diff --git a/README.md b/README.md
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+++ b/README.md
@@ -1,18 +1,36 @@
-Strawman protocol for lightning channels.
+# Lightning Protocol Reference Implementation
 
-The wire protocol is documented in [lightning.proto](lightning.proto)
-(a [protobuf](https://developers.google.com/protocol-buffers/)
-definition file).
+In this repository we're developing a reference implementation of
+bitcoin lightning (see:
+[http://lightning.network](http://lightning.network) which proposed
+the original "lightning network").
 
-There are command line utilities to create and process various packets
-in [test-cli](test-cli/HOWTO-USE.md).
+The first step was to develop a wire protocol for nodes to talk to
+each other.  The wire protocol is documented in
+[lightning.proto](lightning.proto) (a
+[protobuf](https://developers.google.com/protocol-buffers/) definition
+file).  There are command line utilities to create and process various
+packets in [test-cli](test-cli/HOWTO-USE.md).
 
-It requires features not currently in bitcoin, so it runs on top of
-the sidechain [Elements Alpha](https://github.com/ElementsProject/elements)
+The second step is to create a daemon which uses that protocol to
+communicate with others to set up channels and make simple payments.
+This also involves monitoring the blockchain for transactions.  This
+is where development is currently occurring.
 
-This is very much a testbed and work in progress; expect All The
-Things to change, all the time.
+Later steps will enhance the protocol to network individual daemons,
+advertize their IP addresses, publish routes and fees, and use that
+information to pay specific nodes.  These details are currently being
+hashed out on the [mailing list](https://lists.linuxfoundation.org/mailman/listinfo/lightning-dev) and the IRC channel [#lightning-dev](https://botbot.me/freenode/lightning-dev/) on Freenode.
 
-Cheers,
+The protocol requires features not currently in bitcoin, so by default
+it runs on top of the sidechain [Elements
+Alpha](https://github.com/ElementsProject/elements).  It can be tested
+with bitcoin (on testnet) with OP_NOP substitution, at the top level
+Makefile.
+
+Final note: This is very much a testbed and work in progress; expect
+All The Things to change, all the time.
+
+Welcome aboard!
 
 Rusty.