diff --git a/config/config.go b/config/config.go
index 645b9e10a..f93b79241 100644
--- a/config/config.go
+++ b/config/config.go
@@ -95,7 +95,7 @@ type BaseConfig struct {
 	PrivValidator string `mapstructure:"priv_validator_file"`
 
 	// A JSON file containing the private key to use for p2p authenticated encryption
-	NodeKey string `mapstructure:"node_key"`
+	NodeKey string `mapstructure:"node_key_file"`
 
 	// A custom human readable name for this node
 	Moniker string `mapstructure:"moniker"`
diff --git a/config/toml.go b/config/toml.go
index f979af955..e7bd26103 100644
--- a/config/toml.go
+++ b/config/toml.go
@@ -87,6 +87,9 @@ genesis_file = "{{ .BaseConfig.Genesis }}"
 # Path to the JSON file containing the private key to use as a validator in the consensus protocol
 priv_validator_file = "{{ .BaseConfig.PrivValidator }}"
 
+# Path to the JSON file containing the private key to use for node authentication in the p2p protocol
+node_key_file = "{{ .BaseConfig.NodeKey}}"
+
 # Mechanism to connect to the ABCI application: socket | grpc
 abci = "{{ .BaseConfig.ABCI }}"
 
diff --git a/node/node.go b/node/node.go
index bd3bd1ca8..5535b1e16 100644
--- a/node/node.go
+++ b/node/node.go
@@ -368,7 +368,7 @@ func (n *Node) OnStart() error {
 	n.sw.AddListener(l)
 
 	// Generate node PrivKey
-	// TODO: the loading function will need to be configurable
+	// TODO: pass in like priv_val
 	nodeKey, err := p2p.LoadOrGenNodeKey(n.config.NodeKeyFile())
 	if err != nil {
 		return err
diff --git a/p2p/addrbook.go b/p2p/addrbook.go
index 6ccec61f7..8826ff1e0 100644
--- a/p2p/addrbook.go
+++ b/p2p/addrbook.go
@@ -283,7 +283,7 @@ func (a *AddrBook) RemoveAddress(addr *NetAddress) {
 	if ka == nil {
 		return
 	}
-	a.Logger.Info("Remove address from book", "addr", ka.Addr)
+	a.Logger.Info("Remove address from book", "addr", ka.Addr, "ID", ka.ID)
 	a.removeFromAllBuckets(ka)
 }
 
diff --git a/p2p/addrbook_test.go b/p2p/addrbook_test.go
index bcef569df..00051ae1f 100644
--- a/p2p/addrbook_test.go
+++ b/p2p/addrbook_test.go
@@ -189,8 +189,9 @@ func randIPv4Address(t *testing.T) *NetAddress {
 			rand.Intn(255),
 		)
 		port := rand.Intn(65535-1) + 1
-		addr, err := NewNetAddressString(fmt.Sprintf("%v:%v", ip, port))
-		addr.ID = ID(hex.EncodeToString(cmn.RandBytes(20)))
+		id := ID(hex.EncodeToString(cmn.RandBytes(IDByteLength)))
+		idAddr := IDAddressString(id, fmt.Sprintf("%v:%v", ip, port))
+		addr, err := NewNetAddressString(idAddr)
 		assert.Nil(t, err, "error generating rand network address")
 		if addr.Routable() {
 			return addr
diff --git a/p2p/key.go b/p2p/key.go
index 5a4ab48f7..ea0f0b071 100644
--- a/p2p/key.go
+++ b/p2p/key.go
@@ -30,11 +30,7 @@ type NodeKey struct {
 
 // ID returns the peer's canonical ID - the hash of its public key.
 func (nodeKey *NodeKey) ID() ID {
-	return ID(hex.EncodeToString(nodeKey.id()))
-}
-
-func (nodeKey *NodeKey) id() []byte {
-	return nodeKey.PrivKey.PubKey().Address()
+	return PubKeyToID(nodeKey.PubKey())
 }
 
 // PubKey returns the peer's PubKey
@@ -42,8 +38,10 @@ func (nodeKey *NodeKey) PubKey() crypto.PubKey {
 	return nodeKey.PrivKey.PubKey()
 }
 
-func (nodeKey *NodeKey) SatisfiesTarget(target []byte) bool {
-	return bytes.Compare(nodeKey.id(), target) < 0
+// PubKeyToID returns the ID corresponding to the given PubKey.
+// It's the hex-encoding of the pubKey.Address().
+func PubKeyToID(pubKey crypto.PubKey) ID {
+	return ID(hex.EncodeToString(pubKey.Address()))
 }
 
 // LoadOrGenNodeKey attempts to load the NodeKey from the given filePath.
diff --git a/p2p/netaddress.go b/p2p/netaddress.go
index c11d1442e..fed5e59d4 100644
--- a/p2p/netaddress.go
+++ b/p2p/netaddress.go
@@ -26,6 +26,11 @@ type NetAddress struct {
 	str  string
 }
 
+// IDAddressString returns id@hostPort.
+func IDAddressString(id ID, hostPort string) string {
+	return fmt.Sprintf("%s@%s", id, hostPort)
+}
+
 // NewNetAddress returns a new NetAddress using the provided TCP
 // address. When testing, other net.Addr (except TCP) will result in
 // using 0.0.0.0:0. When normal run, other net.Addr (except TCP) will
@@ -136,7 +141,7 @@ func (na *NetAddress) String() string {
 	if na.str == "" {
 		addrStr := na.DialString()
 		if na.ID != "" {
-			addrStr = fmt.Sprintf("%s@%s", na.ID, addrStr)
+			addrStr = IDAddressString(na.ID, addrStr)
 		}
 		na.str = addrStr
 	}
diff --git a/p2p/peer.go b/p2p/peer.go
index ecf2efce5..ff8d8d0ed 100644
--- a/p2p/peer.go
+++ b/p2p/peer.go
@@ -304,7 +304,7 @@ func (p *peer) Set(key string, data interface{}) {
 	p.Data.Set(key, data)
 }
 
-// Key returns the peer's ID - the hex encoded hash of its pubkey.
+// ID returns the peer's ID - the hex encoded hash of its pubkey.
 func (p *peer) ID() ID {
 	return ID(hex.EncodeToString(p.PubKey().Address()))
 }
diff --git a/p2p/pex_reactor.go b/p2p/pex_reactor.go
index fc1cbdd98..0816a6e98 100644
--- a/p2p/pex_reactor.go
+++ b/p2p/pex_reactor.go
@@ -115,14 +115,8 @@ func (r *PEXReactor) AddPeer(p Peer) {
 			r.RequestPEX(p)
 		}
 	} else {
-		addrStr := fmt.Sprintf("%s@%s", p.ID(), p.NodeInfo().ListenAddr)
-		addr, err := NewNetAddressString(addrStr)
-		if err != nil {
-			// peer gave us a bad ListenAddr. TODO: punish
-			r.Logger.Error("Error in AddPeer: invalid peer address", "addr", p.NodeInfo().ListenAddr, "err", err)
-			return
-		}
 		// For inbound connections, the peer is its own source
+		addr := p.NodeInfo().NetAddress()
 		r.book.AddAddress(addr, addr)
 	}
 }
@@ -261,7 +255,7 @@ func (r *PEXReactor) ensurePeers() {
 	// NOTE: range here is [10, 90]. Too high ?
 	newBias := cmn.MinInt(numOutPeers, 8)*10 + 10
 
-	toDial := make(map[string]*NetAddress)
+	toDial := make(map[ID]*NetAddress)
 	// Try maxAttempts times to pick numToDial addresses to dial
 	maxAttempts := numToDial * 3
 	for i := 0; i < maxAttempts && len(toDial) < numToDial; i++ {
@@ -269,19 +263,17 @@ func (r *PEXReactor) ensurePeers() {
 		if try == nil {
 			continue
 		}
-		if _, selected := toDial[string(try.ID)]; selected {
+		if _, selected := toDial[try.ID]; selected {
 			continue
 		}
 		if dialling := r.Switch.IsDialing(try.ID); dialling {
 			continue
 		}
-		// XXX: Should probably use pubkey as peer key ...
-		// TODO: use the ID correctly
 		if connected := r.Switch.Peers().Has(try.ID); connected {
 			continue
 		}
 		r.Logger.Info("Will dial address", "addr", try)
-		toDial[string(try.ID)] = try
+		toDial[try.ID] = try
 	}
 
 	// Dial picked addresses
diff --git a/p2p/switch.go b/p2p/switch.go
index eca52e982..da1aa552f 100644
--- a/p2p/switch.go
+++ b/p2p/switch.go
@@ -84,7 +84,6 @@ type Switch struct {
 	dialing      *cmn.CMap
 	nodeInfo     *NodeInfo // our node info
 	nodeKey      *NodeKey  // our node privkey
-	peerIDTarget []byte
 
 	filterConnByAddr   func(net.Addr) error
 	filterConnByPubKey func(crypto.PubKey) error
@@ -194,12 +193,6 @@ func (sw *Switch) SetNodeKey(nodeKey *NodeKey) {
 	}
 }
 
-// SetPeerIDTarget sets the target for incoming peer ID's -
-// the ID must be less than the target
-func (sw *Switch) SetPeerIDTarget(target []byte) {
-	sw.peerIDTarget = target
-}
-
 // OnStart implements BaseService. It starts all the reactors, peers, and listeners.
 func (sw *Switch) OnStart() error {
 	// Start reactors
@@ -460,8 +453,7 @@ func (sw *Switch) StopPeerForError(peer Peer, reason interface{}) {
 // If no success after all that, it stops trying, and leaves it
 // to the PEX/Addrbook to find the peer again
 func (sw *Switch) reconnectToPeer(peer Peer) {
-	netAddr, _ := NewNetAddressString(peer.NodeInfo().RemoteAddr)
-	netAddr.ID = peer.ID() // TODO: handle above
+	netAddr := peer.NodeInfo().NetAddress()
 	start := time.Now()
 	sw.Logger.Info("Reconnecting to peer", "peer", peer)
 	for i := 0; i < reconnectAttempts; i++ {
diff --git a/p2p/types.go b/p2p/types.go
index 860132902..287c88b01 100644
--- a/p2p/types.go
+++ b/p2p/types.go
@@ -11,6 +11,8 @@ import (
 
 const maxNodeInfoSize = 10240 // 10Kb
 
+// NodeInfo is the basic node information exchanged
+// between two peers during the Tendermint P2P handshake
 type NodeInfo struct {
 	PubKey     crypto.PubKey `json:"pub_key"`     // authenticated pubkey
 	Moniker    string        `json:"moniker"`     // arbitrary moniker
@@ -54,6 +56,16 @@ func (info *NodeInfo) CompatibleWith(other *NodeInfo) error {
 	return nil
 }
 
+func (info *NodeInfo) NetAddress() *NetAddress {
+	id := PubKeyToID(info.PubKey)
+	addr := info.ListenAddr
+	netAddr, err := NewNetAddressString(IDAddressString(id, addr))
+	if err != nil {
+		panic(err) // everything should be well formed by now
+	}
+	return netAddr
+}
+
 func (info *NodeInfo) ListenHost() string {
 	host, _, _ := net.SplitHostPort(info.ListenAddr) // nolint: errcheck, gas
 	return host