diff --git a/Cargo.toml b/Cargo.toml
index 3a6c5779..c3a0590f 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -13,6 +13,7 @@ members = [
     "nomos-da/reed-solomon",
     "nomos-da/kzg",
     "nomos-da/full-replication",
+    "nomos-http-api",
     "nomos-cli",
     "nodes/nomos-node",
     "nodes/mixnode",
diff --git a/nomos-http-api/Cargo.toml b/nomos-http-api/Cargo.toml
new file mode 100644
index 00000000..11562005
--- /dev/null
+++ b/nomos-http-api/Cargo.toml
@@ -0,0 +1,22 @@
+[package]
+name = "nomos-http-api"
+version = "0.1.0"
+edition = "2021"
+
+# See more keys and their definitions at https://doc.rust-lang.org/cargo/reference/manifest.html
+
+[dependencies]
+async-trait = "0.1"
+overwatch-rs = { git = "https://github.com/logos-co/Overwatch", branch = "main" }
+overwatch-derive = { git = "https://github.com/logos-co/Overwatch", branch = "main" }
+tracing = "0.1"
+
+[dev-dependencies]
+axum = "0.6.20"
+tokio = { version = "1.32", features = ["full"] }
+hyper = { version = "*", features = ["full"] }
+utoipa = "3.5"
+reqwest = { version = "0.11", features = ["blocking", "json"] }
+serde = { version = "1", features = ["derive"] }
+serde_json = "1"
+utoipa-swagger-ui = { version = "3.1", features = ["axum"] }
diff --git a/nomos-http-api/src/lib.rs b/nomos-http-api/src/lib.rs
new file mode 100644
index 00000000..5aa6a8c3
--- /dev/null
+++ b/nomos-http-api/src/lib.rs
@@ -0,0 +1,63 @@
+use overwatch_rs::{
+    services::{
+        handle::ServiceStateHandle,
+        relay::NoMessage,
+        state::{NoOperator, NoState},
+        ServiceCore, ServiceData,
+    },
+    DynError,
+};
+
+/// A simple abstraction so that we can easily
+/// change the underlying http server
+#[async_trait::async_trait]
+pub trait Backend {
+    type Error: std::error::Error + Send + Sync + 'static;
+    type Settings: Clone + Send + Sync + 'static;
+
+    async fn new(settings: Self::Settings) -> Result<Self, Self::Error>
+    where
+        Self: Sized;
+
+    async fn serve(self) -> Result<(), Self::Error>;
+}
+
+#[derive(Debug, Clone)]
+pub struct ApiServiceSettings<S> {
+    pub backend_settings: S,
+}
+
+pub struct ApiService<B: Backend> {
+    settings: ApiServiceSettings<B::Settings>,
+}
+
+impl<B: Backend> ServiceData for ApiService<B> {
+    const SERVICE_ID: overwatch_rs::services::ServiceId = "nomos-api";
+
+    type Settings = ApiServiceSettings<B::Settings>;
+
+    type State = NoState<Self::Settings>;
+
+    type StateOperator = NoOperator<Self::State>;
+
+    type Message = NoMessage;
+}
+
+#[async_trait::async_trait]
+impl<B> ServiceCore for ApiService<B>
+where
+    B: Backend + Send + Sync + 'static,
+{
+    /// Initialize the service with the given state
+    fn init(service_state: ServiceStateHandle<Self>) -> Result<Self, DynError> {
+        let settings = service_state.settings_reader.get_updated_settings();
+        Ok(Self { settings })
+    }
+
+    /// Service main loop
+    async fn run(mut self) -> Result<(), DynError> {
+        let endpoint = B::new(self.settings.backend_settings).await?;
+        endpoint.serve().await?;
+        Ok(())
+    }
+}
diff --git a/nomos-http-api/tests/todo.rs b/nomos-http-api/tests/todo.rs
new file mode 100644
index 00000000..aae85c24
--- /dev/null
+++ b/nomos-http-api/tests/todo.rs
@@ -0,0 +1,361 @@
+use std::{
+    net::{Ipv4Addr, SocketAddr},
+    sync::Arc,
+    time::Duration,
+};
+
+use axum::{routing, Router, Server};
+use hyper::Error;
+use nomos_http_api::{ApiService, ApiServiceSettings, Backend};
+use overwatch_derive::Services;
+use overwatch_rs::{overwatch::OverwatchRunner, services::handle::ServiceHandle};
+use utoipa::{
+    openapi::security::{ApiKey, ApiKeyValue, SecurityScheme},
+    Modify, OpenApi,
+};
+use utoipa_swagger_ui::SwaggerUi;
+
+use crate::todo::Store;
+
+#[derive(Services)]
+pub struct NomosApi {
+    http: ServiceHandle<ApiService<WebServer>>,
+}
+
+#[derive(OpenApi)]
+#[openapi(
+    paths(
+        todo::list_todos,
+        todo::search_todos,
+        todo::create_todo,
+        todo::mark_done,
+        todo::delete_todo,
+    ),
+    components(
+        schemas(todo::Todo, todo::TodoError)
+    ),
+    modifiers(&SecurityAddon),
+    tags(
+        (name = "todo", description = "Todo items management API")
+    )
+)]
+struct ApiDoc;
+
+struct SecurityAddon;
+
+impl Modify for SecurityAddon {
+    fn modify(&self, openapi: &mut utoipa::openapi::OpenApi) {
+        if let Some(components) = openapi.components.as_mut() {
+            components.add_security_scheme(
+                "api_key",
+                SecurityScheme::ApiKey(ApiKey::Header(ApiKeyValue::new("todo_apikey"))),
+            )
+        }
+    }
+}
+
+pub struct WebServer {
+    addr: SocketAddr,
+}
+
+#[async_trait::async_trait]
+impl Backend for WebServer {
+    type Error = hyper::Error;
+
+    type Settings = SocketAddr;
+
+    async fn new(settings: Self::Settings) -> Result<Self, Self::Error>
+    where
+        Self: Sized,
+    {
+        Ok(Self { addr: settings })
+    }
+
+    async fn serve(self) -> Result<(), Self::Error> {
+        let store = Arc::new(Store::default());
+        let app = Router::new()
+            .merge(SwaggerUi::new("/swagger-ui").url("/api-docs/openapi.json", ApiDoc::openapi()))
+            .route(
+                "/todo",
+                routing::get(todo::list_todos).post(todo::create_todo),
+            )
+            .route("/todo/search", routing::get(todo::search_todos))
+            .route(
+                "/todo/:id",
+                routing::put(todo::mark_done).delete(todo::delete_todo),
+            )
+            .with_state(store);
+
+        Server::bind(&self.addr)
+            .serve(app.into_make_service())
+            .await
+    }
+}
+
+#[test]
+fn test_todo() -> Result<(), Error> {
+    let addr = SocketAddr::new(Ipv4Addr::LOCALHOST.into(), 8080);
+
+    // have to spawn the server in a separate thread because the overwatch limitation
+    std::thread::spawn(move || {
+        let app = OverwatchRunner::<NomosApi>::run(
+            NomosApiServiceSettings {
+                http: ApiServiceSettings {
+                    backend_settings: addr,
+                },
+            },
+            None,
+        )
+        .unwrap();
+        app.wait_finished();
+    });
+
+    std::thread::sleep(Duration::from_secs(1));
+    let client = reqwest::blocking::Client::new();
+
+    let response = client
+        .get(format!("http://{}/swagger-ui", addr))
+        .send()
+        .unwrap();
+
+    assert!(response.status().is_success());
+
+    Ok(())
+}
+
+mod todo {
+    use std::sync::Arc;
+
+    use axum::{
+        extract::{Path, Query, State},
+        response::IntoResponse,
+        Json,
+    };
+    use hyper::{HeaderMap, StatusCode};
+    use serde::{Deserialize, Serialize};
+    use tokio::sync::Mutex;
+    use utoipa::{IntoParams, ToSchema};
+
+    /// In-memory todo store
+    pub(super) type Store = Mutex<Vec<Todo>>;
+
+    /// Item to do.
+    #[derive(Serialize, Deserialize, ToSchema, Clone)]
+    pub(super) struct Todo {
+        id: i32,
+        #[schema(example = "Buy groceries")]
+        value: String,
+        done: bool,
+    }
+
+    /// Todo operation errors
+    #[derive(Serialize, Deserialize, ToSchema)]
+    pub(super) enum TodoError {
+        /// Todo already exists conflict.
+        #[schema(example = "Todo already exists")]
+        Conflict(String),
+        /// Todo not found by id.
+        #[schema(example = "id = 1")]
+        NotFound(String),
+        /// Todo operation unauthorized
+        #[schema(example = "missing api key")]
+        Unauthorized(String),
+    }
+
+    /// List all Todo items
+    ///
+    /// List all Todo items from in-memory storage.
+    #[utoipa::path(
+      get,
+      path = "/todo",
+      responses(
+          (status = 200, description = "List all todos successfully", body = [Todo])
+      )
+  )]
+    pub(super) async fn list_todos(State(store): State<Arc<Store>>) -> Json<Vec<Todo>> {
+        let todos = store.lock().await.clone();
+
+        Json(todos)
+    }
+
+    /// Todo search query
+    #[derive(Deserialize, IntoParams)]
+    pub(super) struct TodoSearchQuery {
+        /// Search by value. Search is incase sensitive.
+        value: String,
+        /// Search by `done` status.
+        done: bool,
+    }
+
+    /// Search Todos by query params.
+    ///
+    /// Search `Todo`s by query params and return matching `Todo`s.
+    #[utoipa::path(
+      get,
+      path = "/todo/search",
+      params(
+          TodoSearchQuery
+      ),
+      responses(
+          (status = 200, description = "List matching todos by query", body = [Todo])
+      )
+  )]
+    pub(super) async fn search_todos(
+        State(store): State<Arc<Store>>,
+        query: Query<TodoSearchQuery>,
+    ) -> Json<Vec<Todo>> {
+        Json(
+            store
+                .lock()
+                .await
+                .iter()
+                .filter(|todo| {
+                    todo.value.to_lowercase() == query.value.to_lowercase()
+                        && todo.done == query.done
+                })
+                .cloned()
+                .collect(),
+        )
+    }
+
+    /// Create new Todo
+    ///
+    /// Tries to create a new Todo item to in-memory storage or fails with 409 conflict if already exists.
+    #[utoipa::path(
+      post,
+      path = "/todo",
+      request_body = Todo,
+      responses(
+          (status = 201, description = "Todo item created successfully", body = Todo),
+          (status = 409, description = "Todo already exists", body = TodoError)
+      )
+  )]
+    pub(super) async fn create_todo(
+        State(store): State<Arc<Store>>,
+        Json(todo): Json<Todo>,
+    ) -> impl IntoResponse {
+        let mut todos = store.lock().await;
+
+        todos
+            .iter_mut()
+            .find(|existing_todo| existing_todo.id == todo.id)
+            .map(|found| {
+                (
+                    StatusCode::CONFLICT,
+                    Json(TodoError::Conflict(format!(
+                        "todo already exists: {}",
+                        found.id
+                    ))),
+                )
+                    .into_response()
+            })
+            .unwrap_or_else(|| {
+                todos.push(todo.clone());
+
+                (StatusCode::CREATED, Json(todo)).into_response()
+            })
+    }
+
+    /// Mark Todo item done by id
+    ///
+    /// Mark Todo item done by given id. Return only status 200 on success or 404 if Todo is not found.
+    #[utoipa::path(
+      put,
+      path = "/todo/{id}",
+      responses(
+          (status = 200, description = "Todo marked done successfully"),
+          (status = 404, description = "Todo not found")
+      ),
+      params(
+          ("id" = i32, Path, description = "Todo database id")
+      ),
+      security(
+          (), // <-- make optional authentication
+          ("api_key" = [])
+      )
+  )]
+    pub(super) async fn mark_done(
+        Path(id): Path<i32>,
+        State(store): State<Arc<Store>>,
+        headers: HeaderMap,
+    ) -> StatusCode {
+        match check_api_key(false, headers) {
+            Ok(_) => (),
+            Err(_) => return StatusCode::UNAUTHORIZED,
+        }
+
+        let mut todos = store.lock().await;
+
+        todos
+            .iter_mut()
+            .find(|todo| todo.id == id)
+            .map(|todo| {
+                todo.done = true;
+                StatusCode::OK
+            })
+            .unwrap_or(StatusCode::NOT_FOUND)
+    }
+
+    /// Delete Todo item by id
+    ///
+    /// Delete Todo item from in-memory storage by id. Returns either 200 success of 404 with TodoError if Todo is not found.
+    #[utoipa::path(
+      delete,
+      path = "/todo/{id}",
+      responses(
+          (status = 200, description = "Todo marked done successfully"),
+          (status = 401, description = "Unauthorized to delete Todo", body = TodoError, example = json!(TodoError::Unauthorized(String::from("missing api key")))),
+          (status = 404, description = "Todo not found", body = TodoError, example = json!(TodoError::NotFound(String::from("id = 1"))))
+      ),
+      params(
+          ("id" = i32, Path, description = "Todo database id")
+      ),
+      security(
+          ("api_key" = [])
+      )
+  )]
+    pub(super) async fn delete_todo(
+        Path(id): Path<i32>,
+        State(store): State<Arc<Store>>,
+        headers: HeaderMap,
+    ) -> impl IntoResponse {
+        match check_api_key(true, headers) {
+            Ok(_) => (),
+            Err(error) => return error.into_response(),
+        }
+
+        let mut todos = store.lock().await;
+
+        let len = todos.len();
+
+        todos.retain(|todo| todo.id != id);
+
+        if todos.len() != len {
+            StatusCode::OK.into_response()
+        } else {
+            (
+                StatusCode::NOT_FOUND,
+                Json(TodoError::NotFound(format!("id = {id}"))),
+            )
+                .into_response()
+        }
+    }
+
+    // normally you should create a middleware for this but this is sufficient for sake of example.
+    fn check_api_key(
+        require_api_key: bool,
+        headers: HeaderMap,
+    ) -> Result<(), (StatusCode, Json<TodoError>)> {
+        match headers.get("todo_apikey") {
+            Some(header) if header != "utoipa-rocks" => Err((
+                StatusCode::UNAUTHORIZED,
+                Json(TodoError::Unauthorized(String::from("incorrect api key"))),
+            )),
+            None if require_api_key => Err((
+                StatusCode::UNAUTHORIZED,
+                Json(TodoError::Unauthorized(String::from("missing api key"))),
+            )),
+            _ => Ok(()),
+        }
+    }
+}