diff --git a/libethereum/Dagger.cpp b/libethereum/Dagger.cpp
new file mode 100644
index 000000000..bb87b4916
--- /dev/null
+++ b/libethereum/Dagger.cpp
@@ -0,0 +1,86 @@
+#include <boost/detail/endian.hpp>
+#include <chrono>
+#include <array>
+#include <sha3.h>
+#include <random>
+#include "Common.h"
+#include "Dagger.h"
+using namespace std;
+using namespace std::chrono;
+using namespace eth;
+
+Dagger::Dagger(u256 _hash): m_hash(_hash)
+{
+}
+
+Dagger::~Dagger()
+{
+}
+
+u256 Dagger::search(uint _msTimeout, u256 _diff)
+{
+	static mt19937_64 s_engine((std::random_device())());
+	u256 bound = (u256)((bigint(1) << 256) / _diff);
+
+	auto start = steady_clock::now();
+
+	while (steady_clock::now() - start < milliseconds(_msTimeout))
+		for (uint sp = std::uniform_int_distribution<uint>()(s_engine), j = 0; j < 1000; ++j, ++sp)
+			if (eval(sp) < bound)
+				return sp;
+	return 0;
+}
+
+template <class _T>
+inline void update(_T& _sha, u256 const& _value)
+{
+	std::array<byte, 32> buf;
+	toBigEndian(_value, buf);
+	_sha.Update(buf.data(), 32);
+}
+
+template <class _T>
+inline u256 get(_T& _sha)
+{
+	byte buf[32];
+	_sha.TruncatedFinal(buf, 32);
+	return fromBigEndian<u256>(bytesConstRef(buf, 32));
+}
+
+u256 Dagger::node(uint_fast32_t _L, uint_fast32_t _i) const
+{
+	if (!_L && !_i)
+		return m_hash;
+	u256 m = (_L == 9) ? 16 : 3;
+	CryptoPP::SHA3_256 bsha;
+	for (uint_fast32_t k = 0; k < m; ++k)
+	{
+		CryptoPP::SHA3_256 sha;
+		update(sha, m_hash);
+		update(sha, m_xn);
+		update(sha, (u256)_L);
+		update(sha, (u256)_i);
+		update(sha, (u256)k);
+		uint_fast32_t pk = (uint_fast32_t)get(sha) & ((1 << ((_L - 1) * 3)) - 1);
+		update(bsha, node(_L - 1, pk));
+	}
+	return get(bsha);
+}
+
+u256 Dagger::eval(u256 _N)
+{
+	m_xn = _N >> 26;				// with xn = floor(n / 2^26) -> assuming this is with xn = floor(N / 2^26)
+	CryptoPP::SHA3_256 bsha;
+	for (uint_fast32_t k = 0; k < 4; ++k)
+	{
+		//sha256(D || xn || i || k)		-> sha256(D || xn || k)	- there's no 'i' here!
+		CryptoPP::SHA3_256 sha;
+		update(sha, m_hash);
+		update(sha, m_xn);
+		update(sha, _N);
+		update(sha, (u256)k);
+		uint_fast32_t pk = (uint_fast32_t)get(sha) & 0x1ffffff;	// mod 8^8 * 2  [ == mod 2^25 ?! ] [ == & ((1 << 25) - 1) ] [ == & 0x1ffffff ]
+		update(bsha, node(9, pk));
+	}
+	return get(bsha);
+}
diff --git a/libethereum/Dagger.h b/libethereum/Dagger.h
new file mode 100644
index 000000000..59884ded5
--- /dev/null
+++ b/libethereum/Dagger.h
@@ -0,0 +1,26 @@
+#pragma once
+
+#include "Common.h"
+
+namespace eth
+{
+
+/// Functions are not re-entrant. If you want to multi-thread, then use different classes for each thread.
+class Dagger
+{
+public:
+	Dagger(u256 _hash);
+	~Dagger();
+	
+	u256 node(uint_fast32_t _L, uint_fast32_t _i) const;
+	u256 eval(u256 _N);
+	u256 search(uint _msTimeout, u256 _diff);
+
+private:
+	u256 m_hash;
+	u256 m_xn;
+};
+
+}
+
+
diff --git a/test/main.cpp b/test/main.cpp
index 551b21abb..2216e8776 100644
--- a/test/main.cpp
+++ b/test/main.cpp
@@ -21,18 +21,28 @@
  */
 
 #include <random>
+#include <chrono>
 #include <Common.h>
 #include <secp256k1.h>
+#include "Dagger.h"
 #include "RLP.h"
 #include "Trie.h"
 #include "State.h"
 using namespace std;
+using namespace std::chrono;
 using namespace eth;
 
 // TODO: utilise the shared testdata.
 
 int main()
 {
+	// Test dagger
+	{
+		Dagger d(1);
+		auto s = steady_clock::now();
+		cout << hex << d.eval(0);
+		cout << " " << dec << duration_cast<milliseconds>(steady_clock::now() - s).count() << " ms" << endl;
+	}
 /*
 	// Test transaction.
 	bytes tx = fromUserHex("88005401010101010101010101010101010101010101011f0de0b6b3a76400001ce8d4a5100080181c373130a009ba1f10285d4e659568bfcfec85067855c5a3c150100815dad4ef98fd37cf0593828c89db94bd6c64e210a32ef8956eaa81ea9307194996a3b879441f5d");