diff --git a/bin/darkfid/src/task/sync.rs b/bin/darkfid/src/task/sync.rs
index 0c76b9294..2236b6757 100644
--- a/bin/darkfid/src/task/sync.rs
+++ b/bin/darkfid/src/task/sync.rs
@@ -42,15 +42,19 @@ use crate::{
 pub async fn sync_task(node: &Darkfid, checkpoint: Option<(u32, HeaderHash)>) -> Result<()> {
     info!(target: "darkfid::task::sync_task", "Starting blockchain sync...");
 
-    // Generate a new fork to be able to extend
-    info!(target: "darkfid::task::sync_task", "Generating new empty fork...");
-    node.validator.consensus.generate_empty_fork().await?;
-
     // Grab blocks subscriber
     let block_sub = node.subscribers.get("blocks").unwrap();
 
     // Grab last known block header, including existing pending sync ones
     let mut last = node.validator.blockchain.last()?;
+
+    // If checkpoint is not reached, purge headers and start syncing from scratch
+    if let Some(checkpoint) = checkpoint {
+        if checkpoint.0 > last.0 {
+            node.validator.blockchain.headers.remove_all_sync()?;
+        }
+    }
+
     // Check sync headers first record is the next one
     if let Some(next) = node.validator.blockchain.headers.get_first_sync()? {
         if next.height == last.0 + 1 {
@@ -77,10 +81,8 @@ pub async fn sync_task(node: &Darkfid, checkpoint: Option<(u32, HeaderHash)>) ->
             // We use the next height, in order to also retrieve the checkpoint header.
             retrieve_headers(node, &common_tip_peers, last.0, checkpoint.0 + 1).await?;
 
-            // TODO: Create a more minimal verification so checkpoint blocks can be
-            //       applied directly, skipping the full formal block checks.
             // Retrieve all the blocks for those headers and apply them to canonical
-            last = retrieve_blocks(node, &common_tip_peers, last, block_sub).await?;
+            last = retrieve_blocks(node, &common_tip_peers, last, block_sub, true).await?;
             info!(target: "darkfid::task::sync_task", "Last received block: {} - {}", last.0, last.1);
 
             // Grab synced peers most common tip again
@@ -88,6 +90,10 @@ pub async fn sync_task(node: &Darkfid, checkpoint: Option<(u32, HeaderHash)>) ->
         }
     }
 
+    // Generate a new fork to be able to extend
+    info!(target: "darkfid::task::sync_task", "Generating new empty fork...");
+    node.validator.consensus.generate_empty_fork().await?;
+
     // Sync headers and blocks
     loop {
         // Retrieve all the headers backwards until our last known one and verify them.
@@ -95,7 +101,8 @@ pub async fn sync_task(node: &Darkfid, checkpoint: Option<(u32, HeaderHash)>) ->
         retrieve_headers(node, &common_tip_peers, last.0, common_tip_height + 1).await?;
 
         // Retrieve all the blocks for those headers and apply them to canonical
-        let last_received = retrieve_blocks(node, &common_tip_peers, last, block_sub).await?;
+        let last_received =
+            retrieve_blocks(node, &common_tip_peers, last, block_sub, false).await?;
         info!(target: "darkfid::task::sync_task", "Last received block: {} - {}", last_received.0, last_received.1);
 
         if last == last_received {
@@ -340,6 +347,7 @@ async fn retrieve_blocks(
     peers: &[ChannelPtr],
     last_known: (u32, HeaderHash),
     block_sub: &JsonSubscriber,
+    checkpoint_blocks: bool,
 ) -> Result<(u32, HeaderHash)> {
     info!(target: "darkfid::task::sync::retrieve_blocks", "Retrieving missing blocks from peers...");
     let mut last_received = last_known;
@@ -358,9 +366,15 @@ async fn retrieve_blocks(
             if headers.is_empty() {
                 break 'blocks_loop
             }
+            let mut headers_hashes = Vec::with_capacity(headers.len());
+            let mut synced_headers = Vec::with_capacity(headers.len());
+            for header in &headers {
+                headers_hashes.push(header.hash());
+                synced_headers.push(header.height);
+            }
 
             // Node creates a `SyncRequest` and sends it
-            let request = SyncRequest { headers: headers.iter().map(|h| h.hash()).collect() };
+            let request = SyncRequest { headers: headers_hashes.clone() };
             peer.send(&request).await?;
 
             // Node waits for response
@@ -371,26 +385,41 @@ async fn retrieve_blocks(
             // Verify and store retrieved blocks
             debug!(target: "darkfid::task::sync::retrieve_blocks", "Processing received blocks");
             received_blocks += response.blocks.len();
-            let mut synced_headers = Vec::with_capacity(response.blocks.len());
-            for block in &response.blocks {
-                node.validator.append_proposal(&Proposal::new(block.clone())).await?;
-                synced_headers.push(block.header.height);
-                last_received = (block.header.height, block.hash());
+            if checkpoint_blocks {
+                node.validator.add_checkpoint_blocks(&response.blocks, &headers_hashes).await?;
+            } else {
+                for block in &response.blocks {
+                    node.validator.append_proposal(&Proposal::new(block.clone())).await?;
+                }
             }
+            last_received = (*synced_headers.last().unwrap(), *headers_hashes.last().unwrap());
 
             // Remove synced headers
             node.validator.blockchain.headers.remove_sync(&synced_headers)?;
 
-            // Perform finalization for received blocks
-            let finalized = node.validator.finalization().await?;
-            if !finalized.is_empty() {
+            if checkpoint_blocks {
                 // Notify subscriber
-                let mut notif_blocks = Vec::with_capacity(finalized.len());
-                for block in finalized {
+                let mut notif_blocks = Vec::with_capacity(response.blocks.len());
+                info!(target: "darkfid::task::sync::retrieve_blocks", "Blocks added:");
+                for (index, block) in response.blocks.iter().enumerate() {
+                    info!(target: "darkfid::task::sync::retrieve_blocks", "\t{} - {}", headers_hashes[index], headers[index].height);
                     notif_blocks
-                        .push(JsonValue::String(base64::encode(&serialize_async(&block).await)));
+                        .push(JsonValue::String(base64::encode(&serialize_async(block).await)));
                 }
                 block_sub.notify(JsonValue::Array(notif_blocks)).await;
+            } else {
+                // Perform finalization for received blocks
+                let finalized = node.validator.finalization().await?;
+                if !finalized.is_empty() {
+                    // Notify subscriber
+                    let mut notif_blocks = Vec::with_capacity(finalized.len());
+                    for block in finalized {
+                        notif_blocks.push(JsonValue::String(base64::encode(
+                            &serialize_async(&block).await,
+                        )));
+                    }
+                    block_sub.notify(JsonValue::Array(notif_blocks)).await;
+                }
             }
 
             info!(target: "darkfid::task::sync::retrieve_blocks", "Blocks received: {}/{}", received_blocks, total);
diff --git a/src/validator/mod.rs b/src/validator/mod.rs
index dd5760ebf..0129fb94a 100644
--- a/src/validator/mod.rs
+++ b/src/validator/mod.rs
@@ -26,7 +26,7 @@ use smol::lock::RwLock;
 use crate::{
     blockchain::{
         block_store::{BlockDifficulty, BlockInfo, BlockRanks},
-        Blockchain, BlockchainOverlay,
+        Blockchain, BlockchainOverlay, HeaderHash,
     },
     error::TxVerifyFailed,
     tx::Transaction,
@@ -44,7 +44,8 @@ use pow::PoWModule;
 /// Verification functions
 pub mod verification;
 use verification::{
-    verify_block, verify_genesis_block, verify_producer_transaction, verify_transactions,
+    verify_block, verify_checkpoint_block, verify_genesis_block, verify_producer_transaction,
+    verify_transactions,
 };
 
 /// Fee calculation helpers
@@ -365,11 +366,101 @@ impl Validator {
         Ok(finalized_blocks)
     }
 
+    /// Apply provided set of [`BlockInfo`] without doing formal verification.
+    /// A set of ['HeaderHash`] is also provided, to verify that the provided
+    /// block hash matches the expected header one.
+    /// Note: this function should only be used for blocks received using a
+    /// checkpoint, since in that case we enforce the node to follow the sequence,
+    /// assuming they all its blocks are valid.
+    pub async fn add_checkpoint_blocks(
+        &self,
+        blocks: &[BlockInfo],
+        headers: &[HeaderHash],
+    ) -> Result<()> {
+        // Check provided sequences are the same length
+        if blocks.len() != headers.len() {
+            return Err(Error::InvalidInputLengths)
+        }
+
+        debug!(target: "validator::add_checkpoint_blocks", "Instantiating BlockchainOverlay");
+        let overlay = BlockchainOverlay::new(&self.blockchain)?;
+
+        // Retrieve last block difficulty to access current ranks
+        let last_difficulty = self.blockchain.last_block_difficulty()?;
+        let mut current_targets_rank = last_difficulty.ranks.targets_rank;
+        let mut current_hashes_rank = last_difficulty.ranks.hashes_rank;
+
+        // Grab current PoW module to validate each block
+        let mut module = self.consensus.module.read().await.clone();
+
+        // Keep track of all blocks transactions to remove them from pending txs store
+        let mut removed_txs = vec![];
+
+        // Validate and insert each block
+        for (index, block) in blocks.iter().enumerate() {
+            // Verify block
+            match verify_checkpoint_block(&overlay, block, &headers[index]).await {
+                Ok(()) => { /* Do nothing */ }
+                // Skip already existing block
+                Err(Error::BlockAlreadyExists(_)) => continue,
+                Err(e) => {
+                    error!(target: "validator::add_checkpoint_blocks", "Erroneous block found in set: {}", e);
+                    overlay.lock().unwrap().overlay.lock().unwrap().purge_new_trees()?;
+                    return Err(Error::BlockIsInvalid(block.hash().as_string()))
+                }
+            };
+
+            // Grab next mine target and difficulty
+            let (next_target, next_difficulty) = module.next_mine_target_and_difficulty()?;
+
+            // Calculate block rank
+            let (target_distance_sq, hash_distance_sq) = block_rank(block, &next_target);
+
+            // Update current ranks
+            current_targets_rank += target_distance_sq.clone();
+            current_hashes_rank += hash_distance_sq.clone();
+
+            // Generate block difficulty and update PoW module
+            let cummulative_difficulty =
+                module.cummulative_difficulty.clone() + next_difficulty.clone();
+            let ranks = BlockRanks::new(
+                target_distance_sq,
+                current_targets_rank.clone(),
+                hash_distance_sq,
+                current_hashes_rank.clone(),
+            );
+            let block_difficulty = BlockDifficulty::new(
+                block.header.height,
+                block.header.timestamp,
+                next_difficulty,
+                cummulative_difficulty,
+                ranks,
+            );
+            module.append_difficulty(&overlay, block_difficulty)?;
+
+            // Store block transactions
+            for tx in &block.txs {
+                removed_txs.push(tx.clone());
+            }
+        }
+
+        debug!(target: "validator::add_checkpoint_blocks", "Applying overlay changes");
+        overlay.lock().unwrap().overlay.lock().unwrap().apply()?;
+
+        // Remove blocks transactions from pending txs store
+        self.blockchain.remove_pending_txs(&removed_txs)?;
+
+        // Update PoW module
+        *self.consensus.module.write().await = module;
+
+        Ok(())
+    }
+
     /// Validate a set of [`BlockInfo`] in sequence and apply them if all are valid.
     /// Note: this function should only be used in tests when we don't want to
     /// perform consensus logic.
     pub async fn add_test_blocks(&self, blocks: &[BlockInfo]) -> Result<()> {
-        debug!(target: "validator::add_blocks", "Instantiating BlockchainOverlay");
+        debug!(target: "validator::add_test_blocks", "Instantiating BlockchainOverlay");
         let overlay = BlockchainOverlay::new(&self.blockchain)?;
 
         // Retrieve last block
@@ -388,17 +479,19 @@ impl Validator {
 
         // Validate and insert each block
         for block in blocks {
-            // Skip already existing block
-            if overlay.lock().unwrap().has_block(block)? {
-                previous = block;
-                continue;
-            }
-
             // Verify block
-            if verify_block(&overlay, &module, block, previous).await.is_err() {
-                error!(target: "validator::add_blocks", "Erroneous block found in set");
-                overlay.lock().unwrap().overlay.lock().unwrap().purge_new_trees()?;
-                return Err(Error::BlockIsInvalid(block.hash().as_string()))
+            match verify_block(&overlay, &module, block, previous).await {
+                Ok(()) => { /* Do nothing */ }
+                // Skip already existing block
+                Err(Error::BlockAlreadyExists(_)) => {
+                    previous = block;
+                    continue
+                }
+                Err(e) => {
+                    error!(target: "validator::add_test_blocks", "Erroneous block found in set: {}", e);
+                    overlay.lock().unwrap().overlay.lock().unwrap().purge_new_trees()?;
+                    return Err(Error::BlockIsInvalid(block.hash().as_string()))
+                }
             };
 
             // Grab next mine target and difficulty
@@ -438,7 +531,7 @@ impl Validator {
             previous = block;
         }
 
-        debug!(target: "validator::add_blocks", "Applying overlay changes");
+        debug!(target: "validator::add_test_blocks", "Applying overlay changes");
         overlay.lock().unwrap().overlay.lock().unwrap().apply()?;
 
         // Purge pending erroneous txs since canonical state has been changed
diff --git a/src/validator/verification.rs b/src/validator/verification.rs
index 77bd077a9..b512c2785 100644
--- a/src/validator/verification.rs
+++ b/src/validator/verification.rs
@@ -36,6 +36,7 @@ use smol::io::Cursor;
 use crate::{
     blockchain::{
         block_store::append_tx_to_merkle_tree, BlockInfo, Blockchain, BlockchainOverlayPtr,
+        HeaderHash,
     },
     error::TxVerifyFailed,
     runtime::vm_runtime::Runtime,
@@ -49,7 +50,7 @@ use crate::{
     Error, Result,
 };
 
-/// Verify given genesis [`BlockInfo`], and apply it to the provided overlay
+/// Verify given genesis [`BlockInfo`], and apply it to the provided overlay.
 pub async fn verify_genesis_block(overlay: &BlockchainOverlayPtr, block: &BlockInfo) -> Result<()> {
     let block_hash = block.hash().as_string();
     debug!(target: "validator::verification::verify_genesis_block", "Validating genesis block {}", block_hash);
@@ -164,7 +165,7 @@ pub fn validate_blockchain(
     Ok(())
 }
 
-/// Verify given [`BlockInfo`], and apply it to the provided overlay
+/// Verify given [`BlockInfo`], and apply it to the provided overlay.
 pub async fn verify_block(
     overlay: &BlockchainOverlayPtr,
     module: &PoWModule,
@@ -225,7 +226,70 @@ pub async fn verify_block(
     Ok(())
 }
 
-/// Verify block proposer signature, using the proposal transaction signature as signing key
+/// Verify given checkpoint [`BlockInfo`], and apply it to the provided overlay.
+pub async fn verify_checkpoint_block(
+    overlay: &BlockchainOverlayPtr,
+    block: &BlockInfo,
+    header: &HeaderHash,
+) -> Result<()> {
+    let block_hash = block.hash();
+    debug!(target: "validator::verification::verify_checkpoint_block", "Validating block {}", block_hash);
+
+    // Check if block already exists
+    if overlay.lock().unwrap().has_block(block)? {
+        return Err(Error::BlockAlreadyExists(block_hash.as_string()))
+    }
+
+    // Check if block hash matches the expected(provided) one
+    if block_hash != *header {
+        error!(target: "validator::verification::verify_checkpoint_block", "Block hash doesn't match the expected one");
+        return Err(Error::BlockIsInvalid(block_hash.as_string()))
+    }
+
+    // Verify transactions vector contains at least one(producers) transaction
+    if block.txs.is_empty() {
+        return Err(Error::BlockContainsNoTransactions(block_hash.as_string()))
+    }
+
+    // Apply transactions, exluding producer(last) one
+    let mut tree = MerkleTree::new(1);
+    let txs = &block.txs[..block.txs.len() - 1];
+    let e = apply_transactions(overlay, block.header.height, txs, &mut tree).await;
+    if let Err(e) = e {
+        warn!(
+            target: "validator::verification::verify_checkpoint_block",
+            "[VALIDATOR] Erroneous transactions found in set",
+        );
+        overlay.lock().unwrap().overlay.lock().unwrap().purge_new_trees()?;
+        return Err(e)
+    }
+
+    // Apply producer transaction
+    let public_key = apply_producer_transaction(
+        overlay,
+        block.header.height,
+        block.txs.last().unwrap(),
+        &mut tree,
+    )
+    .await?;
+
+    // Verify transactions merkle tree root matches header one
+    if tree.root(0).unwrap() != block.header.root {
+        error!(target: "validator::verification::verify_checkpoint_block", "Block Merkle tree root is invalid");
+        return Err(Error::BlockIsInvalid(block_hash.as_string()))
+    }
+
+    // Verify producer signature
+    verify_producer_signature(block, &public_key)?;
+
+    // Insert block
+    overlay.lock().unwrap().add_block(block)?;
+
+    debug!(target: "validator::verification::verify_checkpoint_block", "Block {} verified successfully", block_hash);
+    Ok(())
+}
+
+/// Verify block proposer signature, using the producer transaction signature as signing key
 /// over blocks header hash.
 pub fn verify_producer_signature(block: &BlockInfo, public_key: &PublicKey) -> Result<()> {
     if !public_key.verify(block.header.hash().inner(), &block.signature) {
@@ -246,7 +310,7 @@ pub async fn verify_producer_transaction(
     tree: &mut MerkleTree,
 ) -> Result<PublicKey> {
     let tx_hash = tx.hash();
-    debug!(target: "validator::verification::verify_producer_transaction", "Validating proposal transaction {}", tx_hash);
+    debug!(target: "validator::verification::verify_producer_transaction", "Validating producer transaction {}", tx_hash);
 
     // Producer transactions must contain a single, non-empty call
     if tx.calls.len() != 1 || tx.calls[0].data.data.is_empty() {
@@ -303,7 +367,7 @@ pub async fn verify_producer_transaction(
 
     // Check that only one ZK proof and signature public key exist
     if zkp_pub.len() != 1 || sig_pub.len() != 1 {
-        error!(target: "validator::verification::verify_producer_transaction", "Proposal contains multiple ZK proofs or signature public keys");
+        error!(target: "validator::verification::verify_producer_transaction", "Producer transaction contains multiple ZK proofs or signature public keys");
         return Err(TxVerifyFailed::ErroneousTxs(vec![tx.clone()]).into())
     }
 
@@ -359,7 +423,7 @@ pub async fn verify_producer_transaction(
 
     debug!(target: "validator::verification::verify_producer_transaction", "Verifying ZK proofs for transaction {}", tx_hash);
     if let Err(e) = tx.verify_zkps(&verifying_keys, zkp_table).await {
-        error!(target: "validator::verification::verify_proposal_transaction", "ZK proof verification for tx {} failed: {}", tx_hash, e);
+        error!(target: "validator::verification::verify_producer_transaction", "ZK proof verification for tx {} failed: {}", tx_hash, e);
         return Err(TxVerifyFailed::InvalidZkProof.into())
     }
     debug!(target: "validator::verification::verify_producer_transaction", "ZK proof verification successful");
@@ -367,7 +431,80 @@ pub async fn verify_producer_transaction(
     // Append hash to merkle tree
     append_tx_to_merkle_tree(tree, tx);
 
-    debug!(target: "validator::verification::verify_producer_transaction", "Proposal transaction {} verified successfully", tx_hash);
+    debug!(target: "validator::verification::verify_producer_transaction", "Producer transaction {} verified successfully", tx_hash);
+
+    Ok(signature_public_key)
+}
+
+/// Apply given producer [`Transaction`] to the provided overlay, without formal verification.
+/// Returns transaction signature public key. Additionally, append its hash to the provided Merkle tree.
+async fn apply_producer_transaction(
+    overlay: &BlockchainOverlayPtr,
+    verifying_block_height: u32,
+    tx: &Transaction,
+    tree: &mut MerkleTree,
+) -> Result<PublicKey> {
+    let tx_hash = tx.hash();
+    debug!(target: "validator::verification::apply_producer_transaction", "Applying producer transaction {}", tx_hash);
+
+    // Producer transactions must contain a single, non-empty call
+    if tx.calls.len() != 1 || tx.calls[0].data.data.is_empty() {
+        return Err(TxVerifyFailed::ErroneousTxs(vec![tx.clone()]).into())
+    }
+
+    debug!(target: "validator::verification::apply_producer_transaction", "Executing contract call");
+
+    // Write the actual payload data
+    let mut payload = vec![];
+    tx.calls.encode_async(&mut payload).await?; // Actual call data
+
+    debug!(target: "validator::verification::apply_producer_transaction", "Instantiating WASM runtime");
+    let call = &tx.calls[0];
+    let wasm = overlay.lock().unwrap().contracts.get(call.data.contract_id)?;
+
+    let mut runtime = Runtime::new(
+        &wasm,
+        overlay.clone(),
+        call.data.contract_id,
+        verifying_block_height,
+        tx_hash,
+        // Call index in producer tx is 0
+        0,
+    )?;
+
+    debug!(target: "validator::verification::apply_producer_transaction", "Executing \"metadata\" call");
+    let metadata = runtime.metadata(&payload)?;
+
+    // Decode the metadata retrieved from the execution
+    let mut decoder = Cursor::new(&metadata);
+
+    // The tuple is (zkas_ns, public_inputs)
+    let _: Vec<(String, Vec<pallas::Base>)> = AsyncDecodable::decode_async(&mut decoder).await?;
+    let sig_pub: Vec<PublicKey> = AsyncDecodable::decode_async(&mut decoder).await?;
+
+    // Check that only one ZK proof and signature public key exist
+    if sig_pub.len() != 1 {
+        error!(target: "validator::verification::apply_producer_transaction", "Producer transaction contains multiple ZK proofs or signature public keys");
+        return Err(TxVerifyFailed::ErroneousTxs(vec![tx.clone()]).into())
+    }
+
+    let signature_public_key = *sig_pub.last().unwrap();
+
+    // After getting the metadata, we run the "exec" function with the same runtime
+    // and the same payload.
+    debug!(target: "validator::verification::apply_producer_transaction", "Executing \"exec\" call");
+    let state_update = runtime.exec(&payload)?;
+    debug!(target: "validator::verification::apply_producer_transaction", "Successfully executed \"exec\" call");
+
+    // If that was successful, we apply the state update in the ephemeral overlay.
+    debug!(target: "validator::verification::apply_producer_transaction", "Executing \"apply\" call");
+    runtime.apply(&state_update)?;
+    debug!(target: "validator::verification::apply_producer_transaction", "Successfully executed \"apply\" call");
+
+    // Append hash to merkle tree
+    append_tx_to_merkle_tree(tree, tx);
+
+    debug!(target: "validator::verification::apply_producer_transaction", "Pruducer transaction {} executed successfully", tx_hash);
 
     Ok(signature_public_key)
 }
@@ -616,6 +753,77 @@ pub async fn verify_transaction(
     Ok(gas_used)
 }
 
+/// Apply given [`Transaction`] to the provided overlay.
+/// Additionally, append its hash to the provided Merkle tree.
+async fn apply_transaction(
+    overlay: &BlockchainOverlayPtr,
+    verifying_block_height: u32,
+    tx: &Transaction,
+    tree: &mut MerkleTree,
+) -> Result<()> {
+    let tx_hash = tx.hash();
+    debug!(target: "validator::verification::apply_transaction", "Applying transaction {}", tx_hash);
+
+    // Iterate over all calls to get the metadata
+    for (idx, call) in tx.calls.iter().enumerate() {
+        debug!(target: "validator::verification::apply_transaction", "Executing contract call {}", idx);
+
+        // Write the actual payload data
+        let mut payload = vec![];
+        tx.calls.encode_async(&mut payload).await?;
+
+        debug!(target: "validator::verification::apply_transaction", "Instantiating WASM runtime");
+        let wasm = overlay.lock().unwrap().contracts.get(call.data.contract_id)?;
+        let mut runtime = Runtime::new(
+            &wasm,
+            overlay.clone(),
+            call.data.contract_id,
+            verifying_block_height,
+            tx_hash,
+            idx as u8,
+        )?;
+
+        // Run the "exec" function
+        debug!(target: "validator::verification::apply_transaction", "Executing \"exec\" call");
+        let state_update = runtime.exec(&payload)?;
+        debug!(target: "validator::verification::apply_transaction", "Successfully executed \"exec\" call");
+
+        // If that was successful, we apply the state update in the ephemeral overlay
+        debug!(target: "validator::verification::apply_transaction", "Executing \"apply\" call");
+        runtime.apply(&state_update)?;
+        debug!(target: "validator::verification::apply_transaction", "Successfully executed \"apply\" call");
+
+        // If this call is supposed to deploy a new contract, we have to instantiate
+        // a new `Runtime` and run its deploy function.
+        if call.data.contract_id == *DEPLOYOOOR_CONTRACT_ID && call.data.data[0] == 0x00
+        /* DeployV1 */
+        {
+            debug!(target: "validator::verification::apply_transaction", "Deploying new contract");
+            // Deserialize the deployment parameters
+            let deploy_params: DeployParamsV1 = deserialize_async(&call.data.data[1..]).await?;
+            let deploy_cid = ContractId::derive_public(deploy_params.public_key);
+
+            // Instantiate the new deployment runtime
+            let mut deploy_runtime = Runtime::new(
+                &deploy_params.wasm_bincode,
+                overlay.clone(),
+                deploy_cid,
+                verifying_block_height,
+                tx_hash,
+                idx as u8,
+            )?;
+
+            deploy_runtime.deploy(&deploy_params.ix)?;
+        }
+    }
+
+    // Append hash to merkle tree
+    append_tx_to_merkle_tree(tree, tx);
+
+    debug!(target: "validator::verification::apply_transaction", "Transaction {} applied successfully", tx_hash);
+    Ok(())
+}
+
 /// Verify a set of [`Transaction`] in sequence and apply them if all are valid.
 /// In case any of the transactions fail, they will be returned to the caller as an error.
 /// If all transactions are valid, the function will return the accumulated gas used from
@@ -663,11 +871,45 @@ pub async fn verify_transactions(
         }
     }
 
-    if erroneous_txs.is_empty() {
-        Ok(gas_used)
-    } else {
-        Err(TxVerifyFailed::ErroneousTxs(erroneous_txs).into())
+    if !erroneous_txs.is_empty() {
+        return Err(TxVerifyFailed::ErroneousTxs(erroneous_txs).into())
     }
+
+    Ok(gas_used)
+}
+
+/// Apply given set of [`Transaction`] in sequence, without formal verification.
+/// In case any of the transactions fail, they will be returned to the caller as an error.
+/// Additionally, their hash is appended to the provided Merkle tree.
+async fn apply_transactions(
+    overlay: &BlockchainOverlayPtr,
+    verifying_block_height: u32,
+    txs: &[Transaction],
+    tree: &mut MerkleTree,
+) -> Result<()> {
+    debug!(target: "validator::verification::apply_transactions", "Applying {} transactions", txs.len());
+    if txs.is_empty() {
+        return Ok(())
+    }
+
+    // Tracker for failed txs
+    let mut erroneous_txs = vec![];
+
+    // Iterate over transactions and attempt to apply them
+    for tx in txs {
+        overlay.lock().unwrap().checkpoint();
+        if let Err(e) = apply_transaction(overlay, verifying_block_height, tx, tree).await {
+            warn!(target: "validator::verification::apply_transactions", "Transaction apply failed: {}", e);
+            erroneous_txs.push(tx.clone());
+            overlay.lock().unwrap().revert_to_checkpoint()?;
+        };
+    }
+
+    if !erroneous_txs.is_empty() {
+        return Err(TxVerifyFailed::ErroneousTxs(erroneous_txs).into())
+    }
+
+    Ok(())
 }
 
 /// Verify given [`Proposal`] against provided consensus state,