diff --git a/peer/peer.go b/peer/peer.go
index a7b925802fa..9202cf9e85d 100644
--- a/peer/peer.go
+++ b/peer/peer.go
@@ -29,7 +29,7 @@ import (
 
 const (
 	// MaxProtocolVersion is the max protocol version the peer supports.
-	MaxProtocolVersion = wire.FeeFilterVersion
+	MaxProtocolVersion = wire.AddrV2Version
 
 	// DefaultTrickleInterval is the min time between attempts to send an
 	// inv message to a peer.
@@ -102,6 +102,9 @@ type MessageListeners struct {
 	// OnAddr is invoked when a peer receives an addr bitcoin message.
 	OnAddr func(p *Peer, msg *wire.MsgAddr)
 
+	// OnAddrV2 is invoked when a peer receives an addrv2 bitcoin message.
+	OnAddrV2 func(p *Peer, msg *wire.MsgAddrV2)
+
 	// OnPing is invoked when a peer receives a ping bitcoin message.
 	OnPing func(p *Peer, msg *wire.MsgPing)
 
@@ -197,6 +200,9 @@ type MessageListeners struct {
 	// message.
 	OnSendHeaders func(p *Peer, msg *wire.MsgSendHeaders)
 
+	// OnSendAddrV2 is invoked when a peer receives a sendaddrv2 message.
+	OnSendAddrV2 func(p *Peer, msg *wire.MsgSendAddrV2)
+
 	// OnRead is invoked when a peer receives a bitcoin message.  It
 	// consists of the number of bytes read, the message, and whether or not
 	// an error in the read occurred.  Typically, callers will opt to use
@@ -399,7 +405,7 @@ type AddrFunc func(remoteAddr *wire.NetAddress) *wire.NetAddress
 // HostToNetAddrFunc is a func which takes a host, port, services and returns
 // the netaddress.
 type HostToNetAddrFunc func(host string, port uint16,
-	services wire.ServiceFlag) (*wire.NetAddress, error)
+	services wire.ServiceFlag) (*wire.NetAddressV2, error)
 
 // NOTE: The overall data flow of a peer is split into 3 goroutines.  Inbound
 // messages are read via the inHandler goroutine and generally dispatched to
@@ -445,7 +451,7 @@ type Peer struct {
 	inbound bool
 
 	flagsMtx             sync.Mutex // protects the peer flags below
-	na                   *wire.NetAddress
+	na                   *wire.NetAddressV2
 	id                   int32
 	userAgent            string
 	services             wire.ServiceFlag
@@ -455,6 +461,7 @@ type Peer struct {
 	sendHeadersPreferred bool   // peer sent a sendheaders message
 	verAckReceived       bool
 	witnessEnabled       bool
+	sendAddrV2           bool
 
 	wireEncoding wire.MessageEncoding
 
@@ -585,7 +592,7 @@ func (p *Peer) ID() int32 {
 // NA returns the peer network address.
 //
 // This function is safe for concurrent access.
-func (p *Peer) NA() *wire.NetAddress {
+func (p *Peer) NA() *wire.NetAddressV2 {
 	p.flagsMtx.Lock()
 	na := p.na
 	p.flagsMtx.Unlock()
@@ -820,6 +827,16 @@ func (p *Peer) IsWitnessEnabled() bool {
 	return witnessEnabled
 }
 
+// WantsAddrV2 returns if the peer supports addrv2 messages instead of the
+// legacy addr messages.
+func (p *Peer) WantsAddrV2() bool {
+	p.flagsMtx.Lock()
+	wantsAddrV2 := p.sendAddrV2
+	p.flagsMtx.Unlock()
+
+	return wantsAddrV2
+}
+
 // PushAddrMsg sends an addr message to the connected peer using the provided
 // addresses.  This function is useful over manually sending the message via
 // QueueMessage since it automatically limits the addresses to the maximum
@@ -856,6 +873,40 @@ func (p *Peer) PushAddrMsg(addresses []*wire.NetAddress) ([]*wire.NetAddress, er
 	return msg.AddrList, nil
 }
 
+// PushAddrV2Msg is used to push an addrv2 message to the remote peer.
+//
+// This function is safe for concurrent access.
+func (p *Peer) PushAddrV2Msg(addrs []*wire.NetAddressV2) (
+	[]*wire.NetAddressV2, error) {
+
+	count := len(addrs)
+
+	// Nothing to send.
+	if count == 0 {
+		return nil, nil
+	}
+
+	m := wire.NewMsgAddrV2()
+	m.AddrList = make([]*wire.NetAddressV2, count)
+	copy(m.AddrList, addrs)
+
+	// Randomize the addresses sent if there are more than the maximum.
+	if count > wire.MaxV2AddrPerMsg {
+		// Shuffle the address list.
+		for i := 0; i < wire.MaxV2AddrPerMsg; i++ {
+			j := i + rand.Intn(count-i)
+			m.AddrList[i] = m.AddrList[j]
+			m.AddrList[j] = m.AddrList[i]
+		}
+
+		// Truncate it to the maximum size.
+		m.AddrList = m.AddrList[:wire.MaxV2AddrPerMsg]
+	}
+
+	p.QueueMessage(m, nil)
+	return m.AddrList, nil
+}
+
 // PushGetBlocksMsg sends a getblocks message for the provided block locator
 // and stop hash.  It will ignore back-to-back duplicate requests.
 //
@@ -1363,6 +1414,19 @@ out:
 				continue
 			}
 
+			// Since the protocol version is 70016 but we don't
+			// implement compact blocks, we have to ignore unknown
+			// messages after the version-verack handshake. This
+			// matches bitcoind's behavior and is necessary since
+			// compact blocks negotiation occurs after the
+			// handshake.
+			if err == wire.ErrUnknownMessage {
+				log.Debugf("Received unknown message from %s:"+
+					" %v", p, err)
+				idleTimer.Reset(idleTimeout)
+				continue
+			}
+
 			// Only log the error and send reject message if the
 			// local peer is not forcibly disconnecting and the
 			// remote peer has not disconnected.
@@ -1404,6 +1468,11 @@ out:
 			)
 			break out
 
+		case *wire.MsgSendAddrV2:
+			// Disconnect if peer sends this after the handshake is
+			// completed.
+			break out
+
 		case *wire.MsgGetAddr:
 			if p.cfg.Listeners.OnGetAddr != nil {
 				p.cfg.Listeners.OnGetAddr(p, msg)
@@ -1414,6 +1483,11 @@ out:
 				p.cfg.Listeners.OnAddr(p, msg)
 			}
 
+		case *wire.MsgAddrV2:
+			if p.cfg.Listeners.OnAddrV2 != nil {
+				p.cfg.Listeners.OnAddrV2(p, msg)
+			}
+
 		case *wire.MsgPing:
 			p.handlePingMsg(msg)
 			if p.cfg.Listeners.OnPing != nil {
@@ -1986,29 +2060,8 @@ func (p *Peer) readRemoteVersionMsg() error {
 	return nil
 }
 
-// readRemoteVerAckMsg waits for the next message to arrive from the remote
-// peer. If this message is not a verack message, then an error is returned.
-// This method is to be used as part of the version negotiation upon a new
-// connection.
-func (p *Peer) readRemoteVerAckMsg() error {
-	// Read the next message from the wire.
-	remoteMsg, _, err := p.readMessage(wire.LatestEncoding)
-	if err != nil {
-		return err
-	}
-
-	// It should be a verack message, otherwise send a reject message to the
-	// peer explaining why.
-	msg, ok := remoteMsg.(*wire.MsgVerAck)
-	if !ok {
-		reason := "a verack message must follow version"
-		rejectMsg := wire.NewMsgReject(
-			msg.Command(), wire.RejectMalformed, reason,
-		)
-		_ = p.writeMessage(rejectMsg, wire.LatestEncoding)
-		return errors.New(reason)
-	}
-
+// processRemoteVerAckMsg takes the verack from the remote peer and handles it.
+func (p *Peer) processRemoteVerAckMsg(msg *wire.MsgVerAck) {
 	p.flagsMtx.Lock()
 	p.verAckReceived = true
 	p.flagsMtx.Unlock()
@@ -2016,8 +2069,6 @@ func (p *Peer) readRemoteVerAckMsg() error {
 	if p.cfg.Listeners.OnVerAck != nil {
 		p.cfg.Listeners.OnVerAck(p, msg)
 	}
-
-	return nil
 }
 
 // localVersionMsg creates a version message that can be used to send to the
@@ -2032,7 +2083,15 @@ func (p *Peer) localVersionMsg() (*wire.MsgVersion, error) {
 		}
 	}
 
-	theirNA := p.na
+	theirNA := p.na.ToLegacy()
+
+	// If p.na is a torv3 hidden service address, we'll need to send over
+	// an empty NetAddress for their address.
+	if p.na.IsTorV3() {
+		theirNA = wire.NewNetAddressIPPort(
+			net.IP([]byte{0, 0, 0, 0}), p.na.Port, p.na.Services,
+		)
+	}
 
 	// If we are behind a proxy and the connection comes from the proxy then
 	// we return an unroutable address as their address. This is to prevent
@@ -2040,7 +2099,7 @@ func (p *Peer) localVersionMsg() (*wire.MsgVersion, error) {
 	if p.cfg.Proxy != "" {
 		proxyaddress, _, err := net.SplitHostPort(p.cfg.Proxy)
 		// invalid proxy means poorly configured, be on the safe side.
-		if err != nil || p.na.IP.String() == proxyaddress {
+		if err != nil || p.na.Addr.String() == proxyaddress {
 			theirNA = wire.NewNetAddressIPPort(net.IP([]byte{0, 0, 0, 0}), 0,
 				theirNA.Services)
 		}
@@ -2092,14 +2151,71 @@ func (p *Peer) writeLocalVersionMsg() error {
 	return p.writeMessage(localVerMsg, wire.LatestEncoding)
 }
 
+// writeSendAddrV2Msg writes our sendaddrv2 message to the remote peer if the
+// peer supports protocol version 70016 and above.
+func (p *Peer) writeSendAddrV2Msg(pver uint32) error {
+	if pver < wire.AddrV2Version {
+		return nil
+	}
+
+	sendAddrMsg := wire.NewMsgSendAddrV2()
+	return p.writeMessage(sendAddrMsg, wire.LatestEncoding)
+}
+
+// waitToFinishNegotiation waits until desired negotiation messages are
+// received, recording the remote peer's preference for sendaddrv2 as an
+// example. The list of negotiated features can be expanded in the future. If a
+// verack is received, negotiation stops and the connection is live.
+func (p *Peer) waitToFinishNegotiation(pver uint32) error {
+	// There are several possible messages that can be received here. We
+	// could immediately receive verack and be done with the handshake. We
+	// could receive sendaddrv2 and still have to wait for verack. Or we
+	// can receive unknown messages before and after sendaddrv2 and still
+	// have to wait for verack.
+	for {
+		remoteMsg, _, err := p.readMessage(wire.LatestEncoding)
+		if err == wire.ErrUnknownMessage {
+			continue
+		} else if err != nil {
+			return err
+		}
+
+		switch m := remoteMsg.(type) {
+		case *wire.MsgSendAddrV2:
+			if pver >= wire.AddrV2Version {
+				p.flagsMtx.Lock()
+				p.sendAddrV2 = true
+				p.flagsMtx.Unlock()
+
+				if p.cfg.Listeners.OnSendAddrV2 != nil {
+					p.cfg.Listeners.OnSendAddrV2(p, m)
+				}
+			}
+		case *wire.MsgVerAck:
+			// Receiving a verack means we are done with the
+			// handshake.
+			p.processRemoteVerAckMsg(m)
+			return nil
+		default:
+			// This is triggered if the peer sends, for example, a
+			// GETDATA message during this negotiation.
+			return wire.ErrInvalidHandshake
+		}
+	}
+}
+
 // negotiateInboundProtocol performs the negotiation protocol for an inbound
 // peer. The events should occur in the following order, otherwise an error is
 // returned:
 //
 //   1. Remote peer sends their version.
 //   2. We send our version.
-//   3. We send our verack.
-//   4. Remote peer sends their verack.
+//   3. We send sendaddrv2 if their version is >= 70016.
+//   4. We send our verack.
+//   5. Wait until sendaddrv2 or verack is received. Unknown messages are
+//      skipped as it could be wtxidrelay or a different message in the future
+//      that btcd does not implement but bitcoind does.
+//   6. If remote peer sent sendaddrv2 above, wait until receipt of verack.
 func (p *Peer) negotiateInboundProtocol() error {
 	if err := p.readRemoteVersionMsg(); err != nil {
 		return err
@@ -2109,12 +2225,22 @@ func (p *Peer) negotiateInboundProtocol() error {
 		return err
 	}
 
+	var protoVersion uint32
+	p.flagsMtx.Lock()
+	protoVersion = p.protocolVersion
+	p.flagsMtx.Unlock()
+
+	if err := p.writeSendAddrV2Msg(protoVersion); err != nil {
+		return err
+	}
+
 	err := p.writeMessage(wire.NewMsgVerAck(), wire.LatestEncoding)
 	if err != nil {
 		return err
 	}
 
-	return p.readRemoteVerAckMsg()
+	// Finish the negotiation by waiting for negotiable messages or verack.
+	return p.waitToFinishNegotiation(protoVersion)
 }
 
 // negotiateOutboundProtocol performs the negotiation protocol for an outbound
@@ -2123,8 +2249,11 @@ func (p *Peer) negotiateInboundProtocol() error {
 //
 //   1. We send our version.
 //   2. Remote peer sends their version.
-//   3. Remote peer sends their verack.
+//   3. We send sendaddrv2 if their version is >= 70016.
 //   4. We send our verack.
+//   5. We wait to receive sendaddrv2 or verack, skipping unknown messages as
+//      in the inbound case.
+//   6. If sendaddrv2 was received, wait for receipt of verack.
 func (p *Peer) negotiateOutboundProtocol() error {
 	if err := p.writeLocalVersionMsg(); err != nil {
 		return err
@@ -2134,11 +2263,22 @@ func (p *Peer) negotiateOutboundProtocol() error {
 		return err
 	}
 
-	if err := p.readRemoteVerAckMsg(); err != nil {
+	var protoVersion uint32
+	p.flagsMtx.Lock()
+	protoVersion = p.protocolVersion
+	p.flagsMtx.Unlock()
+
+	if err := p.writeSendAddrV2Msg(protoVersion); err != nil {
+		return err
+	}
+
+	err := p.writeMessage(wire.NewMsgVerAck(), wire.LatestEncoding)
+	if err != nil {
 		return err
 	}
 
-	return p.writeMessage(wire.NewMsgVerAck(), wire.LatestEncoding)
+	// Finish the negotiation by waiting for negotiable messages or verack.
+	return p.waitToFinishNegotiation(protoVersion)
 }
 
 // start begins processing input and output messages.
@@ -2201,7 +2341,12 @@ func (p *Peer) AssociateConnection(conn net.Conn) {
 			p.Disconnect()
 			return
 		}
-		p.na = na
+
+		// Convert the NetAddress created above into NetAddressV2.
+		currentNa := wire.NetAddressV2FromBytes(
+			na.Timestamp, na.Services, na.IP, na.Port,
+		)
+		p.na = currentNa
 	}
 
 	go func() {
@@ -2289,7 +2434,12 @@ func NewOutboundPeer(cfg *Config, addr string) (*Peer, error) {
 		}
 		p.na = na
 	} else {
-		p.na = wire.NewNetAddressIPPort(net.ParseIP(host), uint16(port), 0)
+		// If host is an onion hidden service, it is likely that a
+		// nil-pointer-dereference will occur. Connecting to onion
+		// hidden services should have HostToNetAddress set.
+		p.na = wire.NetAddressV2FromBytes(
+			time.Now(), 0, net.ParseIP(host), uint16(port),
+		)
 	}
 
 	return p, nil
diff --git a/peer/peer_test.go b/peer/peer_test.go
index dd7f36aa3a3..9df90c233dc 100644
--- a/peer/peer_test.go
+++ b/peer/peer_test.go
@@ -289,18 +289,16 @@ func TestPeerConnection(t *testing.T) {
 		{
 			"basic handshake",
 			func() (*peer.Peer, *peer.Peer, error) {
-				inConn, outConn := pipe(
-					&conn{raddr: "10.0.0.1:8333"},
-					&conn{raddr: "10.0.0.2:8333"},
-				)
 				inPeer := peer.NewInboundPeer(peer1Cfg)
-				inPeer.AssociateConnection(inConn)
-
 				outPeer, err := peer.NewOutboundPeer(peer2Cfg, "10.0.0.2:8333")
 				if err != nil {
 					return nil, nil, err
 				}
-				outPeer.AssociateConnection(outConn)
+
+				err = setupPeerConnection(inPeer, outPeer)
+				if err != nil {
+					return nil, nil, err
+				}
 
 				for i := 0; i < 4; i++ {
 					select {
@@ -315,18 +313,16 @@ func TestPeerConnection(t *testing.T) {
 		{
 			"socks proxy",
 			func() (*peer.Peer, *peer.Peer, error) {
-				inConn, outConn := pipe(
-					&conn{raddr: "10.0.0.1:8333", proxy: true},
-					&conn{raddr: "10.0.0.2:8333"},
-				)
 				inPeer := peer.NewInboundPeer(peer1Cfg)
-				inPeer.AssociateConnection(inConn)
-
 				outPeer, err := peer.NewOutboundPeer(peer2Cfg, "10.0.0.2:8333")
 				if err != nil {
 					return nil, nil, err
 				}
-				outPeer.AssociateConnection(outConn)
+
+				err = setupPeerConnection(inPeer, outPeer)
+				if err != nil {
+					return nil, nil, err
+				}
 
 				for i := 0; i < 4; i++ {
 					select {
@@ -359,7 +355,7 @@ func TestPeerConnection(t *testing.T) {
 // TestPeerListeners tests that the peer listeners are called as expected.
 func TestPeerListeners(t *testing.T) {
 	verack := make(chan struct{}, 1)
-	ok := make(chan wire.Message, 20)
+	ok := make(chan wire.Message, 22)
 	peerCfg := &peer.Config{
 		Listeners: peer.MessageListeners{
 			OnGetAddr: func(p *peer.Peer, msg *wire.MsgGetAddr) {
@@ -447,6 +443,12 @@ func TestPeerListeners(t *testing.T) {
 			OnSendHeaders: func(p *peer.Peer, msg *wire.MsgSendHeaders) {
 				ok <- msg
 			},
+			OnSendAddrV2: func(p *peer.Peer, msg *wire.MsgSendAddrV2) {
+				ok <- msg
+			},
+			OnAddrV2: func(p *peer.Peer, msg *wire.MsgAddrV2) {
+				ok <- msg
+			},
 		},
 		UserAgentName:     "peer",
 		UserAgentVersion:  "1.0",
@@ -456,12 +458,7 @@ func TestPeerListeners(t *testing.T) {
 		TrickleInterval:   time.Second * 10,
 		AllowSelfConns:    true,
 	}
-	inConn, outConn := pipe(
-		&conn{raddr: "10.0.0.1:8333"},
-		&conn{raddr: "10.0.0.2:8333"},
-	)
 	inPeer := peer.NewInboundPeer(peerCfg)
-	inPeer.AssociateConnection(inConn)
 
 	peerCfg.Listeners = peer.MessageListeners{
 		OnVerAck: func(p *peer.Peer, msg *wire.MsgVerAck) {
@@ -473,7 +470,12 @@ func TestPeerListeners(t *testing.T) {
 		t.Errorf("NewOutboundPeer: unexpected err %v\n", err)
 		return
 	}
-	outPeer.AssociateConnection(outConn)
+
+	err = setupPeerConnection(inPeer, outPeer)
+	if err != nil {
+		t.Errorf("setupPeerConnection: failed: %v\n", err)
+		return
+	}
 
 	for i := 0; i < 2; i++ {
 		select {
@@ -597,6 +599,14 @@ func TestPeerListeners(t *testing.T) {
 			"OnSendHeaders",
 			wire.NewMsgSendHeaders(),
 		},
+		{
+			"OnSendAddrV2",
+			wire.NewMsgSendAddrV2(),
+		},
+		{
+			"OnAddrV2",
+			wire.NewMsgAddrV2(),
+		},
 	}
 	t.Logf("Running %d tests", len(tests))
 	for _, test := range tests {
@@ -881,17 +891,17 @@ func TestDuplicateVersionMsg(t *testing.T) {
 		Services:         0,
 		AllowSelfConns:   true,
 	}
-	inConn, outConn := pipe(
-		&conn{laddr: "10.0.0.1:9108", raddr: "10.0.0.2:9108"},
-		&conn{laddr: "10.0.0.2:9108", raddr: "10.0.0.1:9108"},
-	)
-	outPeer, err := peer.NewOutboundPeer(peerCfg, inConn.laddr)
+	outPeer, err := peer.NewOutboundPeer(peerCfg, "10.0.0.2:8333")
 	if err != nil {
 		t.Fatalf("NewOutboundPeer: unexpected err: %v\n", err)
 	}
-	outPeer.AssociateConnection(outConn)
 	inPeer := peer.NewInboundPeer(peerCfg)
-	inPeer.AssociateConnection(inConn)
+
+	err = setupPeerConnection(inPeer, outPeer)
+	if err != nil {
+		t.Fatalf("setupPeerConnection failed to connect: %v\n", err)
+	}
+
 	// Wait for the veracks from the initial protocol version negotiation.
 	for i := 0; i < 2; i++ {
 		select {
@@ -947,17 +957,16 @@ func TestUpdateLastBlockHeight(t *testing.T) {
 	remotePeerCfg.NewestBlock = func() (*chainhash.Hash, int32, error) {
 		return &chainhash.Hash{}, remotePeerHeight, nil
 	}
-	inConn, outConn := pipe(
-		&conn{laddr: "10.0.0.1:9108", raddr: "10.0.0.2:9108"},
-		&conn{laddr: "10.0.0.2:9108", raddr: "10.0.0.1:9108"},
-	)
-	localPeer, err := peer.NewOutboundPeer(&peerCfg, inConn.laddr)
+	localPeer, err := peer.NewOutboundPeer(&peerCfg, "10.0.0.2:8333")
 	if err != nil {
 		t.Fatalf("NewOutboundPeer: unexpected err: %v\n", err)
 	}
-	localPeer.AssociateConnection(outConn)
 	inPeer := peer.NewInboundPeer(&remotePeerCfg)
-	inPeer.AssociateConnection(inConn)
+
+	err = setupPeerConnection(inPeer, localPeer)
+	if err != nil {
+		t.Fatalf("setupPeerConnection failed to connect: %v\n", err)
+	}
 
 	// Wait for the veracks from the initial protocol version negotiation.
 	for i := 0; i < 2; i++ {
@@ -989,3 +998,214 @@ func TestUpdateLastBlockHeight(t *testing.T) {
 			remotePeerHeight+1)
 	}
 }
+
+// setupPeerConnection initiates a tcp connection between two peers.
+func setupPeerConnection(in, out *peer.Peer) error {
+	// listenFunc is a function closure that listens for a tcp connection.
+	// The tcp connection will be the one the inbound peer uses. This will
+	// be run as a goroutine.
+	listenFunc := func(l *net.TCPListener, errChan chan error,
+		listenChan chan struct{}) {
+
+		listenChan <- struct{}{}
+
+		conn, err := l.Accept()
+		if err != nil {
+			errChan <- err
+			return
+		}
+
+		in.AssociateConnection(conn)
+		errChan <- nil
+	}
+
+	// dialFunc is a function closure that initiates the tcp connection.
+	// The tcp connection will be the one the outbound peer uses.
+	dialFunc := func(addr *net.TCPAddr) error {
+		conn, err := net.Dial("tcp", addr.String())
+		if err != nil {
+			return err
+		}
+
+		out.AssociateConnection(conn)
+		return nil
+	}
+
+	listenAddr := "localhost:0"
+
+	addr, err := net.ResolveTCPAddr("tcp", listenAddr)
+	if err != nil {
+		return err
+	}
+
+	l, err := net.ListenTCP("tcp", addr)
+	if err != nil {
+		return err
+	}
+
+	errChan := make(chan error, 1)
+	listenChan := make(chan struct{}, 1)
+
+	go listenFunc(l, errChan, listenChan)
+	<-listenChan
+
+	if err := dialFunc(l.Addr().(*net.TCPAddr)); err != nil {
+		return err
+	}
+
+	select {
+	case err = <-errChan:
+		return err
+	case <-time.After(time.Second * 2):
+		return errors.New("failed to create connection")
+	}
+}
+
+// TestSendAddrV2Handshake tests that the version-verack handshake with the
+// addition of the sendaddrv2 message works as expected.
+func TestSendAddrV2Handshake(t *testing.T) {
+	verack := make(chan struct{}, 2)
+	sendaddr := make(chan struct{}, 2)
+	peer1Cfg := &peer.Config{
+		Listeners: peer.MessageListeners{
+			OnVerAck: func(p *peer.Peer, msg *wire.MsgVerAck) {
+				verack <- struct{}{}
+			},
+			OnSendAddrV2: func(p *peer.Peer,
+				msg *wire.MsgSendAddrV2) {
+
+				sendaddr <- struct{}{}
+			},
+		},
+		AllowSelfConns: true,
+		ChainParams:    &chaincfg.MainNetParams,
+	}
+
+	peer2Cfg := &peer.Config{
+		Listeners:      peer1Cfg.Listeners,
+		AllowSelfConns: true,
+		ChainParams:    &chaincfg.MainNetParams,
+	}
+
+	verackErr := errors.New("verack timeout")
+
+	tests := []struct {
+		name      string
+		expectsV2 bool
+		setup     func() (*peer.Peer, *peer.Peer, error)
+	}{
+		{
+			"successful sendaddrv2 handshake",
+			true,
+			func() (*peer.Peer, *peer.Peer, error) {
+				inPeer := peer.NewInboundPeer(peer1Cfg)
+				outPeer, err := peer.NewOutboundPeer(
+					peer2Cfg, "10.0.0.2:8333",
+				)
+				if err != nil {
+					return nil, nil, err
+				}
+
+				err = setupPeerConnection(inPeer, outPeer)
+				if err != nil {
+					return nil, nil, err
+				}
+
+				for i := 0; i < 4; i++ {
+					select {
+					case <-sendaddr:
+					case <-verack:
+					case <-time.After(time.Second * 2):
+						return nil, nil, verackErr
+					}
+				}
+
+				return inPeer, outPeer, nil
+			},
+		},
+		{
+			"handshake with legacy inbound peer",
+			false,
+			func() (*peer.Peer, *peer.Peer, error) {
+				legacyVersion := wire.AddrV2Version - 1
+				peer1Cfg.ProtocolVersion = legacyVersion
+				inPeer := peer.NewInboundPeer(peer1Cfg)
+				outPeer, err := peer.NewOutboundPeer(
+					peer2Cfg, "10.0.0.2:8333",
+				)
+				if err != nil {
+					return nil, nil, err
+				}
+
+				err = setupPeerConnection(inPeer, outPeer)
+				if err != nil {
+					return nil, nil, err
+				}
+
+				for i := 0; i < 2; i++ {
+					select {
+					case <-verack:
+					case <-time.After(time.Second * 2):
+						return nil, nil, verackErr
+					}
+				}
+
+				return inPeer, outPeer, nil
+			},
+		},
+		{
+			"handshake with legacy outbound peer",
+			false,
+			func() (*peer.Peer, *peer.Peer, error) {
+				inPeer := peer.NewInboundPeer(peer1Cfg)
+				legacyVersion := wire.AddrV2Version - 1
+				peer2Cfg.ProtocolVersion = legacyVersion
+				outPeer, err := peer.NewOutboundPeer(
+					peer2Cfg, "10.0.0.2:8333",
+				)
+				if err != nil {
+					return nil, nil, err
+				}
+
+				err = setupPeerConnection(inPeer, outPeer)
+				if err != nil {
+					return nil, nil, err
+				}
+
+				for i := 0; i < 2; i++ {
+					select {
+					case <-verack:
+					case <-time.After(time.Second * 2):
+						return nil, nil, verackErr
+					}
+				}
+
+				return inPeer, outPeer, nil
+			},
+		},
+	}
+
+	t.Logf("Running %d tests", len(tests))
+	for i, test := range tests {
+		inPeer, outPeer, err := test.setup()
+		if err != nil {
+			t.Fatalf("TestSendAddrV2Handshake setup #%d: "+
+				"unexpected err: %v", i, err)
+		}
+
+		if inPeer.WantsAddrV2() != test.expectsV2 {
+			t.Fatalf("TestSendAddrV2Handshake #%d expected "+
+				"wantsAddrV2 to be %v instead was %v", i,
+				test.expectsV2, inPeer.WantsAddrV2())
+		} else if outPeer.WantsAddrV2() != test.expectsV2 {
+			t.Fatalf("TestSendAddrV2Handshake #%d expected "+
+				"wantsAddrV2 to be %v instead was %v", i,
+				test.expectsV2, outPeer.WantsAddrV2())
+		}
+
+		inPeer.Disconnect()
+		outPeer.Disconnect()
+		inPeer.WaitForDisconnect()
+		outPeer.WaitForDisconnect()
+	}
+}
diff --git a/server.go b/server.go
index ebfc58a139e..dc824eef214 100644
--- a/server.go
+++ b/server.go
@@ -344,6 +344,34 @@ func (sp *serverPeer) relayTxDisabled() bool {
 // pushAddrMsg sends an addr message to the connected peer using the provided
 // addresses.
 func (sp *serverPeer) pushAddrMsg(addresses []*wire.NetAddressV2) {
+	if sp.WantsAddrV2() {
+		// If the peer supports addrv2, we'll be pushing an addrv2
+		// message instead. The logic is otherwise identical to the
+		// addr case below.
+		addrs := make([]*wire.NetAddressV2, 0, len(addresses))
+		for _, addr := range addresses {
+			// Filter addresses already known to the peer.
+			if sp.addressKnown(addr) {
+				continue
+			}
+
+			addrs = append(addrs, addr)
+		}
+
+		known, err := sp.PushAddrV2Msg(addrs)
+		if err != nil {
+			peerLog.Errorf("Can't push addrv2 message to %s: %v",
+				sp.Peer, err)
+			sp.Disconnect()
+			return
+		}
+
+		// Add the final set of addresses sent to the set the peer
+		// knows of.
+		sp.addKnownAddresses(known)
+		return
+	}
+
 	addrs := make([]*wire.NetAddress, 0, len(addresses))
 	for _, addr := range addresses {
 		// Filter addresses already known to the peer.
@@ -1328,6 +1356,45 @@ func (sp *serverPeer) OnAddr(_ *peer.Peer, msg *wire.MsgAddr) {
 	sp.server.addrManager.AddAddresses(addrs, sp.NA())
 }
 
+// OnAddrV2 is invoked when a peer receives an addrv2 bitcoin message and is
+// used to notify the server about advertised addresses.
+func (sp *serverPeer) OnAddrV2(_ *peer.Peer, msg *wire.MsgAddrV2) {
+	// Ignore if simnet for the same reasons as the regular addr message.
+	if cfg.SimNet {
+		return
+	}
+
+	// An empty AddrV2 message is invalid.
+	if len(msg.AddrList) == 0 {
+		peerLog.Errorf("Command [%s] from %s does not contain any "+
+			"addresses", msg.Command(), sp.Peer)
+		sp.Disconnect()
+		return
+	}
+
+	for _, na := range msg.AddrList {
+		// Don't add more to the set of known addresses if we're
+		// disconnecting.
+		if !sp.Connected() {
+			return
+		}
+
+		// Set the timestamp to 5 days ago if the timestamp received is
+		// more than 10 minutes in the future so this address is one of
+		// the first to be removed.
+		now := time.Now()
+		if na.Timestamp.After(now.Add(time.Minute * 10)) {
+			na.Timestamp = now.Add(-1 * time.Hour * 24 * 5)
+		}
+
+		// Add to the set of known addresses.
+		sp.addKnownAddresses([]*wire.NetAddressV2{na})
+	}
+
+	// Add the addresses to the addrmanager.
+	sp.server.addrManager.AddAddresses(msg.AddrList, sp.NA())
+}
+
 // OnRead is invoked when a peer receives a message and it is used to update
 // the bytes received by the server.
 func (sp *serverPeer) OnRead(_ *peer.Peer, bytesRead int, msg wire.Message, err error) {
@@ -2074,6 +2141,7 @@ func newPeerConfig(sp *serverPeer) *peer.Config {
 			OnFilterLoad:   sp.OnFilterLoad,
 			OnGetAddr:      sp.OnGetAddr,
 			OnAddr:         sp.OnAddr,
+			OnAddrV2:       sp.OnAddrV2,
 			OnRead:         sp.OnRead,
 			OnWrite:        sp.OnWrite,
 			OnNotFound:     sp.OnNotFound,
diff --git a/wire/message.go b/wire/message.go
index 6d3147a81dd..1f412fa6fa4 100644
--- a/wire/message.go
+++ b/wire/message.go
@@ -32,6 +32,7 @@ const (
 	CmdVerAck       = "verack"
 	CmdGetAddr      = "getaddr"
 	CmdAddr         = "addr"
+	CmdAddrV2       = "addrv2"
 	CmdGetBlocks    = "getblocks"
 	CmdInv          = "inv"
 	CmdGetData      = "getdata"
@@ -78,6 +79,13 @@ const (
 // protocol.
 var LatestEncoding = WitnessEncoding
 
+// ErrUnknownMessage is the error returned when decoding an unknown message.
+var ErrUnknownMessage = fmt.Errorf("received unknown message")
+
+// ErrInvalidHandshake is the error returned when a peer sends us a known
+// message that does not belong in the version-verack handshake.
+var ErrInvalidHandshake = fmt.Errorf("invalid message during handshake")
+
 // Message is an interface that describes a bitcoin message.  A type that
 // implements Message has complete control over the representation of its data
 // and may therefore contain additional or fewer fields than those which
@@ -109,6 +117,9 @@ func makeEmptyMessage(command string) (Message, error) {
 	case CmdAddr:
 		msg = &MsgAddr{}
 
+	case CmdAddrV2:
+		msg = &MsgAddrV2{}
+
 	case CmdGetBlocks:
 		msg = &MsgGetBlocks{}
 
@@ -185,7 +196,7 @@ func makeEmptyMessage(command string) (Message, error) {
 		msg = &MsgCFCheckpt{}
 
 	default:
-		return nil, fmt.Errorf("unhandled command [%s]", command)
+		return nil, ErrUnknownMessage
 	}
 	return msg, nil
 }
@@ -378,9 +389,10 @@ func ReadMessageWithEncodingN(r io.Reader, pver uint32, btcnet BitcoinNet,
 	// Create struct of appropriate message type based on the command.
 	msg, err := makeEmptyMessage(command)
 	if err != nil {
+		// makeEmptyMessage can only return ErrUnknownMessage and it is
+		// important that we bubble it up to the caller.
 		discardInput(r, hdr.length)
-		return totalBytes, nil, nil, messageError("ReadMessage",
-			err.Error())
+		return totalBytes, nil, nil, err
 	}
 
 	// Check for maximum length based on the message type as a malicious client
diff --git a/wire/message_test.go b/wire/message_test.go
index 3a422e66ba0..7ba2e0639fe 100644
--- a/wire/message_test.go
+++ b/wire/message_test.go
@@ -295,7 +295,7 @@ func TestReadMessageWireErrors(t *testing.T) {
 			pver,
 			btcnet,
 			len(unsupportedCommandBytes),
-			&MessageError{},
+			ErrUnknownMessage,
 			24,
 		},
 
@@ -345,7 +345,7 @@ func TestReadMessageWireErrors(t *testing.T) {
 			pver,
 			btcnet,
 			len(discardBytes),
-			&MessageError{},
+			ErrUnknownMessage,
 			24,
 		},
 	}
diff --git a/wire/msgaddrv2.go b/wire/msgaddrv2.go
new file mode 100644
index 00000000000..4db4a1334af
--- /dev/null
+++ b/wire/msgaddrv2.go
@@ -0,0 +1,102 @@
+package wire
+
+import (
+	"fmt"
+	"io"
+)
+
+// MaxV2AddrPerMsg is the maximum number of version 2 addresses that will exist
+// in a single addrv2 message (MsgAddrV2).
+const MaxV2AddrPerMsg = 1000
+
+// MsgAddrV2 implements the Message interface and represents a bitcoin addrv2
+// message that can support longer-length addresses like torv3, cjdns, and i2p.
+// It is used to gossip addresses on the network. Each message is limited to
+// MaxV2AddrPerMsg addresses. This is the same limit as MsgAddr.
+type MsgAddrV2 struct {
+	AddrList []*NetAddressV2
+}
+
+// BtcDecode decodes r using the bitcoin protocol into a MsgAddrV2.
+func (m *MsgAddrV2) BtcDecode(r io.Reader, pver uint32,
+	enc MessageEncoding) error {
+
+	count, err := ReadVarInt(r, pver)
+	if err != nil {
+		return err
+	}
+
+	// Limit to max addresses per message.
+	if count > MaxV2AddrPerMsg {
+		str := fmt.Sprintf("too many addresses for message [count %v,"+
+			" max %v]", count, MaxV2AddrPerMsg)
+		return messageError("MsgAddrV2.BtcDecode", str)
+	}
+
+	addrList := make([]NetAddressV2, count)
+	m.AddrList = make([]*NetAddressV2, 0, count)
+	for i := uint64(0); i < count; i++ {
+		na := &addrList[i]
+		err := readNetAddressV2(r, pver, na)
+		switch err {
+		case ErrSkippedNetworkID:
+			// This may be a network ID we don't know of, but is
+			// still valid. We can safely skip those.
+			continue
+		case ErrInvalidAddressSize:
+			// The encoding used by the peer does not follow
+			// BIP-155 and we should stop processing this message.
+			return err
+		}
+
+		m.AddrList = append(m.AddrList, na)
+	}
+
+	return nil
+}
+
+// BtcEncode encodes the MsgAddrV2 into a writer w.
+func (m *MsgAddrV2) BtcEncode(w io.Writer, pver uint32,
+	enc MessageEncoding) error {
+
+	count := len(m.AddrList)
+	if count > MaxV2AddrPerMsg {
+		str := fmt.Sprintf("too many addresses for message [count %v,"+
+			" max %v]", count, MaxV2AddrPerMsg)
+		return messageError("MsgAddrV2.BtcEncode", str)
+	}
+
+	err := WriteVarInt(w, pver, uint64(count))
+	if err != nil {
+		return err
+	}
+
+	for _, na := range m.AddrList {
+		err = writeNetAddressV2(w, pver, na)
+		if err != nil {
+			return err
+		}
+	}
+
+	return nil
+}
+
+// Command returns the protocol command string for MsgAddrV2.
+func (m *MsgAddrV2) Command() string {
+	return CmdAddrV2
+}
+
+// MaxPayloadLength returns the maximum length payload possible for MsgAddrV2.
+func (m *MsgAddrV2) MaxPayloadLength(pver uint32) uint32 {
+	// The varint that can store the maximum number of addresses is 3 bytes
+	// long. The maximum payload is then 3 + 1000 * maxNetAddressV2Payload.
+	return 3 + (MaxV2AddrPerMsg * maxNetAddressV2Payload())
+}
+
+// NewMsgAddrV2 returns a new bitcoin addrv2 message that conforms to the
+// Message interface.
+func NewMsgAddrV2() *MsgAddrV2 {
+	return &MsgAddrV2{
+		AddrList: make([]*NetAddressV2, 0, MaxV2AddrPerMsg),
+	}
+}
diff --git a/wire/msgaddrv2_test.go b/wire/msgaddrv2_test.go
new file mode 100644
index 00000000000..213d699c96c
--- /dev/null
+++ b/wire/msgaddrv2_test.go
@@ -0,0 +1,73 @@
+package wire
+
+import (
+	"bytes"
+	"io"
+	"testing"
+)
+
+// TestAddrV2Decode checks that decoding an addrv2 message off the wire behaves
+// as expected. This means ignoring certain addresses, and failing in certain
+// failure scenarios.
+func TestAddrV2Decode(t *testing.T) {
+	tests := []struct {
+		buf           []byte
+		expectedError bool
+		expectedAddrs int
+	}{
+		// Exceeding max addresses.
+		{
+			[]byte{0xfd, 0xff, 0xff},
+			true,
+			0,
+		},
+
+		// Invalid address size.
+		{
+			[]byte{0x01, 0x00, 0x00, 0x00, 0x00, 0x00, 0x01, 0x05},
+			true,
+			0,
+		},
+
+		// One valid address and one skipped address
+		{
+			[]byte{
+				0x02, 0x00, 0x00, 0x00, 0x00, 0x00, 0x01, 0x04,
+				0x7f, 0x00, 0x00, 0x01, 0x22, 0x22, 0x00, 0x00,
+				0x00, 0x00, 0x00, 0x02, 0x10, 0xfd, 0x87, 0xd8,
+				0x7e, 0xeb, 0x43, 0xff, 0xfe, 0xcc, 0x39, 0xa8,
+				0x73, 0x69, 0x15, 0xff, 0xff, 0x22, 0x22,
+			},
+			false,
+			1,
+		},
+	}
+
+	t.Logf("Running %d tests", len(tests))
+	for i, test := range tests {
+		r := bytes.NewReader(test.buf)
+		m := &MsgAddrV2{}
+
+		err := m.BtcDecode(r, 0, LatestEncoding)
+		if test.expectedError {
+			if err == nil {
+				t.Errorf("Test #%d expected error", i)
+			}
+
+			continue
+		} else if err != nil {
+			t.Errorf("Test #%d unexpected error %v", i, err)
+		}
+
+		// Trying to read more should give EOF.
+		var b [1]byte
+		if _, err := r.Read(b[:]); err != io.EOF {
+			t.Errorf("Test #%d did not cleanly finish reading", i)
+		}
+
+		if len(m.AddrList) != test.expectedAddrs {
+			t.Errorf("Test #%d expected %d addrs, instead of %d",
+				i, test.expectedAddrs, len(m.AddrList))
+		}
+	}
+}
diff --git a/wire/protocol.go b/wire/protocol.go
index 8cc9838a55b..3b414ec3f14 100644
--- a/wire/protocol.go
+++ b/wire/protocol.go
@@ -13,7 +13,7 @@ import (
 // XXX pedro: we will probably need to bump this.
 const (
 	// ProtocolVersion is the latest protocol version this package supports.
-	ProtocolVersion uint32 = 70013
+	ProtocolVersion uint32 = 70016
 
 	// MultipleAddressVersion is the protocol version which added multiple
 	// addresses per message (pver >= MultipleAddressVersion).
@@ -51,6 +51,13 @@ const (
 	// FeeFilterVersion is the protocol version which added a new
 	// feefilter message.
 	FeeFilterVersion uint32 = 70013
+
+	// AddrV2Version is the protocol version which added two new messages.
+	// sendaddrv2 is sent during the version-verack handshake and signals
+	// support for sending and receiving the addrv2 message. In the future,
+	// new messages that occur during the version-verack handshake will not
+	// come with a protocol version bump.
+	AddrV2Version uint32 = 70016
 )
 
 // ServiceFlag identifies services supported by a bitcoin peer.