if raw.len() != N {
-        return Err(PyErr::new::<pyo3::exceptions::PyValueError, _>(format!(
+        return Err(KeycardWalletError::InvalidKeyMaterial(format!(
             "expected {N}-byte {label} from keycard, got {} bytes",
             raw.len()
         )));
@@ -265,35 +357,3 @@ fn zeroizing_fixed_bytes<const N: usize>(
     arr.copy_from_slice(&raw);
     Ok(arr)
 }
-
-fn pairing_file_path() -> Option<PathBuf> {
-    let home = std::env::var("LEE_WALLET_HOME_DIR")
-        .map(PathBuf::from)
-        .or_else(|_| {
-            std::env::home_dir()
-                .map(|h| h.join(".lee").join("wallet"))
-                .ok_or(())
-        })
-        .ok()?;
-    Some(home.join("keycard_pairing.json"))
-}
-
-fn load_pairing() -> Option<KeycardPairingData> {
-    let path = pairing_file_path()?;
-    let file = std::fs::File::open(path).ok()?;
-    serde_json::from_reader(file).ok()
-}
-
-fn save_pairing(data: &KeycardPairingData) {
-    if let Some(path) = pairing_file_path()
-        && let Ok(json) = serde_json::to_vec_pretty(data)
-    {
-        drop(std::fs::write(path, json));
-    }
-}
-
-pub fn clear_pairing() {
-    if let Some(path) = pairing_file_path() {
-        drop(std::fs::remove_file(path));
-    }
-}
diff --git a/lez/keycard_wallet/src/python_path.rs b/lez/keycard_wallet/src/python_path.rs
deleted file mode 100644
index 61196ad5..00000000
--- a/lez/keycard_wallet/src/python_path.rs
+++ /dev/null
@@ -1,69 +0,0 @@
-use std::{env, path::PathBuf};
-
-use pyo3::{prelude::*, types::PyList};
-
-fn collect_python_paths() -> Vec<PathBuf> {
-    let current_dir = env::current_dir().expect("Failed to get current working directory");
-
-    let python_base = env::var("VIRTUAL_ENV")
-        .ok()
-        .and_then(|v| PathBuf::from(v).parent().map(PathBuf::from))
-        .unwrap_or_else(|| current_dir.clone());
-
-    let mut paths = vec![
-        python_base
-            .join("lez")
-            .join("keycard_wallet")
-            .join("python"),
-        python_base
-            .join("lez")
-            .join("keycard_wallet")
-            .join("python")
-            .join("keycard-py"),
-    ];
-
-    // pyo3's embedded interpreter does not inherit sys.path from the shell,
-    // so venv site-packages must be added explicitly.
-    if let Ok(venv) = env::var("VIRTUAL_ENV") {
-        let lib = PathBuf::from(&venv).join("lib");
-        if let Ok(entries) = std::fs::read_dir(&lib) {
-            for entry in entries.flatten() {
-                let site_packages = entry.path().join("site-packages");
-                if site_packages.exists() {
-                    paths.push(site_packages);
-                }
-            }
-        }
-    }
-
-    paths
-}
-
-/// Adds the project's `python/` directory and venv site-packages to Python's sys.path.
-pub fn add_python_path(py: Python<'_>) -> PyResult<()> {
-    let paths = collect_python_paths();
-
-    for path in &paths {
-        if !path.exists() {
-            log::info!("Warning: Python path does not exist: {}", path.display());
-        }
-    }
-
-    let sys = PyModule::import(py, "sys")?;
-    let binding = sys.getattr("path")?;
-    let sys_path = binding.cast::<PyList>()?;
-
-    for path in &paths {
-        let path_str = path.to_str().expect("Invalid path");
-
-        let already_present = sys_path
-            .iter()
-            .any(|p| p.extract::<&str>().is_ok_and(|s| s == path_str));
-
-        if !already_present {
-            sys_path.insert(0, path_str)?;
-        }
-    }
-
-    Ok(())
-}
diff --git a/lez/keycard_wallet/tests/force_unpower.py b/lez/keycard_wallet/tests/force_unpower.py
deleted file mode 100755
index 427d2028..00000000
--- a/lez/keycard_wallet/tests/force_unpower.py
+++ /dev/null
@@ -1,40 +0,0 @@
-#!/usr/bin/env python3
-"""
-Forces the card in the first available reader into the unpowered state via
-PC/SC SCARD_UNPOWER_CARD. Run immediately before a wallet command to simulate
-the power-loss condition reported on some USB reader/driver combinations.
-
-Either:
-- pcscd re-powers the card on the next SCardConnect, so wallet
-commands will succeed without triggering the retry path.
-- the card stays unpowered, triggering TransportError
-and exercising the retry wrapper in pair() / setup_communication_with_pairing().
-"""
-import sys
-from smartcard.scard import (
-    SCardEstablishContext, SCardListReaders, SCardConnect, SCardDisconnect,
-    SCARD_SCOPE_USER, SCARD_SHARE_SHARED,
-    SCARD_PROTOCOL_T0, SCARD_PROTOCOL_T1,
-    SCARD_UNPOWER_CARD,
-)
-
-hresult, hcontext = SCardEstablishContext(SCARD_SCOPE_USER)
-hresult, reader_list = SCardListReaders(hcontext, [])
-
-if not reader_list:
-    print("force_unpower: no readers found, skipping.")
-    sys.exit(0)
-
-hresult, hcard, _ = SCardConnect(
-    hcontext,
-    reader_list[0],
-    SCARD_SHARE_SHARED,
-    SCARD_PROTOCOL_T0 | SCARD_PROTOCOL_T1,
-)
-
-if hresult != 0:
-    print(f"force_unpower: SCardConnect failed (hresult={hresult:#010x}), skipping.")
-    sys.exit(0)
-
-SCardDisconnect(hcard, SCARD_UNPOWER_CARD)
-print("force_unpower: card powered down.")
diff --git a/lez/keycard_wallet/tests/keycard_power_recovery_tests.sh b/lez/keycard_wallet/tests/keycard_power_recovery_tests.sh
index 3d8301f7..7440f735 100755
--- a/lez/keycard_wallet/tests/keycard_power_recovery_tests.sh
+++ b/lez/keycard_wallet/tests/keycard_power_recovery_tests.sh
@@ -4,14 +4,13 @@
 # Forces a card power cycle before each keycard-backed wallet command to verify
 # commands survive mid-session power loss.
 
-source venv/bin/activate
-
 export KEYCARD_PIN=111111
+export KEYCARD_CA_PUBLIC_KEY=025877220aaae6e54a6f974602d5995c0fe24a3ea7ddabd8644bec795b9da00743
 
 SCRIPT_DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
 
 unpower() {
-    python "$SCRIPT_DIR/force_unpower.py"
+    cargo run -q --manifest-path "$SCRIPT_DIR/../Cargo.toml" --bin force_unpower
 }
 
 echo "Test: wallet keycard available"
diff --git a/lez/keycard_wallet/tests/keycard_test_3.sh b/lez/keycard_wallet/tests/keycard_test_3.sh
index d80e2aca..59e0ec6b 100755
--- a/lez/keycard_wallet/tests/keycard_test_3.sh
+++ b/lez/keycard_wallet/tests/keycard_test_3.sh
@@ -2,14 +2,12 @@
 # keycard_test_3.sh — tests for `wallet keycard get-private-keys`.
 #
 # Prerequisites:
-#   1. Run wallet_with_keycard.sh once to install dependencies.
-#   2. Keycard reader inserted with card loaded (wallet keycard load has been run).
-
-source venv/bin/activate
+#   1. Keycard reader inserted with card loaded (wallet keycard load has been run).
 
 cargo install --path lez/wallet --force --features keycard-debug
 
 export KEYCARD_PIN=111111
+export KEYCARD_CA_PUBLIC_KEY=025877220aaae6e54a6f974602d5995c0fe24a3ea7ddabd8644bec795b9da00743
 
 echo "=== Test: wallet keycard get-private-keys path 10 ==="
 wallet keycard get-private-keys --key-path "m/44'/60'/0'/0/10" --reveal
diff --git a/lez/keycard_wallet/tests/keycard_tests.sh b/lez/keycard_wallet/tests/keycard_tests.sh
index dfa30461..3d7018b8 100755
--- a/lez/keycard_wallet/tests/keycard_tests.sh
+++ b/lez/keycard_wallet/tests/keycard_tests.sh
@@ -1,9 +1,8 @@
 #!/bin/bash
-# Run wallet_with_keycard.sh first
-
-source venv/bin/activate # Load the appropriate virtual environment
+# Run `cargo install --path lez/wallet --force` first
 
 export KEYCARD_PIN=111111
+export KEYCARD_CA_PUBLIC_KEY=025877220aaae6e54a6f974602d5995c0fe24a3ea7ddabd8644bec795b9da00743
 
 # Tests wallet keycard available
 #   - Checks whether smart reader and keycard are both available.
diff --git a/lez/keycard_wallet/tests/keycard_tests_2.sh b/lez/keycard_wallet/tests/keycard_tests_2.sh
index cbff19fe..b574e6a3 100755
--- a/lez/keycard_wallet/tests/keycard_tests_2.sh
+++ b/lez/keycard_wallet/tests/keycard_tests_2.sh
@@ -2,7 +2,7 @@
 # keycard_tests_2.sh — comprehensive token + AMM keycard integration tests.
 #
 # Prerequisites:
-#   1. Run wallet_with_keycard.sh once to install dependencies.
+#   1. Run `cargo install --path lez/wallet --force` once to install the wallet CLI.
 #   2. Reset the local chain so all accounts are uninitialized.
 #   3. Keycard reader inserted with card loaded.
 #
@@ -23,8 +23,8 @@
 #   amm-lee-fund   → public LEE holding used to seed the AMM pool
 #   (LP holding for amm new is created fresh each run — no persistent label)
 
-source venv/bin/activate
 export KEYCARD_PIN=111111
+export KEYCARD_CA_PUBLIC_KEY=025877220aaae6e54a6f974602d5995c0fe24a3ea7ddabd8644bec795b9da00743
 
 # =============================================================================
 # Keycard setup
diff --git a/lez/keycard_wallet/wallet_with_keycard.sh b/lez/keycard_wallet/wallet_with_keycard.sh
deleted file mode 100755
index 7a43bb57..00000000
--- a/lez/keycard_wallet/wallet_with_keycard.sh
+++ /dev/null
@@ -1,12 +0,0 @@
-#!/bin/bash
-
-cargo install --path lez/wallet --force
-
-# Install appropriate version of `keycard-py`.
-git clone --branch lee-schnorr --single-branch https://github.com/bitgamma/keycard-py.git lez/keycard_wallet/python/keycard-py
-
-# Set up virtual environment.
-python3 -m venv venv
-source venv/bin/activate
-pip install pyscard mnemonic ecdsa pyaes
-pip install -e lez/keycard_wallet/python/keycard-py
\ No newline at end of file
diff --git a/lez/mempool/src/lib.rs b/lez/mempool/src/lib.rs
index 1b36eaf7..0006f2c3 100644
--- a/lez/mempool/src/lib.rs
+++ b/lez/mempool/src/lib.rs
@@ -65,6 +65,11 @@ impl<T> MemPoolHandle<T> {
     pub async fn push(&self, item: T) -> Result<(), tokio::sync::mpsc::error::SendError<T>> {
         self.sender.send(item).await
     }
+
+    /// Send an item to the mempool, failing _immediately_ if it is full.
+    pub fn try_push(&self, item: T) -> Result<(), tokio::sync::mpsc::error::TrySendError<T>> {
+        self.sender.try_send(item)
+    }
 }
 
 #[cfg(test)]
@@ -123,6 +128,19 @@ mod tests {
         assert_eq!(pool.pop(), Some(2));
     }
 
+    #[test]
+    async fn try_push_fails_when_full_without_blocking() {
+        let (mut pool, handle) = MemPool::new(1);
+
+        handle.try_push(1).unwrap();
+        assert!(handle.try_push(2).is_err(), "full mempool must not accept");
+
+        // Popping frees capacity again.
+        assert_eq!(pool.pop(), Some(1));
+        handle.try_push(2).unwrap();
+        assert_eq!(pool.pop(), Some(2));
+    }
+
     #[test]
     async fn push_front() {
         let (mut pool, handle) = MemPool::new(10);
diff --git a/lez/sequencer/core/Cargo.toml b/lez/sequencer/core/Cargo.toml
index 1fa7494d..c8590c2a 100644
--- a/lez/sequencer/core/Cargo.toml
+++ b/lez/sequencer/core/Cargo.toml
@@ -10,8 +10,8 @@ workspace = true
 [dependencies]
 lee.workspace = true
 lee_core.workspace = true
+chain_state.workspace = true
 common.workspace = true
-chain_consistency.workspace = true
 storage.workspace = true
 mempool.workspace = true
 logos-blockchain-zone-sdk.workspace = true
@@ -34,6 +34,7 @@ tempfile.workspace = true
 chrono.workspace = true
 log.workspace = true
 tokio = { workspace = true, features = ["rt-multi-thread", "macros"] }
+tokio-util.workspace = true
 rand.workspace = true
 borsh.workspace = true
 bytesize.workspace = true
diff --git a/lez/sequencer/core/src/block_publisher.rs b/lez/sequencer/core/src/block_publisher.rs
index 3f2b2a62..8f2f2031 100644
--- a/lez/sequencer/core/src/block_publisher.rs
+++ b/lez/sequencer/core/src/block_publisher.rs
@@ -1,23 +1,44 @@
 use std::{pin::Pin, sync::Arc, time::Duration};
 
-use anyhow::{Context as _, Result, anyhow};
+use anyhow::{Context as _, Result, anyhow, ensure};
 use common::block::Block;
 use futures::Stream;
 use log::{info, warn};
-pub use logos_blockchain_core::mantle::ops::channel::MsgId;
-use logos_blockchain_core::mantle::ops::channel::{ChannelId, inscribe::Inscription};
-pub use logos_blockchain_key_management_system_service::keys::{Ed25519Key, ZkKey};
+pub use logos_blockchain_core::mantle::ops::channel::{Ed25519PublicKey, MsgId};
+use logos_blockchain_core::{
+    mantle::{
+        MantleTx, SignedMantleTx, Transaction as _,
+        channel::{SlotTimeframe, SlotTimeout},
+        ops::{
+            Op, OpProof,
+            channel::{
+                ChannelId,
+                config::{ChannelConfigOp, Keys},
+                inscribe::Inscription,
+            },
+        },
+    },
+    proofs::channel_multi_sig_proof::{ChannelMultiSigProof, IndexedSignature},
+};
+pub use logos_blockchain_key_management_system_service::keys::{
+    ED25519_SECRET_KEY_SIZE, Ed25519Key, ZkKey,
+};
 pub use logos_blockchain_zone_sdk::sequencer::SequencerCheckpoint;
 use logos_blockchain_zone_sdk::{
     CommonHttpClient, Slot, ZoneMessage,
     adapter::{Node as _, NodeHttpClient},
     indexer::ZoneIndexer,
     sequencer::{
-        DepositInfo, Event, FinalizedOp, InscriptionInfo,
-        SequencerConfig as ZoneSdkSequencerConfig, WithdrawArg, WithdrawInfo, ZoneSequencer,
+        DepositInfo, Event, FinalizedOp, InscriptionInfo, OrphanedTx,
+        SequencerConfig as ZoneSdkSequencerConfig, TurnNotification, WithdrawArg, WithdrawInfo,
+        ZoneSequencer,
     },
 };
-use tokio::{sync::mpsc, task::JoinHandle};
+use tokio::{
+    sync::{mpsc, oneshot, watch},
+    task::JoinHandle,
+};
+use tokio_util::sync::CancellationToken;
 
 use crate::config::BedrockConfig;
 
@@ -43,6 +64,36 @@ pub type OnDepositEventSink =
 pub type OnWithdrawEventSink =
     Box<dyn Fn(WithdrawInfo) -> Pin<Box<dyn Future<Output = ()> + Send>> + Send + 'static>;
 
+/// The channel delta the follow path consumes from one `Event::BlocksProcessed`,
+/// with inscription payloads decoded into `(MsgId, Block)` pairs.
+pub struct FollowUpdate {
+    /// Inscriptions newly on the followed L1 branch, in channel order: they
+    /// extend (or, after a reorg, replace part of) the `head` tier.
+    pub adopted: Vec<(MsgId, Block)>,
+    /// Inscriptions dropped from the branch by an L1 reorg: their blocks are
+    /// reverted from the `head` and their user txs resubmitted to the mempool.
+    pub orphaned: Vec<(MsgId, Block)>,
+    /// Inscriptions whose containing L1 block reached finality: their blocks
+    /// move into the irreversible `final` tier.
+    pub finalized: Vec<(MsgId, Block)>,
+}
+
+/// Sink for the follow path: apply adopted/finalized blocks to chain state and
+/// revert orphaned ones.
+pub type OnFollowSink = Box<dyn Fn(FollowUpdate) + Send + 'static>;
+
+/// Commands the drive task executes with `&mut sequencer`.
+enum Command {
+    /// Publish an inscription (+ atomic withdrawals); responds with the assigned `MsgId`.
+    Publish {
+        inscription: Inscription,
+        withdrawals: Vec<WithdrawArg>,
+        resp: oneshot::Sender<Result<MsgId>>,
+    },
+}
+
+type CommandSender = mpsc::Sender<Command>;
+
 #[expect(async_fn_in_trait, reason = "We don't care about Send/Sync here")]
 pub trait BlockPublisherTrait: Sized {
     #[expect(
@@ -58,14 +109,23 @@ pub trait BlockPublisherTrait: Sized {
         on_finalized_block: FinalizedBlockSink,
         on_deposit_event: OnDepositEventSink,
         on_withdraw_event: OnWithdrawEventSink,
+        on_follow: OnFollowSink,
     ) -> Result<Self>;
 
-    /// Fire-and-forget publish. Zone-sdk drives the actual submission and
-    /// retries internally; this just hands the payload off.
-    async fn publish_block(&self, block: &Block, withdrawals: Vec<WithdrawArg>) -> Result<()>;
+    /// Publish a block and return the `MsgId` zone-sdk assigned its inscription.
+    /// Zone-sdk drives the actual submission and retries internally.
+    async fn publish_block(&self, block: &Block, withdrawals: Vec<WithdrawArg>) -> Result<MsgId>;
 
     fn channel_id(&self) -> ChannelId;
 
+    /// Whether this sequencer is currently authorized to write to the channel.
+    fn is_our_turn(&self) -> bool;
+
+    /// A [`CancellationToken`] cancelled when the publisher's background driver
+    /// terminates (a panicked sink, an ended event stream). No channel events
+    /// are processed past that point, so the node must halt.
+    fn driver_cancellation(&self) -> CancellationToken;
+
     /// Current channel frontier slot on the connected chain, or `None` if the
     /// channel does not exist there. Drives the startup frontier check.
     async fn channel_tip_slot(&self) -> Result<Option<Slot>>;
@@ -85,7 +145,10 @@ pub struct ZoneSdkPublisher {
     /// Direct node handle retained for channel reads (startup consistency check
     /// and reconstruction); the sequencer itself lives in the drive task.
     node: NodeHttpClient,
-    publish_tx: mpsc::Sender<(Inscription, Vec<WithdrawArg>)>,
+    command_tx: CommandSender,
+    turn_rx: watch::Receiver<TurnNotification>,
+    // Cancelled when the drive task ends for any reason, including a panic.
+    driver_cancellation: CancellationToken,
     // Aborts the drive task when the last clone is dropped.
     _drive_task: Arc<DriveTaskGuard>,
     indexer: ZoneIndexer<NodeHttpClient>,
@@ -109,6 +172,7 @@ impl BlockPublisherTrait for ZoneSdkPublisher {
         on_finalized_block: FinalizedBlockSink,
         on_deposit_event: OnDepositEventSink,
         on_withdraw_event: OnWithdrawEventSink,
+        on_follow: OnFollowSink,
     ) -> Result<Self> {
         let basic_auth = config.auth.clone().map(Into::into);
         let node = NodeHttpClient::new(CommonHttpClient::new(basic_auth), config.node_url.clone());
@@ -129,11 +193,18 @@ impl BlockPublisherTrait for ZoneSdkPublisher {
         // Grab readiness receiver before moving the sequencer into the drive
         // task so we can await cold-start completion below.
         let mut ready_rx = sequencer.subscribe_ready();
+        // Grab the turn watch before the move; the sdk actor keeps it current.
+        let turn_rx = sequencer.subscribe_turn_to_write();
 
-        let (publish_tx, mut publish_rx) =
-            mpsc::channel::<(Inscription, Vec<WithdrawArg>)>(PUBLISH_INBOX_CAPACITY);
+        let (command_tx, mut command_rx): (CommandSender, _) =
+            mpsc::channel(PUBLISH_INBOX_CAPACITY);
 
+        let driver_cancellation = CancellationToken::new();
+        let driver_guard = driver_cancellation.clone().drop_guard();
         let drive_task = tokio::spawn(async move {
+            // Dropped when this task ends (including panics in the sinks),
+            // cancelling every `driver_cancellation`.
+            let _driver_guard = driver_guard;
             loop {
                 #[expect(
                     clippy::integer_division_remainder_used,
@@ -141,32 +212,38 @@ impl BlockPublisherTrait for ZoneSdkPublisher {
                 )]
                 {
                     tokio::select! {
-                        // Drain external publish requests by calling the
-                        // borrowing handle — `&mut sequencer` is only
-                        // available here.
-                        Some((data_bounded, withdrawals)) = publish_rx.recv() => {
-                            let data_byte_size = data_bounded.len();
-                            if withdrawals.is_empty() {
-                                if let Err(e) = sequencer.handle()
-                                                .publish(data_bounded)
-                                                .context("Failed to publish block") {
-                                                    warn!("zone-sdk publish failed: {e:?}");
-                                                }
-
-                                info!("Published block with the size of {data_byte_size} bytes");
-                            } else {
+                        // Drain external commands by calling the borrowing
+                        // handle — `&mut sequencer` is only available here.
+                        Some(command) = command_rx.recv() => match command {
+                            Command::Publish { inscription: data_bounded, withdrawals, resp: resp_tx } => {
+                                let data_byte_size = data_bounded.len();
                                 let withdraw_count = withdrawals.len();
-                                if let Err(e) = sequencer.handle()
-                                                .publish_atomic_withdraw(data_bounded, withdrawals)
-                                                .context("Failed to publish block with withdrawals") {
-                                                    warn!("zone-sdk publish failed: {e:?}");
-                                                }
+                                let published = if withdrawals.is_empty() {
+                                    sequencer.handle()
+                                        .publish(data_bounded)
+                                        .context("Failed to publish block")
+                                } else {
+                                    sequencer.handle()
+                                        .publish_atomic_withdraw(data_bounded, withdrawals)
+                                        .context("Failed to publish block with withdrawals")
+                                };
 
-                                info!(
-                                    "Published block with the size of {data_byte_size} bytes and {withdraw_count} bridge withdrawals",
-                                );
+                                let msg_result = published
+                                    .map(|(result, _checkpoint)| result.tx.inscription().this_msg);
+                                match &msg_result {
+                                    Ok(_) if withdraw_count == 0 => {
+                                        info!("Published block with the size of {data_byte_size} bytes");
+                                    }
+                                    Ok(_) => {
+                                        info!(
+                                            "Published block with the size of {data_byte_size} bytes and {withdraw_count} bridge withdrawals",
+                                        );
+                                    }
+                                    Err(e) => warn!("zone-sdk publish failed: {e:?}"),
+                                }
+                                let _dontcare = resp_tx.send(msg_result);
                             }
-                        }
+                        },
                         event = sequencer.next_event() => {
                             let Some(event) = event else {
                                 continue;
@@ -174,17 +251,32 @@ impl BlockPublisherTrait for ZoneSdkPublisher {
                             match event {
                                 Event::BlocksProcessed {
                                     checkpoint,
-                                    channel_update: _,
+                                    channel_update,
                                     finalized,
                                 } => {
                                     on_checkpoint(checkpoint);
+
+                                    let adopted = channel_update
+                                        .adopted
+                                        .iter()
+                                        .filter_map(block_from_inscription)
+                                        .collect();
+                                    let orphaned = channel_update
+                                        .orphaned
+                                        .iter()
+                                        .map(orphan_inscription)
+                                        .filter_map(block_from_inscription)
+                                        .collect();
+
+                                    let mut finalized_blocks = Vec::new();
                                     for op in finalized.into_iter().flat_map(|item| item.ops) {
                                         match op {
                                             FinalizedOp::Inscription(inscription) => {
-                                                if let Some(block_id) =
-                                                    block_id_from_inscription(&inscription)
+                                                if let Some((msg, block)) =
+                                                    block_from_inscription(&inscription)
                                                 {
-                                                    on_finalized_block(block_id);
+                                                    on_finalized_block(block.header.block_id);
+                                                    finalized_blocks.push((msg, block));
                                                 }
                                             }
                                             FinalizedOp::Deposit(deposit) => {
@@ -195,8 +287,22 @@ impl BlockPublisherTrait for ZoneSdkPublisher {
                                             }
                                         }
                                     }
+
+                                    on_follow(FollowUpdate {
+                                        adopted,
+                                        orphaned,
+                                        finalized: finalized_blocks,
+                                    });
+                                }
+                                Event::Ready => {}
+                                Event::TurnNotification { notification } => {
+                                    info!(
+                                        "Turn update: our_turn={}, starting_slot={:?}, ends_at_slot={:?}",
+                                        notification.our_turn_to_write,
+                                        notification.starting_slot,
+                                        notification.ends_at_slot
+                                    );
                                 }
-                                Event::Ready | Event::TurnNotification { .. } => {}
                             }
                         }
                     }
@@ -215,29 +321,46 @@ impl BlockPublisherTrait for ZoneSdkPublisher {
             channel_id: config.channel_id,
             indexer: ZoneIndexer::new(config.channel_id, node.clone()),
             node,
-            publish_tx,
+            command_tx,
+            turn_rx,
+            driver_cancellation,
             _drive_task: Arc::new(DriveTaskGuard(drive_task)),
         })
     }
 
-    async fn publish_block(&self, block: &Block, withdrawals: Vec<WithdrawArg>) -> Result<()> {
+    async fn publish_block(&self, block: &Block, withdrawals: Vec<WithdrawArg>) -> Result<MsgId> {
         let data = borsh::to_vec(block).context("Failed to serialize block")?;
         let data_bounded: Inscription = data
             .try_into()
             .context("Block data exceeds maximum allowed size")?;
 
-        self.publish_tx
-            .send((data_bounded, withdrawals))
+        let (resp_tx, resp_rx) = oneshot::channel();
+        self.command_tx
+            .send(Command::Publish {
+                inscription: data_bounded,
+                withdrawals,
+                resp: resp_tx,
+            })
             .await
             .map_err(|_closed| anyhow!("Drive task is no longer running"))?;
 
-        Ok(())
+        resp_rx
+            .await
+            .map_err(|_closed| anyhow!("Drive task dropped the publish response"))?
     }
 
     fn channel_id(&self) -> ChannelId {
         self.channel_id
     }
 
+    fn is_our_turn(&self) -> bool {
+        self.turn_rx.borrow().our_turn_to_write
+    }
+
+    fn driver_cancellation(&self) -> CancellationToken {
+        self.driver_cancellation.clone()
+    }
+
     async fn channel_tip_slot(&self) -> Result<Option<Slot>> {
         Ok(self
             .node
@@ -260,13 +383,87 @@ impl BlockPublisherTrait for ZoneSdkPublisher {
     }
 }
 
-/// Deserialize inscription payload as a `Block` and return it's`block_id`.
-/// Bad payloads are logged and skipped.
-fn block_id_from_inscription(inscription: &InscriptionInfo) -> Option<u64> {
+/// Deserialize an inscription payload into `(this_msg, Block)`. Bad payloads are
+/// logged and skipped.
+fn block_from_inscription(inscription: &InscriptionInfo) -> Option<(MsgId, Block)> {
     borsh::from_slice::<Block>(&inscription.payload)
         .inspect_err(|err| {
             warn!("Failed to deserialize block from inscription: {err:?}");
         })
         .ok()
-        .map(|block| block.header.block_id)
+        .map(|block| (inscription.this_msg, block))
+}
+
+/// The inscription carried by an orphaned tx (plain or atomic-withdraw bundle).
+const fn orphan_inscription(orphan: &OrphanedTx) -> &InscriptionInfo {
+    match orphan {
+        OrphanedTx::Inscription(info) => info,
+        OrphanedTx::AtomicWithdraw(bundle) => &bundle.inscription,
+    }
+}
+
+/// Signs a `ChannelConfig` op (accredited keys + rotation params) with
+/// `signing_key` and posts it straight to the bedrock node.
+///
+/// A standalone one-shot — no running sequencer involved, so authorization is
+/// holding the admin key: the L1 rejects non-admin signers. `Ok(())` means the
+/// node accepted the transaction; channel acceptance is asynchronous and a
+/// rejection only shows up in node logs and on-chain behavior.
+pub async fn post_channel_config(
+    config: &BedrockConfig,
+    signing_key: &Ed25519Key,
+    keys: Vec<Ed25519PublicKey>,
+    posting_timeframe: u32,
+    posting_timeout: u32,
+    configuration_threshold: u16,
+    withdraw_threshold: u16,
+) -> Result<()> {
+    ensure!(!keys.is_empty(), "Channel key list must not be empty");
+    for (name, threshold) in [
+        ("configuration_threshold", configuration_threshold),
+        ("withdraw_threshold", withdraw_threshold),
+    ] {
+        ensure!(
+            threshold >= 1 && usize::from(threshold) <= keys.len(),
+            "{name} must be between 1 and the key count ({}), got {threshold}",
+            keys.len()
+        );
+    }
+    ensure!(
+        posting_timeframe > 0 && posting_timeout >= posting_timeframe,
+        "posting_timeframe must be nonzero and posting_timeout at least as long, \
+         got {posting_timeframe} and {posting_timeout}"
+    );
+
+    let keys = Keys::try_from(keys).map_err(|err| anyhow!("Invalid channel key list: {err}"))?;
+    let config_op = ChannelConfigOp {
+        channel: config.channel_id,
+        keys,
+        posting_timeframe: SlotTimeframe::from(posting_timeframe),
+        posting_timeout: SlotTimeout::from(posting_timeout),
+        configuration_threshold,
+        withdraw_threshold,
+    };
+
+    let mantle_tx = MantleTx([Op::ChannelConfig(config_op)].into());
+    let tx_hash = mantle_tx.hash();
+    // The admin key is `keys[0]`, hence signature index 0.
+    let signature = IndexedSignature::new(
+        0,
+        signing_key.sign_payload(tx_hash.as_signing_bytes().as_ref()),
+    );
+    let proof = ChannelMultiSigProof::new(vec![signature])
+        .map_err(|err| anyhow!("Failed to assemble channel multi-sig proof: {err:?}"))?;
+    let signed_tx = SignedMantleTx {
+        ops_proofs: vec![OpProof::ChannelMultiSigProof(proof)],
+        mantle_tx,
+    };
+
+    let node = NodeHttpClient::new(
+        CommonHttpClient::new(config.auth.clone().map(Into::into)),
+        config.node_url.clone(),
+    );
+    node.post_transaction(signed_tx)
+        .await
+        .context("Failed to post channel config transaction")
 }
diff --git a/lez/sequencer/core/src/block_store.rs b/lez/sequencer/core/src/block_store.rs
index 3a2de375..37394352 100644
--- a/lez/sequencer/core/src/block_store.rs
+++ b/lez/sequencer/core/src/block_store.rs
@@ -218,6 +218,16 @@ impl SequencerStore {
     pub fn is_deposit_event_submitted(&self, deposit_op_id: HashType) -> DbResult<bool> {
         self.dbio.is_deposit_event_submitted(deposit_op_id)
     }
+
+    /// Marks the given deposit events submitted in `block_id`, in one write.
+    pub fn mark_deposit_events_submitted(
+        &self,
+        deposit_op_ids: &[HashType],
+        submitted_block_id: u64,
+    ) -> DbResult<()> {
+        self.dbio
+            .mark_deposit_events_submitted(deposit_op_ids, submitted_block_id)
+    }
 }
 
 pub(crate) fn block_to_transactions_map(block: &Block) -> HashMap<HashType, u64> {
diff --git a/lez/sequencer/core/src/lib.rs b/lez/sequencer/core/src/lib.rs
index 0c925f95..7ee5fe73 100644
--- a/lez/sequencer/core/src/lib.rs
+++ b/lez/sequencer/core/src/lib.rs
@@ -1,17 +1,23 @@
-use std::{path::Path, sync::Arc, time::Instant};
+use std::{
+    path::Path,
+    sync::{Arc, Mutex},
+    time::Instant,
+};
 
 use anyhow::{Context as _, Result, anyhow};
 use borsh::BorshDeserialize;
-use chain_consistency::{Anchor, AnchorConsistencyCheck, ChainConsistency, ChainMismatch, Tip};
+use chain_state::{
+    AcceptOutcome, Anchor, AnchorConsistencyCheck, ChainConsistency, ChainMismatch, ChainState, Tip,
+};
 use common::{
     HashType,
-    block::{BedrockStatus, Block, HashableBlockData},
+    block::{BedrockStatus, Block, BlockMeta, HashableBlockData},
     transaction::{LeeTransaction, clock_invocation},
 };
 use config::{GenesisAction, SequencerConfig};
 use futures::StreamExt as _;
 use itertools::Itertools as _;
-use lee::{AccountId, PublicTransaction, V03State, public_transaction::Message};
+use lee::{AccountId, PublicTransaction, public_transaction::Message};
 use lee_core::GENESIS_BLOCK_ID;
 use log::{error, info, warn};
 use logos_blockchain_key_management_system_service::keys::{ED25519_SECRET_KEY_SIZE, Ed25519Key};
@@ -30,7 +36,7 @@ use storage::sequencer::{
 };
 
 use crate::{
-    block_publisher::{BlockPublisherTrait, ZoneSdkPublisher},
+    block_publisher::{BlockPublisherTrait, MsgId, ZoneSdkPublisher},
     block_store::SequencerStore,
 };
 
@@ -56,18 +62,13 @@ struct DepositMetadata {
     recipient_id: lee::AccountId,
 }
 
-impl DepositMetadata {
-    fn decode(bytes: &[u8]) -> Result<Self, std::io::Error> {
-        Self::try_from_slice(bytes)
-    }
-}
-
 pub struct SequencerCore<BP: BlockPublisherTrait = ZoneSdkPublisher> {
-    state: lee::V03State,
+    /// Two-tier chain state: production builds on its head; the publisher's
+    /// `on_follow` sink feeds adopted/orphaned/finalized peer blocks into it.
+    chain: Arc<Mutex<ChainState>>,
     store: SequencerStore,
     mempool: MemPool<(TransactionOrigin, LeeTransaction)>,
     sequencer_config: SequencerConfig,
-    chain_height: u64,
     block_publisher: BP,
 }
 
@@ -120,14 +121,66 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
         }
     }
 
+    /// Rebuilds the two-tier [`ChainState`]: the final tier from the persisted
+    /// final snapshot (pre-genesis state when absent), the head tier by replaying
+    /// every stored block above it, so a post-restart orphan can still revert.
+    fn restore_chain_state(
+        config: &SequencerConfig,
+        store: &SequencerStore,
+        stored_head_state: &lee::V03State,
+    ) -> ChainState {
+        let final_snapshot = store
+            .dbio()
+            .get_final_snapshot()
+            .expect("Failed to read final snapshot from store");
+        let (final_state, final_tip) = match final_snapshot {
+            Some((state, meta)) => (state, Some(Tip::from(meta))),
+            // Nothing finalized yet: replay the whole stored chain.
+            None => (build_initial_state(config), None),
+        };
+        let boundary = final_tip.as_ref().map_or(0, |tip| tip.block_id);
+
+        let mut head_blocks = store
+            .get_all_blocks()
+            .filter_ok(|block| block.header.block_id > boundary)
+            .collect::<Result<Vec<_>, _>>()
+            .expect("Failed to read blocks from store while restoring chain state");
+        head_blocks.sort_unstable_by_key(|block| block.header.block_id);
+
+        let mut chain = ChainState::from_final(final_state, final_tip);
+        for block in head_blocks {
+            let block_id = block.header.block_id;
+            chain.restore_head_block(block).unwrap_or_else(|err| {
+                panic!("Stored block {block_id} does not replay while restoring chain state: {err}")
+            });
+        }
+
+        // The replayed head must reproduce the persisted state, else store
+        // and config disagree (e.g. edited genesis actions).
+        assert!(
+            chain.head_state() == stored_head_state,
+            "Persisted state does not match the replayed chain; reset the store or restore the original config"
+        );
+
+        chain
+    }
+
     pub async fn start_from_config(
         config: SequencerConfig,
     ) -> (Self, MemPoolHandle<(TransactionOrigin, LeeTransaction)>) {
         let bedrock_signing_key =
             load_or_create_signing_key(&config.home.join("bedrock_signing_key"))
                 .expect("Failed to load or create bedrock signing key");
+        info!(
+            "Bedrock signing public key: {}",
+            hex::encode(bedrock_signing_key.public_key().to_bytes())
+        );
 
-        let (mut store, mut state) = Self::open_or_create_store(&config);
+        let (store, state) = Self::open_or_create_store(&config);
+
+        let chain = Arc::new(Mutex::new(Self::restore_chain_state(
+            &config, &store, &state,
+        )));
 
         let initial_checkpoint = store
             .get_zone_checkpoint()
@@ -146,6 +199,7 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
             Self::on_finalized_block(store.dbio()),
             Self::on_deposit_event(store.dbio(), mempool_handle.clone()),
             Self::on_withdraw_event(store.dbio()),
+            Self::on_follow(store.dbio(), Arc::clone(&chain), mempool_handle.clone()),
         )
         .await
         .expect("Failed to initialize Block Publisher");
@@ -163,15 +217,15 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
         // Before producing, verify our local state still belongs to the chain
         // the channel serves and replay any channel blocks we are missing
         // (e.g. from other sequencers).
-        let chanel_was_empty =
-            Self::verify_and_reconstruct(&block_publisher, &mut store, &mut state, is_fresh_start)
+        let channel_was_empty =
+            Self::verify_and_reconstruct(&block_publisher, &store, &chain, is_fresh_start)
                 .await
                 .expect("Failed to verify/reconstruct sequencer state from Bedrock");
 
         // Publish our blocks only when bootstrapping an empty channel. If the
         // channel already has blocks (another sequencer bootstrapped it), we
         // adopted them during reconstruction instead.
-        if is_fresh_start && chanel_was_empty {
+        if is_fresh_start && channel_was_empty {
             let mut pending_blocks = store
                 .get_all_blocks()
                 .filter_ok(|block| matches!(block.bedrock_status, BedrockStatus::Pending))
@@ -199,16 +253,10 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
             }
         }
 
-        let latest_block_meta = store
-            .latest_block_meta()
-            .expect("Failed to read latest block meta from store")
-            .expect("Sequencer store should have at least the genesis block after reconstruction");
-
         let sequencer_core = Self {
-            state,
+            chain,
             store,
             mempool,
-            chain_height: latest_block_meta.id,
             sequencer_config: config,
             block_publisher,
         };
@@ -224,8 +272,8 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
     /// Returns whatever channel was empty or not.
     async fn verify_and_reconstruct(
         publisher: &BP,
-        store: &mut SequencerStore,
-        state: &mut V03State,
+        store: &SequencerStore,
+        chain: &Mutex<ChainState>,
         is_fresh_start: bool,
     ) -> Result<bool> {
         let anchor_record = store
@@ -322,7 +370,11 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
                 )
             })?;
             channel_is_empty = false;
-            Self::apply_reconstructed_block(store, state, &block, slot)?;
+            // Locked per message (not across the stream `await`): concurrent
+            // follow events interleave safely — both paths apply idempotently
+            // and persist under this same lock.
+            let mut chain = chain.lock().expect("chain state mutex poisoned");
+            Self::apply_reconstructed_block(store, &mut chain, &block, slot)?;
         }
 
         Ok(channel_is_empty)
@@ -332,8 +384,8 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
     /// blocks we already hold (verifying their hash), a validated continuation
     /// for new ones. Advances the persisted anchor to the block's slot.
     fn apply_reconstructed_block(
-        store: &mut SequencerStore,
-        state: &mut V03State,
+        store: &SequencerStore,
+        chain: &mut ChainState,
         block: &Block,
         slot: Slot,
     ) -> Result<()> {
@@ -379,21 +431,31 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
             }
         }
 
-        // New continuation: validate it chains onto the tip, then apply.
-        let cc_tip = tip.as_ref().map(|tip| Tip {
-            block_id: tip.id,
-            hash: tip.hash,
-        });
-        chain_consistency::validate_against_tip(cc_tip, block).map_err(|err| {
-            anyhow!(
-                "Channel block {block_id} does not extend local tip {:?}: {err}",
-                tip.map(|tip| tip.id)
-            )
-        })?;
+        // New continuation: channel history is finalized, so it goes through
+        // the final tier — validation happens inside `apply_finalized`.
+        match chain.apply_finalized(MsgId::from(block.header.hash.0), block, slot) {
+            AcceptOutcome::Applied | AcceptOutcome::AlreadyApplied => {}
+            AcceptOutcome::Parked(err) | AcceptOutcome::RetryableFailure(err) => {
+                return Err(anyhow!(
+                    "Channel block {block_id} does not extend local tip {:?}: {err}",
+                    tip.map(|tip| tip.id)
+                ));
+            }
+        }
 
-        let mut scratch = state.clone();
-        chain_consistency::apply_block(block, &mut scratch)
-            .map_err(|err| anyhow!("Failed to apply channel block {block_id}: {err}"))?;
+        // Persist like the follow path: the tip meta stays pinned to the head
+        // tip even when the reconstructed block lands below it.
+        let head_tip = chain.head_tip().map(|head| BlockMeta::from(&head));
+        let final_meta = chain.final_tip().map(|meta| BlockMeta::from(&meta));
+        store
+            .dbio()
+            .store_followed_blocks(
+                &[(block, true)],
+                head_tip.as_ref(),
+                chain.head_state(),
+                final_meta.as_ref().map(|meta| (chain.final_state(), meta)),
+            )
+            .context("Failed to persist reconstructed block")?;
 
         // Mark the deposits' pending records submitted so the production-time
         // guard drops the mints cold-start backfill re-queued for them. Withdraw
@@ -406,11 +468,10 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
             .iter()
             .filter_map(extract_bridge_deposit_id)
             .collect();
-
         store
-            .update(block, &deposit_event_ids, Vec::new(), &scratch)
-            .context("Failed to persist reconstructed block")?;
-        *state = scratch;
+            .mark_deposit_events_submitted(&deposit_event_ids, block_id)
+            .context("Failed to mark reconstructed deposits submitted")?;
+
         store
             .set_zone_anchor(&record)
             .context("Failed to persist zone anchor")?;
@@ -547,6 +608,17 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
         })
     }
 
+    /// Publisher sink adapter over [`apply_follow_update`].
+    fn on_follow(
+        dbio: Arc<RocksDBIO>,
+        chain: Arc<Mutex<ChainState>>,
+        mempool_handle: MemPoolHandle<(TransactionOrigin, LeeTransaction)>,
+    ) -> block_publisher::OnFollowSink {
+        Box::new(move |update: block_publisher::FollowUpdate| {
+            apply_follow_update(&dbio, &chain, &mempool_handle, update);
+        })
+    }
+
     /// Produces a new block from mempool transactions and publishes it via zone-sdk.
     pub async fn produce_new_block(&mut self) -> Result<u64> {
         let BlockWithMeta {
@@ -563,26 +635,77 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
             .collect::<Result<_>>()
             .context("Failed to build reconciliation keys for block withdrawals")?;
 
-        self.block_publisher
+        let this_msg = self
+            .block_publisher
             .publish_block(&block, withdrawals)
             .await
             .context("Failed to publish block to Bedrock")?;
 
-        self.store.update(
+        self.record_produced_block(
+            this_msg,
             &block,
             &deposit_event_ids,
             withdrawal_reconciliation_keys,
-            &self.state,
         )?;
 
-        Ok(self.chain_height)
+        Ok(block.header.block_id)
+    }
+
+    /// Applies our own freshly-published block to the head with the [`MsgId`] the
+    /// publish assigned it, so the head advances and the later adopted
+    /// redelivery dedups, then persists it.
+    ///
+    /// Persistence is gated on the block actually becoming the head: if a peer
+    /// block won this height while we were publishing (`AlreadyApplied`, or
+    /// `Parked` when the head reorged to a different parent), the canonical
+    /// block is persisted by the follow path instead, and our invalidated
+    /// inscription comes back via `orphaned`.
+    fn record_produced_block(
+        &mut self,
+        this_msg: MsgId,
+        block: &Block,
+        deposit_event_ids: &[HashType],
+        withdrawal_reconciliation_keys: Vec<WithdrawalReconciliationKey>,
+    ) -> Result<()> {
+        let mut chain = self.chain.lock().expect("chain state mutex poisoned");
+        match chain.apply_produced(this_msg, block) {
+            AcceptOutcome::Applied => {
+                // Persisted under the lock so disk writes land in apply order
+                // with the follow path.
+                self.store.update(
+                    block,
+                    deposit_event_ids,
+                    withdrawal_reconciliation_keys,
+                    chain.head_state(),
+                )?;
+            }
+            AcceptOutcome::AlreadyApplied => {
+                warn!(
+                    "Produced block {} lost a competing-write race, skipping persistence",
+                    block.header.block_id
+                );
+            }
+            AcceptOutcome::Parked(err) | AcceptOutcome::RetryableFailure(err) => {
+                warn!(
+                    "Produced block {} no longer chains on the head, skipping persistence: {err}",
+                    block.header.block_id
+                );
+            }
+        }
+
+        Ok(())
     }
 
     /// Validates and applies a single mempool transaction to the current state.
     /// Returns `Ok(true)` if the transaction was valid and applied, `Ok(false)` if
     /// it was skipped due to validation failure.
+    #[expect(
+        clippy::too_many_arguments,
+        reason = "splitting the produce-path accumulators into a struct buys nothing"
+    )]
     fn apply_mempool_transaction(
-        &mut self,
+        store: &SequencerStore,
+        state: &mut lee::V03State,
         origin: TransactionOrigin,
         tx: &LeeTransaction,
         block_height: u64,
@@ -593,11 +716,7 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
         let tx_hash = tx.hash();
         match origin {
             TransactionOrigin::User => {
-                let validated_diff = match tx.validate_on_state(
-                    &self.state,
-                    block_height,
-                    timestamp,
-                ) {
+                let validated_diff = match tx.validate_on_state(state, block_height, timestamp) {
                     Ok(diff) => diff,
                     Err(err) => {
                         error!(
@@ -611,7 +730,7 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
                     withdrawals.push(withdraw_data);
                 }
 
-                self.state.apply_state_diff(validated_diff);
+                state.apply_state_diff(validated_diff);
             }
             TransactionOrigin::Sequencer => {
                 let LeeTransaction::Public(public_tx) = tx else {
@@ -619,8 +738,7 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
                 };
 
                 if let Some(deposit_op_id) = extract_bridge_deposit_id(tx) {
-                    if self
-                        .store
+                    if store
                         .is_deposit_event_submitted(deposit_op_id)
                         .context("Failed to check whether deposit was already submitted")?
                     {
@@ -630,7 +748,7 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
                     deposit_event_ids.push(deposit_op_id);
                 }
 
-                self.state
+                state
                     .transition_from_public_transaction(public_tx, block_height, timestamp)
                     .context("Failed to execute sequencer-generated transaction")?;
             }
@@ -643,7 +761,18 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
     fn build_block_from_mempool(&mut self) -> Result<BlockWithMeta> {
         let now = Instant::now();
 
-        let new_block_height = self.next_block_id();
+        // Build on the head: its tip is the parent, its state the validation base.
+        let (prev_block_hash, new_block_height, mut working_state) = {
+            let chain = self.chain.lock().expect("chain state mutex poisoned");
+            let tip = chain.head_tip();
+            let height = tip.as_ref().map_or(GENESIS_BLOCK_ID, |head| {
+                head.block_id
+                    .checked_add(1)
+                    .expect("block id should not overflow")
+            });
+            let prev = tip.map_or(HashType([0; 32]), |head| head.hash);
+            (prev, height, chain.head_state().clone())
+        };
 
         let mut valid_transactions = Vec::new();
         let mut deposit_event_ids = Vec::new();
@@ -652,12 +781,6 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
         let max_block_size = usize::try_from(self.sequencer_config.max_block_size.as_u64())
             .expect("`max_block_size` should fit into usize");
 
-        let latest_block_meta = self
-            .store
-            .latest_block_meta()
-            .context("Failed to get latest block meta from store")?
-            .context("Sequencer store should have at least the genesis block")?;
-
         let new_block_timestamp = u64::try_from(chrono::Utc::now().timestamp_millis())
             .expect("Timestamp must be positive");
 
@@ -676,7 +799,7 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
             let temp_hashable_data = HashableBlockData {
                 block_id: new_block_height,
                 transactions: temp_valid_transactions,
-                prev_block_hash: latest_block_meta.hash,
+                prev_block_hash,
                 timestamp: new_block_timestamp,
             };
 
@@ -693,7 +816,9 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
                 break;
             }
 
-            if self.apply_mempool_transaction(
+            if Self::apply_mempool_transaction(
+                &self.store,
+                &mut working_state,
                 origin,
                 &tx,
                 new_block_height,
@@ -709,7 +834,7 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
             }
         }
 
-        self.state
+        working_state
             .transition_from_public_transaction(&clock_tx, new_block_height, new_block_timestamp)
             .context("Clock transaction failed. Aborting block production.")?;
         valid_transactions.push(clock_lee_tx);
@@ -717,7 +842,7 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
         let hashable_data = HashableBlockData {
             block_id: new_block_height,
             transactions: valid_transactions,
-            prev_block_hash: latest_block_meta.hash,
+            prev_block_hash,
             timestamp: new_block_timestamp,
         };
 
@@ -725,8 +850,6 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
             .clone()
             .into_pending_block(self.store.signing_key());
 
-        self.chain_height = new_block_height;
-
         log::info!(
             "Created block with {} transactions in {} seconds",
             hashable_data.transactions.len(),
@@ -740,16 +863,27 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
         })
     }
 
-    pub const fn state(&self) -> &lee::V03State {
-        &self.state
+    /// Reads the current head state under the lock without cloning it, so callers
+    /// reuse `V03State`'s own API (accounts, nonces, proofs) with no whole-state copy.
+    pub fn with_state<R>(&self, f: impl FnOnce(&lee::V03State) -> R) -> R {
+        f(self
+            .chain
+            .lock()
+            .expect("chain state mutex poisoned")
+            .head_state())
     }
 
     pub const fn block_store(&self) -> &SequencerStore {
         &self.store
     }
 
-    pub const fn chain_height(&self) -> u64 {
-        self.chain_height
+    #[must_use]
+    pub fn chain_height(&self) -> u64 {
+        self.chain
+            .lock()
+            .expect("chain state mutex poisoned")
+            .head_tip()
+            .map_or(0, |tip| tip.block_id)
     }
 
     pub const fn sequencer_config(&self) -> &SequencerConfig {
@@ -786,10 +920,17 @@ impl<BP: BlockPublisherTrait> SequencerCore<BP> {
         &self.block_publisher
     }
 
-    fn next_block_id(&self) -> u64 {
-        self.chain_height
-            .checked_add(1)
-            .unwrap_or_else(|| panic!("Max block height reached: {}", self.chain_height))
+    /// Whether this sequencer is currently authorized to write to the channel.
+    #[must_use]
+    pub fn is_our_turn(&self) -> bool {
+        self.block_publisher.is_our_turn()
+    }
+
+    /// Shared handle to the two-tier follow state, for tests to drive the
+    /// follow path directly.
+    #[cfg(all(test, feature = "mock"))]
+    fn chain(&self) -> Arc<Mutex<ChainState>> {
+        Arc::clone(&self.chain)
     }
 }
 
@@ -799,6 +940,105 @@ struct BlockWithMeta {
     withdrawals: Vec<WithdrawArg>,
 }
 
+/// Feed one channel delta into the follow state and mirror it to the store:
+/// revert orphaned, then apply and persist adopted and finalized blocks.
+/// Production builds on this same head. Wired to the publisher via
+/// [`SequencerCore::on_follow`]; a free function so tests can drive it directly.
+///
+/// TODO: unlike the indexer's ingest loop, this path does not retry
+/// `is_retryable` (transient) apply failures — a failed block just parks and
+/// relies on a valid successor or a restart. `ChainState` never emits
+/// `AcceptOutcome::RetryableFailure` yet; adding retry parity here is a
+/// follow-up.
+fn apply_follow_update(
+    dbio: &RocksDBIO,
+    chain: &Mutex<ChainState>,
+    mempool_handle: &MemPoolHandle<(TransactionOrigin, LeeTransaction)>,
+    update: block_publisher::FollowUpdate,
+) {
+    let block_publisher::FollowUpdate {
+        adopted,
+        orphaned,
+        finalized,
+    } = update;
+
+    // The lock is held across the persist below so disk writes land in apply
+    // order — the produce path persists under this same lock.
+    let resubmit_txs = {
+        let mut chain = chain.lock().expect("chain state mutex poisoned");
+
+        // User txs of orphaned blocks, returned to the mempool below.
+        let resubmit_txs: Vec<LeeTransaction> = orphaned
+            .iter()
+            .flat_map(|(_, block)| resubmittable_txs(block))
+            .collect();
+
+        // Outcomes align with `adopted`.
+        let outcomes = chain.apply_channel_update(&orphaned, &adopted);
+        let mut to_persist: Vec<(&Block, bool)> = adopted
+            .iter()
+            .zip(&outcomes)
+            .filter(|(_, outcome)| matches!(outcome, AcceptOutcome::Applied))
+            .map(|((_, block), _)| (block, false))
+            .collect();
+
+        let mut final_advanced = false;
+        for (this_msg, block) in &finalized {
+            // FIXME: thread the finalized inscription's L1 slot once the
+            // sdk surfaces it; only used for the invalid-finalized stall.
+            if matches!(
+                chain.apply_finalized(*this_msg, block, Slot::from(0)),
+                AcceptOutcome::Applied
+            ) {
+                to_persist.push((block, true));
+                final_advanced = true;
+            }
+        }
+        // Snapshot the advanced final tier so a restart re-anchors on it.
+        let final_meta = final_advanced.then(|| {
+            let tip = chain.final_tip().expect("advanced final tier has a tip");
+            BlockMeta::from(&tip)
+        });
+        let head_tip = chain.head_tip().map(|tip| BlockMeta::from(&tip));
+
+        // One atomic write for the whole update: blocks, tip meta and the
+        // state after the last block land together, so a crash can never
+        // leave the stored state ahead of the stored blocks. A persist
+        // failure is fatal: the in-memory chain has already advanced, and
+        // continuing would leave a permanent gap in the store.
+        //
+        // The `panic!` ends the drive task, whose cancellation halts the node.
+        //
+        // TODO: the zone-sdk checkpoint is persisted by `on_checkpoint`
+        // before this write; a crash in between resumes past these blocks
+        // without them ever landing in the store. Full `BlocksProcessed`
+        // atomicity (checkpoint + blocks + state in one batch, per the sdk's
+        // event contract) is a follow-up.
+        dbio.store_followed_blocks(
+            &to_persist,
+            head_tip.as_ref(),
+            chain.head_state(),
+            final_meta.as_ref().map(|meta| (chain.final_state(), meta)),
+        )
+        .unwrap_or_else(|err| panic!("Failed to persist followed blocks: {err:#}"));
+
+        resubmit_txs
+    };
+
+    // Rebuild orphaned work: return its user txs to the mempool so the
+    // next on-turn production re-includes them on the new head.
+    //
+    // We use [`try_push`] here because this is called from the
+    // publisher's drive task, and only the block production drains the mempool.
+    // A blocking push on a full mempool would deadlock here.
+    for tx in resubmit_txs {
+        let tx_hash = tx.hash();
+        if let Err(err) = mempool_handle.try_push((TransactionOrigin::User, tx)) {
+            warn!("Dropping orphaned transaction {tx_hash} on resubmit: {err}");
+        }
+    }
+}
+
 /// Checks the database for any pending deposit events that have not yet been marked as submitted in
 /// a block, and re-queues them in the mempool in a separate async task for inclusion in the next
 /// block.
@@ -848,21 +1088,30 @@ fn replay_unfulfilled_deposit_events(
     });
 }
 
-/// Builds the initial genesis state from `testnet_initial_state` plus configured genesis
-/// transactions. Returns the final state and the list of [`LeeTransaction`]s that should be
-/// committed to the genesis block so external observers can replay them.
-fn build_genesis_state(config: &SequencerConfig) -> (lee::V03State, Vec<LeeTransaction>) {
+/// The pre-genesis state: `testnet_initial_state` plus the bridge-lock holdings,
+/// the only accounts seeded outside any transaction. Cross-zone config is seeded
+/// by genesis InitConfig transactions and reconstructed by replaying them.
+fn build_initial_state(config: &SequencerConfig) -> lee::V03State {
     #[cfg(not(feature = "testnet"))]
     let base = testnet_initial_state::initial_state();
 
     #[cfg(feature = "testnet")]
     let base = testnet_initial_state::initial_state_testnet();
 
-    // Bridge-lock holdings belong to the source side, seeded regardless of receiving config.
-    let holdings: Vec<_> = bridge_lock_holdings(&config.genesis)
-        .map(|(holder, amount)| cross_zone::build_holding_account(holder, amount))
-        .collect();
-    let mut state = base.with_public_accounts(holdings);
+    // Bridge-lock holder balances belong to the source side and are not produced by
+    // any transaction, so seed them directly. Cross-zone config is seeded by genesis
+    // InitConfig transactions in `build_genesis_state`, not here.
+    let holdings = bridge_lock_holdings(&config.genesis)
+        .map(|(holder, amount)| cross_zone::build_holding_account(holder, amount));
+    base.with_public_accounts(holdings)
+}
+
+/// Builds the initial genesis state from [`build_initial_state`] plus configured
+/// genesis transactions. Returns the final state and the list of
+/// [`LeeTransaction`]s that should be committed to the genesis block so external
+/// observers can replay them.
+fn build_genesis_state(config: &SequencerConfig) -> (lee::V03State, Vec<LeeTransaction>) {
+    let mut state = build_initial_state(config);
 
     // Fingerprint the directly-seeded state, before genesis txs, so it matches the indexer's.
     info!(
@@ -892,12 +1141,11 @@ fn build_genesis_state(config: &SequencerConfig) -> (lee::V03State, Vec<LeeTrans
         GenesisAction::SupplyBridgeAccount { balance } => {
             Some(build_supply_bridge_account_genesis_transaction(*balance))
         }
-        // Seeded directly (holdings via `build_holding_account`), not by a genesis tx.
+        // Seeded directly in `build_initial_state` (holdings via `build_holding_account`), not a
+        // genesis tx.
         GenesisAction::SupplyBridgeLockHolding { .. } => None,
     });
 
-    // Applied in order with the mandatory clock last, then committed to the genesis
-    // block so external observers can replay them. Every genesis tx is public.
     let genesis_txs = wrapped_token_config_tx
         .chain(inbox_config_tx)
         .chain(supply_txs)
@@ -984,7 +1232,7 @@ fn pending_deposit_event_record(deposit: &DepositInfo) -> PendingDepositEventRec
 }
 
 fn build_bridge_deposit_tx_from_event(event: &PendingDepositEventRecord) -> Result<LeeTransaction> {
-    let metadata = DepositMetadata::decode(&event.metadata)
+    let metadata = DepositMetadata::try_from_slice(&event.metadata)
         .context("Failed to decode finalized Bedrock deposit metadata")?;
 
     let bridge_program_id = programs::bridge().id();
@@ -1012,6 +1260,26 @@ fn build_bridge_deposit_tx_from_event(event: &PendingDepositEventRecord) -> Resu
     )))
 }
 
+/// User transactions of an orphaned block to return to the mempool: everything
+/// except the trailing clock tx, sequencer-generated bridge deposits (replayed
+/// from their own bedrock events) and sequencer-only cross-zone txs (replayed
+/// by the watcher; the ingress guard rejects them as `User`).
+fn resubmittable_txs(block: &Block) -> Vec<LeeTransaction> {
+    let Some((_clock, rest)) = block.body.transactions.split_last() else {
+        return Vec::new();
+    };
+    rest.iter()
+        .filter(|tx| extract_bridge_deposit_id(tx).is_none() && !is_sequencer_only_tx(tx))
+        .cloned()
+        .collect()
+}
+
+#[must_use]
+fn is_sequencer_only_tx(tx: &LeeTransaction) -> bool {
+    matches!(tx, LeeTransaction::Public(tx)
+        if is_sequencer_only_program(tx.message().program_id))
+}
+
 #[must_use]
 fn extract_bridge_deposit_id(tx: &LeeTransaction) -> Option<HashType> {
     let LeeTransaction::Public(tx) = tx else {
@@ -1101,7 +1369,7 @@ fn withdraw_event_reconciliation_key(
 }
 
 /// Load signing key from file or generate a new one if it doesn't exist.
-fn load_or_create_signing_key(path: &Path) -> Result<Ed25519Key> {
+pub fn load_or_create_signing_key(path: &Path) -> Result<Ed25519Key> {
     if path.exists() {
         let key_bytes = std::fs::read(path)?;
 
diff --git a/lez/sequencer/core/src/mock.rs b/lez/sequencer/core/src/mock.rs
index f8349fac..4f2552b7 100644
--- a/lez/sequencer/core/src/mock.rs
+++ b/lez/sequencer/core/src/mock.rs
@@ -3,13 +3,14 @@ use std::time::Duration;
 use anyhow::Result;
 use common::block::Block;
 use futures::Stream;
-use logos_blockchain_core::mantle::ops::channel::ChannelId;
+use logos_blockchain_core::mantle::ops::channel::{ChannelId, MsgId};
 use logos_blockchain_key_management_system_service::keys::Ed25519Key;
 use logos_blockchain_zone_sdk::{Slot, ZoneMessage, sequencer::WithdrawArg};
+use tokio_util::sync::CancellationToken;
 
 use crate::{
     block_publisher::{
-        BlockPublisherTrait, CheckpointSink, FinalizedBlockSink, OnDepositEventSink,
+        BlockPublisherTrait, CheckpointSink, FinalizedBlockSink, OnDepositEventSink, OnFollowSink,
         OnWithdrawEventSink, SequencerCheckpoint,
     },
     config::BedrockConfig,
@@ -20,6 +21,8 @@ pub type SequencerCoreWithMockClients = crate::SequencerCore<MockBlockPublisher>
 #[derive(Clone)]
 pub struct MockBlockPublisher {
     channel_id: ChannelId,
+    // Never cancelled: the mock driver never dies.
+    driver_cancellation: CancellationToken,
     /// Canned channel frontier returned by [`Self::channel_tip_slot`].
     tip_slot: Option<Slot>,
     /// Canned finalized channel history returned by [`Self::read_channel_after`].
@@ -31,13 +34,14 @@ impl MockBlockPublisher {
     /// and consistency tests. The default (via [`BlockPublisherTrait::new`])
     /// serves an empty channel.
     #[must_use]
-    pub const fn with_canned_channel(
+    pub fn with_canned_channel(
         channel_id: ChannelId,
         tip_slot: Option<Slot>,
         messages: Vec<(ZoneMessage, Slot)>,
     ) -> Self {
         Self {
             channel_id,
+            driver_cancellation: CancellationToken::new(),
             tip_slot,
             messages,
         }
@@ -54,9 +58,11 @@ impl BlockPublisherTrait for MockBlockPublisher {
         _on_finalized_block: FinalizedBlockSink,
         _on_deposit_event: OnDepositEventSink,
         _on_withdraw_event: OnWithdrawEventSink,
+        _on_follow: OnFollowSink,
     ) -> Result<Self> {
         Ok(Self {
             channel_id: config.channel_id,
+            driver_cancellation: CancellationToken::new(),
             tip_slot: None,
             messages: Vec::new(),
         })
@@ -64,16 +70,27 @@ impl BlockPublisherTrait for MockBlockPublisher {
 
     async fn publish_block(
         &self,
-        _block: &Block,
+        block: &Block,
         _bridge_withdrawals: Vec<WithdrawArg>,
-    ) -> Result<()> {
-        Ok(())
+    ) -> Result<MsgId> {
+        // Deterministic per-block id so head dedup behaves in tests.
+        //
+        // TODO: should we allow more "mockability" here?
+        Ok(MsgId::from(block.header.hash.0))
     }
 
     fn channel_id(&self) -> ChannelId {
         self.channel_id
     }
 
+    fn is_our_turn(&self) -> bool {
+        true
+    }
+
+    fn driver_cancellation(&self) -> CancellationToken {
+        self.driver_cancellation.clone()
+    }
+
     async fn channel_tip_slot(&self) -> Result<Option<Slot>> {
         Ok(self.tip_slot)
     }
diff --git a/lez/sequencer/core/src/tests.rs b/lez/sequencer/core/src/tests.rs
index b398e160..4b6e4cae 100644
--- a/lez/sequencer/core/src/tests.rs
+++ b/lez/sequencer/core/src/tests.rs
@@ -4,7 +4,7 @@ use std::{pin::pin, time::Duration};
 
 use common::{
     HashType,
-    block::HashableBlockData,
+    block::{BedrockStatus, HashableBlockData},
     test_utils::sequencer_sign_key_for_testing,
     transaction::{LeeTransaction, clock_invocation},
 };
@@ -22,19 +22,21 @@ use lee_core::{
     account::{AccountWithMetadata, Nonce},
     program::PdaSeed,
 };
-use logos_blockchain_core::mantle::ops::channel::ChannelId;
+use logos_blockchain_core::mantle::ops::channel::{ChannelId, MsgId};
 use mempool::MemPoolHandle;
 use storage::sequencer::sequencer_cells::PendingDepositEventRecord;
 use tempfile::tempdir;
 use testnet_initial_state::{initial_pub_accounts_private_keys, initial_public_user_accounts};
 
 use crate::{
-    TransactionOrigin,
+    TransactionOrigin, apply_follow_update,
+    block_publisher::FollowUpdate,
     block_store::SequencerStore,
-    build_genesis_state,
+    build_bridge_deposit_tx_from_event, build_genesis_state,
     config::{BedrockConfig, SequencerConfig},
     is_sequencer_only_program,
     mock::SequencerCoreWithMockClients,
+    resubmittable_txs,
 };
 
 mod reconstruction;
@@ -148,14 +150,14 @@ async fn start_from_config() {
     let (sequencer, _mempool_handle) =
         SequencerCoreWithMockClients::start_from_config(config.clone()).await;
 
-    assert_eq!(sequencer.chain_height, 1);
+    assert_eq!(sequencer.chain_height(), 1);
     assert_eq!(sequencer.sequencer_config.max_num_tx_in_block, 10);
 
     let acc1_account_id = initial_public_user_accounts()[0].account_id;
     let acc2_account_id = initial_public_user_accounts()[1].account_id;
 
-    let balance_acc_1 = sequencer.state.get_account_by_id(acc1_account_id).balance;
-    let balance_acc_2 = sequencer.state.get_account_by_id(acc2_account_id).balance;
+    let balance_acc_1 = sequencer.with_state(|s| s.get_account_by_id(acc1_account_id).balance);
+    let balance_acc_2 = sequencer.with_state(|s| s.get_account_by_id(acc2_account_id).balance);
 
     assert_eq!(10000, balance_acc_1);
     assert_eq!(20000, balance_acc_2);
@@ -188,7 +190,7 @@ async fn start_from_config_opens_existing_db_if_it_exists() {
 
     let (sequencer, _mempool_handle) =
         SequencerCoreWithMockClients::start_from_config(config).await;
-    assert_eq!(sequencer.chain_height, 1);
+    assert_eq!(sequencer.chain_height(), 1);
     assert!(sequencer.store.latest_block_meta().is_ok());
 }
 
@@ -297,7 +299,7 @@ async fn transaction_pre_check_native_transfer_valid() {
 
 #[tokio::test]
 async fn transaction_pre_check_native_transfer_other_signature() {
-    let (mut sequencer, _mempool_handle) = common_setup().await;
+    let (sequencer, _mempool_handle) = common_setup().await;
 
     let acc1 = initial_public_user_accounts()[0].account_id;
     let acc2 = initial_public_user_accounts()[1].account_id;
@@ -311,7 +313,15 @@ async fn transaction_pre_check_native_transfer_other_signature() {
     let tx = tx.transaction_stateless_check().unwrap();
 
     // Signature is not from sender. Execution fails
-    let result = tx.execute_check_on_state(&mut sequencer.state, 0, 0);
+    let result = tx.execute_check_on_state(
+        sequencer
+            .chain()
+            .lock()
+            .expect("chain mutex poisoned")
+            .head_state_mut(),
+        0,
+        0,
+    );
 
     assert!(matches!(
         result,
@@ -321,7 +331,7 @@ async fn transaction_pre_check_native_transfer_other_signature() {
 
 #[tokio::test]
 async fn transaction_pre_check_native_transfer_sent_too_much() {
-    let (mut sequencer, _mempool_handle) = common_setup().await;
+    let (sequencer, _mempool_handle) = common_setup().await;
 
     let acc1 = initial_public_user_accounts()[0].account_id;
     let acc2 = initial_public_user_accounts()[1].account_id;
@@ -337,9 +347,15 @@ async fn transaction_pre_check_native_transfer_sent_too_much() {
     // Passed pre-check
     assert!(result.is_ok());
 
-    let result = result
-        .unwrap()
-        .execute_check_on_state(&mut sequencer.state, 0, 0);
+    let result = result.unwrap().execute_check_on_state(
+        sequencer
+            .chain()
+            .lock()
+            .expect("chain mutex poisoned")
+            .head_state_mut(),
+        0,
+        0,
+    );
     let is_failed_at_balance_mismatch = matches!(
         result.err().unwrap(),
         lee::error::LeeError::ProgramExecutionFailed(_)
@@ -350,7 +366,7 @@ async fn transaction_pre_check_native_transfer_sent_too_much() {
 
 #[tokio::test]
 async fn transaction_execute_native_transfer() {
-    let (mut sequencer, _mempool_handle) = common_setup().await;
+    let (sequencer, _mempool_handle) = common_setup().await;
 
     let acc1 = initial_public_user_accounts()[0].account_id;
     let acc2 = initial_public_user_accounts()[1].account_id;
@@ -361,11 +377,19 @@ async fn transaction_execute_native_transfer() {
         acc1, 0, acc2, 100, &sign_key1,
     );
 
-    tx.execute_check_on_state(&mut sequencer.state, 0, 0)
-        .unwrap();
+    tx.execute_check_on_state(
+        sequencer
+            .chain()
+            .lock()
+            .expect("chain mutex poisoned")
+            .head_state_mut(),
+        0,
+        0,
+    )
+    .unwrap();
 
-    let bal_from = sequencer.state.get_account_by_id(acc1).balance;
-    let bal_to = sequencer.state.get_account_by_id(acc2).balance;
+    let bal_from = sequencer.with_state(|s| s.get_account_by_id(acc1).balance);
+    let bal_to = sequencer.with_state(|s| s.get_account_by_id(acc2).balance);
 
     assert_eq!(bal_from, 9900);
     assert_eq!(bal_to, 20100);
@@ -402,7 +426,7 @@ async fn push_tx_into_mempool_blocks_until_mempool_is_full() {
 #[tokio::test]
 async fn build_block_from_mempool() {
     let (mut sequencer, mempool_handle) = common_setup().await;
-    let genesis_height = sequencer.chain_height;
+    let genesis_height = sequencer.chain_height();
 
     let tx = common::test_utils::produce_dummy_empty_transaction();
     mempool_handle
@@ -412,7 +436,8 @@ async fn build_block_from_mempool() {
 
     let result = sequencer.build_block_from_mempool();
     assert!(result.is_ok());
-    assert_eq!(sequencer.chain_height, genesis_height + 1);
+    // Building itself does not advance the head; only apply-after-publish does.
+    assert_eq!(sequencer.chain_height(), genesis_height);
 }
 
 #[tokio::test]
@@ -444,7 +469,7 @@ async fn replay_transactions_are_rejected_in_the_same_block() {
     sequencer.produce_new_block().await.unwrap();
     let block = sequencer
         .store
-        .get_block_at_id(sequencer.chain_height)
+        .get_block_at_id(sequencer.chain_height())
         .unwrap()
         .unwrap();
 
@@ -479,7 +504,7 @@ async fn replay_transactions_are_rejected_in_different_blocks() {
     sequencer.produce_new_block().await.unwrap();
     let block = sequencer
         .store
-        .get_block_at_id(sequencer.chain_height)
+        .get_block_at_id(sequencer.chain_height())
         .unwrap()
         .unwrap();
     assert_eq!(
@@ -498,7 +523,7 @@ async fn replay_transactions_are_rejected_in_different_blocks() {
     sequencer.produce_new_block().await.unwrap();
     let block = sequencer
         .store
-        .get_block_at_id(sequencer.chain_height)
+        .get_block_at_id(sequencer.chain_height())
         .unwrap()
         .unwrap();
     // The replay is rejected, so only the clock tx is in the block.
@@ -540,7 +565,7 @@ async fn restart_from_storage() {
         sequencer.produce_new_block().await.unwrap();
         let block = sequencer
             .store
-            .get_block_at_id(sequencer.chain_height)
+            .get_block_at_id(sequencer.chain_height())
             .unwrap()
             .unwrap();
         assert_eq!(
@@ -556,8 +581,8 @@ async fn restart_from_storage() {
     // with the above transaction and update the state to reflect that.
     let (sequencer, _mempool_handle) =
         SequencerCoreWithMockClients::start_from_config(config.clone()).await;
-    let balance_acc_1 = sequencer.state.get_account_by_id(acc1_account_id).balance;
-    let balance_acc_2 = sequencer.state.get_account_by_id(acc2_account_id).balance;
+    let balance_acc_1 = sequencer.with_state(|s| s.get_account_by_id(acc1_account_id).balance);
+    let balance_acc_2 = sequencer.with_state(|s| s.get_account_by_id(acc2_account_id).balance);
 
     // Balances should be consistent with the stored block
     assert_eq!(
@@ -655,7 +680,7 @@ async fn produce_block_with_correct_prev_meta_after_restart() {
     // Step 5: Verify the new block has correct previous block metadata
     let new_block = sequencer
         .store
-        .get_block_at_id(sequencer.chain_height)
+        .get_block_at_id(sequencer.chain_height())
         .unwrap()
         .unwrap();
 
@@ -707,7 +732,7 @@ async fn transactions_touching_clock_account_are_dropped_from_block() {
 
     let block = sequencer
         .store
-        .get_block_at_id(sequencer.chain_height)
+        .get_block_at_id(sequencer.chain_height())
         .unwrap()
         .unwrap();
 
@@ -762,7 +787,7 @@ async fn user_tx_that_chain_calls_clock_is_dropped() {
 
     let block = sequencer
         .store
-        .get_block_at_id(sequencer.chain_height)
+        .get_block_at_id(sequencer.chain_height())
         .unwrap()
         .unwrap();
 
@@ -781,10 +806,13 @@ async fn block_production_aborts_when_clock_account_data_is_corrupted() {
 
     // Corrupt the clock 01 account data so the clock program panics on deserialization.
     let clock_account_id = system_accounts::clock_account_ids()[0];
-    let mut corrupted = sequencer.state.get_account_by_id(clock_account_id);
+    let mut corrupted = sequencer.with_state(|s| s.get_account_by_id(clock_account_id));
     corrupted.data = vec![0xff; 3].try_into().unwrap();
     sequencer
-        .state
+        .chain()
+        .lock()
+        .expect("chain mutex poisoned")
+        .head_state_mut()
         .force_insert_account(clock_account_id, corrupted);
 
     // Push a dummy transaction so the mempool is non-empty.
@@ -864,6 +892,7 @@ fn private_bridge_withdraw_invocation_is_dropped() {
             InputAccountIdentity::PrivateAuthorizedUpdate {
                 vpk: sender_keys.viewing_public_key.clone(),
                 random_seed: [0; 32],
+                view_tag: 0,
                 nsk: sender_keys.private_key_holder.nullifier_secret_key,
                 membership_proof: state
                     .get_proof_for_commitment(&sender_commitment)
@@ -1247,3 +1276,509 @@ fn pda_mechanism_with_pinata_token_program() {
         expected_winner_token_holding_post
     );
 }
+
+#[test]
+fn resubmittable_txs_drops_clock_and_bridge_deposits() {
+    let user_tx = common::test_utils::produce_dummy_empty_transaction();
+    let deposit_tx = build_bridge_deposit_tx_from_event(&PendingDepositEventRecord {
+        deposit_op_id: HashType([13; 32]),
+        source_tx_hash: HashType([7; 32]),
+        amount: 1,
+        metadata: borsh::to_vec(&DepositMetadataForEncoding {
+            recipient_id: initial_public_user_accounts()[0].account_id,
+        })
+        .unwrap(),
+        submitted_in_block_id: None,
+    })
+    .unwrap();
+    let withdraw_tx = {
+        let message = lee::public_transaction::Message::try_new(
+            programs::bridge().id(),
+            vec![system_accounts::bridge_account_id()],
+            vec![],
+            bridge_core::Instruction::Withdraw {
+                amount: 1,
+                bedrock_account_pk: [0; 32],
+            },
+        )
+        .unwrap();
+        LeeTransaction::Public(PublicTransaction::new(
+            message,
+            lee::public_transaction::WitnessSet::from_raw_parts(vec![]),
+        ))
+    };
+
+    let block = common::test_utils::produce_dummy_block(
+        2,
+        Some(HashType([1; 32])),
+        vec![user_tx.clone(), deposit_tx, withdraw_tx.clone()],
+    );
+
+    // The trailing clock tx and the sequencer-generated deposit are dropped;
+    // user txs (withdrawals included) are returned.
+    assert_eq!(resubmittable_txs(&block), vec![user_tx, withdraw_tx]);
+}
+
+#[test]
+fn resubmittable_txs_of_blocks_without_user_txs_is_empty() {
+    // No transactions at all (not even the mandatory clock tx).
+    let empty = HashableBlockData {
+        block_id: 1,
+        prev_block_hash: HashType([0; 32]),
+        timestamp: 0,
+        transactions: vec![],
+    }
+    .into_pending_block(&sequencer_sign_key_for_testing());
+    assert!(resubmittable_txs(&empty).is_empty());
+
+    let clock_only = common::test_utils::produce_dummy_block(1, None, vec![]);
+    assert!(resubmittable_txs(&clock_only).is_empty());
+}
+
+#[tokio::test]
+async fn follow_adopted_peer_block_applies_and_persists() {
+    let config = setup_sequencer_config();
+    let (sequencer, mempool_handle) = SequencerCoreWithMockClients::start_from_config(config).await;
+    let genesis_meta = sequencer
+        .store
+        .latest_block_meta()
+        .unwrap()
+        .expect("genesis meta is set");
+
+    let acc1 = initial_public_user_accounts()[0].account_id;
+    let acc2 = initial_public_user_accounts()[1].account_id;
+    let tx = common::test_utils::create_transaction_native_token_transfer(
+        acc1,
+        0,
+        acc2,
+        10,
+        &create_signing_key_for_account1(),
+    );
+    let peer_block = common::test_utils::produce_dummy_block(2, Some(genesis_meta.hash), vec![tx]);
+
+    apply_follow_update(
+        &sequencer.store.dbio(),
+        &sequencer.chain(),
+        &mempool_handle,
+        FollowUpdate {
+            adopted: vec![(MsgId::from([1; 32]), peer_block.clone())],
+            orphaned: vec![],
+            finalized: vec![],
+        },
+    );
+
+    assert_eq!(sequencer.chain_height(), 2);
+    let stored = sequencer
+        .store
+        .get_block_at_id(2)
+        .unwrap()
+        .expect("adopted peer block should be persisted");
+    assert_eq!(stored.header.hash, peer_block.header.hash);
+    assert_eq!(
+        sequencer.with_state(|s| s.get_account_by_id(acc2).balance),
+        20010
+    );
+}
+
+#[tokio::test]
+async fn follow_redelivery_of_own_block_is_deduped() {
+    let config = setup_sequencer_config();
+    let (mut sequencer, mempool_handle) =
+        SequencerCoreWithMockClients::start_from_config(config).await;
+
+    let acc1 = initial_public_user_accounts()[0].account_id;
+    let acc2 = initial_public_user_accounts()[1].account_id;
+    let tx = common::test_utils::create_transaction_native_token_transfer(
+        acc1,
+        0,
+        acc2,
+        10,
+        &create_signing_key_for_account1(),
+    );
+    mempool_handle
+        .push((TransactionOrigin::User, tx))
+        .await
+        .unwrap();
+    sequencer.produce_new_block().await.unwrap();
+    let block2 = sequencer.store.get_block_at_id(2).unwrap().unwrap();
+
+    // The channel redelivers our own block under the MsgId the mock publisher
+    // assigned at publish time.
+    apply_follow_update(
+        &sequencer.store.dbio(),
+        &sequencer.chain(),
+        &mempool_handle,
+        FollowUpdate {
+            adopted: vec![(MsgId::from(block2.header.hash.0), block2)],
+            orphaned: vec![],
+            finalized: vec![],
+        },
+    );
+
+    assert_eq!(sequencer.chain_height(), 2);
+    assert_eq!(
+        sequencer.with_state(|s| s.get_account_by_id(acc2).balance),
+        20010,
+        "the transfer must not be double-applied"
+    );
+}
+
+#[tokio::test]
+async fn follow_orphan_reverts_head_and_requeues_user_txs() {
+    let config = setup_sequencer_config();
+    let (mut sequencer, mempool_handle) =
+        SequencerCoreWithMockClients::start_from_config(config).await;
+
+    let acc1 = initial_public_user_accounts()[0].account_id;
+    let acc2 = initial_public_user_accounts()[1].account_id;
+    let tx = common::test_utils::create_transaction_native_token_transfer(
+        acc1,
+        0,
+        acc2,
+        10,
+        &create_signing_key_for_account1(),
+    );
+    mempool_handle
+        .push((TransactionOrigin::User, tx.clone()))
+        .await
+        .unwrap();
+    sequencer.produce_new_block().await.unwrap();
+    let block2 = sequencer.store.get_block_at_id(2).unwrap().unwrap();
+
+    apply_follow_update(
+        &sequencer.store.dbio(),
+        &sequencer.chain(),
+        &mempool_handle,
+        FollowUpdate {
+            adopted: vec![],
+            orphaned: vec![(MsgId::from(block2.header.hash.0), block2)],
+            finalized: vec![],
+        },
+    );
+
+    assert_eq!(sequencer.chain_height(), 1);
+    assert_eq!(
+        sequencer.with_state(|s| s.get_account_by_id(acc1).balance),
+        10000,
+        "the orphaned transfer must be reverted from the head"
+    );
+    let (origin, requeued) = sequencer
+        .mempool
+        .pop()
+        .expect("orphaned user tx should be requeued");
+    assert!(matches!(origin, TransactionOrigin::User));
+    assert_eq!(requeued, tx);
+    assert!(
+        sequencer.mempool.pop().is_none(),
+        "the clock tx must not be requeued"
+    );
+}
+
+#[tokio::test]
+async fn follow_finalized_own_block_moves_final_tier_and_marks_store() {
+    let config = setup_sequencer_config();
+    let (mut sequencer, mempool_handle) =
+        SequencerCoreWithMockClients::start_from_config(config).await;
+
+    let tx = common::test_utils::produce_dummy_empty_transaction();
+    mempool_handle
+        .push((TransactionOrigin::User, tx))
+        .await
+        .unwrap();
+    sequencer.produce_new_block().await.unwrap();
+    let block2 = sequencer.store.get_block_at_id(2).unwrap().unwrap();
+
+    apply_follow_update(
+        &sequencer.store.dbio(),
+        &sequencer.chain(),
+        &mempool_handle,
+        FollowUpdate {
+            adopted: vec![],
+            orphaned: vec![],
+            finalized: vec![(MsgId::from(block2.header.hash.0), block2)],
+        },
+    );
+
+    let final_tip = sequencer
+        .chain()
+        .lock()
+        .expect("chain mutex poisoned")
+        .final_tip()
+        .expect("final tip set");
+    assert_eq!(final_tip.block_id, 2);
+    assert_eq!(sequencer.chain_height(), 2, "head is unchanged");
+    let stored = sequencer.store.get_block_at_id(2).unwrap().unwrap();
+    assert!(matches!(stored.bedrock_status, BedrockStatus::Finalized));
+}
+
+#[tokio::test]
+async fn follow_finalized_backfill_block_is_applied_and_marked_finalized() {
+    let config = setup_sequencer_config();
+    let (sequencer, mempool_handle) = SequencerCoreWithMockClients::start_from_config(config).await;
+    let genesis_meta = sequencer
+        .store
+        .latest_block_meta()
+        .unwrap()
+        .expect("genesis meta is set");
+
+    // A peer block we never saw as adopted arrives straight from the
+    // finalized (backfill) stream.
+    let peer_block = common::test_utils::produce_dummy_block(2, Some(genesis_meta.hash), vec![]);
+
+    apply_follow_update(
+        &sequencer.store.dbio(),
+        &sequencer.chain(),
+        &mempool_handle,
+        FollowUpdate {
+            adopted: vec![],
+            orphaned: vec![],
+            finalized: vec![(MsgId::from([2; 32]), peer_block.clone())],
+        },
+    );
+
+    assert_eq!(
+        sequencer.chain_height(),
+        2,
+        "head mirrors final on backfill"
+    );
+    let stored = sequencer
+        .store
+        .get_block_at_id(2)
+        .unwrap()
+        .expect("backfilled block should be persisted");
+    assert_eq!(stored.header.hash, peer_block.header.hash);
+    assert!(matches!(stored.bedrock_status, BedrockStatus::Finalized));
+}
+
+#[tokio::test]
+async fn restart_restores_head_tier_and_recovers_from_orphan() {
+    let config = setup_sequencer_config();
+    let acc1 = initial_public_user_accounts()[0].account_id;
+    let acc2 = initial_public_user_accounts()[1].account_id;
+
+    // Produce block 2 (a user transfer), then "crash" before it finalizes.
+    let (tx, block2) = {
+        let (mut sequencer, mempool_handle) =
+            SequencerCoreWithMockClients::start_from_config(config.clone()).await;
+        let tx = common::test_utils::create_transaction_native_token_transfer(
+            acc1,
+            0,
+            acc2,
+            10,
+            &create_signing_key_for_account1(),
+        );
+        mempool_handle
+            .push((TransactionOrigin::User, tx.clone()))
+            .await
+            .unwrap();
+        sequencer.produce_new_block().await.unwrap();
+        (tx, sequencer.store.get_block_at_id(2).unwrap().unwrap())
+    };
+
+    // Restart: nothing is finalized, so block 2 must come back as *head*, not
+    // final — the L1 can still orphan it.
+    let (mut sequencer, mempool_handle) =
+        SequencerCoreWithMockClients::start_from_config(config.clone()).await;
+    assert_eq!(sequencer.chain_height(), 2);
+
+    // The L1 orphans block 2 under its real MsgId (which we never persisted)
+    // and adopts a competing empty block 2'.
+    let genesis = sequencer.store.get_block_at_id(1).unwrap().unwrap();
+    let block2_prime =
+        common::test_utils::produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+    apply_follow_update(
+        &sequencer.store.dbio(),
+        &sequencer.chain(),
+        &mempool_handle,
+        FollowUpdate {
+            adopted: vec![(MsgId::from([21; 32]), block2_prime.clone())],
+            orphaned: vec![(MsgId::from([20; 32]), block2)],
+            finalized: vec![],
+        },
+    );
+
+    // The head reorged onto 2': transfer reverted, store overwritten, and the
+    // orphaned user tx returned to the mempool.
+    assert_eq!(sequencer.chain_height(), 2);
+    let head_tip = sequencer
+        .chain()
+        .lock()
+        .expect("chain mutex poisoned")
+        .head_tip()
+        .expect("head tip set");
+    assert_eq!(head_tip.hash, block2_prime.header.hash);
+    assert_eq!(
+        sequencer.with_state(|s| s.get_account_by_id(acc1).balance),
+        10000,
+        "the orphaned transfer must be reverted"
+    );
+    let stored = sequencer.store.get_block_at_id(2).unwrap().unwrap();
+    assert_eq!(stored.header.hash, block2_prime.header.hash);
+    let (origin, requeued) = sequencer
+        .mempool
+        .pop()
+        .expect("orphaned user tx should be requeued");
+    assert!(matches!(origin, TransactionOrigin::User));
+    assert_eq!(requeued, tx);
+}
+
+#[tokio::test]
+async fn restart_reanchors_on_the_persisted_final_snapshot() {
+    let config = setup_sequencer_config();
+
+    // Produce block 2 and follow its finalization, which persists the final
+    // snapshot; then "crash".
+    {
+        let (mut sequencer, mempool_handle) =
+            SequencerCoreWithMockClients::start_from_config(config.clone()).await;
+        let tx = common::test_utils::produce_dummy_empty_transaction();
+        mempool_handle
+            .push((TransactionOrigin::User, tx))
+            .await
+            .unwrap();
+        sequencer.produce_new_block().await.unwrap();
+        let block2 = sequencer.store.get_block_at_id(2).unwrap().unwrap();
+        apply_follow_update(
+            &sequencer.store.dbio(),
+            &sequencer.chain(),
+            &mempool_handle,
+            FollowUpdate {
+                adopted: vec![],
+                orphaned: vec![],
+                finalized: vec![(MsgId::from(block2.header.hash.0), block2)],
+            },
+        );
+    }
+
+    // Restart: the final tier re-anchors on the snapshot instead of treating
+    // the whole stored chain as final.
+    let (sequencer, _mempool_handle) =
+        SequencerCoreWithMockClients::start_from_config(config.clone()).await;
+    let chain = sequencer.chain();
+    let chain = chain.lock().expect("chain mutex poisoned");
+    assert_eq!(chain.final_tip().expect("final tip set").block_id, 2);
+    assert_eq!(chain.head_tip().expect("head tip set").block_id, 2);
+}
+
+#[tokio::test]
+async fn record_produced_block_skips_persistence_on_lost_race() {
+    let config = setup_sequencer_config();
+    let (mut sequencer, _mempool_handle) =
+        SequencerCoreWithMockClients::start_from_config(config).await;
+    let genesis_meta = sequencer
+        .store
+        .latest_block_meta()
+        .unwrap()
+        .expect("genesis meta is set");
+
+    // A peer block wins height 2 while "our" block is in flight.
+    let peer_block = common::test_utils::produce_dummy_block(2, Some(genesis_meta.hash), vec![]);
+    sequencer
+        .chain()
+        .lock()
+        .expect("chain mutex poisoned")
+        .apply_adopted(MsgId::from([9; 32]), &peer_block);
+
+    // Our competing block at the same height: same parent, different content.
+    let acc1 = initial_public_user_accounts()[0].account_id;
+    let acc2 = initial_public_user_accounts()[1].account_id;
+    let tx = common::test_utils::create_transaction_native_token_transfer(
+        acc1,
+        0,
+        acc2,
+        10,
+        &create_signing_key_for_account1(),
+    );
+    let our_block = common::test_utils::produce_dummy_block(2, Some(genesis_meta.hash), vec![tx]);
+    sequencer
+        .record_produced_block(
+            MsgId::from(our_block.header.hash.0),
+            &our_block,
+            &[],
+            vec![],
+        )
+        .unwrap();
+
+    // The lost-race block must not reach the store; the head keeps the peer block.
+    assert!(sequencer.store.get_block_at_id(2).unwrap().is_none());
+    let head_tip = sequencer
+        .chain()
+        .lock()
+        .expect("chain mutex poisoned")
+        .head_tip()
+        .expect("head tip");
+    assert_eq!(head_tip.hash, peer_block.header.hash);
+}
+
+#[tokio::test]
+async fn record_produced_block_skips_persistence_when_block_no_longer_chains() {
+    let config = setup_sequencer_config();
+    let (mut sequencer, _mempool_handle) =
+        SequencerCoreWithMockClients::start_from_config(config).await;
+
+    // The head reorged under us: our block's parent is no longer the tip.
+    let stale = common::test_utils::produce_dummy_block(2, Some(HashType([9; 32])), vec![]);
+    sequencer
+        .record_produced_block(MsgId::from(stale.header.hash.0), &stale, &[], vec![])
+        .unwrap();
+
+    assert!(sequencer.store.get_block_at_id(2).unwrap().is_none());
+    assert_eq!(sequencer.chain_height(), 1, "head is unchanged");
+}
+
+#[tokio::test]
+async fn follow_update_persists_blocks_meta_and_state_atomically() {
+    let config = setup_sequencer_config();
+    let (sequencer, mempool_handle) = SequencerCoreWithMockClients::start_from_config(config).await;
+    let genesis_meta = sequencer
+        .store
+        .latest_block_meta()
+        .unwrap()
+        .expect("genesis meta is set");
+
+    let acc1 = initial_public_user_accounts()[0].account_id;
+    let acc2 = initial_public_user_accounts()[1].account_id;
+    let tx = common::test_utils::create_transaction_native_token_transfer(
+        acc1,
+        0,
+        acc2,
+        10,
+        &create_signing_key_for_account1(),
+    );
+    let block2 = common::test_utils::produce_dummy_block(2, Some(genesis_meta.hash), vec![tx]);
+    let block3 = common::test_utils::produce_dummy_block(3, Some(block2.header.hash), vec![]);
+
+    // One update carrying several blocks: both adopted, block 2 also finalized.
+    apply_follow_update(
+        &sequencer.store.dbio(),
+        &sequencer.chain(),
+        &mempool_handle,
+        FollowUpdate {
+            adopted: vec![
+                (MsgId::from([2; 32]), block2.clone()),
+                (MsgId::from([3; 32]), block3.clone()),
+            ],
+            orphaned: vec![],
+            finalized: vec![(MsgId::from([2; 32]), block2)],
+        },
+    );
+
+    // Blocks, tip meta and state all reflect the end of the batch: a late
+    // finalized entry for an earlier block must not drag the tip meta back.
+    let meta = sequencer
+        .store
+        .latest_block_meta()
+        .unwrap()
+        .expect("meta is set");
+    assert_eq!(meta.id, 3);
+    assert_eq!(meta.hash, block3.header.hash);
+    let stored2 = sequencer.store.get_block_at_id(2).unwrap().unwrap();
+    assert!(matches!(stored2.bedrock_status, BedrockStatus::Finalized));
+    let stored_balance = sequencer
+        .store
+        .get_lee_state()
+        .unwrap()
+        .get_account_by_id(acc2)
+        .balance;
+    assert_eq!(stored_balance, 20010);
+}
diff --git a/lez/sequencer/core/src/tests/reconstruction.rs b/lez/sequencer/core/src/tests/reconstruction.rs
index 40cbaa6c..e52c3364 100644
--- a/lez/sequencer/core/src/tests/reconstruction.rs
+++ b/lez/sequencer/core/src/tests/reconstruction.rs
@@ -4,6 +4,9 @@
     reason = "We don't care about it in tests"
 )]
 
+use std::sync::Mutex;
+
+use chain_state::ChainState;
 use common::block::Block;
 use logos_blockchain_core::mantle::ops::channel::{MsgId, inscribe::Inscription};
 use logos_blockchain_zone_sdk::{Slot, ZoneBlock, ZoneMessage};
@@ -14,6 +17,16 @@ use crate::{
     SequencerCore, block_store::SequencerStore, config::GenesisAction, mock::MockBlockPublisher,
 };
 
+/// Fresh `(store, chain)` pair for a reconstruction target, as
+/// `start_from_config` would build them before the publisher starts.
+fn fresh_store_and_chain(config: &SequencerConfig) -> (SequencerStore, Mutex<ChainState>) {
+    let (store, state) = SequencerCore::<MockBlockPublisher>::open_or_create_store(config);
+    let chain = Mutex::new(SequencerCore::<MockBlockPublisher>::restore_chain_state(
+        config, &store, &state,
+    ));
+    (store, chain)
+}
+
 fn block_to_channel_message(block: &Block, slot: u64) -> (ZoneMessage, Slot) {
     let bytes = borsh::to_vec(block).expect("serialize block");
     let message = ZoneMessage::Block(ZoneBlock {
@@ -53,15 +66,11 @@ async fn reconstructs_missing_channel_blocks_into_fresh_store() {
 
     // Sequencer B starts from a fresh store and reconstructs A's chain.
     let config_b = setup_sequencer_config();
-    let (mut store_b, mut state_b) =
-        SequencerCore::<MockBlockPublisher>::open_or_create_store(&config_b);
+    let (store_b, chain_b) = fresh_store_and_chain(&config_b);
     let mock_b = MockBlockPublisher::with_canned_channel(channel_id, Some(tip_slot), messages);
 
     let channel_was_empty = SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(
-        &mock_b,
-        &mut store_b,
-        &mut state_b,
-        true,
+        &mock_b, &store_b, &chain_b, true,
     )
     .await
     .expect("reconstruct");
@@ -72,10 +81,12 @@ async fn reconstructs_missing_channel_blocks_into_fresh_store() {
     assert_eq!(tip_b.hash, tip_a.hash);
 
     // State matches: initial account balances agree with sequencer A.
+    let state_b = chain_b.lock().unwrap().head_state().clone();
+    let state_a = seq_a.chain().lock().unwrap().head_state().clone();
     for account in initial_public_user_accounts() {
         assert_eq!(
             state_b.get_account_by_id(account.account_id).balance,
-            seq_a.state().get_account_by_id(account.account_id).balance,
+            state_a.get_account_by_id(account.account_id).balance,
         );
     }
 
@@ -85,10 +96,7 @@ async fn reconstructs_missing_channel_blocks_into_fresh_store() {
 
     // Re-running is idempotent: everything is already applied, no error.
     let channel_was_empty = SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(
-        &mock_b,
-        &mut store_b,
-        &mut state_b,
-        true,
+        &mock_b, &store_b, &chain_b, true,
     )
     .await
     .expect("reconstruct idempotent");
@@ -99,7 +107,7 @@ async fn reconstructs_missing_channel_blocks_into_fresh_store() {
 #[tokio::test]
 async fn fails_when_channel_serves_a_divergent_block() {
     let config = setup_sequencer_config();
-    let (mut store, mut state) = SequencerCore::<MockBlockPublisher>::open_or_create_store(&config);
+    let (store, chain) = fresh_store_and_chain(&config);
 
     // Anchor on the local genesis at some slot.
     let genesis_id = store.genesis_id();
@@ -123,17 +131,16 @@ async fn fails_when_channel_serves_a_divergent_block() {
         messages,
     );
 
-    let result = SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(
-        &mock, &mut store, &mut state, true,
-    )
-    .await;
+    let result =
+        SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(&mock, &store, &chain, true)
+            .await;
     assert!(result.is_err(), "divergent channel must abort startup");
 }
 
 #[tokio::test]
 async fn fails_when_channel_is_missing() {
     let config = setup_sequencer_config();
-    let (mut store, mut state) = SequencerCore::<MockBlockPublisher>::open_or_create_store(&config);
+    let (store, chain) = fresh_store_and_chain(&config);
     let genesis_id = store.genesis_id();
     let genesis = store.get_block_at_id(genesis_id).unwrap().unwrap();
     store
@@ -147,10 +154,9 @@ async fn fails_when_channel_is_missing() {
     // Anchor present, but the channel does not exist on the connected chain.
     let mock =
         MockBlockPublisher::with_canned_channel(config.bedrock_config.channel_id, None, vec![]);
-    let result = SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(
-        &mock, &mut store, &mut state, true,
-    )
-    .await;
+    let result =
+        SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(&mock, &store, &chain, true)
+            .await;
     assert!(result.is_err(), "missing channel must abort startup");
 }
 
@@ -161,7 +167,7 @@ async fn fails_when_channel_is_missing() {
 #[tokio::test]
 async fn fails_when_channel_reinscribes_genesis_with_a_different_hash() {
     let config = setup_sequencer_config();
-    let (mut store, mut state) = SequencerCore::<MockBlockPublisher>::open_or_create_store(&config);
+    let (store, chain) = fresh_store_and_chain(&config);
 
     // Fresh store, no anchor. The channel serves a genesis at the same id but a
     // different hash — a foreign chain reinscribing genesis.
@@ -174,10 +180,9 @@ async fn fails_when_channel_reinscribes_genesis_with_a_different_hash() {
         Some(Slot::from(10)),
         messages,
     );
-    let result = SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(
-        &mock, &mut store, &mut state, true,
-    )
-    .await;
+    let result =
+        SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(&mock, &store, &chain, true)
+            .await;
     assert!(
         result.is_err(),
         "a reinscribed genesis with a different hash must abort startup"
@@ -209,10 +214,7 @@ async fn fails_when_a_stored_block_hash_diverges_from_the_channel() {
         messages,
     );
     let result = SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(
-        &mock,
-        &mut seq.store,
-        &mut seq.state,
-        true,
+        &mock, &seq.store, &seq.chain, true,
     )
     .await;
     assert!(
@@ -224,7 +226,7 @@ async fn fails_when_a_stored_block_hash_diverges_from_the_channel() {
 #[tokio::test]
 async fn fails_when_a_channel_block_is_missing_locally() {
     let config = setup_sequencer_config();
-    let (mut store, mut state) = SequencerCore::<MockBlockPublisher>::open_or_create_store(&config);
+    let (store, chain) = fresh_store_and_chain(&config);
 
     // A block numbered below our genesis is at/below the local tip yet absent from
     // the store — a foreign chain with a lower numbering.
@@ -237,10 +239,9 @@ async fn fails_when_a_channel_block_is_missing_locally() {
         Some(Slot::from(10)),
         messages,
     );
-    let result = SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(
-        &mock, &mut store, &mut state, true,
-    )
-    .await;
+    let result =
+        SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(&mock, &store, &chain, true)
+            .await;
     assert!(
         result.is_err(),
         "a channel block below the local range must abort startup"
@@ -250,7 +251,7 @@ async fn fails_when_a_channel_block_is_missing_locally() {
 #[tokio::test]
 async fn fails_when_a_channel_block_does_not_extend_the_tip() {
     let config = setup_sequencer_config();
-    let (mut store, mut state) = SequencerCore::<MockBlockPublisher>::open_or_create_store(&config);
+    let (store, chain) = fresh_store_and_chain(&config);
 
     // A block claiming an id far past genesis does not chain onto the local tip.
     let mut orphan = store.get_block_at_id(store.genesis_id()).unwrap().unwrap();
@@ -262,10 +263,9 @@ async fn fails_when_a_channel_block_does_not_extend_the_tip() {
         Some(Slot::from(10)),
         messages,
     );
-    let result = SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(
-        &mock, &mut store, &mut state, true,
-    )
-    .await;
+    let result =
+        SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(&mock, &store, &chain, true)
+            .await;
     assert!(
         result.is_err(),
         "a non-contiguous channel block must abort startup"
@@ -386,13 +386,12 @@ async fn reconstructed_deposit_is_not_reminted_after_backfill_redelivery() {
     let mock_b = MockBlockPublisher::with_canned_channel(channel_id, Some(tip_slot), messages);
     SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(
         &mock_b,
-        &mut seq_b.store,
-        &mut seq_b.state,
+        &seq_b.store,
+        &seq_b.chain,
         true,
     )
     .await
     .expect("reconstruct");
-    seq_b.chain_height = seq_b.store.latest_block_meta().unwrap().unwrap().id;
 
     let tip_b = seq_b.block_store().latest_block_meta().unwrap().unwrap();
     assert_eq!(tip_b.id, tip_a.id);
@@ -402,15 +401,17 @@ async fn reconstructed_deposit_is_not_reminted_after_backfill_redelivery() {
 
     let vault_id = vault_core::compute_vault_account_id(programs::vault().id(), recipient);
     let bridge_id = system_accounts::bridge_account_id();
+    let state_b = seq_b.chain().lock().unwrap().head_state().clone();
+    let state_a = seq_a.chain().lock().unwrap().head_state().clone();
     for account in [vault_id, bridge_id, recipient] {
         assert_eq!(
-            seq_b.state().get_account_by_id(account).balance,
-            seq_a.state().get_account_by_id(account).balance,
+            state_b.get_account_by_id(account).balance,
+            state_a.get_account_by_id(account).balance,
             "reconstructed balance mismatch for {account:?}",
         );
     }
     assert_eq!(
-        seq_b.state().get_account_by_id(vault_id).balance,
+        state_b.get_account_by_id(vault_id).balance,
         u128::from(deposit_amount),
         "deposit must mint into the recipient vault exactly once, not twice"
     );
@@ -489,17 +490,11 @@ async fn reconstructed_withdraw_leaves_no_phantom_unseen_count() {
 
     // Sequencer B reconstructs A's chain from a fresh store.
     let config_b = bridge_funded_config();
-    let (mut store_b, mut state_b) =
-        SequencerCore::<MockBlockPublisher>::open_or_create_store(&config_b);
+    let (store_b, chain_b) = fresh_store_and_chain(&config_b);
     let mock_b = MockBlockPublisher::with_canned_channel(channel_id, Some(tip_slot), messages);
-    SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(
-        &mock_b,
-        &mut store_b,
-        &mut state_b,
-        true,
-    )
-    .await
-    .expect("reconstruct");
+    SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(&mock_b, &store_b, &chain_b, true)
+        .await
+        .expect("reconstruct");
 
     assert!(
         !store_b.dbio().consume_unseen_withdraw_count(key).unwrap(),
@@ -540,8 +535,7 @@ async fn reconstruction_reconciles_already_finished_deposit() {
     // pre-seeded, as the cold-start backfill would when it re-observes this
     // already-finalized deposit.
     let config_b = bridge_funded_config();
-    let (mut store_b, mut state_b) =
-        SequencerCore::<MockBlockPublisher>::open_or_create_store(&config_b);
+    let (store_b, chain_b) = fresh_store_and_chain(&config_b);
     assert!(
         store_b
             .dbio()
@@ -550,19 +544,19 @@ async fn reconstruction_reconciles_already_finished_deposit() {
     );
 
     let mock_b = MockBlockPublisher::with_canned_channel(channel_id, Some(tip_slot), messages);
-    SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(
-        &mock_b,
-        &mut store_b,
-        &mut state_b,
-        true,
-    )
-    .await
-    .expect("reconstruct");
+    SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(&mock_b, &store_b, &chain_b, true)
+        .await
+        .expect("reconstruct");
 
     // The mint was applied exactly once.
     let vault_id = vault_core::compute_vault_account_id(programs::vault().id(), recipient);
     assert_eq!(
-        state_b.get_account_by_id(vault_id).balance,
+        chain_b
+            .lock()
+            .unwrap()
+            .head_state()
+            .get_account_by_id(vault_id)
+            .balance,
         u128::from(deposit_amount),
         "already-finished deposit must be applied exactly once"
     );
@@ -599,17 +593,16 @@ async fn committed_local_against_missing_channel_fails_without_anchor() {
 
     // Reopen: blocks beyond genesis, no anchor. `is_fresh_start = false` stands in
     // for a checkpoint persisted by a prior sync (the mock never emits one).
-    let (mut store, mut state) = SequencerCore::<MockBlockPublisher>::open_or_create_store(&config);
+    let (store, chain) = fresh_store_and_chain(&config);
     assert!(store.get_zone_anchor().unwrap().is_none());
     assert!(store.latest_block_meta().unwrap().unwrap().id > 1);
 
     // The channel is gone: no tip, no messages.
     let mock =
         MockBlockPublisher::with_canned_channel(config.bedrock_config.channel_id, None, vec![]);
-    let result = SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(
-        &mock, &mut store, &mut state, false,
-    )
-    .await;
+    let result =
+        SequencerCore::<MockBlockPublisher>::verify_and_reconstruct(&mock, &store, &chain, false)
+            .await;
     assert!(
         result.is_err(),
         "committed blocks against a missing channel must abort startup"
diff --git a/lez/sequencer/service/Cargo.toml b/lez/sequencer/service/Cargo.toml
index 3427dc22..338aac0d 100644
--- a/lez/sequencer/service/Cargo.toml
+++ b/lez/sequencer/service/Cargo.toml
@@ -1,6 +1,7 @@
 [package]
 name = "sequencer_service"
 version = "0.1.0"
+default-run = "sequencer_service"
 edition = "2024"
 license = { workspace = true }
 
@@ -19,6 +20,7 @@ programs.workspace = true
 clap = { workspace = true, features = ["derive", "env"] }
 anyhow.workspace = true
 env_logger.workspace = true
+hex.workspace = true
 log.workspace = true
 tokio.workspace = true
 tokio-util.workspace = true
diff --git a/lez/sequencer/service/rpc/src/lib.rs b/lez/sequencer/service/rpc/src/lib.rs
index f32f6bd2..a1d2acfb 100644
--- a/lez/sequencer/service/rpc/src/lib.rs
+++ b/lez/sequencer/service/rpc/src/lib.rs
@@ -90,6 +90,4 @@ pub trait Rpc {
 
     #[method(name = "getChannelId")]
     async fn get_channel_id(&self) -> Result<ChannelId, ErrorObjectOwned>;
-
-    // =============================================================================================
 }
diff --git a/lez/sequencer/service/src/bin/bedrock_pubkey.rs b/lez/sequencer/service/src/bin/bedrock_pubkey.rs
new file mode 100644
index 00000000..ad602be6
--- /dev/null
+++ b/lez/sequencer/service/src/bin/bedrock_pubkey.rs
@@ -0,0 +1,35 @@
+//! Prints the sequencer's bedrock signing public key (hex) without booting it.
+//!
+//! Loads `<home>/bedrock_signing_key` from the given sequencer config, creating
+//! the key if it doesn't exist yet, so that a node can be accredited into the
+//! channel committee before its first boot.
+
+use std::path::PathBuf;
+
+use anyhow::Result;
+use clap::Parser;
+
+#[derive(Debug, Parser)]
+#[clap(version)]
+struct Args {
+    #[clap(name = "config")]
+    config_path: PathBuf,
+    /// Override the config's home directory, matching the sequencer's --home.
+    #[clap(long)]
+    home: Option<PathBuf>,
+}
+
+#[expect(
+    clippy::print_stdout,
+    reason = "the hex pubkey on stdout is this binary's output"
+)]
+fn main() -> Result<()> {
+    let Args { config_path, home } = Args::parse();
+
+    let config = sequencer_service::SequencerConfig::from_path(&config_path)?;
+    let home = home.unwrap_or(config.home);
+    let key = sequencer_core::load_or_create_signing_key(&home.join("bedrock_signing_key"))?;
+    println!("{}", hex::encode(key.public_key().to_bytes()));
+
+    Ok(())
+}
diff --git a/lez/sequencer/service/src/bin/configure_channel.rs b/lez/sequencer/service/src/bin/configure_channel.rs
new file mode 100644
index 00000000..023e32b0
--- /dev/null
+++ b/lez/sequencer/service/src/bin/configure_channel.rs
@@ -0,0 +1,71 @@
+//! Posts a `ChannelConfig` op (accredited keys + rotation params) to bedrock,
+//! signed with `<home>/bedrock_signing_key`, without booting the sequencer.
+//!
+//! Authorization is holding the admin key file — the L1 rejects non-admin
+//! signers. Acceptance is asynchronous: a rejection only shows up in node
+//! logs and on-chain behavior.
+
+use std::path::PathBuf;
+
+use anyhow::{Context as _, Result, anyhow};
+use clap::Parser;
+use sequencer_core::block_publisher::{Ed25519PublicKey, post_channel_config};
+
+#[derive(Debug, Parser)]
+#[clap(version)]
+struct Args {
+    #[clap(name = "config")]
+    config_path: PathBuf,
+    /// Override the config's home directory, matching the sequencer's --home.
+    #[clap(long)]
+    home: Option<PathBuf>,
+    /// Accredited ed25519 public keys (hex), admin (this node's key) first.
+    #[clap(long, required = true, value_delimiter = ',')]
+    keys: Vec<String>,
+    /// Slots a sequencer's posting turn lasts.
+    #[clap(long)]
+    posting_timeframe: u32,
+    /// Slots after which a stalled turn can be taken over.
+    #[clap(long)]
+    posting_timeout: u32,
+    /// Signatures required for future config changes.
+    #[clap(long, default_value_t = 1)]
+    configuration_threshold: u16,
+    /// Signatures required for channel withdrawals.
+    #[clap(long, default_value_t = 1)]
+    withdraw_threshold: u16,
+}
+
+#[tokio::main]
+async fn main() -> Result<()> {
+    env_logger::init();
+    let args = Args::parse();
+
+    let config = sequencer_service::SequencerConfig::from_path(&args.config_path)?;
+    let home = args.home.unwrap_or(config.home);
+    let signing_key =
+        sequencer_core::load_or_create_signing_key(&home.join("bedrock_signing_key"))?;
+    let keys = args
+        .keys
+        .iter()
+        .map(|key| parse_key(key))
+        .collect::<Result<Vec<_>>>()?;
+
+    post_channel_config(
+        &config.bedrock_config,
+        &signing_key,
+        keys,
+        args.posting_timeframe,
+        args.posting_timeout,
+        args.configuration_threshold,
+        args.withdraw_threshold,
+    )
+    .await
+}
+
+fn parse_key(hex_key: &str) -> Result<Ed25519PublicKey> {
+    let mut bytes = [0_u8; 32];
+    hex::decode_to_slice(hex_key, &mut bytes)
+        .with_context(|| format!("Invalid hex-encoded key {hex_key}"))?;
+    Ed25519PublicKey::from_bytes(&bytes).map_err(|err| anyhow!("Invalid Ed25519 public key: {err}"))
+}
diff --git a/lez/sequencer/service/src/lib.rs b/lez/sequencer/service/src/lib.rs
index 687ee424..a8aa856e 100644
--- a/lez/sequencer/service/src/lib.rs
+++ b/lez/sequencer/service/src/lib.rs
@@ -11,10 +11,11 @@ use mempool::MemPoolHandle;
 use sequencer_core::SequencerCore;
 #[cfg(feature = "standalone")]
 use sequencer_core::SequencerCoreWithMockClients as SequencerCore;
-use sequencer_core::TransactionOrigin;
 pub use sequencer_core::config::*;
+use sequencer_core::{TransactionOrigin, block_publisher::BlockPublisherTrait as _};
 use sequencer_service_rpc::RpcServer as _;
 use tokio::{sync::Mutex, task::JoinHandle};
+use tokio_util::sync::CancellationToken;
 
 pub mod service;
 
@@ -28,6 +29,9 @@ pub struct SequencerHandle {
     /// Option because of `Drop` which forbids to simply move out of `self` in `stopped()`.
     server_handle: Option<ServerHandle>,
     main_loop_handle: JoinHandle<Result<Never>>,
+    /// Cancelled when the publisher's drive task terminates (e.g. a panicked
+    /// persist sink); no channel events are processed past that point.
+    driver_cancellation: CancellationToken,
 }
 
 impl SequencerHandle {
@@ -35,11 +39,13 @@ impl SequencerHandle {
         addr: SocketAddr,
         server_handle: ServerHandle,
         main_loop_handle: JoinHandle<Result<Never>>,
+        driver_cancellation: CancellationToken,
     ) -> Self {
         Self {
             addr,
             server_handle: Some(server_handle),
             main_loop_handle,
+            driver_cancellation,
         }
     }
 
@@ -53,6 +59,7 @@ impl SequencerHandle {
             addr: _,
             server_handle,
             main_loop_handle,
+            driver_cancellation,
         } = &mut self;
 
         let server_handle = server_handle.take().expect("Server handle is set");
@@ -65,6 +72,9 @@ impl SequencerHandle {
                     .context("Main loop task panicked")?
                     .context("Main loop exited unexpectedly")
             }
+            () = driver_cancellation.cancelled() => {
+                Err(anyhow!("Publisher drive task terminated"))
+            }
         }
     }
 
@@ -78,10 +88,12 @@ impl SequencerHandle {
             addr: _,
             server_handle,
             main_loop_handle,
+            driver_cancellation,
         } = self;
 
         let stopped = server_handle.as_ref().is_none_or(ServerHandle::is_stopped)
-            || main_loop_handle.is_finished();
+            || main_loop_handle.is_finished()
+            || driver_cancellation.is_cancelled();
         !stopped
     }
 
@@ -97,6 +109,7 @@ impl Drop for SequencerHandle {
             addr: _,
             server_handle,
             main_loop_handle,
+            driver_cancellation: _,
         } = self;
 
         main_loop_handle.abort();
@@ -111,21 +124,23 @@ impl Drop for SequencerHandle {
     }
 }
 
-pub async fn run(config: SequencerConfig, port: u16) -> Result<SequencerHandle> {
+pub async fn run(config: SequencerConfig, listen_addr: SocketAddr) -> Result<SequencerHandle> {
     let block_timeout = config.block_create_timeout;
     let max_block_size = config.max_block_size;
 
-    let (sequencer_core, mempool_handle) = SequencerCore::start_from_config(config).await;
+    let (sequencer_core, mempool_handle): (SequencerCore, _) =
+        SequencerCore::start_from_config(config).await;
 
     info!("Sequencer core set up");
 
+    let driver_cancellation = sequencer_core.block_publisher().driver_cancellation();
     let seq_core_wrapped = Arc::new(Mutex::new(sequencer_core));
     let mempool_handle_for_server = mempool_handle.clone();
 
     let (server_handle, addr) = run_server(
         Arc::clone(&seq_core_wrapped),
         mempool_handle_for_server,
-        port,
+        listen_addr,
         max_block_size.as_u64(),
     )
     .await?;
@@ -136,13 +151,18 @@ pub async fn run(config: SequencerConfig, port: u16) -> Result<SequencerHandle>
 
     let _ = mempool_handle;
 
-    Ok(SequencerHandle::new(addr, server_handle, main_loop_handle))
+    Ok(SequencerHandle::new(
+        addr,
+        server_handle,
+        main_loop_handle,
+        driver_cancellation,
+    ))
 }
 
 async fn run_server(
     sequencer: Arc<Mutex<SequencerCore>>,
     mempool_handle: MemPoolHandle<(TransactionOrigin, LeeTransaction)>,
-    port: u16,
+    listen_addr: SocketAddr,
     max_block_size: u64,
 ) -> Result<(ServerHandle, SocketAddr)> {
     let server = jsonrpsee::server::ServerBuilder::with_config(
@@ -153,7 +173,7 @@ async fn run_server(
             )
             .build(),
     )
-    .build(SocketAddr::from(([0, 0, 0, 0], port)))
+    .build(listen_addr)
     .await
     .context("Failed to build RPC server")?;
 
@@ -172,16 +192,15 @@ async fn main_loop(seq_core: Arc<Mutex<SequencerCore>>, block_timeout: Duration)
     loop {
         tokio::time::sleep(block_timeout).await;
 
-        info!("Collecting transactions from mempool, block creation");
+        let mut state = seq_core.lock().await;
 
-        let id = {
-            let mut state = seq_core.lock().await;
-
-            state.produce_new_block().await?
-        };
+        // Only produce on our turn.
+        if !state.is_our_turn() {
+            continue;
+        }
 
+        info!("Our turn: collecting transactions from mempool, creating block");
+        let id = state.produce_new_block().await?;
         info!("Block with id {id} created");
-
-        info!("Waiting for new transactions");
     }
 }
diff --git a/lez/sequencer/service/src/main.rs b/lez/sequencer/service/src/main.rs
index 8b577bb8..7c50ece6 100644
--- a/lez/sequencer/service/src/main.rs
+++ b/lez/sequencer/service/src/main.rs
@@ -1,4 +1,7 @@
-use std::path::PathBuf;
+use std::{
+    net::{IpAddr, SocketAddr},
+    path::PathBuf,
+};
 
 use anyhow::Result;
 use clap::Parser;
@@ -12,6 +15,14 @@ struct Args {
     config_path: PathBuf,
     #[clap(short, long, default_value = "3040")]
     port: u16,
+    /// Interface the RPC server binds to. The RPC has no caller auth —
+    /// bind loopback unless the port is firewalled.
+    #[clap(long, default_value = "0.0.0.0")]
+    listen_address: IpAddr,
+    /// Override the config's home directory (`RocksDB` + bedrock signing key),
+    /// so multiple instances can share one config file.
+    #[clap(long)]
+    home: Option<PathBuf>,
 }
 
 #[tokio::main]
@@ -22,14 +33,23 @@ struct Args {
 async fn main() -> Result<()> {
     env_logger::init();
 
-    let Args { config_path, port } = Args::parse();
+    let Args {
+        config_path,
+        port,
+        listen_address,
+        home,
+    } = Args::parse();
 
     // TODO: handle this cancellation token more gracefully within Sequencer service
     // similar to how we do in Indexer
     let cancellation_token = listen_for_shutdown_signal();
 
-    let config = sequencer_service::SequencerConfig::from_path(&config_path)?;
-    let sequencer_handle = sequencer_service::run(config, port).await?;
+    let mut config = sequencer_service::SequencerConfig::from_path(&config_path)?;
+    if let Some(home) = home {
+        config.home = home;
+    }
+    let sequencer_handle =
+        sequencer_service::run(config, SocketAddr::new(listen_address, port)).await?;
 
     tokio::select! {
         () = cancellation_token.cancelled() => {
diff --git a/lez/sequencer/service/src/service.rs b/lez/sequencer/service/src/service.rs
index d0850837..7ab9ed3c 100644
--- a/lez/sequencer/service/src/service.rs
+++ b/lez/sequencer/service/src/service.rs
@@ -40,7 +40,7 @@ impl<BC: BlockPublisherTrait> SequencerService<BC> {
 }
 
 #[async_trait]
-impl<BC: BlockPublisherTrait + Send + 'static> sequencer_service_rpc::RpcServer
+impl<BC: BlockPublisherTrait + Send + Sync + 'static> sequencer_service_rpc::RpcServer
     for SequencerService<BC>
 {
     async fn send_transaction(&self, tx: LeeTransaction) -> Result<HashType, ErrorObjectOwned> {
@@ -138,8 +138,8 @@ impl<BC: BlockPublisherTrait + Send + 'static> sequencer_service_rpc::RpcServer
 
     async fn get_account_balance(&self, account_id: AccountId) -> Result<u128, ErrorObjectOwned> {
         let sequencer = self.sequencer.lock().await;
-        let account = sequencer.state().get_account_by_id(account_id);
-        Ok(account.balance)
+        let balance = sequencer.with_state(|state| state.get_account_by_id(account_id).balance);
+        Ok(balance)
     }
 
     async fn get_transaction(
@@ -155,10 +155,12 @@ impl<BC: BlockPublisherTrait + Send + 'static> sequencer_service_rpc::RpcServer
         account_ids: Vec<AccountId>,
     ) -> Result<Vec<Nonce>, ErrorObjectOwned> {
         let sequencer = self.sequencer.lock().await;
-        let nonces = account_ids
-            .into_iter()
-            .map(|account_id| sequencer.state().get_account_by_id(account_id).nonce)
-            .collect();
+        let nonces = sequencer.with_state(|state| {
+            account_ids
+                .into_iter()
+                .map(|account_id| state.get_account_by_id(account_id).nonce)
+                .collect()
+        });
         Ok(nonces)
     }
 
@@ -167,17 +169,18 @@ impl<BC: BlockPublisherTrait + Send + 'static> sequencer_service_rpc::RpcServer
         commitments: Vec<Commitment>,
     ) -> Result<(Vec<Option<MembershipProof>>, CommitmentSetDigest), ErrorObjectOwned> {
         let sequencer = self.sequencer.lock().await;
-        let state = sequencer.state();
-        let proofs = commitments
-            .iter()
-            .map(|commitment| state.get_proof_for_commitment(commitment))
-            .collect();
-        Ok((proofs, state.commitment_root()))
+        Ok(sequencer.with_state(|state| {
+            let proofs = commitments
+                .iter()
+                .map(|commitment| state.get_proof_for_commitment(commitment))
+                .collect();
+            (proofs, state.commitment_root())
+        }))
     }
 
     async fn get_account(&self, account_id: AccountId) -> Result<Account, ErrorObjectOwned> {
         let sequencer = self.sequencer.lock().await;
-        Ok(sequencer.state().get_account_by_id(account_id))
+        Ok(sequencer.with_state(|state| state.get_account_by_id(account_id)))
     }
 
     async fn get_program_ids(&self) -> Result<BTreeMap<String, ProgramId>, ErrorObjectOwned> {
diff --git a/lez/storage/src/sequencer/mod.rs b/lez/storage/src/sequencer/mod.rs
index 47ebc41b..0150a99f 100644
--- a/lez/storage/src/sequencer/mod.rs
+++ b/lez/storage/src/sequencer/mod.rs
@@ -19,10 +19,12 @@ use crate::{
     },
     error::DbError,
     sequencer::sequencer_cells::{
-        LEEStateCellOwned, LEEStateCellRef, LastFinalizedBlockIdCell, LatestBlockMetaCellOwned,
-        LatestBlockMetaCellRef, PendingDepositEventRecord, PendingDepositEventsCellOwned,
-        PendingDepositEventsCellRef, UnseenWithdrawCountCell, WithdrawalReconciliationKey,
-        ZoneAnchorCell, ZoneAnchorRecord, ZoneSdkCheckpointCellOwned, ZoneSdkCheckpointCellRef,
+        FinalBlockMetaCellOwned, FinalBlockMetaCellRef, FinalLeeStateCellOwned,
+        FinalLeeStateCellRef, LEEStateCellOwned, LEEStateCellRef, LastFinalizedBlockIdCell,
+        LatestBlockMetaCellOwned, LatestBlockMetaCellRef, PendingDepositEventRecord,
+        PendingDepositEventsCellOwned, PendingDepositEventsCellRef, UnseenWithdrawCountCell,
+        WithdrawalReconciliationKey, ZoneAnchorCell, ZoneAnchorRecord, ZoneSdkCheckpointCellOwned,
+        ZoneSdkCheckpointCellRef,
     },
 };
 
@@ -46,6 +48,10 @@ pub const DB_META_UNSEEN_WITHDRAW_COUNT_KEY: &str = "unseen_withdraw_count";
 
 /// Key base for storing the LEE state.
 pub const DB_LEE_STATE_KEY: &str = "lee_state";
+/// Key base for storing the LEE state at the last L1-finalized block.
+pub const DB_FINAL_LEE_STATE_KEY: &str = "final_lee_state";
+/// Key base for storing `(id, hash)` of the last L1-finalized block.
+pub const DB_FINAL_BLOCK_META_KEY: &str = "final_block_meta";
 
 /// Name of state column family.
 pub const CF_LEE_STATE_NAME: &str = "cf_lee_state";
@@ -403,6 +409,25 @@ impl RocksDBIO {
         Ok(true)
     }
 
+    /// Marks the given deposit events submitted in `block_id`, in one write.
+    pub fn mark_deposit_events_submitted(
+        &self,
+        deposit_op_ids: &[HashType],
+        submitted_block_id: u64,
+    ) -> DbResult<()> {
+        if deposit_op_ids.is_empty() {
+            return Ok(());
+        }
+        let mut batch = WriteBatch::default();
+        self.mark_pending_deposit_events_submitted(deposit_op_ids, submitted_block_id, &mut batch)?;
+        self.db.write(batch).map_err(|rerr| {
+            DbError::rocksdb_cast_message(
+                rerr,
+                Some("Failed to mark deposit events submitted".to_owned()),
+            )
+        })
+    }
+
     fn mark_pending_deposit_events_submitted(
         &self,
         deposit_op_ids: &[HashType],
@@ -503,23 +528,36 @@ impl RocksDBIO {
     }
 
     pub fn put_block(&self, block: &Block, first: bool, batch: &mut WriteBatch) -> DbResult<()> {
-        let cf_block = self.block_column();
-
         if !first {
+            // A produced block is the new head tip by construction: pin the
+            // tip meta and drop any stale higher blocks a preceding reorg left
+            // behind (mirrors `store_followed_blocks`).
             let last_curr_block = self.get_meta_last_block_in_db()?;
-
-            if block.header.block_id > last_curr_block {
-                self.put_meta_last_block_in_db_batch(block.header.block_id, batch)?;
-                self.put_meta_latest_block_meta_batch(
-                    &BlockMeta {
-                        id: block.header.block_id,
-                        hash: block.header.hash,
-                    },
-                    batch,
-                )?;
+            for stale_id in block.header.block_id.saturating_add(1)..=last_curr_block {
+                self.delete_block_payload(stale_id, batch)?;
             }
+            self.put_meta_last_block_in_db_batch(block.header.block_id, batch)?;
+            self.put_meta_latest_block_meta_batch(&BlockMeta::from(block), batch)?;
         }
 
+        self.put_block_payload(block, batch)
+    }
+
+    /// Stages deletion of a block payload into `batch`.
+    fn delete_block_payload(&self, block_id: u64, batch: &mut WriteBatch) -> DbResult<()> {
+        let cf_block = self.block_column();
+        batch.delete_cf(
+            &cf_block,
+            borsh::to_vec(&block_id).map_err(|err| {
+                DbError::borsh_cast_message(err, Some("Failed to serialize block id".to_owned()))
+            })?,
+        );
+        Ok(())
+    }
+
+    /// Stages just the block payload into `batch`, without touching the tip meta.
+    fn put_block_payload(&self, block: &Block, batch: &mut WriteBatch) -> DbResult<()> {
+        let cf_block = self.block_column();
         batch.put_cf(
             &cf_block,
             borsh::to_vec(&block.header.block_id).map_err(|err| {
@@ -537,6 +575,26 @@ impl RocksDBIO {
             .map(|opt| opt.map(|val| val.0))
     }
 
+    /// `(state, meta)` at the last L1-finalized block; `None` until the first
+    /// finalization is observed.
+    pub fn get_final_snapshot(&self) -> DbResult<Option<(V03State, BlockMeta)>> {
+        let Some(meta) = self.get_opt::<FinalBlockMetaCellOwned>(())? else {
+            return Ok(None);
+        };
+        let state = self.get::<FinalLeeStateCellOwned>(())?;
+        Ok(Some((state.0, meta.0)))
+    }
+
+    fn put_final_snapshot_batch(
+        &self,
+        state: &V03State,
+        meta: &BlockMeta,
+        batch: &mut WriteBatch,
+    ) -> DbResult<()> {
+        self.put_batch(&FinalLeeStateCellRef(state), (), batch)?;
+        self.put_batch(&FinalBlockMetaCellRef(meta), (), batch)
+    }
+
     pub fn get_lee_state(&self) -> DbResult<V03State> {
         self.get::<LEEStateCellOwned>(()).map(|val| val.0)
     }
@@ -633,6 +691,97 @@ impl RocksDBIO {
         Ok(())
     }
 
+    /// One-block form of [`Self::store_followed_blocks`], with the block as the
+    /// head tip and no final snapshot. Production always uses the batch form.
+    #[cfg(test)]
+    fn store_followed_block(
+        &self,
+        block: &Block,
+        state: &V03State,
+        finalized: bool,
+    ) -> DbResult<()> {
+        self.store_followed_blocks(
+            &[(block, finalized)],
+            Some(&BlockMeta::from(block)),
+            state,
+            None,
+        )
+    }
+
+    /// Persists a batch of followed blocks, the caller's head-tip `state`, and
+    /// the optional final-tier snapshot in one atomic write.
+    ///
+    /// The tip meta is pinned to `head_tip`, and blocks stored above it (left
+    /// behind by a net-shortening reorg) are deleted in the same write, so
+    /// restart replay never walks past the tip.
+    ///
+    /// Per block: skips the payload write when the store already holds it (by
+    /// id and hash), unless `finalized` is set, which rewrites it with the
+    /// finalized status. A no-op update (nothing to write, tip unchanged)
+    /// writes nothing.
+    ///
+    /// TODO: the zone-sdk checkpoint is persisted by `on_checkpoint` *before*
+    /// this write. Full `BlocksProcessed` atomicity (checkpoint, blocks, state
+    /// and orphan reverts in one batch) is a follow-up.
+    pub fn store_followed_blocks(
+        &self,
+        blocks: &[(&Block, bool)],
+        head_tip: Option<&BlockMeta>,
+        state: &V03State,
+        final_snapshot: Option<(&V03State, &BlockMeta)>,
+    ) -> DbResult<()> {
+        let last_block_in_db = self.get_meta_last_block_in_db()?;
+        let mut batch = WriteBatch::default();
+
+        for (block, finalized) in blocks {
+            let already_stored = self
+                .get_block(block.header.block_id)?
+                .filter(|stored| stored.header.hash == block.header.hash);
+
+            let mut to_write = match already_stored {
+                Some(_) if !finalized => continue,
+                Some(stored) => stored,
+                None => (*block).clone(),
+            };
+            if *finalized {
+                to_write.bedrock_status = BedrockStatus::Finalized;
+            }
+            self.put_block_payload(&to_write, &mut batch)?;
+        }
+
+        // `head_tip` is `None` only for a chain holding no blocks at all, which
+        // implies nothing was applied — and the store, created with genesis,
+        // cannot represent it. No tip to pin, nothing to persist.
+        let Some(tip) = head_tip else {
+            debug_assert!(batch.is_empty() && final_snapshot.is_none());
+            return Ok(());
+        };
+
+        // A shrink-only update (orphans without adopted replacements) has no
+        // payloads to write but must still rewind the tip meta, or the stored
+        // state tears against the stale disk head on the next produce.
+        if batch.is_empty() && final_snapshot.is_none() && tip.id == last_block_in_db {
+            return Ok(());
+        }
+
+        for stale_id in tip.id.saturating_add(1)..=last_block_in_db {
+            self.delete_block_payload(stale_id, &mut batch)?;
+        }
+        self.put_meta_last_block_in_db_batch(tip.id, &mut batch)?;
+        self.put_meta_latest_block_meta_batch(tip, &mut batch)?;
+        self.put_lee_state_in_db_batch(state, &mut batch)?;
+        if let Some((final_state, final_meta)) = final_snapshot {
+            self.put_final_snapshot_batch(final_state, final_meta, &mut batch)?;
+        }
+
+        self.db.write(batch).map_err(|rerr| {
+            DbError::rocksdb_cast_message(
+                rerr,
+                Some("Failed to write followed blocks batch".to_owned()),
+            )
+        })
+    }
+
     pub fn get_all_blocks(&self) -> impl Iterator<Item = DbResult<Block>> {
         let cf_block = self.block_column();
         self.db
@@ -682,3 +831,6 @@ impl RocksDBIO {
         })
     }
 }
+
+#[cfg(test)]
+mod tests;
diff --git a/lez/storage/src/sequencer/sequencer_cells.rs b/lez/storage/src/sequencer/sequencer_cells.rs
index 368fb648..c10b3d30 100644
--- a/lez/storage/src/sequencer/sequencer_cells.rs
+++ b/lez/storage/src/sequencer/sequencer_cells.rs
@@ -7,10 +7,10 @@ use crate::{
     cells::{SimpleReadableCell, SimpleStorableCell, SimpleWritableCell},
     error::DbError,
     sequencer::{
-        CF_LEE_STATE_NAME, DB_LEE_STATE_KEY, DB_META_LAST_FINALIZED_BLOCK_ID,
-        DB_META_LATEST_BLOCK_META_KEY, DB_META_PENDING_DEPOSIT_EVENTS_KEY,
-        DB_META_UNSEEN_WITHDRAW_COUNT_KEY, DB_META_ZONE_CURSOR_KEY,
-        DB_META_ZONE_SDK_CHECKPOINT_KEY,
+        CF_LEE_STATE_NAME, DB_FINAL_BLOCK_META_KEY, DB_FINAL_LEE_STATE_KEY, DB_LEE_STATE_KEY,
+        DB_META_LAST_FINALIZED_BLOCK_ID, DB_META_LATEST_BLOCK_META_KEY,
+        DB_META_PENDING_DEPOSIT_EVENTS_KEY, DB_META_UNSEEN_WITHDRAW_COUNT_KEY,
+        DB_META_ZONE_CURSOR_KEY, DB_META_ZONE_SDK_CHECKPOINT_KEY,
     },
 };
 
@@ -44,6 +44,72 @@ impl SimpleWritableCell for LEEStateCellRef<'_> {
     }
 }
 
+/// State at the last L1-finalized block, written atomically with
+/// [`FinalBlockMetaCellRef`].
+#[derive(BorshDeserialize)]
+pub struct FinalLeeStateCellOwned(pub V03State);
+
+impl SimpleStorableCell for FinalLeeStateCellOwned {
+    type KeyParams = ();
+
+    const CELL_NAME: &'static str = DB_FINAL_LEE_STATE_KEY;
+    const CF_NAME: &'static str = CF_LEE_STATE_NAME;
+}
+
+impl SimpleReadableCell for FinalLeeStateCellOwned {}
+
+#[derive(BorshSerialize)]
+pub struct FinalLeeStateCellRef<'state>(pub &'state V03State);
+
+impl SimpleStorableCell for FinalLeeStateCellRef<'_> {
+    type KeyParams = ();
+
+    const CELL_NAME: &'static str = DB_FINAL_LEE_STATE_KEY;
+    const CF_NAME: &'static str = CF_LEE_STATE_NAME;
+}
+
+impl SimpleWritableCell for FinalLeeStateCellRef<'_> {
+    fn value_constructor(&self) -> DbResult<Vec<u8>> {
+        borsh::to_vec(&self).map_err(|err| {
+            DbError::borsh_cast_message(err, Some("Failed to serialize final state".to_owned()))
+        })
+    }
+}
+
+/// `(id, hash)` of the last L1-finalized block, paired with [`FinalLeeStateCellRef`].
+#[derive(BorshDeserialize)]
+pub struct FinalBlockMetaCellOwned(pub BlockMeta);
+
+impl SimpleStorableCell for FinalBlockMetaCellOwned {
+    type KeyParams = ();
+
+    const CELL_NAME: &'static str = DB_FINAL_BLOCK_META_KEY;
+    const CF_NAME: &'static str = CF_META_NAME;
+}
+
+impl SimpleReadableCell for FinalBlockMetaCellOwned {}
+
+#[derive(BorshSerialize)]
+pub struct FinalBlockMetaCellRef<'blockmeta>(pub &'blockmeta BlockMeta);
+
+impl SimpleStorableCell for FinalBlockMetaCellRef<'_> {
+    type KeyParams = ();
+
+    const CELL_NAME: &'static str = DB_FINAL_BLOCK_META_KEY;
+    const CF_NAME: &'static str = CF_META_NAME;
+}
+
+impl SimpleWritableCell for FinalBlockMetaCellRef<'_> {
+    fn value_constructor(&self) -> DbResult<Vec<u8>> {
+        borsh::to_vec(&self).map_err(|err| {
+            DbError::borsh_cast_message(
+                err,
+                Some("Failed to serialize final block meta".to_owned()),
+            )
+        })
+    }
+}
+
 #[derive(Debug, BorshSerialize, BorshDeserialize)]
 pub struct LastFinalizedBlockIdCell(pub Option<u64>);
 
diff --git a/lez/storage/src/sequencer/tests.rs b/lez/storage/src/sequencer/tests.rs
new file mode 100644
index 00000000..0b6ce862
--- /dev/null
+++ b/lez/storage/src/sequencer/tests.rs
@@ -0,0 +1,283 @@
+use common::test_utils::produce_dummy_block;
+use lee::{Account, AccountId};
+use tempfile::tempdir;
+
+use super::*;
+
+fn marker_id() -> AccountId {
+    AccountId::new([1; 32])
+}
+
+/// A state distinguishable by the marker account's balance, so tests can tell
+/// which snapshot a write persisted.
+///
+/// TODO: is this a bit too much of a hot-fix for test snapshot?
+fn state_with_balance(balance: u128) -> V03State {
+    V03State::new().with_public_accounts([(
+        marker_id(),
+        Account {
+            balance,
+            ..Account::default()
+        },
+    )])
+}
+
+fn dbio_with_genesis(path: &Path) -> (RocksDBIO, Block) {
+    let genesis = produce_dummy_block(1, None, vec![]);
+    let dbio = RocksDBIO::create(path, &genesis, &state_with_balance(100)).unwrap();
+    (dbio, genesis)
+}
+
+fn stored_balance(dbio: &RocksDBIO) -> u128 {
+    dbio.get_lee_state()
+        .unwrap()
+        .get_account_by_id(marker_id())
+        .balance
+}
+
+#[test]
+fn store_followed_block_persists_new_block_and_state() {
+    let temp_dir = tempdir().unwrap();
+    let (dbio, genesis) = dbio_with_genesis(temp_dir.path());
+
+    let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+    dbio.store_followed_block(&block2, &state_with_balance(200), false)
+        .unwrap();
+
+    let stored = dbio.get_block(2).unwrap().expect("block 2 is stored");
+    assert_eq!(stored.header.hash, block2.header.hash);
+    assert!(matches!(stored.bedrock_status, BedrockStatus::Pending));
+    assert_eq!(
+        dbio.latest_block_meta().unwrap().expect("meta is set").id,
+        2
+    );
+    assert_eq!(stored_balance(&dbio), 200);
+}
+
+#[test]
+fn store_followed_block_finalized_marks_block() {
+    let temp_dir = tempdir().unwrap();
+    let (dbio, genesis) = dbio_with_genesis(temp_dir.path());
+
+    let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+    dbio.store_followed_block(&block2, &state_with_balance(200), true)
+        .unwrap();
+
+    let stored = dbio.get_block(2).unwrap().expect("block 2 is stored");
+    assert!(matches!(stored.bedrock_status, BedrockStatus::Finalized));
+}
+
+#[test]
+fn store_followed_block_redelivery_is_a_noop_and_keeps_finalized() {
+    let temp_dir = tempdir().unwrap();
+    let (dbio, genesis) = dbio_with_genesis(temp_dir.path());
+
+    let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+    dbio.store_followed_block(&block2, &state_with_balance(200), true)
+        .unwrap();
+    dbio.store_followed_block(&block2, &state_with_balance(300), false)
+        .unwrap();
+
+    let stored = dbio.get_block(2).unwrap().expect("block 2 is stored");
+    assert!(
+        matches!(stored.bedrock_status, BedrockStatus::Finalized),
+        "re-delivery must not demote a finalized block"
+    );
+    assert_eq!(
+        stored_balance(&dbio),
+        200,
+        "re-delivery must not overwrite the persisted state"
+    );
+}
+
+#[test]
+fn store_followed_blocks_batch_lands_meta_and_state_on_last_block() {
+    let temp_dir = tempdir().unwrap();
+    let (dbio, genesis) = dbio_with_genesis(temp_dir.path());
+
+    // Block 2 is already stored (own production); one update then finalizes it
+    // and adopts block 3.
+    let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+    dbio.store_followed_block(&block2, &state_with_balance(200), false)
+        .unwrap();
+
+    let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![]);
+    let head_tip = BlockMeta {
+        id: 3,
+        hash: block3.header.hash,
+    };
+    dbio.store_followed_blocks(
+        &[(&block2, true), (&block3, false)],
+        Some(&head_tip),
+        &state_with_balance(300),
+        None,
+    )
+    .unwrap();
+
+    let stored2 = dbio.get_block(2).unwrap().expect("block 2 is stored");
+    assert!(matches!(stored2.bedrock_status, BedrockStatus::Finalized));
+    let stored3 = dbio.get_block(3).unwrap().expect("block 3 is stored");
+    assert!(matches!(stored3.bedrock_status, BedrockStatus::Pending));
+
+    // Meta and state land together on the last block of the batch.
+    let meta = dbio.latest_block_meta().unwrap().expect("meta is set");
+    assert_eq!(meta.id, 3);
+    assert_eq!(meta.hash, block3.header.hash);
+    assert_eq!(stored_balance(&dbio), 300);
+}
+
+#[test]
+fn final_snapshot_round_trips_and_is_absent_on_fresh_store() {
+    let temp_dir = tempdir().unwrap();
+    let (dbio, genesis) = dbio_with_genesis(temp_dir.path());
+
+    // Fresh store: no finalization observed yet.
+    assert!(dbio.get_final_snapshot().unwrap().is_none());
+
+    // A follow update that finalizes block 2 lands the snapshot in the same batch.
+    let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+    let final_meta = BlockMeta {
+        id: 2,
+        hash: block2.header.hash,
+    };
+    dbio.store_followed_blocks(
+        &[(&block2, true)],
+        Some(&final_meta),
+        &state_with_balance(300),
+        Some((&state_with_balance(200), &final_meta)),
+    )
+    .unwrap();
+
+    let (final_state, meta) = dbio
+        .get_final_snapshot()
+        .unwrap()
+        .expect("final snapshot is stored");
+    assert_eq!(meta.id, 2);
+    assert_eq!(meta.hash, block2.header.hash);
+    assert_eq!(final_state.get_account_by_id(marker_id()).balance, 200);
+    // The head state is stored independently of the final snapshot.
+    assert_eq!(stored_balance(&dbio), 300);
+}
+
+#[test]
+fn store_followed_block_overwrites_competing_block_at_same_id() {
+    let temp_dir = tempdir().unwrap();
+    let (dbio, genesis) = dbio_with_genesis(temp_dir.path());
+
+    let block2a = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+    dbio.store_followed_block(&block2a, &state_with_balance(200), false)
+        .unwrap();
+
+    // A reorg replaces block 2: the competing block wins the slot.
+    let block2b = produce_dummy_block(2, Some(HashType([9; 32])), vec![]);
+    dbio.store_followed_block(&block2b, &state_with_balance(300), false)
+        .unwrap();
+
+    let stored = dbio.get_block(2).unwrap().expect("block 2 is stored");
+    assert_eq!(stored.header.hash, block2b.header.hash);
+    assert!(matches!(stored.bedrock_status, BedrockStatus::Pending));
+    assert_eq!(stored_balance(&dbio), 300);
+
+    // The tip meta must follow the reorg winner, or a restart seeds the chain
+    // from the orphaned block's hash.
+    let meta = dbio.latest_block_meta().unwrap().expect("meta is set");
+    assert_eq!(meta.id, 2);
+    assert_eq!(meta.hash, block2b.header.hash);
+}
+
+#[test]
+fn net_shortening_reorg_drops_stale_blocks() {
+    let temp_dir = tempdir().unwrap();
+    let (dbio, genesis) = dbio_with_genesis(temp_dir.path());
+
+    let block2a = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+    dbio.store_followed_block(&block2a, &state_with_balance(200), false)
+        .unwrap();
+    let block3 = produce_dummy_block(3, Some(block2a.header.hash), vec![]);
+    dbio.store_followed_block(&block3, &state_with_balance(300), false)
+        .unwrap();
+
+    // A shorter competing chain wins: block 2 is replaced, block 3 gets no
+    // replacement.
+    let block2b = produce_dummy_block(2, Some(HashType([9; 32])), vec![]);
+    let head_tip = BlockMeta {
+        id: 2,
+        hash: block2b.header.hash,
+    };
+    dbio.store_followed_blocks(
+        &[(&block2b, false)],
+        Some(&head_tip),
+        &state_with_balance(400),
+        None,
+    )
+    .unwrap();
+
+    let stored2 = dbio.get_block(2).unwrap().expect("block 2 is stored");
+    assert_eq!(stored2.header.hash, block2b.header.hash);
+    assert!(
+        dbio.get_block(3).unwrap().is_none(),
+        "stale block above the new head must be deleted, or restart replay panics on its broken link"
+    );
+    let meta = dbio.latest_block_meta().unwrap().expect("meta is set");
+    assert_eq!(meta.id, 2);
+    assert_eq!(meta.hash, block2b.header.hash);
+    assert_eq!(stored_balance(&dbio), 400);
+}
+
+#[test]
+fn shrink_only_reorg_rewinds_tip_meta() {
+    let temp_dir = tempdir().unwrap();
+    let (dbio, genesis) = dbio_with_genesis(temp_dir.path());
+
+    let block2 = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+    dbio.store_followed_block(&block2, &state_with_balance(200), false)
+        .unwrap();
+    let block3 = produce_dummy_block(3, Some(block2.header.hash), vec![]);
+    dbio.store_followed_block(&block3, &state_with_balance(300), false)
+        .unwrap();
+
+    // Orphan-only update: block 3 falls off the branch with no replacement.
+    let head_tip = BlockMeta {
+        id: 2,
+        hash: block2.header.hash,
+    };
+    dbio.store_followed_blocks(&[], Some(&head_tip), &state_with_balance(200), None)
+        .unwrap();
+
+    assert!(
+        dbio.get_block(3).unwrap().is_none(),
+        "the orphaned block must not survive the tip rewind"
+    );
+    let meta = dbio.latest_block_meta().unwrap().expect("meta is set");
+    assert_eq!(meta.id, 2);
+    assert_eq!(meta.hash, block2.header.hash);
+    assert_eq!(stored_balance(&dbio), 200);
+}
+
+#[test]
+fn produced_block_below_disk_head_pins_meta_and_prunes() {
+    let temp_dir = tempdir().unwrap();
+    let (dbio, genesis) = dbio_with_genesis(temp_dir.path());
+
+    let block2a = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+    dbio.store_followed_block(&block2a, &state_with_balance(200), false)
+        .unwrap();
+    let block3 = produce_dummy_block(3, Some(block2a.header.hash), vec![]);
+    dbio.store_followed_block(&block3, &state_with_balance(300), false)
+        .unwrap();
+
+    // Producing at height 2 while the disk head is still 3: the produce path
+    // pins the tip meta to the produced block and drops the stale suffix in
+    // the same write, mirroring the follow path.
+    let block2b = produce_dummy_block(2, Some(genesis.header.hash), vec![]);
+    dbio.atomic_update(&block2b, &[], vec![], &state_with_balance(400))
+        .unwrap();
+
+    let stored2 = dbio.get_block(2).unwrap().expect("block 2 is stored");
+    assert_eq!(stored2.header.hash, block2b.header.hash);
+    assert!(dbio.get_block(3).unwrap().is_none());
+    let meta = dbio.latest_block_meta().unwrap().expect("meta is set");
+    assert_eq!(meta.id, 2);
+    assert_eq!(meta.hash, block2b.header.hash);
+    assert_eq!(stored_balance(&dbio), 400);
+}
diff --git a/lez/wallet/Cargo.toml b/lez/wallet/Cargo.toml
index 974d6a71..c03c1505 100644
--- a/lez/wallet/Cargo.toml
+++ b/lez/wallet/Cargo.toml
@@ -25,7 +25,6 @@ system_accounts.workspace = true
 associated_token_account_core.workspace = true
 
 bip39.workspace = true
-pyo3.workspace = true
 rpassword = "7"
 zeroize.workspace = true
 
diff --git a/lez/wallet/src/account_manager.rs b/lez/wallet/src/account_manager.rs
index 824a994d..37f8761d 100644
--- a/lez/wallet/src/account_manager.rs
+++ b/lez/wallet/src/account_manager.rs
@@ -1,14 +1,14 @@
 use core::fmt;
 
 use anyhow::Result;
-use keycard_wallet::{KeycardWallet, python_path};
+use keycard_wallet::KeycardWallet;
 use lee::{AccountId, PrivateKey, PublicKey, Signature};
 use lee_core::{
     Commitment, CommitmentSetDigest, Identifier, InputAccountIdentity, MembershipProof,
     NullifierPublicKey, NullifierSecretKey, SharedSecretKey,
     account::{AccountWithMetadata, Nonce},
     compute_digest_for_path,
-    encryption::ViewingPublicKey,
+    encryption::{ViewTag, ViewingPublicKey},
 };
 use rand::{RngCore as _, rngs::OsRng};
 
@@ -237,14 +237,7 @@ impl AccountManager {
                     if pin.is_none() {
                         pin = Some(
                             crate::helperfunctions::read_pin()
-                                .map_err(|e| {
-                                    ExecutionFailureKind::KeycardError(pyo3::PyErr::new::<
-                                        pyo3::exceptions::PyRuntimeError,
-                                        _,
-                                    >(
-                                        e.to_string()
-                                    ))
-                                })?
+                                .map_err(ExecutionFailureKind::SignError)?
                                 .as_str()
                                 .to_owned(),
                         );
@@ -411,6 +404,7 @@ impl AccountManager {
                     (Some(nsk), Some(membership_proof)) => InputAccountIdentity::PrivatePdaUpdate {
                         vpk: pre.vpk.clone(),
                         random_seed: pre.random_seed,
+                        view_tag: random_view_tag(),
                         nsk,
                         membership_proof,
                         identifier: pre.identifier,
@@ -430,6 +424,7 @@ impl AccountManager {
                         InputAccountIdentity::PrivateAuthorizedUpdate {
                             vpk: pre.vpk.clone(),
                             random_seed: pre.random_seed,
+                            view_tag: random_view_tag(),
                             nsk,
                             membership_proof,
                             identifier: pre.identifier,
@@ -498,17 +493,11 @@ impl AccountManager {
             .collect();
 
         if let Some(pin) = self.pin.clone() {
-            pyo3::Python::attach(|py| -> pyo3::PyResult<()> {
-                python_path::add_python_path(py)?;
-                let wallet = KeycardWallet::new(py)?;
-                wallet.connect(py, &pin)?;
-                for path in keycard_paths {
-                    sigs.push(wallet.sign_message_for_path(py, path, &message_hash)?);
-                }
-                let _res = wallet.close_session(py);
-                Ok(())
-            })
-            .map_err(anyhow::Error::from)?;
+            let mut wallet = KeycardWallet::new()?;
+            wallet.connect(&pin)?;
+            for path in keycard_paths {
+                sigs.push(wallet.sign_message_for_path(path, &message_hash)?);
+            }
         }
 
         Ok(sigs)
@@ -650,6 +639,13 @@ fn validate_proofs_against_root(
     Ok(())
 }
 
+/// Generate random byte using OS randomness.
+fn random_view_tag() -> ViewTag {
+    let mut byte: [u8; 1] = [0; 1];
+    OsRng.fill_bytes(&mut byte);
+    byte[0]
+}
+
 #[cfg(test)]
 mod tests {
     use super::*;
diff --git a/lez/wallet/src/cli/account.rs b/lez/wallet/src/cli/account.rs
index c700d2e9..c165deee 100644
--- a/lez/wallet/src/cli/account.rs
+++ b/lez/wallet/src/cli/account.rs
@@ -111,8 +111,9 @@ pub enum NewSubcommand {
         #[arg(long, requires = "pda")]
         /// Program ID as hex string.
         program_id: Option<String>,
-        #[arg(long, requires = "pda")]
-        /// Identifier that diversifies this PDA within the (`program_id`, seed, npk) family.
+        #[arg(long)]
+        /// Identifier selecting the shared account.
+        /// Co-owners must supply the same value to derive the same account.
         /// Defaults to a random value if not specified.
         identifier: Option<u128>,
     },
@@ -197,7 +198,7 @@ impl NewSubcommand {
         Ok(SubcommandReturnValue::RegisterAccount { account_id })
     }
 
-    fn handle_private_gms(
+    async fn handle_private_gms(
         group: &Label,
         label: Option<Label>,
         pda: bool,
@@ -229,14 +230,22 @@ impl NewSubcommand {
                 pid[i] = u32::from_le_bytes(chunk.try_into().unwrap());
             }
 
-            wallet_core.create_shared_pda_account(
-                group.clone(),
-                pda_seed,
-                pid,
-                identifier.unwrap_or_else(rand::random),
-            )?
+            wallet_core
+                .create_shared_pda_account(
+                    group.clone(),
+                    pda_seed,
+                    pid,
+                    identifier.unwrap_or_else(rand::random),
+                )
+                .await?
+        } else if let Some(id) = identifier {
+            wallet_core
+                .create_shared_regular_account_with_identifier(group.clone(), id)
+                .await?
         } else {
-            wallet_core.create_shared_regular_account(group.clone())?
+            wallet_core
+                .create_shared_regular_account(group.clone())
+                .await?
         };
 
         if let Some(label) = label {
@@ -295,15 +304,18 @@ impl WalletSubcommand for NewSubcommand {
                 seed,
                 program_id,
                 identifier,
-            } => Self::handle_private_gms(
-                &group,
-                label,
-                pda,
-                seed,
-                program_id,
-                identifier,
-                wallet_core,
-            ),
+            } => {
+                Self::handle_private_gms(
+                    &group,
+                    label,
+                    pda,
+                    seed,
+                    program_id,
+                    identifier,
+                    wallet_core,
+                )
+                .await
+            }
             Self::PrivateAccountsKey { cci } => Self::handle_private_accounts_key(cci, wallet_core),
         }
     }
diff --git a/lez/wallet/src/cli/keycard.rs b/lez/wallet/src/cli/keycard.rs
index 8c42bfd1..da02d13b 100644
--- a/lez/wallet/src/cli/keycard.rs
+++ b/lez/wallet/src/cli/keycard.rs
@@ -5,8 +5,7 @@
 
 use anyhow::Result;
 use clap::Subcommand;
-use keycard_wallet::{KeycardWallet, clear_pairing, python_path};
-use pyo3::prelude::*;
+use keycard_wallet::KeycardWallet;
 
 use crate::{
     WalletCore,
@@ -18,9 +17,16 @@ use crate::{
 pub enum KeycardSubcommand {
     Available,
     Connect,
-    Disconnect,
     Init,
     Load,
+    /// Wipes the card's PIN, PUK, and loaded keys back to an uninitialized state, so it can be
+    /// re-initialized with `wallet keycard init`. Irreversibly destroys any keys currently on
+    /// the card. Requires --confirm.
+    FactoryReset {
+        /// Confirm that the card's current keys should be irreversibly destroyed.
+        #[arg(long)]
+        confirm: bool,
+    },
     /// Retrieve the private keys (NSK, VSK) for a given BIP-32 key path.
     ///
     /// Prints raw key material to stdout — intended for debugging only.
@@ -39,22 +45,11 @@ pub enum KeycardSubcommand {
 
 impl KeycardSubcommand {
     fn handle_available(_wallet_core: &mut WalletCore) -> SubcommandReturnValue {
-        Python::attach(|py| {
-            python_path::add_python_path(py)
-                .expect("`wallet::keycard::available`: unable to setup python path");
-
-            let wallet = KeycardWallet::new(py)
-                .expect("`wallet::keycard::available`: invalid data received for pin");
-            let available = wallet
-                .is_unpaired_keycard_available(py)
-                .expect("`wallet::keycard::available`: received invalid data from Keycard wrapper");
-
-            if available {
-                println!("\u{2705} Keycard is available.");
-            } else {
-                println!("\u{274c} Keycard is not available.");
-            }
-        });
+        if KeycardWallet::is_keycard_available() {
+            println!("\u{2705} Keycard is available.");
+        } else {
+            println!("\u{274c} Keycard is not available.");
+        }
 
         SubcommandReturnValue::Empty
     }
@@ -62,45 +57,9 @@ impl KeycardSubcommand {
     fn handle_connect(_wallet_core: &mut WalletCore) -> Result<SubcommandReturnValue> {
         let pin = read_pin()?;
 
-        Python::attach(|py| {
-            python_path::add_python_path(py)
-                .expect("`wallet::keycard::connect`: unable to setup python path");
-
-            let wallet = KeycardWallet::new(py)
-                .expect("`wallet::keycard::connect`: invalid keycard wallet provided");
-
-            wallet
-                .connect(py, &pin)
-                .expect("`wallet::keycard::connect`: failed to connect to keycard");
-
-            println!("\u{2705} Keycard paired and ready.");
-            drop(wallet.close_session(py));
-        });
-
-        Ok(SubcommandReturnValue::Empty)
-    }
-
-    fn handle_disconnect(_wallet_core: &mut WalletCore) -> Result<SubcommandReturnValue> {
-        let pin = read_pin()?;
-
-        Python::attach(|py| {
-            python_path::add_python_path(py)
-                .expect("`wallet::keycard::disconnect`: unable to setup python path");
-
-            let wallet = KeycardWallet::new(py)
-                .expect("`wallet::keycard::disconnect`: invalid keycard wallet provided");
-
-            wallet
-                .connect(py, &pin)
-                .expect("`wallet::keycard::disconnect`: failed to open session");
-
-            wallet
-                .disconnect(py)
-                .expect("`wallet::keycard::disconnect`: failed to unpair keycard");
-
-            clear_pairing();
-            println!("\u{2705} Keycard unpaired and pairing cleared.");
-        });
+        let mut wallet = KeycardWallet::new()?;
+        wallet.connect(&pin)?;
+        println!("\u{2705} Keycard connected and PIN verified.");
 
         Ok(SubcommandReturnValue::Empty)
     }
@@ -108,22 +67,12 @@ impl KeycardSubcommand {
     fn handle_init(_wallet_core: &mut WalletCore) -> Result<SubcommandReturnValue> {
         let pin = read_pin()?;
 
-        Python::attach(|py| {
-            python_path::add_python_path(py)
-                .expect("`wallet::keycard::init`: unable to setup python path");
+        let mut wallet = KeycardWallet::new()?;
+        let puk = wallet.initialize(&pin)?;
 
-            let wallet = KeycardWallet::new(py)
-                .expect("`wallet::keycard::init`: invalid keycard wallet provided");
-
-            let initialized = wallet
-                .initialize(py, &pin)
-                .expect("`wallet::keycard::init`: failed to initialize keycard");
-
-            if initialized {
-                clear_pairing();
-                println!("\u{2705} Keycard initialized successfully.");
-            }
-        });
+        println!("Keycard PUK: {puk}");
+        println!("Record this PUK and store it somewhere safe. It cannot be recovered.");
+        println!("\u{2705} Keycard initialized successfully.");
 
         Ok(SubcommandReturnValue::Empty)
     }
@@ -132,25 +81,31 @@ impl KeycardSubcommand {
         let pin = read_pin()?;
         let mnemonic = read_mnemonic()?;
 
-        Python::attach(|py| {
-            python_path::add_python_path(py)
-                .expect("`wallet::keycard::load`: unable to setup python path");
+        let mut wallet = KeycardWallet::new()?;
+        wallet.connect(&pin)?;
+        println!("\u{2705} Keycard is now connected to wallet.");
 
-            let wallet = KeycardWallet::new(py)
-                .expect("`wallet::keycard::load`: invalid keycard wallet provided");
+        wallet.load_mnemonic(&mnemonic)?;
+        println!("\u{2705} Mnemonic phrase loaded successfully.");
 
-            wallet
-                .connect(py, &pin)
-                .expect("`wallet::keycard::load`: failed to connect to keycard");
+        Ok(SubcommandReturnValue::Empty)
+    }
 
-            println!("\u{2705} Keycard is now connected to wallet.");
-            if wallet.load_mnemonic(py, &mnemonic).is_ok() {
-                println!("\u{2705} Mnemonic phrase loaded successfully.");
-            } else {
-                println!("\u{274c} Failed to load mnemonic phrase.");
-            }
-            drop(wallet.close_session(py));
-        });
+    fn handle_factory_reset(
+        confirm: bool,
+        _wallet_core: &mut WalletCore,
+    ) -> Result<SubcommandReturnValue> {
+        if !confirm {
+            eprintln!(
+                "WARNING: pass --confirm to factory-reset the keycard. \
+                 This irreversibly destroys any keys currently loaded on it."
+            );
+            return Ok(SubcommandReturnValue::Empty);
+        }
+
+        let mut wallet = KeycardWallet::new()?;
+        wallet.factory_reset()?;
+        println!("\u{2705} Keycard factory-reset. Run `wallet keycard init` to reinitialize it.");
 
         Ok(SubcommandReturnValue::Empty)
     }
@@ -189,9 +144,9 @@ impl WalletSubcommand for KeycardSubcommand {
         match self {
             Self::Available => Ok(Self::handle_available(wallet_core)),
             Self::Connect => Self::handle_connect(wallet_core),
-            Self::Disconnect => Self::handle_disconnect(wallet_core),
             Self::Init => Self::handle_init(wallet_core),
             Self::Load => Self::handle_load(wallet_core),
+            Self::FactoryReset { confirm } => Self::handle_factory_reset(confirm, wallet_core),
             #[cfg(feature = "keycard-debug")]
             Self::GetPrivateKeys { key_path, reveal } => {
                 Self::handle_get_private_keys(&key_path, reveal, wallet_core)
diff --git a/lez/wallet/src/lib.rs b/lez/wallet/src/lib.rs
index 4984f784..7c8b8f69 100644
--- a/lez/wallet/src/lib.rs
+++ b/lez/wallet/src/lib.rs
@@ -51,7 +51,6 @@ pub mod helperfunctions;
 pub mod multi_client;
 pub mod poller;
 pub mod program_facades;
-pub mod signing;
 pub mod storage;
 
 pub const HOME_DIR_ENV_VAR: &str = "LEE_WALLET_HOME_DIR";
@@ -86,8 +85,6 @@ pub enum ExecutionFailureKind {
     TransactionBuildError(#[from] lee::error::LeeError),
     #[error("Failed to sign transaction: {0}")]
     SignError(anyhow::Error),
-    #[error(transparent)]
-    KeycardError(#[from] pyo3::PyErr),
 }
 
 pub struct WalletCore {
@@ -415,8 +412,60 @@ impl WalletCore {
         );
     }
 
+    /// Re-derive a shared account's state by scanning its keypair from genesis to the current
+    /// synced block. The init note's nullifier is deterministic on ID, so we await it and let
+    /// the nullifier pass decode the init and every subsequent update.
+    ///
+    /// If no initialization is found, will return `Ok` and default to usual hot-sync.
+    async fn catch_up_shared_account(&mut self, account_id: AccountId) -> Result<()> {
+        use futures::TryStreamExt as _;
+
+        let cursor = self.storage.last_synced_block();
+        if cursor == 0
+            || self
+                .storage
+                .key_chain()
+                .shared_private_account(account_id)
+                .is_none()
+        {
+            return Ok(());
+        }
+
+        info!("Scanning shared account {account_id:#?} from genesis to block {cursor}");
+
+        let mut index = NullifierIndex::default();
+        index.track_initialization(account_id);
+
+        let poller = self.optimal_poller();
+        let mut blocks = std::pin::pin!(poller.poll_block_range(1..=cursor));
+        while let Some(block) = blocks.try_next().await? {
+            for tx in block.body.transactions {
+                let LeeTransaction::PrivacyPreserving(pp_tx) = &tx else {
+                    continue;
+                };
+                pp_tx.message.validate_note_lengths()?;
+                // Sync updates while watching only the init nullifier.
+                self.storage
+                    .key_chain_mut()
+                    .sync_updates_via_nullifiers(&pp_tx.message, &mut index);
+            }
+        }
+
+        let now = self.storage.last_synced_block();
+        // This is a defence-in-depth. Currently during the async update the cursor
+        // cannot advance. However, de-sync can be possible later. This hard error
+        // will signal this.
+        if now != cursor {
+            return Err(anyhow::anyhow!(
+                "Shared-account catched-up to {cursor} with a cursor de-sync advancing to {now}"
+            ));
+        }
+
+        Ok(())
+    }
+
     /// Create a shared PDA account from a group's GMS. Returns the `AccountId` and derived keys.
-    pub fn create_shared_pda_account(
+    pub async fn create_shared_pda_account(
         &mut self,
         group_name: Label,
         pda_seed: lee_core::program::PdaSeed,
@@ -441,6 +490,7 @@ impl WalletCore {
             Some(pda_seed),
             Some(program_id),
         );
+        self.catch_up_shared_account(account_id).await?;
 
         Ok(SharedAccountInfo {
             account_id,
@@ -449,14 +499,21 @@ impl WalletCore {
         })
     }
 
-    /// Create a shared regular private account from a group's GMS. Returns the `AccountId` and
-    /// derived keys. The derivation seed is computed deterministically from a random identifier.
-    pub fn create_shared_regular_account(
+    /// Create a shared regular private account from a group's GMS with a random identifier.
+    pub async fn create_shared_regular_account(
         &mut self,
         group_name: Label,
     ) -> Result<SharedAccountInfo> {
-        let identifier: lee_core::Identifier = rand::random();
+        self.create_shared_regular_account_with_identifier(group_name, rand::random())
+            .await
+    }
 
+    /// Create a shared regular private account from a group's GMS under the given `identifier`.
+    pub async fn create_shared_regular_account_with_identifier(
+        &mut self,
+        group_name: Label,
+        identifier: lee_core::Identifier,
+    ) -> Result<SharedAccountInfo> {
         let holder = self
             .storage
             .key_chain()
@@ -469,6 +526,7 @@ impl WalletCore {
         let account_id = AccountId::from((&npk, &vpk, identifier));
 
         self.register_shared_account(account_id, group_name, identifier, None, None);
+        self.catch_up_shared_account(account_id).await?;
 
         Ok(SharedAccountInfo {
             account_id,
diff --git a/lez/wallet/src/signing.rs b/lez/wallet/src/signing.rs
deleted file mode 100644
index 505dedd9..00000000
--- a/lez/wallet/src/signing.rs
+++ /dev/null
@@ -1,33 +0,0 @@
-use keycard_wallet::{KeycardWallet, python_path};
-use pyo3::Python;
-
-/// Lazily opens and reuses a single Keycard session for all keycard signers in one transaction.
-pub struct KeycardSessionContext {
-    pin: String,
-    wallet: Option<KeycardWallet>,
-}
-
-impl KeycardSessionContext {
-    pub fn new(pin: impl Into<String>) -> Self {
-        Self {
-            pin: pin.into(),
-            wallet: None,
-        }
-    }
-
-    pub fn get_or_connect(&mut self, py: Python<'_>) -> pyo3::PyResult<&KeycardWallet> {
-        if self.wallet.is_none() {
-            python_path::add_python_path(py)?;
-            let wallet = KeycardWallet::new(py)?;
-            wallet.connect(py, &self.pin)?;
-            self.wallet = Some(wallet);
-        }
-        Ok(self.wallet.as_ref().expect("wallet was just inserted"))
-    }
-
-    pub fn close(self, py: Python<'_>) {
-        if let Some(w) = self.wallet {
-            let _res = w.close_session(py);
-        }
-    }
-}
diff --git a/lez/wallet/src/storage/key_chain.rs b/lez/wallet/src/storage/key_chain.rs
index 72dcb78f..bb1971d7 100644
--- a/lez/wallet/src/storage/key_chain.rs
+++ b/lez/wallet/src/storage/key_chain.rs
@@ -90,6 +90,14 @@ impl NullifierIndex {
         );
     }
 
+    /// Indexes `account_id` by the nullifier its initialization publishes.
+    pub fn track_initialization(&mut self, account_id: AccountId) {
+        self.0.insert(
+            Nullifier::for_account_initialization(&account_id),
+            account_id,
+        );
+    }
+
     /// Replaces a spent nullifier with the account's `next` one.
     pub fn update(&mut self, spent: &Nullifier, next: Nullifier, account_id: AccountId) {
         self.0.remove(spent);
@@ -987,6 +995,93 @@ mod tests {
         assert!(index.account_for(&old_nullifier).is_none());
     }
 
+    // The genesis catch-up seeds only the init nullifier and lets the nullifier pass decode the
+    // init note and every subsequent (randomly-tagged) update. Verify a shared account rolls from
+    // default through its init to a later update purely by nullifier — the path the catch-up runs.
+    #[test]
+    fn nullifier_sync_catches_up_shared_account_from_init() {
+        let mut kc = UserKeyChain::default();
+
+        let label = Label::new("group");
+        let holder = GroupKeyHolder::new();
+        let identifier = 0;
+        let keys = holder.derive_regular_shared_account_keys_from_identifier(identifier);
+        let npk = keys.generate_nullifier_public_key();
+        let vpk = keys.generate_viewing_public_key();
+        let nsk = keys.nullifier_secret_key;
+        let account_id = AccountId::from((&npk, &vpk, identifier));
+
+        kc.insert_group_key_holder(label.clone(), holder);
+        kc.insert_shared_private_account(
+            account_id,
+            SharedAccountEntry {
+                group_label: label,
+                identifier,
+                pda_seed: None,
+                authority_program_id: None,
+                account: Account::default(),
+            },
+        );
+
+        let mut index = NullifierIndex::default();
+        index.track_initialization(account_id);
+
+        // A note publishing `spent` and carrying the state `next`.
+        let make_message = |spent: Nullifier, next: &Account| {
+            let commitment = Commitment::new(&account_id, next);
+            let (sender_ss, epk) = SharedSecretKey::encapsulate(&vpk);
+            let ciphertext = EncryptionScheme::encrypt(
+                next,
+                &PrivateAccountKind::Regular(identifier),
+                &sender_ss,
+                &commitment,
+                0,
+            );
+            let note = EncryptedAccountData::new(ciphertext, &npk, &vpk, epk);
+            Message {
+                encrypted_private_post_states: vec![note],
+                new_commitments: vec![commitment],
+                new_nullifiers: vec![(spent, [0; 32])],
+                ..Default::default()
+            }
+        };
+
+        // Init: default -> initialized, discovered via the seeded init nullifier.
+        let initialized = Account {
+            balance: 250,
+            ..Account::default()
+        };
+        let init_msg = make_message(
+            Nullifier::for_account_initialization(&account_id),
+            &initialized,
+        );
+        assert_eq!(
+            kc.sync_updates_via_nullifiers(&init_msg, &mut index),
+            HashSet::from([0])
+        );
+        assert_eq!(
+            kc.shared_private_account(account_id).unwrap().account,
+            initialized
+        );
+
+        // Update: initialized -> updated, discovered via the now-tracked update nullifier.
+        let updated = Account {
+            balance: 500,
+            ..Account::default()
+        };
+        let update_spent =
+            Nullifier::for_account_update(&Commitment::new(&account_id, &initialized), &nsk);
+        let update_msg = make_message(update_spent, &updated);
+        assert_eq!(
+            kc.sync_updates_via_nullifiers(&update_msg, &mut index),
+            HashSet::from([0])
+        );
+        assert_eq!(
+            kc.shared_private_account(account_id).unwrap().account,
+            updated
+        );
+    }
+
     #[test]
     fn nullifier_sync_ignores_unindexed_nullifier() {
         let mut kc = UserKeyChain::default();
diff --git a/test_fixtures/fixtures/prebuilt_sequencer_db.dump b/test_fixtures/fixtures/prebuilt_sequencer_db.dump
index 5a95e544..472f7e96 100644
Binary files a/test_fixtures/fixtures/prebuilt_sequencer_db.dump and b/test_fixtures/fixtures/prebuilt_sequencer_db.dump differ
diff --git a/test_fixtures/src/lib.rs b/test_fixtures/src/lib.rs
index 75eaf941..596354ab 100644
--- a/test_fixtures/src/lib.rs
+++ b/test_fixtures/src/lib.rs
@@ -12,7 +12,7 @@ use lee_core::Commitment;
 use log::{debug, error};
 use sequencer_core::config::GenesisAction;
 use sequencer_service::SequencerHandle;
-use sequencer_service_rpc::{RpcClient as _, SequencerClient, SequencerClientBuilder};
+use sequencer_service_rpc::{RpcClient as _, SequencerClient};
 use serde::Serialize;
 use tempfile::TempDir;
 use testcontainers::compose::DockerCompose;
@@ -340,9 +340,7 @@ impl TestContextBuilder {
                 setup_indexer(bedrock_addr, config::bedrock_channel_id(), None)
                     .await
                     .context("Failed to setup Indexer")?;
-            let indexer_url = config::addr_to_url(config::UrlProtocol::Ws, indexer_handle.addr())
-                .context("Failed to convert indexer addr to URL")?;
-            let indexer_client = IndexerClient::new(&indexer_url)
+            let indexer_client = setup::indexer_client(indexer_handle.addr())
                 .await
                 .context("Failed to create indexer client")?;
             Some(IndexerComponents {
@@ -404,10 +402,7 @@ impl TestContextBuilder {
                 .context("Failed to initialize private accounts in wallet")?;
         }
 
-        let sequencer_url = config::addr_to_url(config::UrlProtocol::Http, sequencer_handle.addr())
-            .context("Failed to convert sequencer addr to URL")?;
-        let sequencer_client = SequencerClientBuilder::default()
-            .build(sequencer_url)
+        let sequencer_client = setup::sequencer_client(sequencer_handle.addr())
             .context("Failed to create sequencer client")?;
 
         Ok(TestContext {
diff --git a/test_fixtures/src/setup.rs b/test_fixtures/src/setup.rs
index ce816919..6c60a7e8 100644
--- a/test_fixtures/src/setup.rs
+++ b/test_fixtures/src/setup.rs
@@ -7,8 +7,12 @@ use anyhow::{Context as _, Result, bail};
 use indexer_service::{ChannelId, IndexerHandle};
 use lee::{AccountId, PrivateKey, PublicKey};
 use log::{debug, warn};
-use sequencer_core::block_store::{DbDump, SequencerStore};
+use sequencer_core::{
+    block_publisher::ED25519_SECRET_KEY_SIZE,
+    block_store::{DbDump, SequencerStore},
+};
 use sequencer_service::{GenesisAction, SequencerHandle};
+use sequencer_service_rpc::{SequencerClient, SequencerClientBuilder};
 use tempfile::TempDir;
 use testcontainers::compose::DockerCompose;
 use wallet::{
@@ -20,6 +24,7 @@ use wallet::{
 use crate::{
     BEDROCK_SERVICE_PORT, BEDROCK_SERVICE_WITH_OPEN_PORT,
     config::{self, InitialPrivateAccountForWallet},
+    indexer_client::IndexerClient,
     private_mention, public_mention,
 };
 
@@ -29,6 +34,7 @@ pub struct SequencerSetup {
     channel_id: ChannelId,
     genesis_transactions: Option<Vec<GenesisAction>>,
     cross_zone: Option<sequencer_core::config::CrossZoneConfig>,
+    bedrock_signing_key: Option<[u8; ED25519_SECRET_KEY_SIZE]>,
 }
 
 impl SequencerSetup {
@@ -40,6 +46,7 @@ impl SequencerSetup {
             channel_id: config::bedrock_channel_id(),
             genesis_transactions: None,
             cross_zone: None,
+            bedrock_signing_key: None,
         }
     }
 
@@ -67,6 +74,15 @@ impl SequencerSetup {
         self
     }
 
+    /// Pre-write a bedrock (Ed25519, 32-byte seed) signing key into the home
+    /// before boot, so tests know the sequencer's public key in advance (e.g.
+    /// to accredit a committee member that has not started yet).
+    #[must_use]
+    pub const fn with_bedrock_signing_key(mut self, key: [u8; ED25519_SECRET_KEY_SIZE]) -> Self {
+        self.bedrock_signing_key = Some(key);
+        self
+    }
+
     /// Set up the sequencer in a fresh temporary home directory, returning the
     /// owning [`TempDir`] alongside the handle.
     pub async fn setup(self) -> Result<(SequencerHandle, TempDir)> {
@@ -88,10 +104,16 @@ impl SequencerSetup {
             channel_id,
             genesis_transactions,
             cross_zone,
+            bedrock_signing_key,
         } = self;
 
         debug!("Using sequencer home at {}", home.display());
 
+        if let Some(key_bytes) = bedrock_signing_key {
+            std::fs::write(home.join("bedrock_signing_key"), key_bytes)
+                .context("Failed to write pre-generated bedrock signing key")?;
+        }
+
         let genesis_transactions = if let Some(genesis) = genesis_transactions {
             genesis
         } else {
@@ -119,7 +141,7 @@ impl SequencerSetup {
         )
         .context("Failed to create Sequencer config")?;
 
-        sequencer_service::run(config, 0)
+        sequencer_service::run(config, SocketAddr::from(([127, 0, 0, 1], 0)))
             .await
             .context("Failed to run Sequencer Service")
     }
@@ -139,6 +161,24 @@ fn load_prebuilt_dump() -> Result<DbDump> {
     DbDump::from_bytes(&bytes).context("Failed to deserialize prebuilt db dump")
 }
 
+/// Builds an HTTP RPC client for the sequencer at `addr`.
+pub fn sequencer_client(addr: SocketAddr) -> Result<SequencerClient> {
+    let url = config::addr_to_url(config::UrlProtocol::Http, addr)
+        .context("Failed to build sequencer URL")?;
+    SequencerClientBuilder::default()
+        .build(url)
+        .context("Failed to build sequencer client")
+}
+
+/// Builds a WebSocket RPC client for the indexer at `addr`.
+pub async fn indexer_client(addr: SocketAddr) -> Result<IndexerClient> {
+    let url = config::addr_to_url(config::UrlProtocol::Ws, addr)
+        .context("Failed to build indexer URL")?;
+    IndexerClient::new(&url)
+        .await
+        .context("Failed to build indexer client")
+}
+
 pub async fn setup_bedrock_node() -> Result<(DockerCompose, SocketAddr)> {
     let manifest_dir = env!("CARGO_MANIFEST_DIR");
     let bedrock_compose_path = PathBuf::from(manifest_dir).join("../bedrock/docker-compose.yml");