diff --git a/Cargo.lock b/Cargo.lock
index 9980d04c8d7d5..bda9fe6baf59e 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -2713,6 +2713,7 @@ dependencies = [
  "serde 1.0.102 (registry+https://github.com/rust-lang/crates.io-index)",
  "sr-io 2.0.0",
  "sr-primitives 2.0.0",
+ "srml-authority-discovery 0.1.0",
  "srml-balances 2.0.0",
  "srml-contracts 2.0.0",
  "srml-finality-tracker 2.0.0",
@@ -2723,6 +2724,8 @@ dependencies = [
  "srml-timestamp 2.0.0",
  "srml-transaction-payment 2.0.0",
  "structopt 0.3.4 (registry+https://github.com/rust-lang/crates.io-index)",
+ "substrate-authority-discovery 2.0.0",
+ "substrate-authority-discovery-primitives 2.0.0",
  "substrate-basic-authorship 2.0.0",
  "substrate-build-script-utils 2.0.0",
  "substrate-chain-spec 2.0.0",
@@ -2837,6 +2840,7 @@ dependencies = [
  "sr-staking-primitives 2.0.0",
  "sr-std 2.0.0",
  "sr-version 2.0.0",
+ "srml-authority-discovery 0.1.0",
  "srml-authorship 0.1.0",
  "srml-babe 2.0.0",
  "srml-balances 2.0.0",
@@ -2866,6 +2870,7 @@ dependencies = [
  "srml-transaction-payment-rpc-runtime-api 2.0.0",
  "srml-treasury 2.0.0",
  "srml-utility 2.0.0",
+ "substrate-authority-discovery-primitives 2.0.0",
  "substrate-block-builder-runtime-api 2.0.0",
  "substrate-consensus-babe-primitives 2.0.0",
  "substrate-inherents 2.0.0",
@@ -4441,7 +4446,7 @@ dependencies = [
  "srml-support 2.0.0",
  "srml-system 2.0.0",
  "substrate-application-crypto 2.0.0",
- "substrate-consensus-babe-primitives 2.0.0",
+ "substrate-authority-discovery-primitives 2.0.0",
  "substrate-primitives 2.0.0",
 ]
 
@@ -5257,6 +5262,7 @@ dependencies = [
  "sr-primitives 2.0.0",
  "substrate-authority-discovery-primitives 2.0.0",
  "substrate-client 2.0.0",
+ "substrate-keystore 2.0.0",
  "substrate-network 2.0.0",
  "substrate-peerset 2.0.0",
  "substrate-primitives 2.0.0",
@@ -5271,6 +5277,7 @@ dependencies = [
  "sr-api 2.0.0",
  "sr-primitives 2.0.0",
  "sr-std 2.0.0",
+ "substrate-application-crypto 2.0.0",
 ]
 
 [[package]]
diff --git a/core/authority-discovery/Cargo.toml b/core/authority-discovery/Cargo.toml
index c46b815723f62..5d720c195342a 100644
--- a/core/authority-discovery/Cargo.toml
+++ b/core/authority-discovery/Cargo.toml
@@ -15,6 +15,8 @@ client = { package = "substrate-client", path = "../../core/client" }
 codec = { package = "parity-scale-codec", default-features = false, version = "1.0.3" }
 derive_more = "0.15.0"
 futures-preview = "0.3.0-alpha.19"
+futures-timer = "0.4"
+keystore = { package = "substrate-keystore", path = "../keystore" }
 libp2p = { version = "0.13.0", default-features = false, features = ["secp256k1", "libp2p-websocket"] }
 log = "0.4.8"
 network = { package = "substrate-network", path = "../../core/network" }
@@ -22,7 +24,6 @@ primitives = { package = "substrate-primitives", path = "../primitives" }
 prost = "0.5.0"
 serde_json = "1.0.41"
 sr-primitives = { path = "../../core/sr-primitives" }
-futures-timer = "0.4"
 
 [dev-dependencies]
 parking_lot = "0.9.0"
diff --git a/core/authority-discovery/primitives/Cargo.toml b/core/authority-discovery/primitives/Cargo.toml
index 41d833f58472f..96df8d3085a0b 100644
--- a/core/authority-discovery/primitives/Cargo.toml
+++ b/core/authority-discovery/primitives/Cargo.toml
@@ -6,14 +6,16 @@ description = "Authority discovery primitives"
 edition = "2018"
 
 [dependencies]
+app-crypto = { package = "substrate-application-crypto", path = "../../application-crypto", default-features = false }
 codec = { package = "parity-scale-codec", default-features = false, version = "1.0.3" }
+rstd = { package = "sr-std", path = "../../sr-std", default-features = false }
 sr-api = { path = "../../sr-api", default-features = false }
 sr-primitives = { path = "../../sr-primitives", default-features = false }
-rstd = { package = "sr-std", path = "../../sr-std", default-features = false }
 
 [features]
 default = ["std"]
 std = [
+	"app-crypto/std",
 	"rstd/std",
 	"sr-api/std",
 	"codec/std",
diff --git a/core/authority-discovery/primitives/src/lib.rs b/core/authority-discovery/primitives/src/lib.rs
index dda2cbc68dba8..1a5833f904118 100644
--- a/core/authority-discovery/primitives/src/lib.rs
+++ b/core/authority-discovery/primitives/src/lib.rs
@@ -19,31 +19,28 @@
 #![cfg_attr(not(feature = "std"), no_std)]
 
 use rstd::vec::Vec;
-use sr_primitives::RuntimeDebug;
 
-#[derive(codec::Encode, codec::Decode, Eq, PartialEq, Clone, RuntimeDebug)]
-#[cfg_attr(feature = "std", derive(Hash))]
-pub struct Signature(pub Vec<u8>);
-#[derive(codec::Encode, codec::Decode, Eq, PartialEq, Clone, RuntimeDebug)]
-#[cfg_attr(feature = "std", derive(Hash))]
-pub struct AuthorityId(pub Vec<u8>);
+mod app {
+	use app_crypto::{app_crypto, key_types::AUTHORITY_DISCOVERY, sr25519};
+	app_crypto!(sr25519, AUTHORITY_DISCOVERY);
+}
+
+/// An authority discovery authority keypair.
+#[cfg(feature = "std")]
+pub type AuthorityPair = app::Pair;
+
+/// An authority discovery authority identifier.
+pub type AuthorityId = app::Public;
+
+/// An authority discovery authority signature.
+pub type AuthoritySignature = app::Signature;
 
 sr_api::decl_runtime_apis! {
 	/// The authority discovery api.
 	///
-	/// This api is used by the `core/authority-discovery` module to retrieve our
-	/// own authority identifier, to retrieve identifiers of the current authority
-	/// set, as well as sign and verify Kademlia Dht external address payloads
-	/// from and to other authorities.
+	/// This api is used by the `core/authority-discovery` module to retrieve identifiers of the current authority set.
 	pub trait AuthorityDiscoveryApi {
 		/// Retrieve authority identifiers of the current authority set.
 		fn authorities() -> Vec<AuthorityId>;
-
-		/// Sign the given payload with the private key corresponding to the given authority id.
-		fn sign(payload: &Vec<u8>) -> Option<(Signature, AuthorityId)>;
-
-		/// Verify the given signature for the given payload with the given
-		/// authority identifier.
-		fn verify(payload: &Vec<u8>, signature: &Signature, authority_id: &AuthorityId) -> bool;
 	}
 }
diff --git a/core/authority-discovery/src/error.rs b/core/authority-discovery/src/error.rs
index dca50cc0beb9e..3e50ce54816f6 100644
--- a/core/authority-discovery/src/error.rs
+++ b/core/authority-discovery/src/error.rs
@@ -28,18 +28,18 @@ pub enum Error {
 	HashingAuthorityId(libp2p::core::multiaddr::multihash::EncodeError),
 	/// Failed calling into the Substrate runtime.
 	CallingRuntime(client::error::Error),
-	/// Failed signing the dht payload via the Substrate runtime.
-	SigningDhtPayload,
 	/// From the Dht we only get the hashed authority id. In order to retrieve the actual authority id and to ensure it
 	/// is actually an authority, we match the hash against the hash of the authority id of all other authorities. This
 	/// error is the result of the above failing.
 	MatchingHashedAuthorityIdWithAuthorityId,
 	/// Failed to set the authority discovery peerset priority group in the peerset module.
 	SettingPeersetPriorityGroup(String),
-	/// Failed to encode a dht payload.
-	Encoding(prost::EncodeError),
-	/// Failed to decode a dht payload.
-	Decoding(prost::DecodeError),
+	/// Failed to encode a protobuf payload.
+	EncodingProto(prost::EncodeError),
+	/// Failed to decode a protobuf payload.
+	DecodingProto(prost::DecodeError),
+	/// Failed to encode or decode scale payload
+	EncodingDecodingScale(codec::Error),
 	/// Failed to parse a libp2p multi address.
 	ParsingMultiaddress(libp2p::core::multiaddr::Error),
 }
diff --git a/core/authority-discovery/src/lib.rs b/core/authority-discovery/src/lib.rs
index 13831be76f8ef..76cb069b73e37 100644
--- a/core/authority-discovery/src/lib.rs
+++ b/core/authority-discovery/src/lib.rs
@@ -48,20 +48,22 @@ use std::iter::FromIterator;
 use std::marker::PhantomData;
 use std::pin::Pin;
 use std::sync::Arc;
-use std::time::Duration;
+use std::time::{Duration, Instant};
 
-use futures::channel::mpsc::Receiver;
-use futures::stream::StreamExt;
 use futures::task::{Context, Poll};
 use futures::Future;
 use futures_timer::Interval;
+use futures::prelude::*;
 
-use authority_discovery_primitives::{AuthorityDiscoveryApi, AuthorityId, Signature};
+use authority_discovery_primitives::{AuthorityDiscoveryApi, AuthorityId, AuthoritySignature, AuthorityPair};
 use client::blockchain::HeaderBackend;
+use codec::{Decode, Encode};
 use error::{Error, Result};
 use log::{debug, error, log_enabled, warn};
 use network::specialization::NetworkSpecialization;
 use network::{DhtEvent, ExHashT};
+use primitives::crypto::{key_types, Pair};
+use primitives::traits::BareCryptoStorePtr;
 use prost::Message;
 use sr_primitives::generic::BlockId;
 use sr_primitives::traits::{Block as BlockT, ProvideRuntimeApi};
@@ -72,6 +74,12 @@ mod schema {
 	include!(concat!(env!("OUT_DIR"), "/authority_discovery.rs"));
 }
 
+/// Upper bound estimation on how long one should wait before accessing the Kademlia DHT.
+const LIBP2P_KADEMLIA_BOOTSTRAP_TIME: Duration = Duration::from_secs(30);
+
+/// Name of the Substrate peerset priority group for authorities discovered through the authority discovery module.
+const AUTHORITIES_PRIORITY_GROUP_NAME: &'static str = "authorities";
+
 /// An `AuthorityDiscovery` makes a given authority discoverable and discovers other authorities.
 pub struct AuthorityDiscovery<Client, Network, Block>
 where
@@ -79,12 +87,15 @@ where
 	Network: NetworkProvider,
 	Client: ProvideRuntimeApi + Send + Sync + 'static + HeaderBackend<Block>,
 	<Client as ProvideRuntimeApi>::Api: AuthorityDiscoveryApi<Block>,
+
 {
 	client: Arc<Client>,
 
 	network: Arc<Network>,
 	/// Channel we receive Dht events on.
-	dht_event_rx: Receiver<DhtEvent>,
+	dht_event_rx: Pin<Box<dyn Stream<Item = DhtEvent> + Send>>,
+
+	key_store: BareCryptoStorePtr,
 
 	/// Interval to be proactive, publishing own addresses.
 	publish_interval: Interval,
@@ -112,16 +123,23 @@ where
 	pub fn new(
 		client: Arc<Client>,
 		network: Arc<Network>,
-		dht_event_rx: Receiver<DhtEvent>,
+		key_store: BareCryptoStorePtr,
+		dht_event_rx: Pin<Box<dyn Stream<Item = DhtEvent> + Send>>,
 	) -> Self {
 		// Kademlia's default time-to-live for Dht records is 36h, republishing records every 24h. Given that a node
 		// could restart at any point in time, one can not depend on the republishing process, thus publishing own
 		// external addresses should happen on an interval < 36h.
-		let publish_interval = Interval::new(Duration::from_secs(12 * 60 * 60));
+		let publish_interval = Interval::new_at(
+			Instant::now() + LIBP2P_KADEMLIA_BOOTSTRAP_TIME,
+			Duration::from_secs(12 * 60 * 60),
+		);
 
 		// External addresses of other authorities can change at any given point in time. The interval on which to query
 		// for external addresses of other authorities is a trade off between efficiency and performance.
-		let query_interval = Interval::new(Duration::from_secs(10 * 60));
+		let query_interval = Interval::new_at(
+			Instant::now() + LIBP2P_KADEMLIA_BOOTSTRAP_TIME,
+			Duration::from_secs(10 * 60),
+		);
 
 		let address_cache = HashMap::new();
 
@@ -129,6 +147,7 @@ where
 			client,
 			network,
 			dht_event_rx,
+			key_store,
 			publish_interval,
 			query_interval,
 			address_cache,
@@ -137,8 +156,6 @@ where
 	}
 
 	fn publish_own_ext_addresses(&mut self) -> Result<()> {
-		let id = BlockId::hash(self.client.info().best_hash);
-
 		let addresses = self
 			.network
 			.external_addresses()
@@ -154,27 +171,24 @@ where
 		let mut serialized_addresses = vec![];
 		schema::AuthorityAddresses { addresses }
 			.encode(&mut serialized_addresses)
-			.map_err(Error::Encoding)?;
+			.map_err(Error::EncodingProto)?;
 
-		let (signature, authority_id) = self
-			.client
-			.runtime_api()
-			.sign(&id, &serialized_addresses)
-			.map_err(Error::CallingRuntime)?
-			.ok_or(Error::SigningDhtPayload)?;
+		for key in self.get_priv_keys_within_authority_set()?.into_iter() {
+			let signature = key.sign(&serialized_addresses);
 
-		let mut signed_addresses = vec![];
-		schema::SignedAuthorityAddresses {
-			addresses: serialized_addresses,
-			signature: signature.0,
-		}
-		.encode(&mut signed_addresses)
-		.map_err(Error::Encoding)?;
+			let mut signed_addresses = vec![];
+			schema::SignedAuthorityAddresses {
+				addresses: serialized_addresses.clone(),
+				signature: signature.encode(),
+			}
+			.encode(&mut signed_addresses)
+				.map_err(Error::EncodingProto)?;
 
-		self.network.put_value(
-			hash_authority_id(authority_id.0.as_ref())?,
-			signed_addresses,
-		);
+			self.network.put_value(
+				hash_authority_id(key.public().as_ref())?,
+				signed_addresses,
+			);
+		}
 
 		Ok(())
 	}
@@ -190,7 +204,7 @@ where
 
 		for authority_id in authorities.iter() {
 			self.network
-				.get_value(&hash_authority_id(authority_id.0.as_ref())?);
+				.get_value(&hash_authority_id(authority_id.as_ref())?);
 		}
 
 		Ok(())
@@ -230,16 +244,16 @@ where
 	) -> Result<()> {
 		debug!(target: "sub-authority-discovery", "Got Dht value from network.");
 
-		let id = BlockId::hash(self.client.info().best_hash);
+		let block_id = BlockId::hash(self.client.info().best_hash);
 
 		// From the Dht we only get the hashed authority id. In order to retrieve the actual authority id and to ensure
 		// it is actually an authority, we match the hash against the hash of the authority id of all other authorities.
-		let authorities = self.client.runtime_api().authorities(&id)?;
+		let authorities = self.client.runtime_api().authorities(&block_id)?;
 		self.purge_old_authorities_from_cache(&authorities);
 
 		let authorities = authorities
 			.into_iter()
-			.map(|a| hash_authority_id(a.0.as_ref()).map(|h| (h, a)))
+			.map(|id| hash_authority_id(id.as_ref()).map(|h| (h, id)))
 			.collect::<Result<HashMap<_, _>>>()?;
 
 		for (key, value) in values.iter() {
@@ -251,22 +265,16 @@ where
 			let schema::SignedAuthorityAddresses {
 				signature,
 				addresses,
-			} = schema::SignedAuthorityAddresses::decode(value).map_err(Error::Decoding)?;
-			let signature = Signature(signature);
-
-			let is_verified = self
-				.client
-				.runtime_api()
-				.verify(&id, &addresses, &signature, &authority_id.clone())
-				.map_err(Error::CallingRuntime)?;
+			} = schema::SignedAuthorityAddresses::decode(value).map_err(Error::DecodingProto)?;
+			let signature = AuthoritySignature::decode(&mut &signature[..]).map_err(Error::EncodingDecodingScale)?;
 
-			if !is_verified {
+			if !AuthorityPair::verify(&signature, &addresses, authority_id) {
 				return Err(Error::VerifyingDhtPayload);
 			}
 
 			let addresses: Vec<libp2p::Multiaddr> = schema::AuthorityAddresses::decode(addresses)
 				.map(|a| a.addresses)
-				.map_err(Error::Decoding)?
+				.map_err(Error::DecodingProto)?
 				.into_iter()
 				.map(|a| a.try_into())
 				.collect::<std::result::Result<_, _>>()
@@ -275,7 +283,7 @@ where
 			self.address_cache.insert(authority_id.clone(), addresses);
 		}
 
-		// Let's update the peerset priority group with the all the addresses we have in our cache.
+		// Let's update the peerset priority group with all the addresses we have in our cache.
 
 		let addresses = HashSet::from_iter(
 			self.address_cache
@@ -286,7 +294,7 @@ where
 
 		debug!(target: "sub-authority-discovery", "Applying priority group {:#?} to peerset.", addresses);
 		self.network
-			.set_priority_group("authorities".to_string(), addresses)
+			.set_priority_group(AUTHORITIES_PRIORITY_GROUP_NAME.to_string(), addresses)
 			.map_err(Error::SettingPeersetPriorityGroup)?;
 
 		Ok(())
@@ -296,6 +304,52 @@ where
 		self.address_cache
 			.retain(|peer_id, _addresses| current_authorities.contains(peer_id))
 	}
+
+	/// Retrieve all local authority discovery private keys that are within the current authority
+	/// set.
+	fn get_priv_keys_within_authority_set(&mut self) -> Result<Vec<AuthorityPair>> {
+		let keys = self.get_own_public_keys_within_authority_set()?
+			.into_iter()
+			.map(std::convert::Into::into)
+			.filter_map(|pub_key| {
+				self.key_store.read().sr25519_key_pair(key_types::AUTHORITY_DISCOVERY, &pub_key)
+			})
+			.map(std::convert::Into::into)
+			.collect();
+
+		Ok(keys)
+	}
+
+	/// Retrieve our public keys within the current authority set.
+	//
+	// A node might have multiple authority discovery keys within its keystore, e.g. an old one and
+	// one for the upcoming session. In addition it could be participating in the current authority
+	// set with two keys. The function does not return all of the local authority discovery public
+	// keys, but only the ones intersecting with the current authority set.
+	fn get_own_public_keys_within_authority_set(&mut self) -> Result<HashSet<AuthorityId>> {
+		let local_pub_keys = self.key_store
+			.read()
+			.sr25519_public_keys(key_types::AUTHORITY_DISCOVERY)
+			.into_iter()
+			.collect::<HashSet<_>>();
+
+		let id = BlockId::hash(self.client.info().best_hash);
+		let current_authorities = self
+			.client
+			.runtime_api()
+			.authorities(&id)
+			.map_err(Error::CallingRuntime)?
+			.into_iter()
+			.map(std::convert::Into::into)
+			.collect::<HashSet<_>>();
+
+		let intersection = local_pub_keys.intersection(&current_authorities)
+			.cloned()
+			.map(std::convert::Into::into)
+			.collect();
+
+		Ok(intersection)
+	}
 }
 
 impl<Client, Network, Block> Future for AuthorityDiscovery<Client, Network, Block>
@@ -408,20 +462,22 @@ mod tests {
 	use futures::channel::mpsc::channel;
 	use futures::executor::block_on;
 	use futures::future::poll_fn;
-	use primitives::{ExecutionContext, NativeOrEncoded};
+	use primitives::{ExecutionContext, NativeOrEncoded, testing::KeyStore};
 	use sr_primitives::traits::Zero;
 	use sr_primitives::traits::{ApiRef, Block as BlockT, NumberFor, ProvideRuntimeApi};
 	use std::sync::{Arc, Mutex};
 	use test_client::runtime::Block;
 
 	#[derive(Clone)]
-	struct TestApi {}
+	struct TestApi {
+		authorities: Vec<AuthorityId>,
+	}
 
 	impl ProvideRuntimeApi for TestApi {
 		type Api = RuntimeApi;
 
 		fn runtime_api<'a>(&'a self) -> ApiRef<'a, Self::Api> {
-			RuntimeApi {}.into()
+			RuntimeApi{authorities: self.authorities.clone()}.into()
 		}
 	}
 
@@ -466,7 +522,9 @@ mod tests {
 		}
 	}
 
-	struct RuntimeApi {}
+	struct RuntimeApi {
+		authorities: Vec<AuthorityId>,
+	}
 
 	impl Core<Block> for RuntimeApi {
 		fn Core_version_runtime_api_impl(
@@ -534,37 +592,7 @@ mod tests {
 			_: Option<()>,
 			_: Vec<u8>,
 		) -> std::result::Result<NativeOrEncoded<Vec<AuthorityId>>, client::error::Error> {
-			return Ok(NativeOrEncoded::Native(vec![
-				AuthorityId("test-authority-id-1".as_bytes().to_vec()),
-				AuthorityId("test-authority-id-2".as_bytes().to_vec()),
-			]));
-		}
-		fn AuthorityDiscoveryApi_sign_runtime_api_impl(
-			&self,
-			_: &BlockId<Block>,
-			_: ExecutionContext,
-			_: Option<&std::vec::Vec<u8>>,
-			_: Vec<u8>,
-		) -> std::result::Result<
-			NativeOrEncoded<Option<(Signature, AuthorityId)>>,
-			client::error::Error,
-		> {
-			return Ok(NativeOrEncoded::Native(Some((
-				Signature("test-signature-1".as_bytes().to_vec()),
-				AuthorityId("test-authority-id-1".as_bytes().to_vec()),
-			))));
-		}
-		fn AuthorityDiscoveryApi_verify_runtime_api_impl(
-			&self,
-			_: &BlockId<Block>,
-			_: ExecutionContext,
-			args: Option<(&Vec<u8>, &Signature, &AuthorityId)>,
-			_: Vec<u8>,
-		) -> std::result::Result<NativeOrEncoded<bool>, client::error::Error> {
-			if *args.unwrap().1 == Signature("test-signature-1".as_bytes().to_vec()) {
-				return Ok(NativeOrEncoded::Native(true));
-			}
-			return Ok(NativeOrEncoded::Native(false));
+			return Ok(NativeOrEncoded::Native(self.authorities.clone()));
 		}
 	}
 
@@ -605,11 +633,13 @@ mod tests {
 	#[test]
 	fn publish_own_ext_addresses_puts_record_on_dht() {
 		let (_dht_event_tx, dht_event_rx) = channel(1000);
-		let test_api = Arc::new(TestApi {});
 		let network: Arc<TestNetwork> = Arc::new(Default::default());
+		let key_store = KeyStore::new();
+		let public = key_store.write().sr25519_generate_new(key_types::AUTHORITY_DISCOVERY, None).unwrap();
+		let test_api = Arc::new(TestApi {authorities: vec![public.into()]});
 
 		let mut authority_discovery =
-			AuthorityDiscovery::new(test_api, network.clone(), dht_event_rx);
+			AuthorityDiscovery::new(test_api, network.clone(), key_store, dht_event_rx.boxed());
 
 		authority_discovery.publish_own_ext_addresses().unwrap();
 
@@ -620,11 +650,20 @@ mod tests {
 	#[test]
 	fn request_addresses_of_others_triggers_dht_get_query() {
 		let (_dht_event_tx, dht_event_rx) = channel(1000);
-		let test_api = Arc::new(TestApi {});
+
+		// Generate authority keys
+		let authority_1_key_pair = AuthorityPair::from_seed_slice(&[1; 32]).unwrap();
+		let authority_2_key_pair = AuthorityPair::from_seed_slice(&[2; 32]).unwrap();
+
+		let test_api = Arc::new(TestApi {
+			authorities: vec![authority_1_key_pair.public(), authority_2_key_pair.public()],
+		});
+
 		let network: Arc<TestNetwork> = Arc::new(Default::default());
+		let key_store = KeyStore::new();
 
 		let mut authority_discovery =
-			AuthorityDiscovery::new(test_api, network.clone(), dht_event_rx);
+			AuthorityDiscovery::new(test_api, network.clone(), key_store, dht_event_rx.boxed());
 
 		authority_discovery.request_addresses_of_others().unwrap();
 
@@ -637,15 +676,17 @@ mod tests {
 		// Create authority discovery.
 
 		let (mut dht_event_tx, dht_event_rx) = channel(1000);
-		let test_api = Arc::new(TestApi {});
+		let key_pair = AuthorityPair::from_seed_slice(&[1; 32]).unwrap();
+		let test_api = Arc::new(TestApi {authorities: vec![key_pair.public()]});
 		let network: Arc<TestNetwork> = Arc::new(Default::default());
+		let key_store = KeyStore::new();
 
 		let mut authority_discovery =
-			AuthorityDiscovery::new(test_api, network.clone(), dht_event_rx);
+			AuthorityDiscovery::new(test_api, network.clone(), key_store, dht_event_rx.boxed());
 
 		// Create sample dht event.
 
-		let authority_id_1 = hash_authority_id("test-authority-id-1".as_bytes()).unwrap();
+		let authority_id_1 = hash_authority_id(key_pair.public().as_ref()).unwrap();
 		let address_1: libp2p::Multiaddr = "/ip6/2001:db8::".parse().unwrap();
 
 		let mut serialized_addresses = vec![];
@@ -655,10 +696,11 @@ mod tests {
 		.encode(&mut serialized_addresses)
 		.unwrap();
 
+		let signature = key_pair.sign(serialized_addresses.as_ref()).encode();
 		let mut signed_addresses = vec![];
 		schema::SignedAuthorityAddresses {
 			addresses: serialized_addresses,
-			signature: "test-signature-1".as_bytes().to_vec(),
+			signature: signature,
 		}
 		.encode(&mut signed_addresses)
 		.unwrap();
diff --git a/core/primitives/src/crypto.rs b/core/primitives/src/crypto.rs
index a452e9ce5b3c6..f5484efed7a38 100644
--- a/core/primitives/src/crypto.rs
+++ b/core/primitives/src/crypto.rs
@@ -916,6 +916,8 @@ pub mod key_types {
 	pub const AURA: KeyTypeId = KeyTypeId(*b"aura");
 	/// Key type for ImOnline module, built-in.
 	pub const IM_ONLINE: KeyTypeId = KeyTypeId(*b"imon");
+	/// Key type for AuthorityDiscovery module, built-in.
+	pub const AUTHORITY_DISCOVERY: KeyTypeId = KeyTypeId(*b"audi");
 	/// A key type ID useful for tests.
 	pub const DUMMY: KeyTypeId = KeyTypeId(*b"dumy");
 }
diff --git a/node/cli/Cargo.toml b/node/cli/Cargo.toml
index 20379d52e768d..9ae29bb2b400d 100644
--- a/node/cli/Cargo.toml
+++ b/node/cli/Cargo.toml
@@ -26,6 +26,7 @@ crate-type = ["cdylib", "rlib"]
 codec = { package = "parity-scale-codec", version = "1.0.6" }
 serde = { version = "1.0.102", features = [ "derive" ] }
 futures = "0.1.29"
+futures03 = { package = "futures-preview", version = "0.3.0-alpha.19", features = ["compat"] }
 hex-literal = "0.2.1"
 jsonrpc-core = "14.0.3"
 log = "0.4.8"
@@ -37,6 +38,7 @@ primitives = { package = "substrate-primitives", path = "../../core/primitives"
 sr-primitives = { path = "../../core/sr-primitives" }
 babe-primitives = { package = "substrate-consensus-babe-primitives", path = "../../core/consensus/babe/primitives" }
 grandpa_primitives = { package = "substrate-finality-grandpa-primitives", path = "../../core/finality-grandpa/primitives" }
+authority-discovery-primitives = { package = "substrate-authority-discovery-primitives", path = "../../core/authority-discovery/primitives"}
 
 # core dependencies
 runtime-io = { package = "sr-io", path = "../../core/sr-io" }
@@ -47,6 +49,7 @@ transaction_pool = { package = "substrate-transaction-pool", path = "../../core/
 network = { package = "substrate-network", path = "../../core/network" }
 babe = { package = "substrate-consensus-babe", path = "../../core/consensus/babe" }
 grandpa = { package = "substrate-finality-grandpa", path = "../../core/finality-grandpa" }
+authority-discovery = { package = "substrate-authority-discovery", path = "../../core/authority-discovery"}
 keyring = { package = "substrate-keyring", path = "../../core/keyring" }
 client_db = { package = "substrate-client-db", path = "../../core/client/db", default-features = false }
 offchain = { package = "substrate-offchain", path = "../../core/offchain" }
@@ -65,6 +68,7 @@ balances = { package = "srml-balances", path = "../../srml/balances" }
 transaction-payment = { package = "srml-transaction-payment", path = "../../srml/transaction-payment" }
 support = { package = "srml-support", path = "../../srml/support", default-features = false }
 im_online = { package = "srml-im-online", path = "../../srml/im-online", default-features = false }
+sr-authority-discovery = { package = "srml-authority-discovery", path = "../../srml/authority-discovery", default-features = false }
 
 # node-specific dependencies
 node-runtime = { path = "../runtime" }
diff --git a/node/cli/src/chain_spec.rs b/node/cli/src/chain_spec.rs
index 04fb41c211009..792dd237ac4dc 100644
--- a/node/cli/src/chain_spec.rs
+++ b/node/cli/src/chain_spec.rs
@@ -20,9 +20,9 @@ use chain_spec::ChainSpecExtension;
 use primitives::{Pair, Public, crypto::UncheckedInto, sr25519};
 use serde::{Serialize, Deserialize};
 use node_runtime::{
-	BabeConfig, BalancesConfig, ContractsConfig, CouncilConfig, DemocracyConfig, GrandpaConfig,
-	ImOnlineConfig, IndicesConfig, SessionConfig, SessionKeys, StakerStatus, StakingConfig,
-	SudoConfig, SystemConfig, TechnicalCommitteeConfig, WASM_BINARY,
+	AuthorityDiscoveryConfig, BabeConfig, BalancesConfig, ContractsConfig, CouncilConfig, DemocracyConfig,
+	GrandpaConfig, ImOnlineConfig, IndicesConfig, SessionConfig, SessionKeys, StakerStatus, StakingConfig, SudoConfig,
+	SystemConfig, TechnicalCommitteeConfig, WASM_BINARY,
 };
 use node_runtime::Block;
 use node_runtime::constants::currency::*;
@@ -32,6 +32,7 @@ use substrate_telemetry::TelemetryEndpoints;
 use grandpa_primitives::{AuthorityId as GrandpaId};
 use babe_primitives::{AuthorityId as BabeId};
 use im_online::sr25519::{AuthorityId as ImOnlineId};
+use authority_discovery_primitives::AuthorityId as AuthorityDiscoveryId;
 use sr_primitives::{Perbill, traits::{Verify, IdentifyAccount}};
 
 pub use node_primitives::{AccountId, Balance, Signature};
@@ -61,8 +62,13 @@ pub fn flaming_fir_config() -> Result<ChainSpec, String> {
 	ChainSpec::from_json_bytes(&include_bytes!("../res/flaming-fir.json")[..])
 }
 
-fn session_keys(grandpa: GrandpaId, babe: BabeId, im_online: ImOnlineId) -> SessionKeys {
-	SessionKeys { grandpa, babe, im_online, }
+fn session_keys(
+	grandpa: GrandpaId,
+	babe: BabeId,
+	im_online: ImOnlineId,
+	authority_discovery: AuthorityDiscoveryId,
+) -> SessionKeys {
+	SessionKeys { grandpa, babe, im_online, authority_discovery }
 }
 
 fn staging_testnet_config_genesis() -> GenesisConfig {
@@ -72,7 +78,7 @@ fn staging_testnet_config_genesis() -> GenesisConfig {
 	// and
 	// for i in 1 2 3 4 ; do for j in session; do subkey --ed25519 inspect "$secret"//fir//$j//$i; done; done
 
-	let initial_authorities: Vec<(AccountId, AccountId, GrandpaId, BabeId, ImOnlineId)> = vec![(
+	let initial_authorities: Vec<(AccountId, AccountId, GrandpaId, BabeId, ImOnlineId, AuthorityDiscoveryId)> = vec![(
 		// 5Fbsd6WXDGiLTxunqeK5BATNiocfCqu9bS1yArVjCgeBLkVy
 		hex!["9c7a2ee14e565db0c69f78c7b4cd839fbf52b607d867e9e9c5a79042898a0d12"].into(),
 		// 5EnCiV7wSHeNhjW3FSUwiJNkcc2SBkPLn5Nj93FmbLtBjQUq
@@ -83,6 +89,8 @@ fn staging_testnet_config_genesis() -> GenesisConfig {
 		hex!["6e7e4eb42cbd2e0ab4cae8708ce5509580b8c04d11f6758dbf686d50fe9f9106"].unchecked_into(),
 		// 5EZaeQ8djPcq9pheJUhgerXQZt9YaHnMJpiHMRhwQeinqUW8
 		hex!["6e7e4eb42cbd2e0ab4cae8708ce5509580b8c04d11f6758dbf686d50fe9f9106"].unchecked_into(),
+		// 5EZaeQ8djPcq9pheJUhgerXQZt9YaHnMJpiHMRhwQeinqUW8
+		hex!["6e7e4eb42cbd2e0ab4cae8708ce5509580b8c04d11f6758dbf686d50fe9f9106"].unchecked_into(),
 	),(
 		// 5ERawXCzCWkjVq3xz1W5KGNtVx2VdefvZ62Bw1FEuZW4Vny2
 		hex!["68655684472b743e456907b398d3a44c113f189e56d1bbfd55e889e295dfde78"].into(),
@@ -94,6 +102,8 @@ fn staging_testnet_config_genesis() -> GenesisConfig {
 		hex!["482dbd7297a39fa145c570552249c2ca9dd47e281f0c500c971b59c9dcdcd82e"].unchecked_into(),
 		// 5DhLtiaQd1L1LU9jaNeeu9HJkP6eyg3BwXA7iNMzKm7qqruQ
 		hex!["482dbd7297a39fa145c570552249c2ca9dd47e281f0c500c971b59c9dcdcd82e"].unchecked_into(),
+		// 5DhLtiaQd1L1LU9jaNeeu9HJkP6eyg3BwXA7iNMzKm7qqruQ
+		hex!["482dbd7297a39fa145c570552249c2ca9dd47e281f0c500c971b59c9dcdcd82e"].unchecked_into(),
 	),(
 		// 5DyVtKWPidondEu8iHZgi6Ffv9yrJJ1NDNLom3X9cTDi98qp
 		hex!["547ff0ab649283a7ae01dbc2eb73932eba2fb09075e9485ff369082a2ff38d65"].into(),
@@ -105,6 +115,8 @@ fn staging_testnet_config_genesis() -> GenesisConfig {
 		hex!["482a3389a6cf42d8ed83888cfd920fec738ea30f97e44699ada7323f08c3380a"].unchecked_into(),
 		// 5DhKqkHRkndJu8vq7pi2Q5S3DfftWJHGxbEUNH43b46qNspH
 		hex!["482a3389a6cf42d8ed83888cfd920fec738ea30f97e44699ada7323f08c3380a"].unchecked_into(),
+		// 5DhKqkHRkndJu8vq7pi2Q5S3DfftWJHGxbEUNH43b46qNspH
+		hex!["482a3389a6cf42d8ed83888cfd920fec738ea30f97e44699ada7323f08c3380a"].unchecked_into(),
 	),(
 		// 5HYZnKWe5FVZQ33ZRJK1rG3WaLMztxWrrNDb1JRwaHHVWyP9
 		hex!["f26cdb14b5aec7b2789fd5ca80f979cef3761897ae1f37ffb3e154cbcc1c2663"].into(),
@@ -116,6 +128,8 @@ fn staging_testnet_config_genesis() -> GenesisConfig {
 		hex!["00299981a2b92f878baaf5dbeba5c18d4e70f2a1fcd9c61b32ea18daf38f4378"].unchecked_into(),
 		// 5C4vDQxA8LTck2xJEy4Yg1hM9qjDt4LvTQaMo4Y8ne43aU6x
 		hex!["00299981a2b92f878baaf5dbeba5c18d4e70f2a1fcd9c61b32ea18daf38f4378"].unchecked_into(),
+		// 5C4vDQxA8LTck2xJEy4Yg1hM9qjDt4LvTQaMo4Y8ne43aU6x
+		hex!["00299981a2b92f878baaf5dbeba5c18d4e70f2a1fcd9c61b32ea18daf38f4378"].unchecked_into(),
 	)];
 
 	// generated with secret: subkey inspect "$secret"/fir
@@ -164,19 +178,27 @@ pub fn get_account_id_from_seed<TPublic: Public>(seed: &str) -> AccountId where
 }
 
 /// Helper function to generate stash, controller and session key from seed
-pub fn get_authority_keys_from_seed(seed: &str) -> (AccountId, AccountId, GrandpaId, BabeId, ImOnlineId) {
+pub fn get_authority_keys_from_seed(seed: &str) -> (
+	AccountId,
+	AccountId,
+	GrandpaId,
+	BabeId,
+	ImOnlineId,
+	AuthorityDiscoveryId,
+) {
 	(
 		get_account_id_from_seed::<sr25519::Public>(&format!("{}//stash", seed)),
 		get_account_id_from_seed::<sr25519::Public>(seed),
 		get_from_seed::<GrandpaId>(seed),
 		get_from_seed::<BabeId>(seed),
 		get_from_seed::<ImOnlineId>(seed),
+		get_from_seed::<AuthorityDiscoveryId>(seed),
 	)
 }
 
 /// Helper function to create GenesisConfig for testing
 pub fn testnet_genesis(
-	initial_authorities: Vec<(AccountId, AccountId, GrandpaId, BabeId, ImOnlineId)>,
+	initial_authorities: Vec<(AccountId, AccountId, GrandpaId, BabeId, ImOnlineId, AuthorityDiscoveryId)>,
 	root_key: AccountId,
 	endowed_accounts: Option<Vec<AccountId>>,
 	enable_println: bool,
@@ -220,7 +242,7 @@ pub fn testnet_genesis(
 		}),
 		session: Some(SessionConfig {
 			keys: initial_authorities.iter().map(|x| {
-				(x.0.clone(), session_keys(x.2.clone(), x.3.clone(), x.4.clone()))
+				(x.0.clone(), session_keys(x.2.clone(), x.3.clone(), x.4.clone(), x.5.clone()))
 			}).collect::<Vec<_>>(),
 		}),
 		staking: Some(StakingConfig {
@@ -259,6 +281,9 @@ pub fn testnet_genesis(
 		im_online: Some(ImOnlineConfig {
 			keys: vec![],
 		}),
+		authority_discovery: Some(AuthorityDiscoveryConfig {
+			keys: vec![],
+		}),
 		grandpa: Some(GrandpaConfig {
 			authorities: vec![],
 		}),
diff --git a/node/cli/src/service.rs b/node/cli/src/service.rs
index 52ad35fe7b315..3afa57b59c1c4 100644
--- a/node/cli/src/service.rs
+++ b/node/cli/src/service.rs
@@ -112,6 +112,11 @@ macro_rules! new_full {
 	($config:expr, $with_startup_data: expr) => {{
 		use futures::sync::mpsc;
 		use network::DhtEvent;
+		use futures03::{
+			compat::Stream01CompatExt,
+			stream::StreamExt,
+			future::{FutureExt, TryFutureExt},
+		};
 
 		let (
 			is_authority,
@@ -136,7 +141,7 @@ macro_rules! new_full {
 		// back-pressure. Authority discovery is triggering one event per authority within the current authority set.
 		// This estimates the authority set size to be somewhere below 10 000 thereby setting the channel buffer size to
 		// 10 000.
-		let (dht_event_tx, _dht_event_rx) =
+		let (dht_event_tx, dht_event_rx) =
 			mpsc::channel::<DhtEvent>(10_000);
 
 		let service = builder.with_network_protocol(|_| Ok(crate::service::NodeProtocol::new()))?
@@ -175,6 +180,19 @@ macro_rules! new_full {
 
 			let babe = babe::start_babe(babe_config)?;
 			service.spawn_essential_task(babe);
+
+			let future03_dht_event_rx = dht_event_rx.compat()
+				.map(|x| x.expect("<mpsc::channel::Receiver as Stream> never returns an error; qed"))
+				.boxed();
+			let authority_discovery = authority_discovery::AuthorityDiscovery::new(
+				service.client(),
+				service.network(),
+				service.keystore(),
+				future03_dht_event_rx,
+			);
+			let future01_authority_discovery = authority_discovery.map(|x| Ok(x)).compat();
+
+			service.spawn_task(future01_authority_discovery);
 		}
 
 		// if the node isn't actively participating in consensus then it doesn't
diff --git a/node/runtime/Cargo.toml b/node/runtime/Cargo.toml
index 2b1c817d7bbc3..c39edaa29d6fc 100644
--- a/node/runtime/Cargo.toml
+++ b/node/runtime/Cargo.toml
@@ -14,6 +14,7 @@ rustc-hex = { version = "2.0", optional = true }
 serde = { version = "1.0.102", optional = true }
 
 # primitives
+authority-discovery-primitives = { package = "substrate-authority-discovery-primitives", path = "../../core/authority-discovery/primitives", default-features = false }
 babe-primitives = { package = "substrate-consensus-babe-primitives", path = "../../core/consensus/babe/primitives", default-features = false }
 node-primitives = { path = "../primitives", default-features = false }
 offchain-primitives = { package = "substrate-offchain-primitives", path = "../../core/offchain/primitives", default-features = false }
@@ -44,6 +45,7 @@ executive = { package = "srml-executive", path = "../../srml/executive", default
 finality-tracker = { package = "srml-finality-tracker", path = "../../srml/finality-tracker", default-features = false }
 grandpa = { package = "srml-grandpa", path = "../../srml/grandpa", default-features = false }
 im-online = { package = "srml-im-online", path = "../../srml/im-online", default-features = false }
+authority-discovery = { package = "srml-authority-discovery", path = "../../srml/authority-discovery", default-features = false }
 indices = { package = "srml-indices", path = "../../srml/indices", default-features = false }
 membership = { package = "srml-membership", path = "../../srml/membership", default-features = false }
 nicks = { package = "srml-nicks", path = "../../srml/nicks", default-features = false }
@@ -71,6 +73,8 @@ runtime_io = { package = "sr-io", path = "../../core/sr-io" }
 [features]
 default = ["std"]
 std = [
+	"authority-discovery/std",
+	"authority-discovery-primitives/std",
 	"authorship/std",
 	"babe-primitives/std",
 	"babe/std",
diff --git a/node/runtime/src/lib.rs b/node/runtime/src/lib.rs
index c321693f45680..8870db7265625 100644
--- a/node/runtime/src/lib.rs
+++ b/node/runtime/src/lib.rs
@@ -42,6 +42,7 @@ use primitives::OpaqueMetadata;
 use grandpa::AuthorityList as GrandpaAuthorityList;
 use grandpa::fg_primitives;
 use im_online::sr25519::{AuthorityId as ImOnlineId};
+use authority_discovery_primitives::AuthorityId as AuthorityDiscoveryId;
 use transaction_payment_rpc_runtime_api::RuntimeDispatchInfo;
 use contracts_rpc_runtime_api::ContractExecResult;
 use system::offchain::TransactionSubmitter;
@@ -76,8 +77,8 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	// and set impl_version to equal spec_version. If only runtime
 	// implementation changes and behavior does not, then leave spec_version as
 	// is and increment impl_version.
-	spec_version: 193,
-	impl_version: 193,
+	spec_version: 194,
+	impl_version: 194,
 	apis: RUNTIME_API_VERSIONS,
 };
 
@@ -209,6 +210,7 @@ impl_opaque_keys! {
 		pub grandpa: Grandpa,
 		pub babe: Babe,
 		pub im_online: ImOnline,
+		pub authority_discovery: AuthorityDiscovery,
 	}
 }
 
@@ -433,6 +435,8 @@ impl offences::Trait for Runtime {
 	type OnOffenceHandler = Staking;
 }
 
+impl authority_discovery::Trait for Runtime {}
+
 impl grandpa::Trait for Runtime {
 	type Event = Event;
 }
@@ -521,6 +525,7 @@ construct_runtime!(
 		Contracts: contracts,
 		Sudo: sudo,
 		ImOnline: im_online::{Module, Call, Storage, Event<T>, ValidateUnsigned, Config<T>},
+		AuthorityDiscovery: authority_discovery::{Module, Call, Config},
 		Offences: offences::{Module, Call, Storage, Event},
 		RandomnessCollectiveFlip: randomness_collective_flip::{Module, Call, Storage},
 		Nicks: nicks::{Module, Call, Storage, Event<T>},
@@ -635,6 +640,12 @@ impl_runtime_apis! {
 		}
 	}
 
+	impl authority_discovery_primitives::AuthorityDiscoveryApi<Block> for Runtime {
+		fn authorities() -> Vec<AuthorityDiscoveryId> {
+			AuthorityDiscovery::authorities()
+		}
+	}
+
 	impl system_rpc_runtime_api::AccountNonceApi<Block, AccountId, Index> for Runtime {
 		fn account_nonce(account: AccountId) -> Index {
 			System::account_nonce(account)
diff --git a/node/testing/src/genesis.rs b/node/testing/src/genesis.rs
index 0b99052f25026..1531ba134892a 100644
--- a/node/testing/src/genesis.rs
+++ b/node/testing/src/genesis.rs
@@ -89,6 +89,7 @@ pub fn config(support_changes_trie: bool, code: Option<&[u8]>) -> GenesisConfig
 			authorities: vec![],
 		}),
 		im_online: Some(Default::default()),
+		authority_discovery: Some(Default::default()),
 		democracy: Some(Default::default()),
 		collective_Instance1: Some(Default::default()),
 		collective_Instance2: Some(Default::default()),
diff --git a/node/testing/src/keyring.rs b/node/testing/src/keyring.rs
index 618c813fb529a..9c4f11fcf3110 100644
--- a/node/testing/src/keyring.rs
+++ b/node/testing/src/keyring.rs
@@ -59,6 +59,7 @@ pub fn to_session_keys(
 		grandpa: ed25519_keyring.to_owned().public().into(),
 		babe: sr25519_keyring.to_owned().public().into(),
 		im_online: sr25519_keyring.to_owned().public().into(),
+		authority_discovery: sr25519_keyring.to_owned().public().into(),
 	}
 }
 
@@ -99,4 +100,3 @@ pub fn sign(xt: CheckedExtrinsic, version: u32, genesis_hash: [u8; 32]) -> Unche
 		},
 	}
 }
-
diff --git a/srml/authority-discovery/Cargo.toml b/srml/authority-discovery/Cargo.toml
index 3968ab52aec66..6b896e4729ab4 100644
--- a/srml/authority-discovery/Cargo.toml
+++ b/srml/authority-discovery/Cargo.toml
@@ -6,24 +6,25 @@ edition = "2018"
 
 [dependencies]
 app-crypto = { package = "substrate-application-crypto", path = "../../core/application-crypto", default-features = false }
+authority-discovery-primitives = { package = "substrate-authority-discovery-primitives", path = "../../core/authority-discovery/primitives", default-features = false }
 codec = { package = "parity-scale-codec", version = "1.0.0", default-features = false, features = ["derive"] }
 primitives = { package = "substrate-primitives",  path = "../../core/primitives", default-features = false }
 rstd = { package = "sr-std", path = "../../core/sr-std", default-features = false }
-serde = { version = "1.0.101", optional = true }
 runtime-io = { package = "sr-io", path = "../../core/sr-io", default-features = false }
+serde = { version = "1.0.101", optional = true }
 session = { package = "srml-session", path = "../session", default-features = false }
 sr-primitives = { path = "../../core/sr-primitives", default-features = false }
 support = { package = "srml-support", path = "../support", default-features = false }
 system = { package = "srml-system", path = "../system", default-features = false }
 
 [dev-dependencies]
-babe-primitives = { package = "substrate-consensus-babe-primitives", path = "../../core/consensus/babe/primitives", default-features = false }
 sr-staking-primitives = { path = "../../core/sr-staking-primitives", default-features = false }
 
 [features]
 default = ["std"]
 std = [
 	"app-crypto/std",
+	"authority-discovery-primitives/std",
 	"codec/std",
 	"primitives/std",
 	"rstd/std",
diff --git a/srml/authority-discovery/src/lib.rs b/srml/authority-discovery/src/lib.rs
index 8c2951f3acbcc..9bae70a797942 100644
--- a/srml/authority-discovery/src/lib.rs
+++ b/srml/authority-discovery/src/lib.rs
@@ -17,34 +17,25 @@
 //! # Authority discovery module.
 //!
 //! This module is used by the `core/authority-discovery` to retrieve the
-//! current set of authorities, learn its own authority id as well as sign and
-//! verify messages to and from other authorities.
-//!
-//! ## Dependencies
-//!
-//! This module depends on an externally defined session key type, specified via
-//! `Trait::AuthorityId` in the respective node runtime implementation.
+//! current set of authorities.
 
 // Ensure we're `no_std` when compiling for Wasm.
 #![cfg_attr(not(feature = "std"), no_std)]
 
-use app_crypto::RuntimeAppPublic;
-use codec::FullCodec;
 use rstd::prelude::*;
 use support::{decl_module, decl_storage};
+use authority_discovery_primitives::AuthorityId;
 
 /// The module's config trait.
-pub trait Trait: system::Trait + session::Trait {
-	type AuthorityId: RuntimeAppPublic + Default + FullCodec + PartialEq;
-}
+pub trait Trait: system::Trait + session::Trait {}
 
 decl_storage! {
 	trait Store for Module<T: Trait> as AuthorityDiscovery {
-		/// The current set of keys that may issue a heartbeat.
-		Keys get(fn keys): Vec<T::AuthorityId>;
+		/// Keys of the current authority set.
+		Keys get(fn keys): Vec<AuthorityId>;
 	}
 	add_extra_genesis {
-		config(keys): Vec<T::AuthorityId>;
+		config(keys): Vec<AuthorityId>;
 		build(|config| Module::<T>::initialize_keys(&config.keys))
 	}
 }
@@ -55,79 +46,42 @@ decl_module! {
 }
 
 impl<T: Trait> Module<T> {
-	/// Returns own authority identifier iff it is part of the current authority
-	/// set, otherwise this function returns None. The restriction might be
-	/// softened in the future in case a consumer needs to learn own authority
-	/// identifier.
-	fn authority_id() -> Option<T::AuthorityId> {
-		let authorities = Keys::<T>::get();
-
-		let local_keys = T::AuthorityId::all();
-
-		authorities.into_iter().find_map(|authority| {
-			if local_keys.contains(&authority) {
-				Some(authority)
-			} else {
-				None
-			}
-		})
-	}
-
 	/// Retrieve authority identifiers of the current authority set.
-	pub fn authorities() -> Vec<T::AuthorityId> {
-		Keys::<T>::get()
-	}
-
-	/// Sign the given payload with the private key corresponding to the given authority id.
-	pub fn sign(
-		payload: &Vec<u8>,
-	) -> Option<(
-		<<T as Trait>::AuthorityId as RuntimeAppPublic>::Signature,
-		T::AuthorityId,
-	)> {
-		let authority_id = Module::<T>::authority_id()?;
-		authority_id.sign(payload).map(|s| (s, authority_id))
-	}
-
-	/// Verify the given signature for the given payload with the given
-	/// authority identifier.
-	pub fn verify(
-		payload: &Vec<u8>,
-		signature: <<T as Trait>::AuthorityId as RuntimeAppPublic>::Signature,
-		authority_id: T::AuthorityId,
-	) -> bool {
-		authority_id.verify(payload, &signature)
+	pub fn authorities() -> Vec<AuthorityId> {
+		Keys::get()
 	}
 
-	fn initialize_keys(keys: &[T::AuthorityId]) {
+	fn initialize_keys(keys: &[AuthorityId]) {
 		if !keys.is_empty() {
-			assert!(Keys::<T>::get().is_empty(), "Keys are already initialized!");
-			Keys::<T>::put(keys);
+			assert!(Keys::get().is_empty(), "Keys are already initialized!");
+			Keys::put(keys);
 		}
 	}
 }
 
 impl<T: Trait> sr_primitives::BoundToRuntimeAppPublic for Module<T> {
-	type Public = T::AuthorityId;
+	type Public = AuthorityId;
 }
 
 impl<T: Trait> session::OneSessionHandler<T::AccountId> for Module<T> {
-	type Key = T::AuthorityId;
+	type Key = AuthorityId;
 
-	fn on_genesis_session<'a, I: 'a>(validators: I)
+	fn on_genesis_session<'a, I: 'a>(authorities: I)
 	where
 		I: Iterator<Item = (&'a T::AccountId, Self::Key)>,
 	{
-		let keys = validators.map(|x| x.1).collect::<Vec<_>>();
+		let keys = authorities.map(|x| x.1).collect::<Vec<_>>();
 		Self::initialize_keys(&keys);
 	}
 
-	fn on_new_session<'a, I: 'a>(_changed: bool, _validators: I, next_validators: I)
+	fn on_new_session<'a, I: 'a>(changed: bool, validators: I, _queued_validators: I)
 	where
 		I: Iterator<Item = (&'a T::AccountId, Self::Key)>,
 	{
 		// Remember who the authorities are for the new session.
-		Keys::<T>::put(next_validators.map(|x| x.1).collect::<Vec<_>>());
+		if changed {
+			Keys::put(validators.map(|x| x.1).collect::<Vec<_>>());
+		}
 	}
 
 	fn on_disabled(_i: usize) {
@@ -138,8 +92,9 @@ impl<T: Trait> session::OneSessionHandler<T::AccountId> for Module<T> {
 #[cfg(test)]
 mod tests {
 	use super::*;
+	use authority_discovery_primitives::{AuthorityPair};
 	use app_crypto::Pair;
-	use primitives::{testing::KeyStore, crypto::key_types, sr25519, H256, traits::KeystoreExt};
+	use primitives::{crypto::key_types, H256};
 	use runtime_io::TestExternalities;
 	use sr_primitives::{
 		testing::{Header, UintAuthorityId}, traits::{ConvertInto, IdentityLookup, OpaqueKeys},
@@ -152,11 +107,7 @@ mod tests {
 
 	#[derive(Clone, Eq, PartialEq)]
 	pub struct Test;
-	impl Trait for Test {
-		type AuthorityId = babe_primitives::AuthorityId;
-	}
-
-	type AuthorityId = babe_primitives::AuthorityId;
+	impl Trait for Test {}
 
 	pub struct TestOnSessionEnding;
 	impl session::OnSessionEnding<AuthorityId> for TestOnSessionEnding {
@@ -237,126 +188,79 @@ mod tests {
 	}
 
 	#[test]
-	fn authority_id_fn_returns_intersection_of_current_authorities_and_keys_in_key_store() {
-		// Create keystore and generate key.
-		let key_store = KeyStore::new();
-		key_store
-			.write()
-			.sr25519_generate_new(key_types::BABE, None)
-			.expect("Generates key.");
-
-		// Retrieve key to later check if we got the right one.
-		let public_key = key_store
-			.read()
-			.sr25519_public_keys(key_types::BABE)
-			.pop()
-			.unwrap();
-		let authority_id = AuthorityId::from(public_key);
-
-		// Build genesis.
-		let mut t = system::GenesisConfig::default()
-			.build_storage::<Test>()
-			.unwrap();
-
-		GenesisConfig::<Test> {
-			keys: vec![authority_id.clone()],
-		}
-		.assimilate_storage(&mut t)
-		.unwrap();
-
-		// Create externalities.
-		let mut externalities = TestExternalities::new(t);
-		externalities.register_extension(KeystoreExt(key_store));
-
-		externalities.execute_with(|| {
-			assert_eq!(
-				authority_id,
-				AuthorityDiscovery::authority_id().expect("Retrieving public key.")
-			);
-		});
-	}
-
-	#[test]
-	fn authority_id_fn_does_not_return_key_outside_current_authority_set() {
-		// Create keystore and generate key.
-		let key_store = KeyStore::new();
-		key_store
-			.write()
-			.sr25519_generate_new(key_types::BABE, None)
-			.expect("Generates key.");
-
-		// Build genesis.
-		let mut t = system::GenesisConfig::default()
-			.build_storage::<Test>()
-			.unwrap();
+	fn authorities_returns_current_authority_set() {
+		// The whole authority discovery module ignores account ids, but we still need it for
+		// `session::OneSessionHandler::on_new_session`, thus its safe to use the same value everywhere.
+		let account_id = AuthorityPair::from_seed_slice(vec![10; 32].as_ref()).unwrap().public();
 
-		// Generate random authority set.
-		let keys = vec![(); 5]
-			.iter()
-			.map(|_x| sr25519::Pair::generate_with_phrase(None).0.public())
+		let first_authorities: Vec<AuthorityId> = vec![0, 1].into_iter()
+			.map(|i| AuthorityPair::from_seed_slice(vec![i; 32].as_ref()).unwrap().public())
 			.map(AuthorityId::from)
 			.collect();
 
-		GenesisConfig::<Test> { keys: keys }
-			.assimilate_storage(&mut t)
-			.unwrap();
-
-		// Create externalities.
-		let mut externalities = TestExternalities::new(t);
-		externalities.register_extension(KeystoreExt(key_store));
+		// Needed for `session::OneSessionHandler::on_new_session`.
+		let first_authorities_and_account_ids: Vec<(&AuthorityId, AuthorityId)> = first_authorities.clone()
+			.into_iter()
+			.map(|id| (&account_id, id))
+			.collect();
 
-		externalities.execute_with(|| {
-			assert_eq!(None, AuthorityDiscovery::authority_id());
-		});
-	}
+		let second_authorities: Vec<AuthorityId> = vec![2, 3].into_iter()
+			.map(|i| AuthorityPair::from_seed_slice(vec![i; 32].as_ref()).unwrap().public())
+			.map(AuthorityId::from)
+			.collect();
 
-	#[test]
-	fn sign_and_verify_workflow() {
-		// Create keystore and generate key.
-		let key_store = KeyStore::new();
-		key_store
-			.write()
-			.sr25519_generate_new(key_types::BABE, None)
-			.expect("Generates key.");
-
-		// Retrieve key to later check if we got the right one.
-		let public_key = key_store
-			.read()
-			.sr25519_public_keys(key_types::BABE)
-			.pop()
-			.unwrap();
-		let authority_id = AuthorityId::from(public_key);
+		// Needed for `session::OneSessionHandler::on_new_session`.
+		let second_authorities_and_account_ids: Vec<(&AuthorityId, AuthorityId)> = second_authorities.clone()
+			.into_iter()
+			.map(|id| (&account_id, id))
+			.collect();
 
 		// Build genesis.
 		let mut t = system::GenesisConfig::default()
 			.build_storage::<Test>()
 			.unwrap();
 
-		GenesisConfig::<Test> {
-			keys: vec![authority_id.clone()],
+		GenesisConfig {
+			keys: vec![],
 		}
-		.assimilate_storage(&mut t)
+		.assimilate_storage::<Test>(&mut t)
 		.unwrap();
 
 		// Create externalities.
 		let mut externalities = TestExternalities::new(t);
-		externalities.register_extension(KeystoreExt(key_store));
 
 		externalities.execute_with(|| {
-			let payload = String::from("test payload").into_bytes();
-			let (sig, authority_id) = AuthorityDiscovery::sign(&payload).expect("signature");
-
-			assert!(AuthorityDiscovery::verify(
-				&payload,
-				sig.clone(),
-				authority_id.clone(),
-			));
-
-			assert!(!AuthorityDiscovery::verify(
-				&String::from("other payload").into_bytes(),
-				sig,
-				authority_id,
-			))
+			use session::OneSessionHandler;
+
+			AuthorityDiscovery::on_genesis_session(
+				first_authorities.iter().map(|id| (id, id.clone()))
+			);
+			assert_eq!(
+				first_authorities,
+				AuthorityDiscovery::authorities()
+			);
+
+			// When `changed` set to false, the authority set should not be updated.
+			AuthorityDiscovery::on_new_session(
+				false,
+				second_authorities_and_account_ids.clone().into_iter(),
+				vec![].into_iter(),
+			);
+			assert_eq!(
+				first_authorities,
+				AuthorityDiscovery::authorities()
+			);
+
+			// When `changed` set to true, the authority set should be updated.
+			AuthorityDiscovery::on_new_session(
+				true,
+				second_authorities_and_account_ids.into_iter(),
+				vec![].into_iter(),
+			);
+			assert_eq!(
+				second_authorities,
+				AuthorityDiscovery::authorities()
+			);
 		});
 	}
 }
diff --git a/test-utils/chain-spec-builder/src/main.rs b/test-utils/chain-spec-builder/src/main.rs
index d46f4b7f0bc98..b277987e1ea5e 100644
--- a/test-utils/chain-spec-builder/src/main.rs
+++ b/test-utils/chain-spec-builder/src/main.rs
@@ -141,7 +141,7 @@ fn generate_authority_keys_and_store(
 			None,
 		).map_err(|err| err.to_string())?;
 
-		let (_, _, grandpa, babe, im_online) =
+		let (_, _, grandpa, babe, im_online, authority_discovery) =
 			chain_spec::get_authority_keys_from_seed(seed);
 
 		let insert_key = |key_type, public| {
@@ -166,6 +166,11 @@ fn generate_authority_keys_and_store(
 			primitives::crypto::key_types::IM_ONLINE,
 			im_online.as_slice(),
 		)?;
+
+		insert_key(
+			primitives::crypto::key_types::AUTHORITY_DISCOVERY,
+			authority_discovery.as_slice(),
+		)?;
 	}
 
 	Ok(())