diff --git a/transaction_pool.go b/transaction_pool.go
new file mode 100644
index 000000000..f645afd06
--- /dev/null
+++ b/transaction_pool.go
@@ -0,0 +1,161 @@
+package main
+
+import (
+	"container/list"
+	"errors"
+	"github.com/ethereum/ethutil-go"
+	"log"
+	"math/big"
+	"sync"
+)
+
+const (
+	txPoolQueueSize = 50
+)
+
+func FindTx(pool *list.List, finder func(*ethutil.Transaction, *list.Element) bool) *ethutil.Transaction {
+	for e := pool.Front(); e != nil; e = e.Next() {
+		if tx, ok := e.Value.(*ethutil.Transaction); ok {
+			if finder(tx, e) {
+				return tx
+			}
+		}
+	}
+
+	return nil
+}
+
+// The tx pool a thread safe transaction pool handler. In order to
+// guarantee a non blocking pool we use a queue channel which can be
+// independently read without needing access to the actual pool. If the
+// pool is being drained or synced for whatever reason the transactions
+// will simple queue up and handled when the mutex is freed.
+type TxPool struct {
+	server *Server
+	// The mutex for accessing the Tx pool.
+	mutex sync.Mutex
+	// Queueing channel for reading and writing incoming
+	// transactions to
+	queueChan chan *ethutil.Transaction
+	// Quiting channel
+	quit chan bool
+
+	pool *list.List
+}
+
+func NewTxPool(s *Server) *TxPool {
+	return &TxPool{
+		server:    s,
+		mutex:     sync.Mutex{},
+		pool:      list.New(),
+		queueChan: make(chan *ethutil.Transaction, txPoolQueueSize),
+		quit:      make(chan bool),
+	}
+}
+
+// Blocking function. Don't use directly. Use QueueTransaction instead
+func (pool *TxPool) addTransaction(tx *ethutil.Transaction) {
+	pool.mutex.Lock()
+	defer pool.mutex.Unlock()
+
+	pool.pool.PushBack(tx)
+}
+
+// Process transaction validates the Tx and processes funds from the
+// sender to the recipient.
+func (pool *TxPool) processTransaction(tx *ethutil.Transaction) error {
+	// Get the last block so we can retrieve the sender and receiver from
+	// the merkle trie
+	block := pool.server.blockManager.bc.LastBlock
+	// Something has gone horribly wrong if this happens
+	if block == nil {
+		return errors.New("No last block on the block chain")
+	}
+
+	var sender, receiver *ethutil.Ether
+
+	// Get the sender
+	data := block.State().Get(string(tx.Sender()))
+	// If it doesn't exist create a new account. Of course trying to send funds
+	// from this account will fail since it will hold 0 Wei
+	if data == "" {
+		sender = ethutil.NewEther(big.NewInt(0))
+	} else {
+		sender = ethutil.NewEtherFromData([]byte(data))
+	}
+	// Defer the update. Whatever happens it should be persisted
+	defer block.State().Update(string(tx.Sender()), string(sender.RlpEncode()))
+
+	// Make sure there's enough in the sender's account. Having insufficient
+	// funds won't invalidate this transaction but simple ignores it.
+	if sender.Amount.Cmp(tx.Value) < 0 {
+		return errors.New("Insufficient amount in sender's account")
+	}
+
+	// Subtract the amount from the senders account
+	sender.Amount.Sub(sender.Amount, tx.Value)
+	// Increment the nonce making each tx valid only once to prevent replay
+	// attacks
+	sender.Nonce += 1
+
+	// Get the receiver
+	data = block.State().Get(tx.Recipient)
+	// If the receiver doesn't exist yet, create a new account to which the
+	// funds will be send.
+	if data == "" {
+		receiver = ethutil.NewEther(big.NewInt(0))
+	} else {
+		receiver = ethutil.NewEtherFromData([]byte(data))
+	}
+	// Defer the update
+	defer block.State().Update(tx.Recipient, string(receiver.RlpEncode()))
+
+	// Add the amount to receivers account which should conclude this transaction
+	receiver.Amount.Add(receiver.Amount, tx.Value)
+
+	return nil
+}
+
+func (pool *TxPool) queueHandler() {
+out:
+	for {
+		select {
+		case tx := <-pool.queueChan:
+			// Process the transaction
+			err := pool.processTransaction(tx)
+			if err != nil {
+				log.Println("Error processing Tx", err)
+			} else {
+				// Call blocking version. At this point it
+				// doesn't matter since this is a goroutine
+				pool.addTransaction(tx)
+			}
+		case <-pool.quit:
+			break out
+		}
+	}
+}
+
+func (pool *TxPool) QueueTransaction(tx *ethutil.Transaction) {
+	pool.queueChan <- tx
+}
+
+func (pool *TxPool) Flush() {
+	pool.mutex.Lock()
+
+	defer pool.mutex.Unlock()
+
+	pool.mutex.Unlock()
+}
+
+func (pool *TxPool) Start() {
+	go pool.queueHandler()
+}
+
+func (pool *TxPool) Stop() {
+	log.Println("[TXP] Stopping...")
+
+	close(pool.quit)
+
+	pool.Flush()
+}