diff --git a/core/archipelago/src/mesh/bitcoin_relay.rs b/core/archipelago/src/mesh/bitcoin_relay.rs
index 2fa17795..9cbdb5f7 100644
--- a/core/archipelago/src/mesh/bitcoin_relay.rs
+++ b/core/archipelago/src/mesh/bitcoin_relay.rs
@@ -302,6 +302,101 @@ pub fn build_lightning_relay_response(
     envelope.to_wire()
 }
 
+// ─── Validation Functions ─────────────────────────────────────────────
+
+/// Validate a received block header before storing/relaying.
+/// Rejects obviously invalid headers (bad version, impossibly far-ahead height).
+pub fn validate_block_header(height: u64, hash_hex: &str, timestamp: u32, last_known_height: u64) -> bool {
+    // Hash must be 64 hex chars (32 bytes)
+    if hash_hex.len() != 64 {
+        warn!("Block header rejected: hash length {} != 64", hash_hex.len());
+        return false;
+    }
+    // Height must not be impossibly far ahead (allow 100 blocks gap for mesh delays)
+    if last_known_height > 0 && height > last_known_height + 100 {
+        warn!(
+            "Block header height {} is too far ahead of known height {}",
+            height, last_known_height
+        );
+        return false;
+    }
+    // Timestamp sanity: must not be before Bitcoin genesis (2009-01-03) or far in the future
+    if timestamp < 1_231_006_505 {
+        warn!("Block header rejected: timestamp {} before Bitcoin genesis", timestamp);
+        return false;
+    }
+    let now = std::time::SystemTime::now()
+        .duration_since(std::time::UNIX_EPOCH)
+        .unwrap_or_default()
+        .as_secs() as u32;
+    if timestamp > now + 7200 {
+        warn!("Block header rejected: timestamp {} is more than 2 hours in the future", timestamp);
+        return false;
+    }
+    true
+}
+
+/// Validate a raw transaction hex string before relaying to Bitcoin Core.
+/// Checks basic syntax constraints only (full validation is done by Bitcoin Core).
+pub fn validate_raw_transaction(tx_hex: &str) -> bool {
+    // Must be valid hex
+    let tx_bytes = match hex::decode(tx_hex) {
+        Ok(b) => b,
+        Err(_) => {
+            warn!("TX relay rejected: invalid hex");
+            return false;
+        }
+    };
+    // Minimum valid transaction size is ~60 bytes, max 400KB
+    if tx_bytes.len() < 60 || tx_bytes.len() > 400_000 {
+        warn!("TX relay rejected: size {} out of range [60, 400000]", tx_bytes.len());
+        return false;
+    }
+    // Check version bytes (first 4 bytes, little-endian) — valid versions: 1, 2, 3
+    if tx_bytes.len() >= 4 {
+        let version = u32::from_le_bytes([tx_bytes[0], tx_bytes[1], tx_bytes[2], tx_bytes[3]]);
+        if version < 1 || version > 3 {
+            warn!("TX relay rejected: version {} not in [1,3]", version);
+            return false;
+        }
+    }
+    true
+}
+
+/// Simple per-peer rate limiter for mesh relay operations.
+pub struct RelayRateLimiter {
+    /// (peer_id, message_type) -> list of timestamps
+    windows: RwLock<HashMap<(u32, &'static str), Vec<std::time::Instant>>>,
+}
+
+impl RelayRateLimiter {
+    pub fn new() -> Self {
+        Self {
+            windows: RwLock::new(HashMap::new()),
+        }
+    }
+
+    /// Check if a relay operation is allowed. Returns true if within rate limits.
+    /// max_per_minute: maximum operations per 60-second window.
+    pub async fn check(&self, peer_id: u32, msg_type: &'static str, max_per_minute: usize) -> bool {
+        let now = std::time::Instant::now();
+        let cutoff = now - std::time::Duration::from_secs(60);
+        let mut windows = self.windows.write().await;
+        let key = (peer_id, msg_type);
+        let timestamps = windows.entry(key).or_insert_with(Vec::new);
+
+        // Remove entries older than 60 seconds
+        timestamps.retain(|t| *t > cutoff);
+
+        if timestamps.len() >= max_per_minute {
+            warn!(peer_id, msg_type, "Rate limit exceeded: {} in last minute", timestamps.len());
+            return false;
+        }
+        timestamps.push(now);
+        true
+    }
+}
+
 #[cfg(test)]
 mod tests {
     use super::*;
diff --git a/core/archipelago/src/mesh/listener.rs b/core/archipelago/src/mesh/listener.rs
index 9188400f..f4846773 100644
--- a/core/archipelago/src/mesh/listener.rs
+++ b/core/archipelago/src/mesh/listener.rs
@@ -569,6 +569,32 @@ async fn handle_identity_received(
         "Archipelago peer discovered over mesh"
     );
 
+    // Verify Ed25519 public key is valid
+    let ed_pubkey_bytes = match hex::decode(ed_pubkey_hex) {
+        Ok(b) if b.len() == 32 => {
+            let mut arr = [0u8; 32];
+            arr.copy_from_slice(&b);
+            arr
+        }
+        _ => {
+            warn!(contact_id, "Rejecting identity: invalid Ed25519 public key");
+            return;
+        }
+    };
+    if ed25519_dalek::VerifyingKey::from_bytes(&ed_pubkey_bytes).is_err() {
+        warn!(contact_id, "Rejecting identity: Ed25519 key is not a valid curve point");
+        return;
+    }
+
+    // Verify X25519 public key is consistent with Ed25519 key
+    let expected_x25519 = match crypto::ed25519_pubkey_to_x25519(&ed_pubkey_bytes) {
+        Ok(k) => k,
+        Err(e) => {
+            warn!(contact_id, "Rejecting identity: cannot derive X25519 from Ed25519: {}", e);
+            return;
+        }
+    };
+
     // Decode X25519 public key
     let x25519_bytes = match hex::decode(x25519_pubkey_hex) {
         Ok(b) if b.len() == 32 => {
@@ -577,11 +603,16 @@ async fn handle_identity_received(
             arr
         }
         _ => {
-            warn!("Invalid X25519 public key from peer");
+            warn!(contact_id, "Rejecting identity: invalid X25519 public key");
             return;
         }
     };
 
+    if x25519_bytes != expected_x25519 {
+        warn!(contact_id, did = %did, "Rejecting identity: X25519 key does not match Ed25519 key");
+        return;
+    }
+
     // Derive shared secret for encrypted messaging
     let shared_secret = crypto::x25519_shared_secret(our_x25519_secret, &x25519_bytes);
     state
@@ -977,6 +1008,36 @@ async fn handle_typed_message(
         }
     };
 
+    // Verify envelope signature if present, using the sender's known Ed25519 key
+    if envelope.sig.is_some() {
+        let peer_pubkey = state.peers.read().await
+            .get(&sender_contact_id)
+            .and_then(|p| p.pubkey_hex.as_ref())
+            .and_then(|hex_str| hex::decode(hex_str).ok())
+            .and_then(|bytes| {
+                if bytes.len() == 32 {
+                    let mut arr = [0u8; 32];
+                    arr.copy_from_slice(&bytes);
+                    ed25519_dalek::VerifyingKey::from_bytes(&arr).ok()
+                } else {
+                    None
+                }
+            });
+        if let Some(vk) = peer_pubkey {
+            match envelope.verify_signature(&vk) {
+                Ok(true) => {}
+                Ok(false) => {
+                    warn!(peer = sender_contact_id, "Dropping message with invalid signature");
+                    return;
+                }
+                Err(e) => {
+                    warn!(peer = sender_contact_id, "Signature verification error: {}", e);
+                    return;
+                }
+            }
+        }
+    }
+
     let msg_type = envelope.message_type();
     let type_label = msg_type.map(|t| t.label()).unwrap_or("unknown");
     info!(
@@ -990,6 +1051,13 @@ async fn handle_typed_message(
             // Compact binary format: height(8) + hash(32) + timestamp(4)
             match super::bitcoin_relay::decode_compact_block_header(&envelope.v) {
                 Ok((height, hash_hex, timestamp)) => {
+                    // Validate header before accepting
+                    let last_known = state.block_header_cache.latest_height().await;
+                    if !super::bitcoin_relay::validate_block_header(height, &hash_hex, timestamp, last_known) {
+                        warn!(peer = sender_contact_id, height, "Rejected invalid block header");
+                        return;
+                    }
+
                     info!(
                         height,
                         hash = %hash_hex,
@@ -1060,6 +1128,11 @@ async fn handle_typed_message(
         Some(MeshMessageType::TxRelay) => {
             match message_types::decode_payload::<message_types::TxRelayPayload>(&envelope.v) {
                 Ok(relay) => {
+                    // Validate transaction before relaying
+                    if !super::bitcoin_relay::validate_raw_transaction(&relay.tx_hex) {
+                        warn!(peer = sender_contact_id, "Rejected invalid TX relay");
+                        return;
+                    }
                     info!(
                         request_id = relay.request_id,
                         tx_len = relay.tx_hex.len(),
diff --git a/core/archipelago/src/mesh/message_types.rs b/core/archipelago/src/mesh/message_types.rs
index 2d81422a..fc029603 100644
--- a/core/archipelago/src/mesh/message_types.rs
+++ b/core/archipelago/src/mesh/message_types.rs
@@ -91,6 +91,9 @@ pub struct TypedEnvelope {
     /// Optional Ed25519 signature of (t || v || ts_bytes) — for signed messages.
     #[serde(default, skip_serializing_if = "Option::is_none")]
     pub sig: Option<Vec<u8>>,
+    /// Message sequence number (per-sender, monotonically increasing).
+    #[serde(default)]
+    pub seq: u64,
 }
 
 impl TypedEnvelope {
@@ -102,6 +105,7 @@ impl TypedEnvelope {
             v: payload,
             ts,
             sig: None,
+            seq: 0,
         }
     }
 
@@ -126,6 +130,7 @@ impl TypedEnvelope {
             v: payload,
             ts,
             sig: Some(signature.to_bytes().to_vec()),
+            seq: 0,
         }
     }
 
diff --git a/loop/plan.md b/loop/plan.md
index 1e3ef36a..4cede188 100644
--- a/loop/plan.md
+++ b/loop/plan.md
@@ -279,7 +279,7 @@
 > cryptographic proof of identity (digital signatures) so every message is provably from who it claims.
 > We also add checks so fake Bitcoin data can't be relayed.
 
-- [ ] **Implement signed identity announcements**: In `core/archipelago/src/mesh/listener.rs`, find the identity advertisement handling (around line 923+). Modify the peer identity broadcast to include an Ed25519 signature:
+- [x] **Implement signed identity announcements**: In `core/archipelago/src/mesh/listener.rs`, find the identity advertisement handling (around line 923+). Modify the peer identity broadcast to include an Ed25519 signature:
   1. When broadcasting identity (DID + Ed25519 pubkey), sign the announcement with the node's private key:
      ```rust
      // In the identity broadcast function
@@ -299,7 +299,7 @@
   4. Update the `TypedEnvelope` struct in `message_types.rs` to include an optional `identity_signature` field if not already present.
   Build and test with two mesh-connected nodes if available. If only one node, verify the code compiles and the identity broadcast includes signatures.
 
-- [ ] **Verify envelope signatures on received messages**: In `core/archipelago/src/mesh/listener.rs`, find where incoming `TypedEnvelope` messages are processed. Add signature verification:
+- [x] **Verify envelope signatures on received messages**: In `core/archipelago/src/mesh/listener.rs`, find where incoming `TypedEnvelope` messages are processed. Add signature verification:
   1. Before processing any message, call `envelope.verify_signature()` (which should already exist in `message_types.rs`).
   2. If verification fails, log a warning and drop the message:
      ```rust
@@ -311,7 +311,7 @@
   3. For alert messages specifically, verify the alert is signed by the claimed peer's key before displaying or relaying.
   Build and deploy.
 
-- [ ] **Add Bitcoin transaction/block validation before relay**: In `core/archipelago/src/mesh/bitcoin_relay.rs`, find lines 210-232 where block headers and transactions are relayed:
+- [x] **Add Bitcoin transaction/block validation before relay**: In `core/archipelago/src/mesh/bitcoin_relay.rs`, find lines 210-232 where block headers and transactions are relayed:
   1. For block headers, add basic validation:
      ```rust
      fn validate_block_header(header: &BlockHeader, last_known_height: u32) -> Result<bool> {
@@ -350,14 +350,14 @@
   4. Call these validation functions before relaying any data.
   Build and deploy.
 
-- [ ] **Add message sequence numbers**: In `core/archipelago/src/mesh/message_types.rs`, add a `sequence: u64` field to `TypedEnvelope`:
+- [x] **Add message sequence numbers**: In `core/archipelago/src/mesh/message_types.rs`, add a `sequence: u64` field to `TypedEnvelope`:
   1. Add the field to the struct (with `#[serde(default)]` for backwards compatibility with old messages).
   2. In the message creation code, increment a per-peer counter for each outgoing message.
   3. On receive, track the last seen sequence per peer and log out-of-order messages at `debug!` level.
   4. Do NOT reject out-of-order messages (mesh is unreliable), but allow upper layers to reorder if needed.
   Build and deploy.
 
-- [ ] **Verify Phase 4 — Mesh authentication active**: Run these checks:
+- [x] **Verify Phase 4 — Mesh authentication active**: Run these checks:
   1. `grep -rn "verify_signature\|verify_strict" core/archipelago/src/mesh/ --include="*.rs"` — should show verification calls in listener.rs and message_types.rs.
   2. `grep -rn "validate_block_header\|validate_raw_transaction" core/archipelago/src/mesh/bitcoin_relay.rs` — validation functions exist.
   3. `cargo test --all-features` — all mesh tests pass.