diff --git a/Cargo.lock b/Cargo.lock
index 6492e0bdc..8a84d3b10 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -30,7 +30,7 @@ dependencies = [
  "pin-project-lite",
  "smallvec",
  "tokio",
- "tokio-util 0.7.10",
+ "tokio-util 0.7.11",
 ]
 
 [[package]]
@@ -40,7 +40,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "e01ed3140b2f8d422c68afa1ed2e85d996ea619c988ac834d255db32138655cb"
 dependencies = [
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -61,7 +61,7 @@ checksum = "7c7db3d5a9718568e4cf4a537cfd7070e6e6ff7481510d0237fb529ac850f6d3"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -120,7 +120,7 @@ version = "0.7.8"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "891477e0c6a8957309ee5c45a6368af3ae14bb510732d2684ffa19af310920f9"
 dependencies = [
- "getrandom 0.2.12",
+ "getrandom 0.2.15",
  "once_cell",
  "version_check",
 ]
@@ -540,7 +540,7 @@ checksum = "16e62a023e7c117e27523144c5d2459f4397fcc3cab0085af8e2224f643a0193"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -557,7 +557,7 @@ checksum = "a507401cad91ec6a857ed5513a2073c82a9b9048762b885bb98655b306964681"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -770,7 +770,7 @@ dependencies = [
  "regex",
  "rustc-hash",
  "shlex",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -894,7 +894,7 @@ dependencies = [
  "proc-macro-crate 3.1.0",
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
  "syn_derive",
 ]
 
@@ -1072,15 +1072,21 @@ dependencies = [
 name = "calimero-network"
 version = "0.1.0"
 dependencies = [
+ "bytes",
  "calimero-node-primitives",
  "calimero-primitives",
  "eyre",
+ "futures-util",
  "libp2p",
+ "libp2p-stream",
  "multiaddr",
  "owo-colors",
  "serde",
  "serde_json",
+ "thiserror",
  "tokio",
+ "tokio-test",
+ "tokio-util 0.7.11",
  "tracing",
 ]
 
@@ -1178,7 +1184,7 @@ dependencies = [
  "prettyplease",
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
  "thiserror",
 ]
 
@@ -1484,7 +1490,7 @@ dependencies = [
  "heck 0.5.0",
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -1850,7 +1856,7 @@ checksum = "f46882e17999c6cc590af592290432be3bce0428cb0d5f8b6715e4dc7b383eb3"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -1874,7 +1880,7 @@ dependencies = [
  "proc-macro2",
  "quote",
  "strsim 0.10.0",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -1885,7 +1891,7 @@ checksum = "a668eda54683121533a393014d8692171709ff57a7d61f187b6e782719f8933f"
 dependencies = [
  "darling_core",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -1990,7 +1996,7 @@ checksum = "67e77553c4162a157adbf834ebae5b415acbecbeafc7a74b0e886657506a7611"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -2077,7 +2083,7 @@ checksum = "487585f4d0c6655fe74905e2504d8ad6908e4db67f744eb140876906c2f3175d"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -2145,9 +2151,9 @@ dependencies = [
 
 [[package]]
 name = "either"
-version = "1.10.0"
+version = "1.12.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "11157ac094ffbdde99aa67b23417ebdd801842852b500e395a45a9c0aac03e4a"
+checksum = "3dca9240753cf90908d7e4aac30f630662b02aebaa1b58a3cadabdb23385b58b"
 
 [[package]]
 name = "elementtree"
@@ -2197,7 +2203,7 @@ dependencies = [
  "heck 0.4.1",
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -2237,7 +2243,7 @@ checksum = "f282cfdfe92516eb26c2af8589c274c7c17681f5ecc03c18255fe741c6aa64eb"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -2258,7 +2264,7 @@ dependencies = [
  "darling",
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -2636,7 +2642,7 @@ checksum = "87750cf4b7a4c0625b1529e4c543c2182106e4dedc60a2a6455e00d212c489ac"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -2733,9 +2739,9 @@ dependencies = [
 
 [[package]]
 name = "getrandom"
-version = "0.2.12"
+version = "0.2.15"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "190092ea657667030ac6a35e305e62fc4dd69fd98ac98631e5d3a2b1575a12b5"
+checksum = "c4567c8db10ae91089c99af84c68c38da3ec2f087c3f82960bcdbf3656b6f4d7"
 dependencies = [
  "cfg-if 1.0.0",
  "js-sys",
@@ -2826,7 +2832,7 @@ dependencies = [
  "indexmap 2.2.6",
  "slab",
  "tokio",
- "tokio-util 0.7.10",
+ "tokio-util 0.7.11",
  "tracing",
 ]
 
@@ -2845,7 +2851,7 @@ dependencies = [
  "indexmap 2.2.6",
  "slab",
  "tokio",
- "tokio-util 0.7.10",
+ "tokio-util 0.7.11",
  "tracing",
 ]
 
@@ -3611,9 +3617,9 @@ checksum = "884e2677b40cc8c339eaefcb701c32ef1fd2493d71118dc0ca4b6a736c93bd67"
 
 [[package]]
 name = "libc"
-version = "0.2.153"
+version = "0.2.155"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "9c198f91728a82281a64e1f4f9eeb25d82cb32a5de251c6bd1b5154d63a8e7bd"
+checksum = "97b3888a4aecf77e811145cadf6eef5901f4782c53886191b2f693f24761847c"
 
 [[package]]
 name = "libloading"
@@ -3645,7 +3651,7 @@ dependencies = [
  "either",
  "futures",
  "futures-timer",
- "getrandom 0.2.12",
+ "getrandom 0.2.15",
  "instant",
  "libp2p-allow-block-list",
  "libp2p-autonat",
@@ -3834,7 +3840,7 @@ dependencies = [
  "fnv",
  "futures",
  "futures-ticker",
- "getrandom 0.2.12",
+ "getrandom 0.2.15",
  "hex_fmt",
  "instant",
  "libp2p-core",
@@ -4160,22 +4166,38 @@ dependencies = [
  "void",
 ]
 
+[[package]]
+name = "libp2p-stream"
+version = "0.1.0-alpha.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "2e80e4cc955913d1a3e292688aada12fc86edefec9ada087cf91825cd6368887"
+dependencies = [
+ "futures",
+ "libp2p-core",
+ "libp2p-identity",
+ "libp2p-swarm",
+ "rand 0.8.5",
+ "tracing",
+ "void",
+]
+
 [[package]]
 name = "libp2p-swarm"
-version = "0.44.1"
+version = "0.44.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "e92532fc3c4fb292ae30c371815c9b10103718777726ea5497abc268a4761866"
+checksum = "80cae6cb75f89dbca53862f9ebe0b9f463aa7b302762fcfaafb9e51dcc9b0f7e"
 dependencies = [
  "async-std",
  "either",
  "fnv",
  "futures",
  "futures-timer",
- "getrandom 0.2.12",
+ "getrandom 0.2.15",
  "instant",
  "libp2p-core",
  "libp2p-identity",
  "libp2p-swarm-derive",
+ "lru 0.12.3",
  "multistream-select",
  "once_cell",
  "rand 0.8.5",
@@ -4188,14 +4210,14 @@ dependencies = [
 
 [[package]]
 name = "libp2p-swarm-derive"
-version = "0.34.1"
+version = "0.34.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "b644268b4acfdaa6a6100b31226ee7a36d96ab4c43287d113bfd2308607d8b6f"
+checksum = "5daceb9dd908417b6dfcfe8e94098bc4aac54500c282e78120b885dadc09b999"
 dependencies = [
- "heck 0.4.1",
+ "heck 0.5.0",
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -4978,7 +5000,7 @@ checksum = "80fca203c51edd9595ec14db1d13359fb9ede32314990bf296b6c5c4502f6ab7"
 dependencies = [
  "quote",
  "serde",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -4990,7 +5012,7 @@ dependencies = [
  "fs2",
  "near-rpc-error-core",
  "serde",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -5046,7 +5068,7 @@ dependencies = [
  "serde_json",
  "strum 0.26.2",
  "strum_macros 0.26.2",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -5397,7 +5419,7 @@ checksum = "a948666b637a0f465e8564c73e89d4dde00d72d4d473cc972f390fc3dcee7d9c"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -5500,7 +5522,7 @@ dependencies = [
  "proc-macro2",
  "proc-macro2-diagnostics",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -5696,7 +5718,7 @@ checksum = "2f38a4412a78282e09a2cf38d195ea5420d15ba0602cb375210efbc877243965"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -5835,7 +5857,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "8d3928fb5db768cb86f891ff014f0144589297e3c6a1aba6ed7cecfdace270c7"
 dependencies = [
  "proc-macro2",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -5923,9 +5945,9 @@ dependencies = [
 
 [[package]]
 name = "proc-macro2"
-version = "1.0.79"
+version = "1.0.85"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "e835ff2298f5721608eb1a980ecaee1aef2c132bf95ecc026a11b7bf3c01c02e"
+checksum = "22244ce15aa966053a896d1accb3a6e68469b97c7f33f284b99f0d576879fc23"
 dependencies = [
  "unicode-ident",
 ]
@@ -5938,7 +5960,7 @@ checksum = "af066a9c399a26e020ada66a034357a868728e72cd426f3adcd35f80d88d88c8"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
  "version_check",
  "yansi",
 ]
@@ -5978,7 +6000,7 @@ checksum = "440f724eba9f6996b75d63681b0a92b06947f1457076d503a4d2e2c8f56442b8"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -6225,7 +6247,7 @@ version = "0.6.4"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "ec0be4795e2f6a28069bec0b5ff3e2ac9bafc99e6a9a7dc3547996c5c816922c"
 dependencies = [
- "getrandom 0.2.12",
+ "getrandom 0.2.15",
 ]
 
 [[package]]
@@ -6284,7 +6306,7 @@ version = "0.4.5"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "bd283d9651eeda4b2a83a43c1c91b266c40fd76ecd39a50a8c630ae69dc72891"
 dependencies = [
- "getrandom 0.2.12",
+ "getrandom 0.2.15",
  "libredox",
  "thiserror",
 ]
@@ -6500,7 +6522,7 @@ checksum = "c17fa4cb658e3583423e915b9f3acc01cceaee1860e33d59ebae66adc3a2dc0d"
 dependencies = [
  "cc",
  "cfg-if 1.0.0",
- "getrandom 0.2.12",
+ "getrandom 0.2.15",
  "libc",
  "spin 0.9.8",
  "untrusted 0.9.0",
@@ -6812,7 +6834,7 @@ checksum = "1db149f81d46d2deba7cd3c50772474707729550221e69588478ebf9ada425ae"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -6945,7 +6967,7 @@ checksum = "7eb0b34b42edc17f6b7cac84a52a1c5f0e1bb2227e997ca9011ea3dd34e8610b"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -6988,7 +7010,7 @@ checksum = "0b2e6b945e9d3df726b65d6ee24060aff8e3533d431f677a9695db04eff9dfdb"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -7039,7 +7061,7 @@ dependencies = [
  "darling",
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -7368,7 +7390,7 @@ dependencies = [
  "proc-macro2",
  "quote",
  "rustversion",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -7432,9 +7454,9 @@ dependencies = [
 
 [[package]]
 name = "syn"
-version = "2.0.57"
+version = "2.0.66"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "11a6ae1e52eb25aab8f3fb9fca13be982a373b8f1157ca14b897a825ba4a2d35"
+checksum = "c42f3f41a2de00b01c0aaad383c5a45241efc8b2d1eda5661812fda5f3cdcff5"
 dependencies = [
  "proc-macro2",
  "quote",
@@ -7450,7 +7472,7 @@ dependencies = [
  "proc-macro-error",
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -7580,7 +7602,7 @@ checksum = "c61f3ba182994efc43764a46c018c347bc492c79f024e705f46567b418f6d4f7"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -7685,7 +7707,7 @@ checksum = "5b8a1e28f2deaa14e508979454cb3a223b10b938b45af148bc0986de36f1923b"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -7720,6 +7742,19 @@ dependencies = [
  "tokio",
 ]
 
+[[package]]
+name = "tokio-test"
+version = "0.4.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "2468baabc3311435b55dd935f702f42cd1b8abb7e754fb7dfb16bd36aa88f9f7"
+dependencies = [
+ "async-stream",
+ "bytes",
+ "futures-core",
+ "tokio",
+ "tokio-stream",
+]
+
 [[package]]
 name = "tokio-tungstenite"
 version = "0.21.0"
@@ -7748,9 +7783,9 @@ dependencies = [
 
 [[package]]
 name = "tokio-util"
-version = "0.7.10"
+version = "0.7.11"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "5419f34732d9eb6ee4c3578b7989078579b7f039cbbb9ca2c4da015749371e15"
+checksum = "9cf6b47b3771c49ac75ad09a6162f53ad4b8088b76ac60e8ec1455b31a189fe1"
 dependencies = [
  "bytes",
  "futures-core",
@@ -7758,7 +7793,6 @@ dependencies = [
  "futures-sink",
  "pin-project-lite",
  "tokio",
- "tracing",
 ]
 
 [[package]]
@@ -7883,7 +7917,7 @@ dependencies = [
  "rand 0.8.5",
  "slab",
  "tokio",
- "tokio-util 0.7.10",
+ "tokio-util 0.7.11",
  "tower-layer",
  "tower-service",
  "tracing",
@@ -7925,7 +7959,7 @@ dependencies = [
  "percent-encoding",
  "pin-project-lite",
  "tokio",
- "tokio-util 0.7.10",
+ "tokio-util 0.7.11",
  "tower-layer",
  "tower-service",
  "tracing",
@@ -8026,7 +8060,7 @@ checksum = "34704c8d6ebcbc939824180af020566b01a7c01f80641264eba0999f6c2b6be7"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -8403,7 +8437,7 @@ dependencies = [
  "once_cell",
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
  "wasm-bindgen-shared",
 ]
 
@@ -8437,7 +8471,7 @@ checksum = "e94f17b526d0a461a191c78ea52bbce64071ed5c04c9ffe424dcb38f74171bb7"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
  "wasm-bindgen-backend",
  "wasm-bindgen-shared",
 ]
@@ -8667,7 +8701,7 @@ dependencies = [
  "tiny-keccak",
  "tokio",
  "tokio-stream",
- "tokio-util 0.7.10",
+ "tokio-util 0.7.11",
  "url",
  "web3-async-native-tls",
 ]
@@ -9118,7 +9152,7 @@ checksum = "9ce1b18ccd8e73a9321186f97e46f9f04b778851177567b1975109d26a08d2a6"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -9138,7 +9172,7 @@ checksum = "ce36e65b0d2999d2aafac989fb249189a141aee1f53c612c1f37d72631959f69"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.57",
+ "syn 2.0.66",
 ]
 
 [[package]]
diff --git a/Cargo.toml b/Cargo.toml
index f113e5396..162280136 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -35,6 +35,7 @@ axum = "0.7.4"
 base64 = "0.22.0"
 borsh = "1.3.1"
 bs58 = "0.5.0"
+bytes = "1.6.0"
 camino = "1.1.6"
 chrono = "0.4.37"
 clap = "4.4.18"
@@ -46,6 +47,7 @@ fragile = "2.0.0"
 futures-util = "0.3.30"
 hex = "0.4.3"
 libp2p = "0.53.2"
+libp2p-stream = "0.1.0-alpha.1"
 multiaddr = "0.18.1"
 multibase = "0.9.1"
 near-jsonrpc-client = "0.8.0"
@@ -70,6 +72,8 @@ serde_json = "1.0.113"
 syn = "2.0"
 thiserror = "1.0.56"
 tokio = "1.35.1"
+tokio-test = "0.4.4"
+tokio-util = "0.7.11"
 toml = "0.8.9"
 tower = "0.4.13"
 tower-http = "0.5.2"
diff --git a/crates/network/Cargo.toml b/crates/network/Cargo.toml
index b2f254728..b05b8380e 100644
--- a/crates/network/Cargo.toml
+++ b/crates/network/Cargo.toml
@@ -7,14 +7,38 @@ repository.workspace = true
 license.workspace = true
 
 [dependencies]
+bytes.workspace = true
 eyre.workspace = true
-libp2p = { workspace = true, features = ["full"] }
+futures-util.workspace = true
+libp2p = { workspace = true, features = [
+    "dcutr",
+    "gossipsub",
+    "identify",
+    "kad",
+    "macros",
+    "mdns",
+    "noise",
+    "ping",
+    "quic",
+    "rendezvous",
+    "relay",
+    "tokio",
+    "tcp",
+    "tls",
+    "yamux",
+] }
+libp2p-stream.workspace = true
 multiaddr.workspace = true
 owo-colors.workspace = true
 serde = { workspace = true, features = ["derive"] }
 serde_json.workspace = true
+thiserror.workspace = true
 tokio.workspace = true
+tokio-util = { workspace = true, features = ["codec", "compat"] }
 tracing.workspace = true
 
 calimero-node-primitives = { path = "../node-primitives" }
 calimero-primitives = { path = "../primitives" }
+
+[dev-dependencies]
+tokio-test.workspace = true
diff --git a/crates/network/src/client.rs b/crates/network/src/client.rs
index cfb6bedae..13e833075 100644
--- a/crates/network/src/client.rs
+++ b/crates/network/src/client.rs
@@ -3,7 +3,7 @@ use std::collections::HashSet;
 use libp2p::{gossipsub, Multiaddr, PeerId};
 use tokio::sync::{mpsc, oneshot};
 
-use crate::Command;
+use crate::{stream, Command};
 
 #[derive(Clone)]
 pub struct NetworkClient {
@@ -63,6 +63,17 @@ impl NetworkClient {
         receiver.await.expect("Sender not to be dropped.")
     }
 
+    pub async fn open_stream(&self, peer_id: PeerId) -> eyre::Result<stream::Stream> {
+        let (sender, receiver) = oneshot::channel();
+
+        self.sender
+            .send(Command::OpenStream { peer_id, sender })
+            .await
+            .expect("Command receiver not to be dropped.");
+
+        receiver.await.expect("Sender not to be dropped.")
+    }
+
     pub async fn peer_count(&self) -> usize {
         let (sender, receiver) = oneshot::channel();
 
diff --git a/crates/network/src/events.rs b/crates/network/src/events.rs
index d92288356..aac2e686c 100644
--- a/crates/network/src/events.rs
+++ b/crates/network/src/events.rs
@@ -29,6 +29,7 @@ impl EventLoop {
                 BehaviourEvent::Rendezvous(event) => {
                     events::EventHandler::handle(self, event).await
                 }
+                BehaviourEvent::Stream(()) => {}
             },
             SwarmEvent::NewListenAddr {
                 listener_id,
diff --git a/crates/network/src/lib.rs b/crates/network/src/lib.rs
index ad896f8ad..a05107aa5 100644
--- a/crates/network/src/lib.rs
+++ b/crates/network/src/lib.rs
@@ -15,6 +15,7 @@ pub mod client;
 pub mod config;
 mod discovery;
 mod events;
+pub mod stream;
 pub mod types;
 
 use client::NetworkClient;
@@ -34,6 +35,7 @@ struct Behaviour {
     ping: ping::Behaviour,
     rendezvous: rendezvous::client::Behaviour,
     relay: relay::client::Behaviour,
+    stream: libp2p_stream::Behaviour,
 }
 
 pub async fn run(
@@ -126,12 +128,25 @@ async fn init(
             ping: ping::Behaviour::default(),
             relay: relay_behaviour,
             rendezvous: rendezvous::client::Behaviour::new(key.clone()),
+            stream: libp2p_stream::Behaviour::new(),
         })?
         .with_swarm_config(|cfg| {
             cfg.with_idle_connection_timeout(tokio::time::Duration::from_secs(30))
         })
         .build();
 
+    let incoming_streams = match swarm
+        .behaviour()
+        .stream
+        .new_control()
+        .accept(stream::CALIMERO_STREAM_PROTOCOL)
+    {
+        Ok(incoming_streams) => incoming_streams,
+        Err(err) => {
+            eyre::bail!("Failed to setup control for stream protocol: {:?}", err)
+        }
+    };
+
     let (command_sender, command_receiver) = mpsc::channel(32);
     let (event_sender, event_receiver) = mpsc::channel(32);
 
@@ -141,13 +156,20 @@ async fn init(
 
     let discovery = discovery::Discovery::new(&config.discovery.rendezvous);
 
-    let event_loop = EventLoop::new(swarm, command_receiver, event_sender, discovery);
+    let event_loop = EventLoop::new(
+        swarm,
+        incoming_streams,
+        command_receiver,
+        event_sender,
+        discovery,
+    );
 
     Ok((client, event_receiver, event_loop))
 }
 
 pub(crate) struct EventLoop {
     swarm: Swarm<Behaviour>,
+    incoming_streams: libp2p_stream::IncomingStreams,
     command_receiver: mpsc::Receiver<Command>,
     event_sender: mpsc::Sender<types::NetworkEvent>,
     discovery: discovery::Discovery,
@@ -160,12 +182,14 @@ pub(crate) struct EventLoop {
 impl EventLoop {
     fn new(
         swarm: Swarm<Behaviour>,
+        incoming_streams: libp2p_stream::IncomingStreams,
         command_receiver: mpsc::Receiver<Command>,
         event_sender: mpsc::Sender<types::NetworkEvent>,
         discovery: discovery::Discovery,
     ) -> Self {
         Self {
             swarm,
+            incoming_streams,
             command_receiver,
             event_sender,
             discovery,
@@ -182,7 +206,12 @@ impl EventLoop {
 
         loop {
             tokio::select! {
-                event = self.swarm.next() => self.handle_swarm_event(event.expect("Swarm stream to be infinite.")).await,
+                event = self.swarm.next() => {
+                    self.handle_swarm_event(event.expect("Swarm stream to be infinite.")).await;
+                },
+                incoming_stream = self.incoming_streams.next() => {
+                    self.handle_incoming_stream(incoming_stream.expect("Incoming streams to be infinite.")).await;
+                },
                 command = self.command_receiver.recv() => {
                     let Some(c) = command else { break };
                     self.handle_command(c).await;
@@ -260,6 +289,9 @@ impl EventLoop {
 
                 let _ = sender.send(Ok(topic));
             }
+            Command::OpenStream { peer_id, sender } => {
+                let _ = sender.send(self.open_stream(peer_id).await.map_err(Into::into));
+            }
             Command::PeerCount { sender } => {
                 let _ = sender.send(self.swarm.connected_peers().count());
             }
@@ -329,6 +361,10 @@ enum Command {
         topic: gossipsub::IdentTopic,
         sender: oneshot::Sender<eyre::Result<gossipsub::IdentTopic>>,
     },
+    OpenStream {
+        peer_id: PeerId,
+        sender: oneshot::Sender<eyre::Result<stream::Stream>>,
+    },
     PeerCount {
         sender: oneshot::Sender<usize>,
     },
diff --git a/crates/network/src/stream.rs b/crates/network/src/stream.rs
new file mode 100644
index 000000000..13238d4a6
--- /dev/null
+++ b/crates/network/src/stream.rs
@@ -0,0 +1,92 @@
+use std::pin::Pin;
+use std::task::{Context, Poll};
+
+use futures_util::{Sink as FuturesSink, SinkExt, Stream as FuturesStream};
+use libp2p::PeerId;
+use tokio::io::BufStream;
+use tokio_util::codec::Framed;
+use tokio_util::compat::{Compat, FuturesAsyncReadCompatExt};
+
+use super::{types, EventLoop};
+
+mod codec;
+
+pub use codec::{CodecError, Message};
+
+pub(crate) const CALIMERO_STREAM_PROTOCOL: libp2p::StreamProtocol =
+    libp2p::StreamProtocol::new("/calimero/stream/0.0.1");
+
+#[derive(Debug)]
+pub struct Stream {
+    inner: Framed<BufStream<Compat<libp2p::Stream>>, codec::MessageJsonCodec>,
+}
+
+impl Stream {
+    pub fn new(stream: libp2p::Stream) -> Self {
+        let stream = BufStream::new(stream.compat());
+        let stream = Framed::new(stream, codec::MessageJsonCodec);
+        Stream { inner: stream }
+    }
+}
+
+impl FuturesStream for Stream {
+    type Item = Result<Message, CodecError>;
+
+    fn poll_next(self: Pin<&mut Self>, cx: &mut Context<'_>) -> Poll<Option<Self::Item>> {
+        let inner = Pin::new(&mut self.get_mut().inner);
+        inner.poll_next(cx)
+    }
+}
+
+impl FuturesSink<Message> for Stream {
+    type Error = CodecError;
+
+    fn poll_ready(mut self: Pin<&mut Self>, cx: &mut Context<'_>) -> Poll<Result<(), Self::Error>> {
+        self.inner.poll_ready_unpin(cx)
+    }
+
+    fn start_send(mut self: Pin<&mut Self>, item: Message) -> Result<(), Self::Error> {
+        self.inner.start_send_unpin(item)
+    }
+
+    fn poll_flush(mut self: Pin<&mut Self>, cx: &mut Context<'_>) -> Poll<Result<(), Self::Error>> {
+        self.inner.poll_flush_unpin(cx)
+    }
+
+    fn poll_close(mut self: Pin<&mut Self>, cx: &mut Context<'_>) -> Poll<Result<(), Self::Error>> {
+        self.inner.poll_close_unpin(cx)
+    }
+}
+
+impl EventLoop {
+    pub(crate) async fn handle_incoming_stream(
+        &mut self,
+        (peer, stream): (PeerId, libp2p::Stream),
+    ) {
+        self.event_sender
+            .send(types::NetworkEvent::StreamOpened {
+                peer_id: peer,
+                stream: Stream::new(stream),
+            })
+            .await
+            .expect("Failed to send stream opened event");
+    }
+
+    pub(crate) async fn open_stream(&mut self, peer_id: PeerId) -> eyre::Result<Stream> {
+        let stream = match self
+            .swarm
+            .behaviour()
+            .stream
+            .new_control()
+            .open_stream(peer_id, CALIMERO_STREAM_PROTOCOL)
+            .await
+        {
+            Ok(stream) => stream,
+            Err(err) => {
+                eyre::bail!("Failed to open stream: {:?}", err);
+            }
+        };
+
+        Ok(Stream::new(stream))
+    }
+}
diff --git a/crates/network/src/stream/codec.rs b/crates/network/src/stream/codec.rs
new file mode 100644
index 000000000..dd2b3e739
--- /dev/null
+++ b/crates/network/src/stream/codec.rs
@@ -0,0 +1,104 @@
+use bytes::{Bytes, BytesMut};
+use serde::{Deserialize, Serialize};
+use thiserror::Error;
+use tokio_util::codec::{Decoder, Encoder, LengthDelimitedCodec};
+
+#[derive(Clone, Debug, PartialEq, Serialize, Deserialize)]
+pub struct Message {
+    pub data: Vec<u8>,
+}
+
+#[derive(Debug, Error)]
+#[error("CodecError")]
+pub enum CodecError {
+    StdIo(#[from] std::io::Error),
+    SerDe(serde_json::Error),
+}
+
+#[derive(Debug)]
+pub(crate) struct MessageJsonCodec;
+
+impl Decoder for MessageJsonCodec {
+    type Item = Message;
+    type Error = CodecError;
+
+    fn decode(&mut self, src: &mut BytesMut) -> Result<Option<Self::Item>, Self::Error> {
+        let mut length_codec = LengthDelimitedCodec::new();
+        let Some(frame) = length_codec.decode(src)? else {
+            return Ok(None);
+        };
+
+        serde_json::from_slice(&frame)
+            .map(Some)
+            .map_err(CodecError::SerDe)
+    }
+}
+
+impl Encoder<Message> for MessageJsonCodec {
+    type Error = CodecError;
+
+    fn encode(&mut self, item: Message, dst: &mut BytesMut) -> Result<(), Self::Error> {
+        let mut length_codec = LengthDelimitedCodec::new();
+        let json = serde_json::to_vec(&item).map_err(CodecError::SerDe)?;
+
+        length_codec
+            .encode(Bytes::from(json), dst)
+            .map_err(CodecError::StdIo)
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use futures_util::StreamExt;
+    use tokio_test::io::Builder;
+    use tokio_util::codec::FramedRead;
+
+    #[test]
+    fn test_my_frame_encoding_decoding() {
+        let request = Message {
+            data: "Hello".bytes().collect(),
+        };
+        let response = Message {
+            data: "World".bytes().collect(),
+        };
+
+        let mut buffer = BytesMut::new();
+        let mut codec = MessageJsonCodec;
+        codec.encode(request.clone(), &mut buffer).unwrap();
+        codec.encode(response.clone(), &mut buffer).unwrap();
+
+        let decoded_request = codec.decode(&mut buffer).unwrap();
+        assert_eq!(decoded_request, Some(request));
+
+        let decoded_response = codec.decode(&mut buffer).unwrap();
+        assert_eq!(decoded_response, Some(response));
+    }
+
+    #[tokio::test]
+    async fn test_multiple_objects_stream() {
+        let request = Message {
+            data: "Hello".bytes().collect(),
+        };
+        let response = Message {
+            data: "World".bytes().collect(),
+        };
+
+        let mut buffer = BytesMut::new();
+        let mut codec = MessageJsonCodec;
+        codec.encode(request.clone(), &mut buffer).unwrap();
+        codec.encode(response.clone(), &mut buffer).unwrap();
+
+        let mut stream = Builder::new().read(&buffer.freeze()).build();
+        let mut framed = FramedRead::new(&mut stream, MessageJsonCodec);
+
+        let decoded_request = framed.next().await.unwrap().unwrap();
+        assert_eq!(decoded_request, request);
+
+        let decoded_response = framed.next().await.unwrap().unwrap();
+        assert_eq!(decoded_response, response);
+
+        let decoded3 = framed.next().await;
+        assert_eq!(decoded3.is_none(), true);
+    }
+}
diff --git a/crates/network/src/types.rs b/crates/network/src/types.rs
index dbfd4025b..6514d411f 100644
--- a/crates/network/src/types.rs
+++ b/crates/network/src/types.rs
@@ -2,6 +2,8 @@ use libp2p::core::transport;
 pub use libp2p::gossipsub::{IdentTopic, Message, MessageId, TopicHash};
 pub use libp2p::identity::PeerId;
 
+use super::stream;
+
 #[derive(Debug)]
 pub enum NetworkEvent {
     ListeningOn {
@@ -16,4 +18,8 @@ pub enum NetworkEvent {
         id: MessageId,
         message: Message,
     },
+    StreamOpened {
+        peer_id: PeerId,
+        stream: stream::Stream,
+    },
 }
diff --git a/crates/node/src/lib.rs b/crates/node/src/lib.rs
index eb380f682..7743b6440 100644
--- a/crates/node/src/lib.rs
+++ b/crates/node/src/lib.rs
@@ -367,6 +367,14 @@ impl Node {
             calimero_network::types::NetworkEvent::ListeningOn { address, .. } => {
                 info!("Listening on: {}", address);
             }
+            calimero_network::types::NetworkEvent::StreamOpened { peer_id, stream } => {
+                info!("Stream opened from peer: {}", peer_id);
+                if let Err(err) = self.handle_stream(stream).await {
+                    error!(%err, "Failed to handle stream");
+                }
+
+                info!("Stream closed from peer: {:?}", peer_id);
+            }
         }
 
         Ok(())
@@ -636,6 +644,14 @@ impl Node {
 
         Ok(outcome)
     }
+
+    async fn handle_stream(
+        &mut self,
+        _stream: calimero_network::stream::Stream,
+    ) -> eyre::Result<()> {
+        // TODO: implement catchup mechanism once storage is ready
+        Ok(())
+    }
 }
 
 // TODO: move this into the config
diff --git a/packages/calimero-sdk/package.json b/packages/calimero-sdk/package.json
index d25359e7c..f87970642 100644
--- a/packages/calimero-sdk/package.json
+++ b/packages/calimero-sdk/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@calimero-is-near/calimero-p2p-sdk",
-  "version": "0.0.20",
+  "version": "0.0.21",
   "description": "Javascript library to interact with Calimero P2P node",
   "type": "module",
   "main": "lib/index.js",
diff --git a/packages/calimero-sdk/src/setup/SetupModal.tsx b/packages/calimero-sdk/src/setup/SetupModal.tsx
index 16b4115ee..c99b3b064 100644
--- a/packages/calimero-sdk/src/setup/SetupModal.tsx
+++ b/packages/calimero-sdk/src/setup/SetupModal.tsx
@@ -1,4 +1,4 @@
-import { useCallback, useState } from 'react';
+import { useCallback, useEffect, useState } from 'react';
 import apiClient from '../api';
 import React from 'react';
 import Spinner from '../components/loader/Spinner';
@@ -87,9 +87,13 @@ export const SetupModal: React.FC<SetupModalProps> = (
 ) => {
   const [error, setError] = useState<string | null>(null);
   const [loading, setLoading] = useState(false);
-  const [url, setUrl] = useState<string | null>(props.getNodeUrl());
+  const [url, setUrl] = useState<string | null>(null);
   const MINIMUM_LOADING_TIME_MS = 1000;
 
+  useEffect(() => {
+    setUrl(props.getNodeUrl());
+  }, [props]);
+
   function validateUrl(value: string): boolean {
     try {
       new URL(value);