diff --git a/build.sbt b/build.sbt
index 4b84522..19547c0 100644
--- a/build.sbt
+++ b/build.sbt
@@ -14,7 +14,7 @@ val scalaV = scalaVersion := "2.12.8"
 
 val commons = Seq(
   scalaV,
-  version                   := "0.0.4",
+  version                   := "0.0.5",
   fork in Test              := true,
   parallelExecution in Test := false,
   organization              := "one.fluence",
diff --git a/hashsign/js/src/test/scala/flyence/crypto/EcdsaSpec.scala b/hashsign/js/src/test/scala/fluence/crypto/EcdsaSpec.scala
similarity index 99%
rename from hashsign/js/src/test/scala/flyence/crypto/EcdsaSpec.scala
rename to hashsign/js/src/test/scala/fluence/crypto/EcdsaSpec.scala
index 8c6e4c2..ee61f60 100644
--- a/hashsign/js/src/test/scala/flyence/crypto/EcdsaSpec.scala
+++ b/hashsign/js/src/test/scala/fluence/crypto/EcdsaSpec.scala
@@ -15,7 +15,7 @@
  * along with this program.  If not, see <http://www.gnu.org/licenses/>.
  */
 
-package flyence.crypto
+package fluence.crypto
 
 import cats.data.EitherT
 import cats.instances.try_._
diff --git a/hashsign/js/src/test/scala/flyence/crypto/JSHashSpec.scala b/hashsign/js/src/test/scala/fluence/crypto/JSHashSpec.scala
similarity index 98%
rename from hashsign/js/src/test/scala/flyence/crypto/JSHashSpec.scala
rename to hashsign/js/src/test/scala/fluence/crypto/JSHashSpec.scala
index a03ae61..98be79a 100644
--- a/hashsign/js/src/test/scala/flyence/crypto/JSHashSpec.scala
+++ b/hashsign/js/src/test/scala/fluence/crypto/JSHashSpec.scala
@@ -15,7 +15,7 @@
  * along with this program.  If not, see <http://www.gnu.org/licenses/>.
  */
 
-package flyence.crypto
+package fluence.crypto
 
 import fluence.crypto.facade.ecdsa.{SHA1, SHA256}
 import org.scalatest.{Matchers, WordSpec}
diff --git a/hashsign/jvm/src/main/scala/fluence/crypto/ecdsa/Ecdsa.scala b/hashsign/jvm/src/main/scala/fluence/crypto/ecdsa/Ecdsa.scala
index 91a436f..96b7e61 100644
--- a/hashsign/jvm/src/main/scala/fluence/crypto/ecdsa/Ecdsa.scala
+++ b/hashsign/jvm/src/main/scala/fluence/crypto/ecdsa/Ecdsa.scala
@@ -62,14 +62,20 @@ class Ecdsa(curveType: String, scheme: String, hasher: Option[Crypto.Hasher[Arra
           _ ← nonFatalHandling {
             g.initialize(ecSpec, input.map(new SecureRandom(_)).getOrElse(new SecureRandom()))
           }(s"Could not initialize KeyPairGenerator")
-          p ← EitherT.fromOption(Option(g.generateKeyPair()), CryptoError("Could not generate KeyPair. Unexpected."))
+          p ← EitherT.fromOption(Option(g.generateKeyPair()), CryptoError("Generated key pair is null"))
           keyPair ← nonFatalHandling {
-            //store S number for private key and compressed Q point on curve for public key
-            val pk = ByteVector(p.getPublic.asInstanceOf[ECPublicKey].getQ.getEncoded(true))
-            val bg = p.getPrivate.asInstanceOf[ECPrivateKey].getS
-            val sk = ByteVector.fromValidHex(bg.toString(HEXradix))
+            val pk = p.getPublic match {
+              case pk: ECPublicKey => ByteVector(p.getPublic.asInstanceOf[ECPublicKey].getQ.getEncoded(true))
+              case p => throw new ClassCastException(s"Cannot cast public key (${p.getClass}) to Ed25519PublicKeyParameters")
+            }
+            val sk = p.getPrivate match {
+              case sk: ECPrivateKey =>
+                val bg = p.getPrivate.asInstanceOf[ECPrivateKey].getS
+                ByteVector.fromValidHex(bg.toString(HEXradix))
+              case s => throw new ClassCastException(s"Cannot cast private key (${p.getClass}) to Ed25519PrivateKeyParameters")
+            }
             KeyPair.fromByteVectors(pk, sk)
-          }("Could not generate KeyPair. Unexpected.")
+          }("Could not generate KeyPair")
         } yield keyPair
     }
 
diff --git a/hashsign/jvm/src/main/scala/fluence/crypto/ecdsa/Ed25519.scala b/hashsign/jvm/src/main/scala/fluence/crypto/ecdsa/Ed25519.scala
new file mode 100644
index 0000000..455f560
--- /dev/null
+++ b/hashsign/jvm/src/main/scala/fluence/crypto/ecdsa/Ed25519.scala
@@ -0,0 +1,170 @@
+/*
+ * Copyright (C) 2017  Fluence Labs Limited
+ *
+ * This program is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU Affero General Public License as
+ * published by the Free Software Foundation, either version 3 of the
+ * License, or (at your option) any later version.
+ *
+ * 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 Affero General Public License for more details.
+ *
+ * You should have received a copy of the GNU Affero General Public License
+ * along with this program.  If not, see <http://www.gnu.org/licenses/>.
+ */
+
+package fluence.crypto.ecdsa
+
+import java.security._
+
+import cats.Monad
+import cats.data.EitherT
+import fluence.crypto.KeyPair.Secret
+import fluence.crypto.signature.{SignAlgo, SignatureChecker, Signer}
+import fluence.crypto.{KeyPair, _}
+import org.bouncycastle.crypto.KeyGenerationParameters
+import org.bouncycastle.crypto.generators.Ed25519KeyPairGenerator
+import org.bouncycastle.crypto.params.{Ed25519PrivateKeyParameters, Ed25519PublicKeyParameters}
+import org.bouncycastle.crypto.signers.Ed25519Signer
+import scodec.bits.ByteVector
+
+import scala.language.higherKinds
+
+/**
+ * Edwards-curve Digital Signature Algorithm (EdDSA)
+ */
+class Ed25519(strength: Int) extends JavaAlgorithm {
+
+  import CryptoError.nonFatalHandling
+
+  val generateKeyPair: Crypto.KeyPairGenerator =
+    new Crypto.Func[Option[Array[Byte]], KeyPair] {
+      override def apply[F[_]](
+        input: Option[Array[Byte]]
+      )(implicit F: Monad[F]): EitherT[F, CryptoError, fluence.crypto.KeyPair] =
+        for {
+          g ← getKeyPairGenerator
+          random = input.map(new SecureRandom(_)).getOrElse(new SecureRandom())
+          keyParameters = new KeyGenerationParameters(random, strength)
+          _ = g.init(keyParameters)
+          p ← EitherT.fromOption(Option(g.generateKeyPair()), CryptoError("Generated key pair is null"))
+          keyPair ← nonFatalHandling {
+            val pk = p.getPublic match {
+              case pk: Ed25519PublicKeyParameters => pk.getEncoded
+              case p => throw new ClassCastException(s"Cannot cast public key (${p.getClass}) to Ed25519PublicKeyParameters")
+            }
+            val sk = p.getPrivate match {
+              case sk: Ed25519PrivateKeyParameters => sk.getEncoded
+              case s => throw new ClassCastException(s"Cannot cast private key (${p.getClass}) to Ed25519PrivateKeyParameters")
+            }
+            KeyPair.fromBytes(pk, sk)
+          }("Could not generate KeyPair")
+        } yield keyPair
+    }
+
+  /**
+   * Restores pair of keys from the known secret key.
+   * The public key will be the same each method call with the same secret key.
+   * @param sk secret key
+   * @return key pair
+   */
+  def restorePairFromSecret[F[_]: Monad](sk: Secret): EitherT[F, CryptoError, KeyPair] =
+    for {
+      keyPair ← nonFatalHandling {
+        val secret = new Ed25519PrivateKeyParameters(sk.bytes, 0)
+        KeyPair.fromBytes(secret.generatePublicKey().getEncoded, sk.bytes)
+      }("Could not generate KeyPair from private key")
+    } yield keyPair
+
+  def sign[F[_]: Monad](
+    keyPair: KeyPair,
+    message: ByteVector
+  ): EitherT[F, CryptoError, signature.Signature] =
+    signMessage(keyPair.secretKey.bytes, message.toArray)
+      .map(bb ⇒ fluence.crypto.signature.Signature(ByteVector(bb)))
+
+  def verify[F[_]: Monad](
+    publicKey: KeyPair.Public,
+    signature: fluence.crypto.signature.Signature,
+    message: ByteVector
+  ): EitherT[F, CryptoError, Unit] =
+    verifySign(publicKey.bytes, signature.bytes, message.toArray)
+
+  private def signMessage[F[_]: Monad](
+    privateKey: Array[Byte],
+    message: Array[Byte]
+  ): EitherT[F, CryptoError, Array[Byte]] =
+    for {
+      sign ← nonFatalHandling {
+        val privKey = new Ed25519PrivateKeyParameters(privateKey, 0)
+        val signer = new Ed25519Signer
+        signer.init(true, privKey)
+        signer.update(message, 0, message.length)
+        signer.generateSignature()
+      }("Cannot sign message")
+
+    } yield sign
+
+  private def verifySign[F[_]: Monad](
+    publicKey: Array[Byte],
+    signature: Array[Byte],
+    message: Array[Byte],
+  ): EitherT[F, CryptoError, Unit] =
+    for {
+      verify ← nonFatalHandling {
+        val pubKey = new Ed25519PublicKeyParameters(publicKey, 0)
+        val signer = new Ed25519Signer
+        signer.init(false, pubKey)
+        signer.update(message, 0, message.length)
+        signer.verifySignature(signature)
+      }("Cannot verify message")
+
+      _ ← EitherT.cond[F](verify, (), CryptoError("Signature is not verified"))
+    } yield ()
+
+  private def getKeyPairGenerator[F[_]: Monad] =
+    nonFatalHandling {
+      new Ed25519KeyPairGenerator()
+    }(
+      "Cannot get key pair generator"
+    )
+}
+
+object Ed25519 {
+
+  /**
+   * Keys in tendermint are generating with a random seed of 32 bytes
+   */
+  val tendermintEd25519 = new Ed25519(256)
+  val tendermintAlgo: SignAlgo = signAlgo(256)
+
+  def ed25519(strength: Int) = new Ed25519(strength)
+
+  def signAlgo(strength: Int): SignAlgo = {
+    val algo = ed25519(strength)
+    SignAlgo(
+      name = "ed25519",
+      generateKeyPair = algo.generateKeyPair,
+      signer = kp ⇒
+        Signer(
+          kp.publicKey,
+          new Crypto.Func[ByteVector, signature.Signature] {
+            override def apply[F[_]](
+              input: ByteVector
+            )(implicit F: Monad[F]): EitherT[F, CryptoError, signature.Signature] =
+              algo.sign(kp, input)
+          }
+      ),
+      checker = pk ⇒
+        new SignatureChecker {
+          override def check[F[_]: Monad](
+            signature: fluence.crypto.signature.Signature,
+            plain: ByteVector
+          ): EitherT[F, CryptoError, Unit] =
+            algo.verify(pk, signature, plain)
+      }
+    )
+  }
+}
diff --git a/hashsign/jvm/src/test/scala/fluence/crypto/SignatureSpec.scala b/hashsign/jvm/src/test/scala/fluence/crypto/EcdsaSpec.scala
similarity index 98%
rename from hashsign/jvm/src/test/scala/fluence/crypto/SignatureSpec.scala
rename to hashsign/jvm/src/test/scala/fluence/crypto/EcdsaSpec.scala
index f4bcbfd..e8cdd93 100644
--- a/hashsign/jvm/src/test/scala/fluence/crypto/SignatureSpec.scala
+++ b/hashsign/jvm/src/test/scala/fluence/crypto/EcdsaSpec.scala
@@ -18,7 +18,6 @@
 package fluence.crypto
 
 import java.io.File
-import java.math.BigInteger
 
 import cats.data.EitherT
 import cats.instances.try_._
@@ -30,7 +29,7 @@ import scodec.bits.ByteVector
 
 import scala.util.{Random, Try}
 
-class SignatureSpec extends WordSpec with Matchers {
+class EcdsaSpec extends WordSpec with Matchers {
 
   def rndBytes(size: Int): Array[Byte] = Random.nextString(10).getBytes
 
diff --git a/hashsign/jvm/src/test/scala/fluence/crypto/Ed25519Spec.scala b/hashsign/jvm/src/test/scala/fluence/crypto/Ed25519Spec.scala
new file mode 100644
index 0000000..0c80d42
--- /dev/null
+++ b/hashsign/jvm/src/test/scala/fluence/crypto/Ed25519Spec.scala
@@ -0,0 +1,174 @@
+/*
+ * Copyright (C) 2017  Fluence Labs Limited
+ *
+ * This program is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU Affero General Public License as
+ * published by the Free Software Foundation, either version 3 of the
+ * License, or (at your option) any later version.
+ *
+ * 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 Affero General Public License for more details.
+ *
+ * You should have received a copy of the GNU Affero General Public License
+ * along with this program.  If not, see <http://www.gnu.org/licenses/>.
+ */
+
+package fluence.crypto
+
+import java.io.File
+
+import cats.data.EitherT
+import cats.instances.try_._
+import fluence.crypto.ecdsa.Ed25519
+import fluence.crypto.keystore.FileKeyStorage
+import fluence.crypto.signature.Signature
+import org.scalatest.{Matchers, WordSpec}
+import scodec.bits.ByteVector
+
+import scala.util.{Random, Try}
+
+class Ed25519Spec extends WordSpec with Matchers {
+
+  def rndBytes(size: Int): Array[Byte] = Random.nextString(10).getBytes
+
+  def rndByteVector(size: Int) = ByteVector(rndBytes(size))
+
+  private implicit class TryEitherTExtractor[A <: Throwable, B](et: EitherT[Try, A, B]) {
+
+    def extract: B =
+      et.value.map {
+        case Left(e) ⇒ fail(e) // for making test fail message more describable
+        case Right(v) ⇒ v
+      }.get
+
+    def isOk: Boolean = et.value.fold(_ ⇒ false, _.isRight)
+  }
+
+  "ed25519 algorithm" should {
+    "correct sign and verify data" in {
+      val algorithm = Ed25519.ed25519(32)
+
+      val keys = algorithm.generateKeyPair.unsafe(None)
+      val pubKey = keys.publicKey
+      val data = rndByteVector(10)
+      val sign = algorithm.sign[Try](keys, data).extract
+
+      algorithm.verify[Try](pubKey, sign, data).isOk shouldBe true
+
+      val randomData = rndByteVector(10)
+      val randomSign = algorithm.sign(keys, randomData).extract
+
+      algorithm.verify(pubKey, randomSign, data).isOk shouldBe false
+
+      algorithm.verify(pubKey, sign, randomData).isOk shouldBe false
+    }
+
+    "correctly work with signer and checker" in {
+      val algo = Ed25519.signAlgo(32)
+      val keys = algo.generateKeyPair.unsafe(None)
+      val signer = algo.signer(keys)
+      val checker = algo.checker(keys.publicKey)
+
+      val data = rndByteVector(10)
+      val sign = signer.sign(data).extract
+
+      checker.check(sign, data).isOk shouldBe true
+
+      val randomSign = signer.sign(rndByteVector(10)).extract
+      checker.check(randomSign, data).isOk shouldBe false
+    }
+
+    "throw an errors on invalid data" in {
+      val algo = Ed25519.signAlgo(32)
+      val keys = algo.generateKeyPair.unsafe(None)
+      val signer = algo.signer(keys)
+      val checker = algo.checker(keys.publicKey)
+      val data = rndByteVector(10)
+
+      val sign = signer.sign(data).extract
+
+      the[CryptoError] thrownBy {
+        checker.check(Signature(rndByteVector(10)), data).value.flatMap(_.toTry).get
+      }
+      val invalidChecker = algo.checker(KeyPair.fromByteVectors(rndByteVector(10), rndByteVector(10)).publicKey)
+      the[CryptoError] thrownBy {
+        invalidChecker
+          .check(sign, data)
+          .value
+          .flatMap(_.toTry)
+          .get
+      }
+    }
+
+    "store and read key from file" in {
+      val algo = Ed25519.signAlgo(32)
+      val keys = algo.generateKeyPair.unsafe(None)
+
+      val keyFile = File.createTempFile("test", "")
+      if (keyFile.exists()) keyFile.delete()
+      val storage = new FileKeyStorage(keyFile)
+
+      storage.storeKeyPair(keys).unsafeRunSync()
+
+      val keysReadE = storage.readKeyPair
+      val keysRead = keysReadE.unsafeRunSync()
+
+      val signer = algo.signer(keys)
+      val data = rndByteVector(10)
+      val sign = signer.sign(data).extract
+
+      algo.checker(keys.publicKey).check(sign, data).isOk shouldBe true
+      algo.checker(keysRead.publicKey).check(sign, data).isOk shouldBe true
+
+      //try to store key into previously created file
+      storage.storeKeyPair(keys).attempt.unsafeRunSync().isLeft shouldBe true
+    }
+
+    "restore key pair from secret key" in {
+      val algo = Ed25519.signAlgo(32)
+      val testKeys = algo.generateKeyPair.unsafe(None)
+
+      val ed25519 = Ed25519.ed25519(32)
+
+      val newKeys = ed25519.restorePairFromSecret(testKeys.secretKey).extract
+
+      testKeys shouldBe newKeys
+    }
+
+    "work with tendermint keys" in {
+      /*
+        {
+          "address": "C08269A8AACD53C3488F16F285821DAC77CF5DEF",
+          "pub_key": {
+            "type": "tendermint/PubKeyEd25519",
+            "value": "FWB5lXZ/TT2132+jXp/8aQzNwISwp9uuFz4z0TXDdxY="
+          },
+          "priv_key": {
+            "type": "tendermint/PrivKeyEd25519",
+            "value": "P6jw9q/Rytdxpv5Wxs1aYA8w82uS0x3CpmS9+GpaMGIVYHmVdn9NPbXfb6Nen/xpDM3AhLCn264XPjPRNcN3Fg=="
+          }
+        }
+       */
+
+      val privKeyBase64 = "P6jw9q/Rytdxpv5Wxs1aYA8w82uS0x3CpmS9+GpaMGIVYHmVdn9NPbXfb6Nen/xpDM3AhLCn264XPjPRNcN3Fg=="
+      val pubKeyBase64 = "FWB5lXZ/TT2132+jXp/8aQzNwISwp9uuFz4z0TXDdxY="
+
+      val privKey = ByteVector.fromBase64Descriptive(privKeyBase64).right.get
+      val pubKey = ByteVector.fromBase64Descriptive(pubKeyBase64).right.get
+
+      val restored = Ed25519.tendermintEd25519
+        .restorePairFromSecret[Try](KeyPair.Secret(privKey.dropRight(32)))
+        .value
+        .get
+        .right
+        .get
+        .publicKey
+        .bytes
+
+      restored shouldBe pubKey.toArray
+      restored shouldBe privKey.drop(32).toArray
+    }
+  }
+}