diff --git a/.gitignore b/.gitignore
index 5c51faa..ed00c96 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,2 +1,4 @@
 .idea/
 **/.DS_Store
+nodes.db
+masternode.conf
\ No newline at end of file
diff --git a/README.md b/README.md
index bfe9bbf..6796c1c 100644
--- a/README.md
+++ b/README.md
@@ -153,6 +153,8 @@ There is a coinconf generator included that can auto-generate settings for most
     	The string to use for the sentinel version number (i.e. 1.20.0) (default "0.0.0")
   -user_agent
       The user agent string to connect to remote peers with.
+  -db_path
+      The destination for database storage (default path is ./peers.db)
 ```
 
 ## Building (using Docker)
diff --git a/cmd/phantom/main.go b/cmd/phantom/main.go
index 86f5d81..a6a1b32 100644
--- a/cmd/phantom/main.go
+++ b/cmd/phantom/main.go
@@ -34,6 +34,7 @@ import (
 	"flag"
 	"fmt"
 	"github.com/btcsuite/btcd/chaincfg/chainhash"
+	"github.com/jackkdev/phantom/pkg/storage"
 	"log"
 	"github.com/breakcrypto/phantom/pkg/socket/wire"
 	"github.com/breakcrypto/phantom/pkg/phantom"
@@ -90,7 +91,6 @@ func main() {
 
 	flag.StringVar(&userAgent, "user_agent", "@_breakcrypto phantom", "The user agent string to connect to remote peers with.")
 
-
 	flag.Parse()
 
 	if coinConfString != "" {
@@ -291,6 +291,14 @@ func processNewHashes(hashChannel chan chainhash.Hash, queue *phantom.Queue) {
 }
 
 func processNewAddresses(addrChannel chan wire.NetAddress, peerSet map[string]wire.NetAddress) {
+
+	// init database
+	db, err := storage.SetupDB()
+	if err != nil {
+		log.Fatal("an error occurred:", err)
+		return
+	}
+
 	for {
 		addr := <-addrChannel
 
@@ -299,23 +307,47 @@ func processNewAddresses(addrChannel chan wire.NetAddress, peerSet map[string]wi
 		}
 
 		peerSet[addr.IP.String()] = addr
+
+		err = storage.AddPeer(db, addr.IP.String())
 	}
+
+	// close db connection
+	defer db.Close()
+
 }
 
-func getNextPeer(connectionSet map[string]*phantom.PingerConnection, peerSet map[string]wire.NetAddress) (returnValue wire.NetAddress, err error) {
-	for peer := range peerSet {
-		if _, ok := connectionSet[peer]; !ok {
-			//we have a peer that isn't in the conncetion list return it
-			returnValue = peerSet[peer]
+func getNextPeer(peerSet map[string]wire.NetAddress) (returnValue wire.NetAddress, err error) {
 
-			//remove the peer from the connection list
-			delete(peerSet, peer)
+	// load the database
+	db, err := storage.SetupDB()
+	if err != nil {
+		log.Fatal("an error occurred:", err)
+		return
+	}
 
-			log.Println("Found new peer: ", peer)
+	// fetch my peers
+	list, err := storage.FetchPeers(db)
+	fmt.Println(list)
 
-			return returnValue, nil
-		}
+	for i := 0; i <= len(list); i++ {
+		returnValue = peerSet[list[i]]
 	}
+
+	// LEFT FOR NOW UNTIL FURTHER TESTING IS COMPLETE
+	//for peer := range peerSet {
+	//	if _, ok := connectionSet[peer]; !ok {
+	//		//we have a peer that isn't in the conncetion list return it
+	//		returnValue = peerSet[peer]
+	//
+	//		//remove the peer from the connection list
+	//		delete(peerSet, peer)
+	//
+	//		log.Println("Found new peer: ", peer)
+	//
+	//		return returnValue, nil
+	//	}
+	//}
+
 	return returnValue, errors.New("No peers found.")
 }
 
@@ -376,7 +408,7 @@ func sendPings(connectionSet map[string]*phantom.PingerConnection, peerSet map[s
 			for i := 0; i < int(maxConnections) - len(connectionSet); i++ {
 
 				//spawn off a new connection
-				peer, err := getNextPeer(connectionSet, peerSet)
+				peer, err := getNextPeer(peerSet)
 
 				if err != nil {
 					log.Println("No new peers found.")
diff --git a/pkg/storage/storage.go b/pkg/storage/storage.go
new file mode 100644
index 0000000..4b58bcc
--- /dev/null
+++ b/pkg/storage/storage.go
@@ -0,0 +1,84 @@
+package storage
+
+import(
+	"fmt"
+	"log"
+	"github.com/boltdb/bolt"
+	"github.com/satori/go.uuid"
+	//"github.com/breakcrypto/phantom/pkg/socket/wire"
+)
+
+// set up the database file
+func SetupDB() (*bolt.DB, error) {
+	db, err := bolt.Open("nodes.db", 0600, nil)
+	if err != nil {
+		return nil, fmt.Errorf("could not open db, %v", err)
+	}
+
+	err = db.Update(func(tx *bolt.Tx) error {
+		root, err := tx.CreateBucketIfNotExists([]byte("peers"))
+		if err != nil {
+			return fmt.Errorf("could not create root bucket: %v", err)
+		}
+
+		_, err = root.CreateBucketIfNotExists([]byte("nodes"))
+		if err != nil {
+			return fmt.Errorf("could not create peers bucket: %v", err)
+		}
+
+		return nil
+	})
+
+	if err != nil {
+		return nil, fmt.Errorf("could not set up buckets, %v", err)
+	}
+
+	log.Println("Database setup complete...")
+	return db, nil
+}
+
+// add a peer (in string format) to the database
+func AddPeer(db *bolt.DB, peer string) error {
+
+	// generate a uuid for the key
+	id := uuid.Must(uuid.NewV4()).String()
+
+	err := db.Update(func(tx *bolt.Tx) error {
+		err := tx.Bucket([]byte("peers")).Bucket([]byte("nodes")).Put([]byte(id), []byte(peer))
+		if err != nil {
+			return fmt.Errorf("could not insert peer: %v", err)
+		}
+
+		return nil
+	})
+
+	fmt.Println("Added peer to database:", peer)
+	return err
+}
+
+// retrieve all stored peers
+func FetchPeers(db *bolt.DB) ([]string, error) {
+
+	var list []string
+
+	err := db.View(func(tx *bolt.Tx) error {
+		b := tx.Bucket([]byte("peers")).Bucket([]byte("nodes"))
+		b.ForEach(func(k, v []byte) error {
+			fmt.Println("Loaded from database:", string(k), string(v))
+
+			// load into array
+			list = append(list, string(v))
+
+			return nil
+		})
+		fmt.Println(list)
+
+		return nil
+	})
+
+	if err != nil {
+		log.Fatal(err)
+	}
+
+	return list, nil
+}
\ No newline at end of file