diff --git a/crates/node/Cargo.toml b/crates/node/Cargo.toml
index a8dc97086..eda8d0614 100644
--- a/crates/node/Cargo.toml
+++ b/crates/node/Cargo.toml
@@ -26,11 +26,11 @@ calimero-crypto = { path = "../crypto" }
 calimero-blobstore = { path = "../store/blobs" }
 calimero-network = { path = "../network" }
 calimero-node-primitives = { path = "../node-primitives" }
-calimero-primitives = { path = "../primitives" }
+calimero-primitives = { path = "../primitives", features = ["borsh"] }
 calimero-runtime = { path = "../runtime" }
 calimero-server = { path = "../server", features = ["jsonrpc", "websocket", "admin"] }
 calimero-store = { path = "../store", features = ["datatypes"] }
-calimero-context-config =  { path = "../context/config" }
+calimero-context-config = { path = "../context/config" }
 
 [lints]
 workspace = true
diff --git a/crates/node/src/interactive_cli.rs b/crates/node/src/interactive_cli.rs
index 2d720da4e..d8bddbbc3 100644
--- a/crates/node/src/interactive_cli.rs
+++ b/crates/node/src/interactive_cli.rs
@@ -12,6 +12,7 @@ pub mod peers;
 pub mod state;
 pub mod store;
 
+use calimero_primitives::blobs::BlobId;
 use clap::{Parser, Subcommand};
 
 use crate::Node;
@@ -34,6 +35,7 @@ pub enum SubCommand {
     Peers(peers::PeersCommand),
     // Store(store::StoreCommand),
     State(state::StateCommand),
+    Connect,
 }
 
 pub async fn handle_line(node: &mut Node, line: String) -> eyre::Result<()> {
@@ -59,6 +61,14 @@ pub async fn handle_line(node: &mut Node, line: String) -> eyre::Result<()> {
         SubCommand::Peers(peers) => peers.run(node.network_client.clone().into()).await?,
         SubCommand::State(state) => state.run(node)?,
         // SubCommand::Store(store) => store.run(node)?,
+        SubCommand::Connect => {
+            let addr =
+            "/ip4/18.156.18.6/udp/4001/quic-v1/p2p/12D3KooWMgoF9xzyeKJHtRvrYwdomheRbHPELagWZwTLmXb6bCVC";
+
+            let res = node.network_client.dial(addr.parse()?).await;
+
+            dbg!(res);
+        }
     }
 
     Ok(())
diff --git a/crates/node/src/sync.rs b/crates/node/src/sync.rs
index 1d92f9db6..cf4f00c94 100644
--- a/crates/node/src/sync.rs
+++ b/crates/node/src/sync.rs
@@ -16,6 +16,7 @@ use crate::types::{InitPayload, StreamMessage};
 use crate::Node;
 
 mod blobs;
+mod key_share;
 mod state;
 
 #[derive(Copy, Clone, Debug)]
@@ -118,6 +119,9 @@ impl Node {
 
         let mut stream = self.network_client.open_stream(chosen_peer).await?;
 
+        self.initiate_key_share_process(&mut context, our_identity, &mut stream)
+            .await?;
+
         if !self.ctx_manager.has_blob_available(application.blob)? {
             self.initiate_blob_share_process(
                 &context,
@@ -223,6 +227,10 @@ impl Node {
                 )
                 .await?
             }
+            InitPayload::KeyShare {} => {
+                self.handle_key_share_request(context, their_identity, stream)
+                    .await?
+            }
         };
 
         Ok(Some(()))
diff --git a/crates/node/src/sync/key_share.rs b/crates/node/src/sync/key_share.rs
new file mode 100644
index 000000000..bcc6c86bb
--- /dev/null
+++ b/crates/node/src/sync/key_share.rs
@@ -0,0 +1,92 @@
+use calimero_crypto::SharedKey;
+use calimero_network::stream::Stream;
+use calimero_primitives::context::Context;
+use calimero_primitives::identity::PublicKey;
+use eyre::{bail, OptionExt};
+use rand::seq::IteratorRandom;
+use rand::thread_rng;
+use tracing::debug;
+
+use crate::sync::{recv, send, Sequencer};
+use crate::types::{InitPayload, MessagePayload, StreamMessage};
+use crate::Node;
+
+impl Node {
+    pub(super) async fn initiate_key_share_process(
+        &self,
+        context: &mut Context,
+        our_identity: PublicKey,
+        stream: &mut Stream,
+    ) -> eyre::Result<()> {
+        send(
+            stream,
+            &StreamMessage::Init {
+                context_id: context.id,
+                party_id: our_identity,
+                payload: InitPayload::KeyShare {},
+            },
+            None,
+        )
+        .await?;
+
+        let Some(ack) = recv(stream, self.sync_config.timeout, None).await? else {
+            bail!("connection closed while awaiting state sync handshake");
+        };
+
+        let sender_key = match ack {
+            StreamMessage::Message {
+                payload: MessagePayload::KeyShare { sender_key },
+                ..
+            } => sender_key,
+            unexpected @ (StreamMessage::Init { .. }
+            | StreamMessage::Message { .. }
+            | StreamMessage::OpaqueError) => {
+                bail!("unexpected message: {:?}", unexpected)
+            }
+        };
+
+        // Do I store "his" SenderKey somewhere?
+
+        Ok(())
+    }
+
+    pub(super) async fn handle_key_share_request(
+        &self,
+        context: Context,
+        their_identity: PublicKey,
+        stream: &mut Stream,
+    ) -> eyre::Result<()> {
+        debug!(
+            context_id=%context.id,
+            their_identity=%their_identity,
+            "Received key share request",
+        );
+
+        let identities = self.ctx_manager.get_context_owned_identities(context.id)?;
+
+        let Some(our_identity) = identities.into_iter().choose(&mut thread_rng()) else {
+            bail!("no identities found for context: {}", context.id);
+        };
+
+        let sender_key = self
+            .ctx_manager
+            .get_sender_key(&context.id, &our_identity)?
+            .ok_or_eyre("expected own identity to have sender key")?;
+
+        let mut sequencer = Sequencer::default();
+
+        let shared_key = SharedKey::new(&sender_key, &our_identity);
+
+        send(
+            stream,
+            &StreamMessage::Message {
+                sequence_id: sequencer.next(),
+                payload: MessagePayload::KeyShare { sender_key },
+            },
+            Some(shared_key), // or None?
+        )
+        .await?;
+
+        Ok(())
+    }
+}
diff --git a/crates/node/src/sync/state.rs b/crates/node/src/sync/state.rs
index 388c46e7c..b176adf8d 100644
--- a/crates/node/src/sync/state.rs
+++ b/crates/node/src/sync/state.rs
@@ -144,7 +144,8 @@ impl Node {
                     application_id: context.application_id,
                 },
             },
-            Some(shared_key),
+            None, // I think it should be None here,
+                  // because the first recv in the function above has to have some way of decrypting it?
         )
         .await?;
 
diff --git a/crates/node/src/types.rs b/crates/node/src/types.rs
index 223be38c5..824dbe289 100644
--- a/crates/node/src/types.rs
+++ b/crates/node/src/types.rs
@@ -7,7 +7,7 @@ use calimero_primitives::application::ApplicationId;
 use calimero_primitives::blobs::BlobId;
 use calimero_primitives::context::ContextId;
 use calimero_primitives::hash::Hash;
-use calimero_primitives::identity::PublicKey;
+use calimero_primitives::identity::{PrivateKey, PublicKey};
 use serde::Deserialize;
 
 #[derive(Debug, BorshSerialize, BorshDeserialize)]
@@ -47,12 +47,14 @@ pub enum InitPayload {
         root_hash: Hash,
         application_id: ApplicationId,
     },
+    KeyShare {},
 }
-
+// this I was encrypting
 #[derive(Debug, BorshSerialize, BorshDeserialize)]
 pub enum MessagePayload<'a> {
     StateSync { artifact: Cow<'a, [u8]> },
     BlobShare { chunk: Cow<'a, [u8]> },
+    KeyShare { sender_key: PrivateKey },
 }
 
 #[derive(Deserialize)]
diff --git a/crates/primitives/src/identity.rs b/crates/primitives/src/identity.rs
index 3fe06c866..483796c4c 100644
--- a/crates/primitives/src/identity.rs
+++ b/crates/primitives/src/identity.rs
@@ -11,6 +11,10 @@ use crate::context::ContextId;
 use crate::hash::{Hash, HashError};
 
 #[derive(Eq, Copy, Clone, Debug, PartialEq, Serialize, Deserialize)]
+#[cfg_attr(
+    feature = "borsh",
+    derive(borsh::BorshDeserialize, borsh::BorshSerialize)
+)]
 pub struct PrivateKey(Hash);
 
 impl From<[u8; 32]> for PrivateKey {
diff --git a/file.patch b/file.patch
new file mode 100644
index 000000000..95e0fa137
--- /dev/null
+++ b/file.patch
@@ -0,0 +1,36 @@
+diff --git a/crates/node/src/interactive_cli.rs b/crates/node/src/interactive_cli.rs
+index 2d720da4..d8bddbbc 100644
+--- a/crates/node/src/interactive_cli.rs
++++ b/crates/node/src/interactive_cli.rs
+@@ -12,6 +12,7 @@ pub mod peers;
+ pub mod state;
+ pub mod store;
+ 
++use calimero_primitives::blobs::BlobId;
+ use clap::{Parser, Subcommand};
+ 
+ use crate::Node;
+@@ -34,6 +35,7 @@ pub enum SubCommand {
+     Peers(peers::PeersCommand),
+     // Store(store::StoreCommand),
+     State(state::StateCommand),
++    Connect,
+ }
+ 
+ pub async fn handle_line(node: &mut Node, line: String) -> eyre::Result<()> {
+@@ -59,6 +61,14 @@ pub async fn handle_line(node: &mut Node, line: String) -> eyre::Result<()> {
+         SubCommand::Peers(peers) => peers.run(node.network_client.clone().into()).await?,
+         SubCommand::State(state) => state.run(node)?,
+         // SubCommand::Store(store) => store.run(node)?,
++        SubCommand::Connect => {
++            let addr =
++            "/ip4/18.156.18.6/udp/4001/quic-v1/p2p/12D3KooWMgoF9xzyeKJHtRvrYwdomheRbHPELagWZwTLmXb6bCVC";
++
++            let res = node.network_client.dial(addr.parse()?).await;
++
++            dbg!(res);
++        }
+     }
+ 
+     Ok(())
+ }
\ No newline at end of file