diff --git a/.cspell.json b/.cspell.json
index da0e8d0f65..125ad6ab84 100644
--- a/.cspell.json
+++ b/.cspell.json
@@ -64,6 +64,7 @@
     "kdfparams",
     "keccak",
     "keypair",
+    "lamport",
     "lastpub",
     "libauth",
     "libp",
diff --git a/package-lock.json b/package-lock.json
index 226f8833db..3af4c070b1 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -6937,7 +6937,6 @@
       "version": "1.7.1",
       "resolved": "https://registry.npmjs.org/@noble/hashes/-/hashes-1.7.1.tgz",
       "integrity": "sha512-B8XBPsn4vT/KJAGqDzbwztd+6Yte3P4V7iafm24bxgDe/mlRuK6xmWPuCNrKt2vDafZ8MfJLlchDG/vYafQEjQ==",
-      "license": "MIT",
       "engines": {
         "node": "^14.21.3 || >=16"
       },
@@ -42781,6 +42780,10 @@
       "version": "0.0.1",
       "license": "MIT OR Apache-2.0",
       "dependencies": {
+        "@noble/hashes": "^1.7.1",
+        "@waku/message-hash": "^0.1.17",
+        "@waku/proto": "^0.0.8",
+        "@waku/utils": "^0.0.21",
         "chai": "^5.1.2"
       },
       "devDependencies": {
diff --git a/packages/proto/src/index.ts b/packages/proto/src/index.ts
index 4dc3f16ba9..598708e1f0 100644
--- a/packages/proto/src/index.ts
+++ b/packages/proto/src/index.ts
@@ -15,3 +15,5 @@ export * as proto_store from './generated/store_v3.js'
 export * as proto_peer_exchange from "./generated/peer_exchange.js";
 
 export * as proto_metadata from './generated/metadata.js'
+
+export * as proto_sds_message from './generated/sds_message.js'
\ No newline at end of file
diff --git a/packages/sds/.mocharc.cjs b/packages/sds/.mocharc.cjs
index b61a6aaee5..480b30d613 100644
--- a/packages/sds/.mocharc.cjs
+++ b/packages/sds/.mocharc.cjs
@@ -8,7 +8,7 @@ const config = {
     'loader=ts-node/esm'
   ],
   exit: true,
-  retries: 4
+  retries: 2
 };
 
 if (process.env.CI) {
diff --git a/packages/sds/package.json b/packages/sds/package.json
index a7fe4f303e..69b7743151 100644
--- a/packages/sds/package.json
+++ b/packages/sds/package.json
@@ -59,6 +59,10 @@
         "node": ">=20"
     },
     "dependencies": {
+        "@noble/hashes": "^1.7.1",
+        "@waku/message-hash": "^0.1.17",
+        "@waku/proto": "^0.0.8",
+        "@waku/utils": "^0.0.21",
         "chai": "^5.1.2"
     },
     "devDependencies": {
diff --git a/packages/sds/src/bloom.spec.ts b/packages/sds/src/bloom.spec.ts
index c37ac4215e..22d6991302 100644
--- a/packages/sds/src/bloom.spec.ts
+++ b/packages/sds/src/bloom.spec.ts
@@ -1,7 +1,6 @@
 import { expect } from "chai";
 
-import { BloomFilter } from "./bloom.js";
-import { hashN } from "./nim_hashn/nim_hashn.mjs";
+import { BloomFilter, DefaultBloomFilter } from "./bloom.js";
 
 const n = 10000;
 const sampleChars =
@@ -20,13 +19,10 @@ describe("BloomFilter", () => {
   let testElements: string[];
 
   beforeEach(() => {
-    bloomFilter = new BloomFilter(
-      {
-        capacity: n,
-        errorRate: 0.001
-      },
-      hashN
-    );
+    bloomFilter = new DefaultBloomFilter({
+      capacity: n,
+      errorRate: 0.001
+    });
 
     testElements = new Array<string>(n);
 
@@ -55,15 +51,12 @@ describe("BloomFilter", () => {
     expect(bloomFilter.kHashes).to.equal(10);
     expect(bloomFilter.totalBits / n).to.equal(15);
 
-    const bloomFilter2 = new BloomFilter(
-      {
-        capacity: 10000,
-        errorRate: 0.001,
-        kHashes: 4,
-        forceNBitsPerElem: 20
-      },
-      hashN
-    );
+    const bloomFilter2 = new DefaultBloomFilter({
+      capacity: 10000,
+      errorRate: 0.001,
+      kHashes: 4,
+      forceNBitsPerElem: 20
+    });
     expect(bloomFilter2.kHashes).to.equal(4);
     expect(bloomFilter2.totalBits).to.equal(200000);
   });
@@ -107,6 +100,17 @@ describe("BloomFilter", () => {
       expect(bloomFilter.lookup(item)).to.equal(true);
     }
   });
+
+  it("should serialize and deserialize correctly", () => {
+    const serialized = bloomFilter.toBytes();
+    const deserialized = DefaultBloomFilter.fromBytes(
+      serialized,
+      bloomFilter.options
+    );
+    for (const item of testElements) {
+      expect(deserialized.lookup(item)).to.equal(true);
+    }
+  });
 });
 
 describe("BloomFilter with special patterns", () => {
@@ -114,13 +118,10 @@ describe("BloomFilter with special patterns", () => {
   const inserted: string[] = [];
 
   beforeEach(() => {
-    bloomFilter = new BloomFilter(
-      {
-        capacity: n,
-        errorRate: 0.001
-      },
-      hashN
-    );
+    bloomFilter = new DefaultBloomFilter({
+      capacity: n,
+      errorRate: 0.001
+    });
   });
 
   it("should handle special patterns correctly", () => {
diff --git a/packages/sds/src/bloom.ts b/packages/sds/src/bloom.ts
index 78eb8fcd79..97cbed4a91 100644
--- a/packages/sds/src/bloom.ts
+++ b/packages/sds/src/bloom.ts
@@ -1,3 +1,4 @@
+import { hashN } from "./nim_hashn/nim_hashn.mjs";
 import { getMOverNBitsForK } from "./probabilities.js";
 
 export interface BloomFilterOptions {
@@ -30,11 +31,15 @@ export class BloomFilter {
   public kHashes: number;
   public errorRate: number;
 
+  public options: BloomFilterOptions;
+
   private hashN: (item: string, n: number, maxValue: number) => number;
   public constructor(
     options: BloomFilterOptions,
     hashN: (item: string, n: number, maxValue: number) => number
   ) {
+    this.options = options;
+
     let nBitsPerElem: number;
     let k = options.kHashes ?? 0;
     const forceNBitsPerElem = options.forceNBitsPerElem ?? 0;
@@ -103,4 +108,39 @@ export class BloomFilter {
     }
     return true;
   }
+
+  public toBytes(): Uint8Array {
+    const buffer = new ArrayBuffer(this.data.length * 8);
+    const view = new DataView(buffer);
+    for (let i = 0; i < this.data.length; i++) {
+      view.setBigInt64(i * 8, this.data[i]);
+    }
+    return new Uint8Array(buffer);
+  }
+
+  public static fromBytes(
+    bytes: Uint8Array,
+    options: BloomFilterOptions,
+    hashN: (item: string, n: number, maxValue: number) => number
+  ): BloomFilter {
+    const bloomFilter = new BloomFilter(options, hashN);
+    const view = new DataView(bytes.buffer);
+    for (let i = 0; i < bloomFilter.data.length; i++) {
+      bloomFilter.data[i] = view.getBigUint64(i * 8, false);
+    }
+    return bloomFilter;
+  }
+}
+
+export class DefaultBloomFilter extends BloomFilter {
+  public constructor(options: BloomFilterOptions) {
+    super(options, hashN);
+  }
+
+  public static fromBytes(
+    bytes: Uint8Array,
+    options: BloomFilterOptions
+  ): DefaultBloomFilter {
+    return BloomFilter.fromBytes(bytes, options, hashN);
+  }
 }
diff --git a/packages/sds/src/nim_hashn/nim_hashn.d.ts b/packages/sds/src/nim_hashn/nim_hashn.mjs.d.ts
similarity index 100%
rename from packages/sds/src/nim_hashn/nim_hashn.d.ts
rename to packages/sds/src/nim_hashn/nim_hashn.mjs.d.ts
diff --git a/packages/sds/src/sds.spec.ts b/packages/sds/src/sds.spec.ts
new file mode 100644
index 0000000000..0a22563cd7
--- /dev/null
+++ b/packages/sds/src/sds.spec.ts
@@ -0,0 +1,333 @@
+import { utf8ToBytes } from "@waku/utils/bytes";
+import { expect } from "chai";
+
+import { DefaultBloomFilter } from "./bloom.js";
+import {
+  DEFAULT_BLOOM_FILTER_OPTIONS,
+  Message,
+  MessageChannel
+} from "./sds.js";
+
+const channelId = "test-channel";
+const callback = (_message: Message): boolean => {
+  return true;
+};
+
+const getBloomFilter = (channel: MessageChannel): DefaultBloomFilter => {
+  return (channel as any).filter as DefaultBloomFilter;
+};
+
+const messagesA = ["message-1", "message-2"];
+const messagesB = [
+  "message-3",
+  "message-4",
+  "message-5",
+  "message-6",
+  "message-7"
+];
+
+describe("MessageChannel", function () {
+  this.timeout(5000);
+  let channelA: MessageChannel;
+  let channelB: MessageChannel;
+
+  describe("sending a message ", () => {
+    beforeEach(() => {
+      channelA = new MessageChannel(channelId);
+    });
+
+    it("should increase lamport timestamp", () => {
+      const timestampBefore = (channelA as any).lamportTimestamp;
+      channelA.sendMessage(new Uint8Array(), callback);
+      const timestampAfter = (channelA as any).lamportTimestamp;
+      expect(timestampAfter).to.equal(timestampBefore + 1);
+    });
+
+    it("should push the message to the outgoing buffer", () => {
+      const bufferLengthBefore = (channelA as any).outgoingBuffer.length;
+      channelA.sendMessage(new Uint8Array(), callback);
+      const bufferLengthAfter = (channelA as any).outgoingBuffer.length;
+      expect(bufferLengthAfter).to.equal(bufferLengthBefore + 1);
+    });
+
+    it("should insert message into bloom filter", () => {
+      const messageId = MessageChannel.getMessageId(new Uint8Array());
+      channelA.sendMessage(new Uint8Array(), callback);
+      const bloomFilter = getBloomFilter(channelA);
+      expect(bloomFilter.lookup(messageId)).to.equal(true);
+    });
+
+    it("should insert message id into causal history", () => {
+      const expectedTimestamp = (channelA as any).lamportTimestamp + 1;
+      const messageId = MessageChannel.getMessageId(new Uint8Array());
+      channelA.sendMessage(new Uint8Array(), callback);
+      const messageIdLog = (channelA as any).messageIdLog as {
+        timestamp: number;
+        messageId: string;
+      }[];
+      expect(messageIdLog.length).to.equal(1);
+      expect(
+        messageIdLog.some(
+          (log) =>
+            log.timestamp === expectedTimestamp && log.messageId === messageId
+        )
+      ).to.equal(true);
+    });
+
+    it("should attach causal history and bloom filter to each message", () => {
+      const bloomFilter = new DefaultBloomFilter(DEFAULT_BLOOM_FILTER_OPTIONS);
+      const causalHistorySize = (channelA as any).causalHistorySize;
+      const filterBytes = new Array<Uint8Array>();
+      const messages = new Array<string>(causalHistorySize + 5)
+        .fill("message")
+        .map((message, index) => `${message}-${index}`);
+
+      messages.forEach((message) => {
+        filterBytes.push(bloomFilter.toBytes());
+        channelA.sendMessage(utf8ToBytes(message), callback);
+        bloomFilter.insert(MessageChannel.getMessageId(utf8ToBytes(message)));
+      });
+
+      const outgoingBuffer = (channelA as any).outgoingBuffer as Message[];
+      expect(outgoingBuffer.length).to.equal(messages.length);
+
+      outgoingBuffer.forEach((message, index) => {
+        expect(message.content).to.deep.equal(utf8ToBytes(messages[index]));
+        // Correct bloom filter should be attached to each message
+        expect(message.bloomFilter).to.deep.equal(filterBytes[index]);
+      });
+
+      // Causal history should only contain the last N messages as defined by causalHistorySize
+      const causalHistory = outgoingBuffer[outgoingBuffer.length - 1]
+        .causalHistory as string[];
+      expect(causalHistory.length).to.equal(causalHistorySize);
+
+      const expectedCausalHistory = messages
+        .slice(-causalHistorySize - 1, -1)
+        .map((message) => MessageChannel.getMessageId(utf8ToBytes(message)));
+      expect(causalHistory).to.deep.equal(expectedCausalHistory);
+    });
+  });
+
+  describe("receiving a message", () => {
+    beforeEach(() => {
+      channelA = new MessageChannel(channelId);
+      channelB = new MessageChannel(channelId);
+    });
+
+    it("should increase lamport timestamp", () => {
+      const timestampBefore = (channelA as any).lamportTimestamp;
+      channelB.sendMessage(new Uint8Array(), (message) => {
+        channelA.receiveMessage(message);
+        return true;
+      });
+      const timestampAfter = (channelA as any).lamportTimestamp;
+      expect(timestampAfter).to.equal(timestampBefore + 1);
+    });
+
+    it("should update lamport timestamp if greater than current timestamp and dependencies are met", () => {
+      messagesA.forEach((m) => {
+        channelA.sendMessage(utf8ToBytes(m), callback);
+      });
+      messagesB.forEach((m) => {
+        channelB.sendMessage(utf8ToBytes(m), (message) => {
+          channelA.receiveMessage(message);
+          return true;
+        });
+      });
+      const timestampAfter = (channelA as any).lamportTimestamp;
+      expect(timestampAfter).to.equal(messagesB.length);
+    });
+
+    it("should maintain proper timestamps if all messages received", () => {
+      let timestamp = 0;
+      messagesA.forEach((m) => {
+        channelA.sendMessage(utf8ToBytes(m), (message) => {
+          timestamp++;
+          channelB.receiveMessage(message);
+          expect((channelB as any).lamportTimestamp).to.equal(timestamp);
+          return true;
+        });
+      });
+
+      messagesB.forEach((m) => {
+        channelB.sendMessage(utf8ToBytes(m), (message) => {
+          timestamp++;
+          channelA.receiveMessage(message);
+          expect((channelA as any).lamportTimestamp).to.equal(timestamp);
+          return true;
+        });
+      });
+
+      const expectedLength = messagesA.length + messagesB.length;
+      expect((channelA as any).lamportTimestamp).to.equal(expectedLength);
+      expect((channelA as any).lamportTimestamp).to.equal(
+        (channelB as any).lamportTimestamp
+      );
+    });
+
+    it("should add received messages to bloom filter", () => {
+      messagesA.forEach((m) => {
+        channelA.sendMessage(utf8ToBytes(m), (message) => {
+          channelB.receiveMessage(message);
+          const bloomFilter = getBloomFilter(channelB);
+          expect(bloomFilter.lookup(message.messageId)).to.equal(true);
+          return true;
+        });
+      });
+    });
+
+    it("should add to incoming buffer if dependencies are not met", () => {
+      messagesA.forEach((m) => {
+        channelA.sendMessage(utf8ToBytes(m), callback);
+      });
+
+      let receivedMessage: Message | null = null;
+      const timestampBefore = (channelB as any).lamportTimestamp;
+
+      channelA.sendMessage(utf8ToBytes(messagesB[0]), (message) => {
+        receivedMessage = message;
+        channelB.receiveMessage(message);
+        return true;
+      });
+
+      const incomingBuffer = (channelB as any).incomingBuffer as Message[];
+      expect(incomingBuffer.length).to.equal(1);
+      expect(incomingBuffer[0].messageId).to.equal(receivedMessage!.messageId);
+
+      // Since the dependency is not met, the lamport timestamp should not increase
+      const timestampAfter = (channelB as any).lamportTimestamp;
+      expect(timestampAfter).to.equal(timestampBefore);
+
+      // Message should not be in local history
+      const localHistory = (channelB as any).messageIdLog as {
+        timestamp: number;
+        messageId: string;
+      }[];
+      expect(
+        localHistory.some((m) => m.messageId === receivedMessage!.messageId)
+      ).to.equal(false);
+    });
+  });
+
+  describe("reviewing ack status", () => {
+    beforeEach(() => {
+      channelA = new MessageChannel(channelId);
+      channelB = new MessageChannel(channelId);
+    });
+
+    it("should mark all messages in causal history as acknowledged", () => {
+      messagesA.forEach((m) => {
+        channelA.sendMessage(utf8ToBytes(m), (message) => {
+          channelB.receiveMessage(message);
+          return true;
+        });
+      });
+
+      let notInHistory: Message | null = null;
+      channelA.sendMessage(utf8ToBytes("not-in-history"), (message) => {
+        notInHistory = message;
+        return true;
+      });
+
+      expect((channelA as any).outgoingBuffer.length).to.equal(
+        messagesA.length + 1
+      );
+
+      channelB.sendMessage(utf8ToBytes(messagesB[0]), (message) => {
+        channelA.receiveMessage(message);
+        return true;
+      });
+
+      // Since messagesA are in causal history of channel B's message
+      // they should be gone from channel A's outgoing buffer
+      // and notInHistory should still be in the outgoing buffer
+      const outgoingBuffer = (channelA as any).outgoingBuffer as Message[];
+      expect(outgoingBuffer.length).to.equal(1);
+      expect(outgoingBuffer[0].messageId).to.equal(notInHistory!.messageId);
+    });
+
+    it("should track probabilistic acknowledgements of messages received in bloom filter", () => {
+      const acknowledgementCount = (channelA as any).acknowledgementCount;
+
+      const causalHistorySize = (channelA as any).causalHistorySize;
+
+      const unacknowledgedMessages = [
+        "unacknowledged-message-1",
+        "unacknowledged-message-2"
+      ];
+      const messages = [...messagesA, ...messagesB.slice(0, -1)];
+      // Send messages to be received by channel B
+      messages.forEach((m) => {
+        channelA.sendMessage(utf8ToBytes(m), (message) => {
+          channelB.receiveMessage(message);
+          return true;
+        });
+      });
+
+      // Send messages not received by channel B
+      unacknowledgedMessages.forEach((m) => {
+        channelA.sendMessage(utf8ToBytes(m), callback);
+      });
+
+      // Channel B sends a message to channel A
+      channelB.sendMessage(
+        utf8ToBytes(messagesB[messagesB.length - 1]),
+        (message) => {
+          channelA.receiveMessage(message);
+          return true;
+        }
+      );
+
+      const acknowledgements: ReadonlyMap<string, number> = (channelA as any)
+        .acknowledgements;
+      // Other than the message IDs which were included in causal history,
+      // the remaining messages sent by channel A should be considered possibly acknowledged
+      // for having been included in the bloom filter sent from channel B
+      const expectedAcknowledgementsSize = messages.length - causalHistorySize;
+      if (expectedAcknowledgementsSize <= 0) {
+        throw new Error("expectedAcknowledgementsSize must be greater than 0");
+      }
+      expect(acknowledgements.size).to.equal(expectedAcknowledgementsSize);
+      // Channel B only included the last N messages in causal history
+      messages.slice(0, -causalHistorySize).forEach((m) => {
+        expect(
+          acknowledgements.get(MessageChannel.getMessageId(utf8ToBytes(m)))
+        ).to.equal(1);
+      });
+
+      // Messages that never reached channel B should not be acknowledged
+      unacknowledgedMessages.forEach((m) => {
+        expect(
+          acknowledgements.has(MessageChannel.getMessageId(utf8ToBytes(m)))
+        ).to.equal(false);
+      });
+
+      // When channel C sends more messages, it will include all the same messages
+      // in the bloom filter as before, which should mark them as fully acknowledged in channel A
+      for (let i = 1; i < acknowledgementCount; i++) {
+        // Send messages until acknowledgement count is reached
+        channelB.sendMessage(utf8ToBytes(`x-${i}`), (message) => {
+          channelA.receiveMessage(message);
+          return true;
+        });
+      }
+
+      // No more partial acknowledgements should be in channel A
+      expect(acknowledgements.size).to.equal(0);
+
+      // Messages that were not acknowledged should still be in the outgoing buffer
+      expect((channelA as any).outgoingBuffer.length).to.equal(
+        unacknowledgedMessages.length
+      );
+      unacknowledgedMessages.forEach((m) => {
+        expect(
+          ((channelA as any).outgoingBuffer as Message[]).some(
+            (message) =>
+              message.messageId === MessageChannel.getMessageId(utf8ToBytes(m))
+          )
+        ).to.equal(true);
+      });
+    });
+  });
+});
diff --git a/packages/sds/src/sds.ts b/packages/sds/src/sds.ts
new file mode 100644
index 0000000000..1643c272b5
--- /dev/null
+++ b/packages/sds/src/sds.ts
@@ -0,0 +1,190 @@
+import { sha256 } from "@noble/hashes/sha256";
+import { bytesToHex } from "@noble/hashes/utils";
+import { proto_sds_message } from "@waku/proto";
+
+import { DefaultBloomFilter } from "./bloom.js";
+
+export type Message = proto_sds_message.SdsMessage;
+export type ChannelId = string;
+
+export const DEFAULT_BLOOM_FILTER_OPTIONS = {
+  capacity: 10000,
+  errorRate: 0.001
+};
+
+const DEFAULT_CAUSAL_HISTORY_SIZE = 2;
+
+export class MessageChannel {
+  private lamportTimestamp: number;
+  private filter: DefaultBloomFilter;
+  private outgoingBuffer: Message[];
+  private acknowledgements: Map<string, number>;
+  private incomingBuffer: Message[];
+  private messageIdLog: { timestamp: number; messageId: string }[];
+  private channelId: ChannelId;
+  private causalHistorySize: number;
+  private acknowledgementCount: number;
+
+  public constructor(
+    channelId: ChannelId,
+    causalHistorySize: number = DEFAULT_CAUSAL_HISTORY_SIZE
+  ) {
+    this.channelId = channelId;
+    this.lamportTimestamp = 0;
+    this.filter = new DefaultBloomFilter(DEFAULT_BLOOM_FILTER_OPTIONS);
+    this.outgoingBuffer = [];
+    this.acknowledgements = new Map();
+    this.incomingBuffer = [];
+    this.messageIdLog = [];
+    this.causalHistorySize = causalHistorySize;
+    this.acknowledgementCount = this.getAcknowledgementCount();
+  }
+
+  public static getMessageId(payload: Uint8Array): string {
+    return bytesToHex(sha256(payload));
+  }
+
+  /**
+   * Send a message to the SDS channel.
+   *
+   * Increments the lamport timestamp, constructs a `Message` object
+   * with the given payload, and adds it to the outgoing buffer.
+   *
+   * If the callback is successful, the message is also added to
+   * the bloom filter and message history. In the context of
+   * Waku, this likely means the message was published via
+   * light push or relay.
+   *
+   * See https://rfc.vac.dev/vac/raw/sds/#send-message
+   *
+   * @param payload - The payload to send.
+   * @param callback - A callback function that returns a boolean indicating whether the message was sent successfully.
+   */
+  public sendMessage(
+    payload: Uint8Array,
+    callback?: (message: Message) => boolean
+  ): void {
+    this.lamportTimestamp++;
+
+    const messageId = MessageChannel.getMessageId(payload);
+
+    const message: Message = {
+      messageId,
+      channelId: this.channelId,
+      lamportTimestamp: this.lamportTimestamp,
+      causalHistory: this.messageIdLog
+        .slice(-this.causalHistorySize)
+        .map(({ messageId }) => messageId),
+      bloomFilter: this.filter.toBytes(),
+      content: payload
+    };
+
+    this.outgoingBuffer.push(message);
+
+    if (callback) {
+      const success = callback(message);
+      if (success) {
+        this.filter.insert(messageId);
+        this.messageIdLog.push({ timestamp: this.lamportTimestamp, messageId });
+      }
+    }
+  }
+
+  /**
+   * Process a received SDS message for this channel.
+   *
+   * Review the acknowledgement status of messages in the outgoing buffer
+   * by inspecting the received message's bloom filter and causal history.
+   * Add the received message to the bloom filter.
+   * If the local history contains every message in the received message's
+   * causal history, deliver the message. Otherwise, add the message to the
+   * incoming buffer.
+   *
+   * See https://rfc.vac.dev/vac/raw/sds/#receive-message
+   *
+   * @param message - The received SDS message.
+   */
+  public receiveMessage(message: Message): void {
+    // review ack status
+    this.reviewAckStatus(message);
+    // add to bloom filter
+    this.filter.insert(message.messageId);
+    // verify causal history
+    const dependenciesMet = message.causalHistory.every((messageId) =>
+      this.messageIdLog.some(
+        ({ messageId: logMessageId }) => logMessageId === messageId
+      )
+    );
+    if (!dependenciesMet) {
+      this.incomingBuffer.push(message);
+    } else {
+      this.deliverMessage(message);
+    }
+  }
+
+  // See https://rfc.vac.dev/vac/raw/sds/#deliver-message
+  private deliverMessage(message: Message): void {
+    const messageLamportTimestamp = message.lamportTimestamp ?? 0;
+    if (messageLamportTimestamp > this.lamportTimestamp) {
+      this.lamportTimestamp = messageLamportTimestamp;
+    }
+
+    // The participant MUST insert the message ID into its local log,
+    // based on Lamport timestamp.
+    // If one or more message IDs with the same Lamport timestamp already exists,
+    // the participant MUST follow the Resolve Conflicts procedure.
+    // https://rfc.vac.dev/vac/raw/sds/#resolve-conflicts
+    this.messageIdLog.push({
+      timestamp: messageLamportTimestamp,
+      messageId: message.messageId
+    });
+    this.messageIdLog.sort((a, b) => {
+      if (a.timestamp !== b.timestamp) {
+        return a.timestamp - b.timestamp;
+      }
+      return a.messageId.localeCompare(b.messageId);
+    });
+  }
+
+  // See https://rfc.vac.dev/vac/raw/sds/#review-ack-status
+  private reviewAckStatus(receivedMessage: Message): void {
+    // the participant MUST mark all messages in the received causal_history as acknowledged.
+    receivedMessage.causalHistory.forEach((messageId) => {
+      this.outgoingBuffer = this.outgoingBuffer.filter(
+        (msg) => msg.messageId !== messageId
+      );
+      this.acknowledgements.delete(messageId);
+      if (!this.filter.lookup(messageId)) {
+        this.filter.insert(messageId);
+      }
+    });
+    // the participant MUST mark all messages included in the bloom_filter as possibly acknowledged
+    if (!receivedMessage.bloomFilter) {
+      return;
+    }
+    const messageBloomFilter = DefaultBloomFilter.fromBytes(
+      receivedMessage.bloomFilter,
+      this.filter.options
+    );
+    this.outgoingBuffer = this.outgoingBuffer.filter((message) => {
+      if (!messageBloomFilter.lookup(message.messageId)) {
+        return true;
+      }
+      // If a message appears as possibly acknowledged in multiple received bloom filters,
+      // the participant MAY mark it as acknowledged based on probabilistic grounds,
+      // taking into account the bloom filter size and hash number.
+      const count = (this.acknowledgements.get(message.messageId) ?? 0) + 1;
+      if (count < this.acknowledgementCount) {
+        this.acknowledgements.set(message.messageId, count);
+        return true;
+      }
+      this.acknowledgements.delete(message.messageId);
+      return false;
+    });
+  }
+
+  // TODO: this should be determined based on the bloom filter parameters and number of hashes
+  private getAcknowledgementCount(): number {
+    return 2;
+  }
+}
diff --git a/packages/sds/tsconfig.json b/packages/sds/tsconfig.json
index eebbc51585..cb9dbbfe2b 100644
--- a/packages/sds/tsconfig.json
+++ b/packages/sds/tsconfig.json
@@ -3,7 +3,9 @@
   "compilerOptions": {
     "outDir": "dist/",
     "rootDir": "src",
-    "tsBuildInfoFile": "dist/.tsbuildinfo"
+    "tsBuildInfoFile": "dist/.tsbuildinfo",
+    "allowJs": true,
+    "moduleResolution": "node"
   },
   "include": ["src"],
   "exclude": ["src/**/*.spec.ts", "src/test_utils"]