diff --git a/statediff/helpers.go b/statediff/helpers.go
new file mode 100644
index 000000000..976d21fe2
--- /dev/null
+++ b/statediff/helpers.go
@@ -0,0 +1,114 @@
+package statediff
+
+import (
+	"sort"
+	"strings"
+
+	"github.com/ethereum/go-ethereum/common"
+	"github.com/ethereum/go-ethereum/core/state"
+	"github.com/ethereum/go-ethereum/trie"
+)
+
+func sortKeys(data map[common.Address]*state.Account) []string {
+	var keys []string
+	for key := range data {
+		keys = append(keys, key.Hex())
+	}
+	sort.Strings(keys)
+
+	return keys
+}
+
+func findIntersection(a, b []string) []string {
+	lenA := len(a)
+	lenB := len(b)
+	iOfA, iOfB := 0, 0
+	updates := make([]string, 0)
+	if iOfA >= lenA || iOfB >= lenB {
+		return updates
+	}
+	for {
+		switch strings.Compare(a[iOfA], b[iOfB]) {
+		// a[iOfA] < b[iOfB]
+		case -1:
+			iOfA++
+			if iOfA >= lenA {
+				return updates
+			}
+			break
+			// a[iOfA] == b[iOfB]
+		case 0:
+			updates = append(updates, a[iOfA])
+			iOfA++
+			iOfB++
+			if iOfA >= lenA || iOfB >= lenB {
+				return updates
+			}
+			break
+			// a[iOfA] > b[iOfB]
+		case 1:
+			iOfB++
+			if iOfB >= lenB {
+				return updates
+			}
+			break
+		}
+	}
+
+}
+
+func pathToStr(it trie.NodeIterator) string {
+	path := it.Path()
+	if hasTerm(path) {
+		path = path[:len(path)-1]
+	}
+	nibblePath := ""
+	for i, v := range common.ToHex(path) {
+		if i%2 == 0 && i > 1 {
+			continue
+		}
+		nibblePath = nibblePath + string(v)
+	}
+
+	return nibblePath
+}
+
+// Duplicated from trie/encoding.go
+func hexToKeybytes(hex []byte) []byte {
+	if hasTerm(hex) {
+		hex = hex[:len(hex)-1]
+	}
+	if len(hex)&1 != 0 {
+		panic("can't convert hex key of odd length")
+	}
+	key := make([]byte, (len(hex)+1)/2)
+	decodeNibbles(hex, key)
+
+	return key
+}
+
+func decodeNibbles(nibbles []byte, bytes []byte) {
+	for bi, ni := 0, 0; ni < len(nibbles); bi, ni = bi+1, ni+2 {
+		bytes[bi] = nibbles[ni]<<4 | nibbles[ni+1]
+	}
+}
+
+// prefixLen returns the length of the common prefix of a and b.
+func prefixLen(a, b []byte) int {
+	var i, length = 0, len(a)
+	if len(b) < length {
+		length = len(b)
+	}
+	for ; i < length; i++ {
+		if a[i] != b[i] {
+			break
+		}
+	}
+
+	return i
+}
+
+// hasTerm returns whether a hex key has the terminator flag.
+func hasTerm(s []byte) bool {
+	return len(s) > 0 && s[len(s)-1] == 16
+}
diff --git a/statediff/statediff.go b/statediff/statediff.go
new file mode 100644
index 000000000..d980ef867
--- /dev/null
+++ b/statediff/statediff.go
@@ -0,0 +1,67 @@
+package statediff
+
+import (
+	"encoding/json"
+	"math/big"
+
+	"github.com/ethereum/go-ethereum/common"
+)
+
+type StateDiff struct {
+	BlockNumber     int64                                     `json:"blockNumber"      gencodec:"required"`
+	BlockHash       common.Hash                               `json:"blockHash"        gencodec:"required"`
+	CreatedAccounts map[common.Address]AccountDiffEventual    `json:"createdAccounts"  gencodec:"required"`
+	DeletedAccounts map[common.Address]AccountDiffEventual    `json:"deletedAccounts"  gencodec:"required"`
+	UpdatedAccounts map[common.Address]AccountDiffIncremental `json:"updatedAccounts"  gencodec:"required"`
+
+	encoded []byte
+	err     error
+}
+
+func (self *StateDiff) ensureEncoded() {
+	if self.encoded == nil && self.err == nil {
+		self.encoded, self.err = json.Marshal(self)
+	}
+}
+
+// Implement Encoder interface for StateDiff
+func (sd *StateDiff) Length() int {
+	sd.ensureEncoded()
+	return len(sd.encoded)
+}
+
+// Implement Encoder interface for StateDiff
+func (sd *StateDiff) Encode() ([]byte, error) {
+	sd.ensureEncoded()
+	return sd.encoded, sd.err
+}
+
+type AccountDiffEventual struct {
+	Nonce        diffUint64            `json:"nonce"         gencodec:"required"`
+	Balance      diffBigInt            `json:"balance"       gencodec:"required"`
+	Code         string                `json:"code"          gencodec:"required"`
+	CodeHash     string                `json:"codeHash"      gencodec:"required"`
+	ContractRoot diffString            `json:"contractRoot"  gencodec:"required"`
+	Storage      map[string]diffString `json:"storage"       gencodec:"required"`
+}
+
+type AccountDiffIncremental struct {
+	Nonce        diffUint64            `json:"nonce"         gencodec:"required"`
+	Balance      diffBigInt            `json:"balance"       gencodec:"required"`
+	CodeHash     string                `json:"codeHash"      gencodec:"required"`
+	ContractRoot diffString            `json:"contractRoot"  gencodec:"required"`
+	Storage      map[string]diffString `json:"storage"       gencodec:"required"`
+}
+
+type diffString struct {
+	NewValue *string `json:"newValue"  gencodec:"optional"`
+	OldValue *string `json:"oldValue"  gencodec:"optional"`
+}
+type diffUint64 struct {
+	NewValue *uint64 `json:"newValue"  gencodec:"optional"`
+	OldValue *uint64 `json:"oldValue"  gencodec:"optional"`
+}
+type diffBigInt struct {
+	NewValue *big.Int `json:"newValue"  gencodec:"optional"`
+	OldValue *big.Int `json:"oldValue"  gencodec:"optional"`
+}
diff --git a/statediff/statediff_builder.go b/statediff/statediff_builder.go
new file mode 100644
index 000000000..c3011ed66
--- /dev/null
+++ b/statediff/statediff_builder.go
@@ -0,0 +1,301 @@
+package statediff
+
+import (
+	"github.com/ethereum/go-ethereum/common"
+	"github.com/ethereum/go-ethereum/core/state"
+	"github.com/ethereum/go-ethereum/ethdb"
+	"github.com/ethereum/go-ethereum/log"
+	"github.com/ethereum/go-ethereum/rlp"
+	"github.com/ethereum/go-ethereum/trie"
+)
+
+type StateDiffBuilder interface {
+	CreateStateDiff(oldStateRoot, newStateRoot common.Hash, blockNumber int64, blockHash common.Hash) (*StateDiff, error)
+}
+
+type stateDiffBuilder struct {
+	chainDB    ethdb.Database
+	trieDB     *trie.Database
+	cachedTrie *trie.Trie
+}
+
+func NewStateDiffBuilder(db ethdb.Database) *stateDiffBuilder {
+	return &stateDiffBuilder{
+		chainDB: db,
+		trieDB:  trie.NewDatabase(db),
+	}
+}
+
+func (sdb *stateDiffBuilder) CreateStateDiff(oldStateRoot, newStateRoot common.Hash, blockNumber int64, blockHash common.Hash) (*StateDiff, error) {
+	// Generate tries for old and new states
+	oldTrie, err := trie.New(oldStateRoot, sdb.trieDB)
+	if err != nil {
+		return nil, err
+	}
+	newTrie, err := trie.New(newStateRoot, sdb.trieDB)
+	if err != nil {
+		return nil, err
+	}
+
+	// Find created accounts
+	oldIt := oldTrie.NodeIterator([]byte{})
+	newIt := newTrie.NodeIterator([]byte{})
+	creations, err := sdb.collectDiffNodes(oldIt, newIt)
+	if err != nil {
+		return nil, err
+	}
+
+	// Find deleted accounts
+	oldIt = oldTrie.NodeIterator(make([]byte, 0))
+	newIt = newTrie.NodeIterator(make([]byte, 0))
+	deletions, err := sdb.collectDiffNodes(newIt, oldIt)
+	if err != nil {
+		return nil, err
+	}
+
+	// Find all the diffed keys
+	createKeys := sortKeys(creations)
+	deleteKeys := sortKeys(deletions)
+	updatedKeys := findIntersection(createKeys, deleteKeys)
+
+	// Build and return the statediff
+	updatedAccounts, err := sdb.buildDiffIncremental(creations, deletions, &updatedKeys)
+	if err != nil {
+		return nil, err
+	}
+	createdAccounts, err := sdb.buildDiffEventual(creations, true)
+	if err != nil {
+		return nil, err
+	}
+	deletedAccounts, err := sdb.buildDiffEventual(deletions, false)
+	if err != nil {
+		return nil, err
+	}
+
+	return &StateDiff{
+		BlockNumber:     blockNumber,
+		BlockHash:       blockHash,
+		CreatedAccounts: createdAccounts,
+		DeletedAccounts: deletedAccounts,
+		UpdatedAccounts: updatedAccounts,
+	}, nil
+}
+
+func (sdb *stateDiffBuilder) collectDiffNodes(a, b trie.NodeIterator) (map[common.Address]*state.Account, error) {
+	var diffAccounts map[common.Address]*state.Account
+	it, _ := trie.NewDifferenceIterator(a, b)
+
+	for {
+		log.Debug("Current Path and Hash", "path", pathToStr(it), "hashold", common.Hash(it.Hash()))
+		if it.Leaf() {
+
+			// lookup address
+			path := make([]byte, len(it.Path())-1)
+			copy(path, it.Path())
+			addr, err := sdb.addressByPath(path)
+			if err != nil {
+				log.Error("Error looking up address via path", "path", path, "error", err)
+				return nil, err
+			}
+
+			// lookup account state
+			var account state.Account
+			if err := rlp.DecodeBytes(it.LeafBlob(), &account); err != nil {
+				log.Error("Error looking up account via address", "address", addr, "error", err)
+				return nil, err
+			}
+
+			// record account to diffs (creation if we are looking at new - old; deletion if old - new)
+			log.Debug("Account lookup successful", "address", addr, "account", account)
+			diffAccounts[*addr] = &account
+		}
+		cont := it.Next(true)
+		if !cont {
+			break
+		}
+	}
+	return diffAccounts, nil
+}
+
+func (sdb *stateDiffBuilder) buildDiffEventual(accounts map[common.Address]*state.Account, created bool) (map[common.Address]AccountDiffEventual, error) {
+	accountDiffs := make(map[common.Address]AccountDiffEventual)
+	for addr, val := range accounts {
+		sr := val.Root
+		if storageDiffs, err := sdb.buildStorageDiffsEventual(sr, created); err != nil {
+			log.Error("Failed building eventual storage diffs", "Address", val, "error", err)
+			return nil, err
+		} else {
+			code := ""
+			codeBytes, err := sdb.chainDB.Get(val.CodeHash)
+			if err == nil && len(codeBytes) != 0 {
+				code = common.ToHex(codeBytes)
+			} else {
+				log.Debug("No code field.", "codehash", val.CodeHash, "Address", val, "error", err)
+			}
+			codeHash := common.ToHex(val.CodeHash)
+			if created {
+				nonce := diffUint64{
+					NewValue: &val.Nonce,
+				}
+
+				balance := diffBigInt{
+					NewValue: val.Balance,
+				}
+
+				hexRoot := val.Root.Hex()
+				contractRoot := diffString{
+					NewValue: &hexRoot,
+				}
+				accountDiffs[addr] = AccountDiffEventual{
+					Nonce:        nonce,
+					Balance:      balance,
+					CodeHash:     codeHash,
+					Code:         code,
+					ContractRoot: contractRoot,
+					Storage:      storageDiffs,
+				}
+			} else {
+				nonce := diffUint64{
+					OldValue: &val.Nonce,
+				}
+				balance := diffBigInt{
+					OldValue: val.Balance,
+				}
+				hexRoot := val.Root.Hex()
+				contractRoot := diffString{
+					OldValue: &hexRoot,
+				}
+				accountDiffs[addr] = AccountDiffEventual{
+					Nonce:        nonce,
+					Balance:      balance,
+					CodeHash:     codeHash,
+					ContractRoot: contractRoot,
+					Storage:      storageDiffs,
+				}
+			}
+		}
+	}
+	return accountDiffs, nil
+}
+
+func (sdb *stateDiffBuilder) buildDiffIncremental(creations map[common.Address]*state.Account, deletions map[common.Address]*state.Account, updatedKeys *[]string) (map[common.Address]AccountDiffIncremental, error) {
+	updatedAccounts := make(map[common.Address]AccountDiffIncremental)
+	for _, val := range *updatedKeys {
+		createdAcc := creations[common.HexToAddress(val)]
+		deletedAcc := deletions[common.HexToAddress(val)]
+		oldSR := deletedAcc.Root
+		newSR := createdAcc.Root
+		if storageDiffs, err := sdb.buildStorageDiffsIncremental(oldSR, newSR); err != nil {
+			log.Error("Failed building storage diffs", "Address", val, "error", err)
+			return nil, err
+		} else {
+			nonce := diffUint64{
+				NewValue: &createdAcc.Nonce,
+				OldValue: &deletedAcc.Nonce,
+			}
+
+			balance := diffBigInt{
+				NewValue: createdAcc.Balance,
+				OldValue: deletedAcc.Balance,
+			}
+			codeHash := common.ToHex(createdAcc.CodeHash)
+
+			nHexRoot := createdAcc.Root.Hex()
+			oHexRoot := deletedAcc.Root.Hex()
+			contractRoot := diffString{
+				NewValue: &nHexRoot,
+				OldValue: &oHexRoot,
+			}
+
+			updatedAccounts[common.HexToAddress(val)] = AccountDiffIncremental{
+				Nonce:        nonce,
+				Balance:      balance,
+				CodeHash:     codeHash,
+				ContractRoot: contractRoot,
+				Storage:      storageDiffs,
+			}
+			delete(creations, common.HexToAddress(val))
+			delete(deletions, common.HexToAddress(val))
+		}
+	}
+	return updatedAccounts, nil
+}
+
+func (sdb *stateDiffBuilder) buildStorageDiffsEventual(sr common.Hash, creation bool) (map[string]diffString, error) {
+	log.Debug("Storage Root For Eventual Diff", "root", sr.Hex())
+	sTrie, err := trie.New(sr, sdb.trieDB)
+	if err != nil {
+		return nil, err
+	}
+	it := sTrie.NodeIterator(make([]byte, 0))
+	storageDiffs := make(map[string]diffString)
+	for {
+		log.Debug("Iterating over state at path ", "path", pathToStr(it))
+		if it.Leaf() {
+			log.Debug("Found leaf in storage", "path", pathToStr(it))
+			path := pathToStr(it)
+			value := common.ToHex(it.LeafBlob())
+			if creation {
+				storageDiffs[path] = diffString{NewValue: &value}
+			} else {
+				storageDiffs[path] = diffString{OldValue: &value}
+			}
+		}
+		cont := it.Next(true)
+		if !cont {
+			break
+		}
+	}
+	return storageDiffs, nil
+}
+
+func (sdb *stateDiffBuilder) buildStorageDiffsIncremental(oldSR common.Hash, newSR common.Hash) (map[string]diffString, error) {
+	log.Debug("Storage Roots for Incremental Diff", "old", oldSR.Hex(), "new", newSR.Hex())
+	oldTrie, err := trie.New(oldSR, sdb.trieDB)
+	if err != nil {
+		return nil, err
+	}
+	newTrie, err := trie.New(newSR, sdb.trieDB)
+	if err != nil {
+		return nil, err
+	}
+
+	oldIt := oldTrie.NodeIterator(make([]byte, 0))
+	newIt := newTrie.NodeIterator(make([]byte, 0))
+	it, _ := trie.NewDifferenceIterator(oldIt, newIt)
+	storageDiffs := make(map[string]diffString)
+	for {
+		if it.Leaf() {
+			log.Debug("Found leaf in storage", "path", pathToStr(it))
+			path := pathToStr(it)
+			value := common.ToHex(it.LeafBlob())
+			if oldVal, err := oldTrie.TryGet(it.LeafKey()); err != nil {
+				log.Error("Failed to look up value in oldTrie", "path", path, "error", err)
+			} else {
+				hexOldVal := common.ToHex(oldVal)
+				storageDiffs[path] = diffString{OldValue: &hexOldVal, NewValue: &value}
+			}
+		}
+
+		cont := it.Next(true)
+		if !cont {
+			break
+		}
+	}
+	return storageDiffs, nil
+}
+
+func (sdb *stateDiffBuilder) addressByPath(path []byte) (*common.Address, error) {
+	// db := core.PreimageTable(sdb.chainDb)
+	log.Debug("Looking up address from path", "path", common.ToHex(append([]byte("secure-key-"), path...)))
+	// if addrBytes,err := db.Get(path); err != nil {
+	if addrBytes, err := sdb.chainDB.Get(append([]byte("secure-key-"), hexToKeybytes(path)...)); err != nil {
+		log.Error("Error looking up address via path", "path", common.ToHex(append([]byte("secure-key-"), path...)), "error", err)
+		return nil, err
+	} else {
+		addr := common.BytesToAddress(addrBytes)
+		log.Debug("Address found", "Address", addr)
+		return &addr, nil
+	}
+
+}