diff --git a/Makefile b/Makefile
new file mode 100644
index 0000000..a7496ec
--- /dev/null
+++ b/Makefile
@@ -0,0 +1,33 @@
+#!/usr/bin/make -f
+# Waf Makefile wrapper
+
+all:
+	@./waf build
+
+all-debug:
+	@./waf -v build
+
+all-progress:
+	@./waf -p build
+
+install:
+	./waf install --yes;
+
+uninstall:
+	./waf uninstall
+
+clean:
+	@./waf clean
+
+distclean:
+	@./waf distclean
+	@-rm -rf build
+
+check:
+	@./waf check
+
+dist:
+	@./waf dist
+
+.PHONY: clean dist distclean check uninstall install all
+
diff --git a/client/client.cc b/client/client.cc
index df827ba..4d20e98 100644
--- a/client/client.cc
+++ b/client/client.cc
@@ -127,10 +127,15 @@
               
               notify->moveFile (argv[2], argv[3]);
             }
+          else
+            {
+              cerr << "ERROR: Unknown command " << cmd << endl;
+              usage ();
+            }
         }
       else
         {
-          cerr << "Cannot connect to the daemon\n";
+          cerr << "ERROR: Cannot connect to the daemon\n";
           status = 1;
         }
     }
diff --git a/src/action-log.cc b/src/action-log.cc
index 41166e7..293a79a 100644
--- a/src/action-log.cc
+++ b/src/action-log.cc
@@ -28,6 +28,14 @@
 ActionLog::ActionLog (const std::string &path, const std::string &localName)
   : SyncLog (path, localName)
 {
+  int res = sqlite3_create_function (m_db, "apply_action", -1, SQLITE_ANY, reinterpret_cast<void*> (this),
+                                 ActionLog::apply_action_xFun,
+                                 0, 0);
+  if (res != SQLITE_OK)
+    {
+      BOOST_THROW_EXCEPTION (Error::Db ()
+                             << errmsg_info_str ("Cannot create function ``apply_action''"));
+    }
 }
 
 tuple<sqlite3_int64, sqlite3_int64, sqlite3_int64, string>
@@ -37,7 +45,7 @@
   sqlite3_stmt *stmt;
   int res = sqlite3_prepare_v2 (m_db, "SELECT a.version,a.device_id,a.seq_no,a.action,s.device_name "
                                 "FROM ActionLog a JOIN SyncNodes s ON s.device_id = a.device_id "
-                                "WHERE filename=? ORDER BY a.version DESC,a.device_id DESC LIMIT 1", -1, &stmt, 0);
+                                "WHERE filename=? ORDER BY a.version DESC LIMIT 1", -1, &stmt, 0);
 
   if (res != SQLITE_OK)
     {
@@ -230,3 +238,18 @@
   
   sqlite3_exec (m_db, "END TRANSACTION;", 0,0,0);    
 }
+
+
+void
+ActionLog::apply_action_xFun (sqlite3_context *context, int argc, sqlite3_value **argv)
+{
+  ActionLog *the = reinterpret_cast<ActionLog*> (sqlite3_user_data (context));
+
+  cout << "apply_function called with " << argc << endl;
+
+  cout << "device_name: " << sqlite3_value_text (argv[0]) << endl;
+  cout << "action: " << sqlite3_value_int (argv[1]) << endl;
+  cout << "filename: " << sqlite3_value_text (argv[2]) << endl;
+  
+  sqlite3_result_null (context);
+}
diff --git a/src/action-log.h b/src/action-log.h
index 1d63fb8..f6cc0a7 100644
--- a/src/action-log.h
+++ b/src/action-log.h
@@ -48,6 +48,9 @@
 private:
   boost::tuple<sqlite3_int64, sqlite3_int64, sqlite3_int64, std::string>
   GetExistingRecord (const std::string &filename);
+
+  static void
+  apply_action_xFun (sqlite3_context *context, int argc, sqlite3_value **argv);
   
 protected:
 };
diff --git a/src/database-test.cc b/src/database-test.cc
deleted file mode 100644
index ba1fecc..0000000
--- a/src/database-test.cc
+++ /dev/null
@@ -1,80 +0,0 @@
-/* -*- Mode: C++; c-file-style: "gnu"; indent-tabs-mode:nil -*- */
-/*
- * Copyright (c) 2012 University of California, Los Angeles
- *
- * This program is free software; you can redistribute it and/or modify
- * it under the terms of the GNU General Public License version 2 as
- * published by the Free Software Foundation;
- *
- * This program is distributed in the hope that it will be useful,
- * but WITHOUT ANY WARRANTY; without even the implied warranty of
- * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
- * GNU General Public License for more details.
- *
- * You should have received a copy of the GNU General Public License
- * along with this program; if not, write to the Free Software
- * Foundation, Inc., 59 Temple Place, Suite 330, Boston, MA  02111-1307  USA
- *
- * Author: Alexander Afanasyev <alexander.afanasyev@ucla.edu>
- *	   Zhenkai Zhu <zhenkai@cs.ucla.edu>
- */
-
-#include "db-helper.h"
-#include <iostream>
-
-using namespace std;
-using namespace boost;
-
-typedef boost::error_info<struct tag_errmsg, std::string> errmsg_info_str; 
-
-
-int
-main (int argc, char **argv)
-{
-  try
-    {
-      DbHelper db ("./");
-
-      HashPtr hash = db.RememberStateInStateLog ();
-      // should be empty
-      cout << "Hash: [" << *hash << "]" << endl;
-
-      //
-      db.UpdateDeviceSeqno ("Alex", 1);
-      hash = db.RememberStateInStateLog ();
-      cout << "Hash: [" << *hash << "]" << endl;
-
-      db.UpdateDeviceSeqno ("Alex", 2);
-      hash = db.RememberStateInStateLog ();
-      cout << "Hash: [" << *hash << "]" << endl;
-
-      db.UpdateDeviceSeqno ("Alex", 2);
-      hash = db.RememberStateInStateLog ();
-      cout << "Hash: [" << *hash << "]" << endl;
-
-      db.UpdateDeviceSeqno ("Alex", 1);
-      hash = db.RememberStateInStateLog ();
-      cout << "Hash: [" << *hash << "]" << endl;
-
-      db.FindStateDifferences ("00", "ec0a9941fa726e1fb8f34ecdbd8e3faa75dc9dba22e6a2ea1d8482aae5fdfb52");
-      db.FindStateDifferences ("ec0a9941fa726e1fb8f34ecdbd8e3faa75dc9dba22e6a2ea1d8482aae5fdfb52", "00");
-      db.FindStateDifferences ("869c38c6dffe8911ced320aecc6d9244904d13d3e8cd21081311f2129b4557ce",
-                               "ec0a9941fa726e1fb8f34ecdbd8e3faa75dc9dba22e6a2ea1d8482aae5fdfb52");
-      db.FindStateDifferences ("ec0a9941fa726e1fb8f34ecdbd8e3faa75dc9dba22e6a2ea1d8482aae5fdfb52",
-                               "869c38c6dffe8911ced320aecc6d9244904d13d3e8cd21081311f2129b4557ce");
-
-      db.UpdateDeviceSeqno ("Bob", 1);
-      hash = db.RememberStateInStateLog ();
-      cout << "Hash: [" << *hash << "]" << endl;
-
-      db.FindStateDifferences ("00", "48f4d95b503b9a79c2d5939fa67722b13fc01db861fc501d09efd0a38dbafab8");
-      db.FindStateDifferences ("ec0a9941fa726e1fb8f34ecdbd8e3faa75dc9dba22e6a2ea1d8482aae5fdfb52",
-                               "48f4d95b503b9a79c2d5939fa67722b13fc01db861fc501d09efd0a38dbafab8");
-    }
-  catch (const boost::exception &e)
-    {
-      cout << "ERRORR: " << *get_error_info<errmsg_info_str> (e) << endl;
-    }
-
-  return 0;
-}
diff --git a/src/db-helper.cc b/src/db-helper.cc
index f0e78d0..7b6c091 100644
--- a/src/db-helper.cc
+++ b/src/db-helper.cc
@@ -120,6 +120,41 @@
 CREATE INDEX ActionLog_filename_version ON ActionLog (filename,version);        \n\
 CREATE INDEX ActionLog_parent ON ActionLog (parent_device_id, parent_seq_no);   \n\
 CREATE INDEX ActionLog_action_name ON ActionLog (action_name);          \n\
+                                                                        \n\
+CREATE TRIGGER ActionLogInsert_trigger                                  \n\
+    AFTER INSERT ON ActionLog                                           \n\
+    FOR EACH ROW                                                        \n\
+    WHEN (SELECT device_id                                              \n\
+            FROM ActionLog                                              \n\
+            WHERE filename=NEW.filename AND                             \n\
+                  version > NEW.version) IS NULL AND                    \n\
+         (SELECT a.device_id                                            \n\
+            FROM ActionLog a                                            \n\
+                LEFT JOIN SyncNodes s ON s.device_id=a.device_id        \n\
+            WHERE filename=NEW.filename AND                             \n\
+                  version = NEW.version AND                             \n\
+                  a.device_id != NEW.device_id AND                      \n\
+                  s.device_name > (SELECT device_name                   \n\
+                                    FROM SyncNodes                      \n\
+                                    WHERE device_id=NEW.device_id)) IS NULL      \n\
+    BEGIN                                                               \n\
+        SELECT apply_action ((SELECT device_name FROM SyncNodes where device_id=NEW.device_id), \
+                             NEW.action,NEW.filename,NEW.file_hash,     \
+                             NEW.file_atime,NEW.file_mtime,NEW.file_ctime, \
+                             NEW.file_chmod); /* function that applies action and adds record the FileState */  \n \
+    END;                                                                \n\
+                                                                        \n\
+CREATE TABLE FileState (                                                \n\
+    type        INTEGER NOT NULL, /* 0 - newest, 1 - oldest */          \n\
+    filename    TEXT NOT NULL,                                          \n\
+    file_hash   BLOB, /* NULL if action is \"delete\" */                \n\
+    file_atime  TIMESTAMP,                                              \n\
+    file_mtime  TIMESTAMP,                                              \n\
+    file_ctime  TIMESTAMP,                                              \n\
+    file_chmod  INTEGER,                                                \n\
+                                                                        \n\
+    PRIMARY KEY (type, filename)                                        \n\
+);                                                                      \n\
 ";
 
 DbHelper::DbHelper (const std::string &path)
diff --git a/src/hash-helper.cc b/src/hash-helper.cc
index 04b52b2..33c0e77 100644
--- a/src/hash-helper.cc
+++ b/src/hash-helper.cc
@@ -118,7 +118,7 @@
       return retval;
     }
 
-  
+  retval->m_buf = new unsigned char [EVP_MAX_MD_SIZE];
   
   unsigned char *end = copy (string_to_binary (hashInTextEncoding.begin ()),
                             string_to_binary (hashInTextEncoding.end ()),
diff --git a/include/object-db-file.h b/src/object-db-file.h
similarity index 100%
rename from include/object-db-file.h
rename to src/object-db-file.h
diff --git a/include/object-db.h b/src/object-db.h
similarity index 88%
rename from include/object-db.h
rename to src/object-db.h
index 207e0b3..8c31418 100644
--- a/include/object-db.h
+++ b/src/object-db.h
@@ -9,7 +9,7 @@
 struct ObjectDBException : virtual boost::exception, virtual exception { };
 typedef boost::error_info<struct tag_errmsg, std::string> error_info_str;
 
-void throwException(const string &msg) { boost::throw_exception(ObjectDBException() << error_info_str(msg)); }
+inline void throwException(const string &msg) { boost::throw_exception(ObjectDBException() << error_info_str(msg)); }
 
 typedef unsigned char Byte;
 typedef vector<Byte> Bytes;
diff --git a/test/database-test.cc b/test/database-test.cc
new file mode 100644
index 0000000..7432fd0
--- /dev/null
+++ b/test/database-test.cc
@@ -0,0 +1,80 @@
+/* -*- Mode: C++; c-file-style: "gnu"; indent-tabs-mode:nil -*- */
+/*
+ * Copyright (c) 2012 University of California, Los Angeles
+ *
+ * This program is free software; you can redistribute it and/or modify
+ * it under the terms of the GNU General Public License version 2 as
+ * published by the Free Software Foundation;
+ *
+ * This program is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ * GNU General Public License for more details.
+ *
+ * You should have received a copy of the GNU General Public License
+ * along with this program; if not, write to the Free Software
+ * Foundation, Inc., 59 Temple Place, Suite 330, Boston, MA  02111-1307  USA
+ *
+ * Author: Alexander Afanasyev <alexander.afanasyev@ucla.edu>
+ *	   Zhenkai Zhu <zhenkai@cs.ucla.edu>
+ */
+
+#include <boost/test/unit_test.hpp>
+#include <boost/lexical_cast.hpp>
+
+#include <unistd.h>
+#include "action-log.h"
+#include <iostream>
+
+using namespace std;
+using namespace boost;
+
+BOOST_AUTO_TEST_SUITE(DatabaseTest)
+
+
+BOOST_AUTO_TEST_CASE (BasicDatabaseTest)
+{
+  char dir_tmpl [] = "/tmp/tmp-chornoshare-XXXXXXXXXXX";
+  string tmp_dir = mkdtemp (dir_tmpl);
+  SyncLog db (tmp_dir, "/alex");
+
+  HashPtr hash = db.RememberStateInStateLog ();
+  // should be empty
+  BOOST_CHECK_EQUAL (lexical_cast<string> (*hash), "461f0ed1300b7f947fbe8e38a04186b74938febe7e43fe4ed571551fa3bd6ab9");
+
+  db.UpdateDeviceSeqno ("Alex", 1);
+  hash = db.RememberStateInStateLog ();
+
+  BOOST_CHECK_EQUAL (lexical_cast<string> (*hash), "80463c859f23367e1cbabfa80d6de78af334589ec88dc9c56c854c1f7e196c34");
+
+  db.UpdateDeviceSeqno ("Alex", 2);
+  hash = db.RememberStateInStateLog ();
+  BOOST_CHECK_EQUAL (lexical_cast<string> (*hash), "95284d3132a7a88b85c5141ca63efa68b7a7daf37315def69e296a0c24692833");
+
+  db.UpdateDeviceSeqno ("Alex", 2);
+  hash = db.RememberStateInStateLog ();
+  BOOST_CHECK_EQUAL (lexical_cast<string> (*hash), "95284d3132a7a88b85c5141ca63efa68b7a7daf37315def69e296a0c24692833");
+
+  db.UpdateDeviceSeqno ("Alex", 1);
+  hash = db.RememberStateInStateLog ();
+  BOOST_CHECK_EQUAL (lexical_cast<string> (*hash), "95284d3132a7a88b85c5141ca63efa68b7a7daf37315def69e296a0c24692833");
+
+  
+  db.FindStateDifferences ("00", "95284d3132a7a88b85c5141ca63efa68b7a7daf37315def69e296a0c24692833");
+  db.FindStateDifferences ("95284d3132a7a88b85c5141ca63efa68b7a7daf37315def69e296a0c24692833", "00");
+  db.FindStateDifferences ("869c38c6dffe8911ced320aecc6d9244904d13d3e8cd21081311f2129b4557ce",
+                           "95284d3132a7a88b85c5141ca63efa68b7a7daf37315def69e296a0c24692833");
+  db.FindStateDifferences ("95284d3132a7a88b85c5141ca63efa68b7a7daf37315def69e296a0c24692833",
+                           "869c38c6dffe8911ced320aecc6d9244904d13d3e8cd21081311f2129b4557ce");
+
+  db.UpdateDeviceSeqno ("Bob", 1);
+  hash = db.RememberStateInStateLog ();
+  BOOST_CHECK_EQUAL (lexical_cast<string> (*hash), "d001d4680fd9adcb48e34a795e3cc3d5d36f209fbab34fd57f70f362c2085310");
+
+  db.FindStateDifferences ("00", "d001d4680fd9adcb48e34a795e3cc3d5d36f209fbab34fd57f70f362c2085310");
+  db.FindStateDifferences ("95284d3132a7a88b85c5141ca63efa68b7a7daf37315def69e296a0c24692833",
+                           "d001d4680fd9adcb48e34a795e3cc3d5d36f209fbab34fd57f70f362c2085310");
+
+}
+
+BOOST_AUTO_TEST_SUITE_END()
diff --git a/wscript b/wscript
index 736c5d1..7fdb1ea 100644
--- a/wscript
+++ b/wscript
@@ -72,16 +72,6 @@
         includes = ['include', ],
         )
 
-    # Unit tests
-    if bld.env['TEST']:
-      unittests = bld.program (
-          target="unit-tests",
-          source = bld.path.ant_glob(['test/**/*.cc']),
-          features=['cxx', 'cxxprogram'],
-          use = 'BOOST_TEST ccnx',
-          includes = ['include', ],
-          )
-
     common = bld.objects (
         target = "common",
         features = ["cxx"],
@@ -92,6 +82,29 @@
         includes = ['include', 'src'],
         )
 
+    database = bld.objects (
+        target = "database",
+        features = ["cxx"],
+        source = [
+                  'src/db-helper.cc',
+                  'src/sync-log.cc',
+                  'src/action-log.cc',
+                  'src/action-item.proto',
+                  'src/sync-state.proto',
+            ],
+        use = "BOOST SQLITE3 SSL common",
+        includes = ['include', 'src'],
+        )
+
+    # Unit tests
+    if bld.env['TEST']:
+      unittests = bld.program (
+          target="unit-tests",
+          source = bld.path.ant_glob(['test/**/*.cc']),
+          features=['cxx', 'cxxprogram'],
+          use = 'BOOST_TEST ccnx database',
+          includes = ['include', 'src'],
+          )
 
     client = bld (
         target="cs-client",
@@ -108,12 +121,7 @@
         # source = bld.path.ant_glob(['src/**/*.cc']),
         source = ['daemon/daemon.cc',
                   'daemon/notify-i.cc',
-                  'src/db-helper.cc',
-                  'src/sync-log.cc',
-                  'src/action-log.cc',
-                  'src/sync-state.proto',
-                  'src/action-item.proto',
                   ],
-        use = "BOOST CCNX SSL SQLITE3 ICE common",
+        use = "BOOST CCNX SSL SQLITE3 ICE common database",
         includes = ['include', 'src'],
         )