diff --git a/pkg/snet/directtp/client.go b/pkg/snet/directtp/client.go
index 30764e38af..b95de6d149 100644
--- a/pkg/snet/directtp/client.go
+++ b/pkg/snet/directtp/client.go
@@ -24,6 +24,7 @@ import (
 	"github.com/skycoin/skywire/pkg/snet/directtp/tphandshake"
 	"github.com/skycoin/skywire/pkg/snet/directtp/tplistener"
 	"github.com/skycoin/skywire/pkg/snet/directtp/tptypes"
+	"github.com/skycoin/skywire/pkg/util/netutil"
 )
 
 const (
@@ -136,7 +137,14 @@ func (c *client) Serve() error {
 				c.log.Errorf("Failed to extract port from addr %v: %v", err)
 				return
 			}
-
+			hasPublic, err := netutil.HasPublicIP()
+			if err != nil {
+				c.log.Errorf("Failed to check for public IP: %v", err)
+			}
+			if !hasPublic {
+				c.log.Infof("Not binding STCPR: no public IP address found")
+				return
+			}
 			if err := c.conf.AddressResolver.BindSTCPR(context.Background(), port); err != nil {
 				c.log.Errorf("Failed to bind STCPR: %v", err)
 				return
@@ -265,7 +273,7 @@ func (c *client) Dial(ctx context.Context, rPK cipher.PubKey, rPort uint16) (*tp
 
 		c.log.Infof("Resolved PK %v to visor data %v", rPK, visorData)
 
-		conn, err := c.dialVisor(visorData)
+		conn, err := c.dialVisor(ctx, visorData)
 		if err != nil {
 			return nil, err
 		}
@@ -313,6 +321,20 @@ func (c *client) dial(addr string) (net.Conn, error) {
 	}
 }
 
+func (c *client) dialContext(ctx context.Context, addr string) (net.Conn, error) {
+	dialer := net.Dialer{}
+	switch c.conf.Type {
+	case tptypes.STCP, tptypes.STCPR:
+		return dialer.DialContext(ctx, "tcp", addr)
+
+	case tptypes.SUDPH:
+		return c.dialUDPWithTimeout(addr)
+
+	default:
+		return nil, ErrUnknownTransportType
+	}
+}
+
 func (c *client) listen(addr string) (net.Listener, error) {
 	switch c.conf.Type {
 	case tptypes.STCP, tptypes.STCPR:
@@ -405,7 +427,7 @@ func (c *client) dialUDPWithTimeout(addr string) (net.Conn, error) {
 	}
 }
 
-func (c *client) dialVisor(visorData arclient.VisorData) (net.Conn, error) {
+func (c *client) dialVisor(ctx context.Context, visorData arclient.VisorData) (net.Conn, error) {
 	if visorData.IsLocal {
 		for _, host := range visorData.Addresses {
 			addr := net.JoinHostPort(host, visorData.Port)
@@ -416,7 +438,7 @@ func (c *client) dialVisor(visorData arclient.VisorData) (net.Conn, error) {
 				}
 			}
 
-			conn, err := c.dial(addr)
+			conn, err := c.dialContext(ctx, addr)
 			if err == nil {
 				return conn, nil
 			}
@@ -434,7 +456,7 @@ func (c *client) dialVisor(visorData arclient.VisorData) (net.Conn, error) {
 		}
 	}
 
-	return c.dial(addr)
+	return c.dialContext(ctx, addr)
 }
 
 // Listen creates a new listener for sudp.
diff --git a/pkg/transport/entry.go b/pkg/transport/entry.go
index b7ed47036a..f474e6fb12 100644
--- a/pkg/transport/entry.go
+++ b/pkg/transport/entry.go
@@ -33,7 +33,8 @@ type Entry struct {
 	// ID is the Transport ID that uniquely identifies the Transport.
 	ID uuid.UUID `json:"t_id"`
 
-	// Edges contains the public keys of the Transport's edge nodes (should only have 2 edges and the least-significant edge should come first).
+	// Edges contains the public keys of the Transport's edge nodes
+	// (should only have 2 edges and the first edge is transport original initiator).
 	Edges [2]cipher.PubKey `json:"edges"`
 
 	// Type represents the transport type.
@@ -47,20 +48,16 @@ type Entry struct {
 }
 
 // MakeEntry creates a new transport entry
-func MakeEntry(pk1, pk2 cipher.PubKey, tpType string, public bool, label Label) Entry {
-	return Entry{
-		ID:     MakeTransportID(pk1, pk2, tpType),
-		Edges:  SortEdges(pk1, pk2),
+func MakeEntry(initiator, target cipher.PubKey, tpType string, public bool, label Label) Entry {
+	entry := Entry{
+		ID:     MakeTransportID(initiator, target, tpType),
 		Type:   tpType,
 		Public: public,
 		Label:  label,
 	}
-}
-
-// SetEdges sets edges of Entry
-func (e *Entry) SetEdges(localPK, remotePK cipher.PubKey) {
-	e.ID = MakeTransportID(localPK, remotePK, e.Type)
-	e.Edges = SortEdges(localPK, remotePK)
+	entry.Edges[0] = initiator
+	entry.Edges[1] = target
+	return entry
 }
 
 // RemoteEdge returns the remote edge's public key.
@@ -106,8 +103,8 @@ func (e *Entry) String() string {
 	res += fmt.Sprintf("\ttype: %s\n", e.Type)
 	res += fmt.Sprintf("\tid: %s\n", e.ID)
 	res += "\tedges:\n"
-	res += fmt.Sprintf("\t\tedge 1: %s\n", e.Edges[0])
-	res += fmt.Sprintf("\t\tedge 2: %s\n", e.Edges[1])
+	res += fmt.Sprintf("\t\tedge 1 (initiator): %s\n", e.Edges[0])
+	res += fmt.Sprintf("\t\tedge 2 (target): %s\n", e.Edges[1])
 	return res
 }
 
diff --git a/pkg/transport/entry_test.go b/pkg/transport/entry_test.go
index 4cddd36805..862cbad6ba 100644
--- a/pkg/transport/entry_test.go
+++ b/pkg/transport/entry_test.go
@@ -23,21 +23,6 @@ func TestNewEntry(t *testing.T) {
 	assert.NotNil(t, entryBA.ID)
 }
 
-func TestEntry_SetEdges(t *testing.T) {
-	pkA, _ := cipher.GenerateKeyPair()
-	pkB, _ := cipher.GenerateKeyPair()
-
-	entryAB, entryBA := transport.Entry{}, transport.Entry{}
-
-	entryAB.SetEdges(pkA, pkB)
-	entryBA.SetEdges(pkA, pkB)
-
-	assert.True(t, entryAB.Edges == entryBA.Edges)
-	assert.True(t, entryAB.ID == entryBA.ID)
-	assert.NotNil(t, entryAB.ID)
-	assert.NotNil(t, entryBA.ID)
-}
-
 func ExampleSignedEntry_Sign() {
 	pkA, skA := cipher.GenerateKeyPair()
 	pkB, skB := cipher.GenerateKeyPair()
diff --git a/pkg/transport/handshake.go b/pkg/transport/handshake.go
index 819f9245d1..8994471604 100644
--- a/pkg/transport/handshake.go
+++ b/pkg/transport/handshake.go
@@ -14,8 +14,21 @@ import (
 	"github.com/skycoin/skywire/pkg/snet"
 )
 
-func makeEntryFromTpConn(conn *snet.Conn) Entry {
-	return MakeEntry(conn.LocalPK(), conn.RemotePK(), conn.Network(), true, LabelUser)
+type hsResponse byte
+
+const (
+	responseFailure hsResponse = iota
+	responseOK
+	responseSignatureErr
+	responseInvalidEntry
+)
+
+func makeEntryFromTpConn(conn *snet.Conn, isInitiator bool) Entry {
+	initiator, target := conn.LocalPK(), conn.RemotePK()
+	if !isInitiator {
+		initiator, target = target, initiator
+	}
+	return MakeEntry(initiator, target, conn.Network(), true, LabelUser)
 }
 
 func compareEntries(expected, received *Entry) error {
@@ -86,7 +99,7 @@ func (hs SettlementHS) Do(ctx context.Context, dc DiscoveryClient, conn *snet.Co
 func MakeSettlementHS(init bool) SettlementHS {
 	// initiating logic.
 	initHS := func(ctx context.Context, dc DiscoveryClient, conn *snet.Conn, sk cipher.SecKey) (err error) {
-		entry := makeEntryFromTpConn(conn)
+		entry := makeEntryFromTpConn(conn, true)
 
 		// TODO(evanlinjin): Probably not needed as this is called in mTp already. Need to double check.
 		//defer func() {
@@ -110,23 +123,33 @@ func MakeSettlementHS(init bool) SettlementHS {
 		if _, err := io.ReadFull(conn, accepted); err != nil {
 			return fmt.Errorf("failed to read response: %w", err)
 		}
-		if accepted[0] == 0 {
+		switch hsResponse(accepted[0]) {
+		case responseOK:
+			return nil
+		case responseFailure:
 			return fmt.Errorf("transport settlement rejected by remote")
+		case responseInvalidEntry:
+			return fmt.Errorf("invalid entry")
+		case responseSignatureErr:
+			return fmt.Errorf("signature error")
+		default:
+			return fmt.Errorf("invalid remote response")
 		}
-		return nil
 	}
 
 	// responding logic.
 	respHS := func(ctx context.Context, dc DiscoveryClient, conn *snet.Conn, sk cipher.SecKey) error {
-		entry := makeEntryFromTpConn(conn)
+		entry := makeEntryFromTpConn(conn, false)
 
 		// receive, verify and sign entry.
 		recvSE, err := receiveAndVerifyEntry(conn, &entry, conn.RemotePK())
 		if err != nil {
+			writeHsResponse(conn, responseInvalidEntry) //nolint:errcheck, gosec
 			return err
 		}
 
 		if err := recvSE.Sign(conn.LocalPK(), sk); err != nil {
+			writeHsResponse(conn, responseSignatureErr) //nolint:errcheck, gosec
 			return fmt.Errorf("failed to sign received entry: %w", err)
 		}
 
@@ -141,12 +164,7 @@ func MakeSettlementHS(init bool) SettlementHS {
 				log.WithError(err).Error("Failed to register transport.")
 			}
 		}
-
-		// inform initiating visor.
-		if _, err := conn.Write([]byte{1}); err != nil {
-			return fmt.Errorf("failed to accept transport settlement: write failed: %w", err)
-		}
-		return nil
+		return writeHsResponse(conn, responseOK)
 	}
 
 	if init {
@@ -154,3 +172,10 @@ func MakeSettlementHS(init bool) SettlementHS {
 	}
 	return respHS
 }
+
+func writeHsResponse(w io.Writer, response hsResponse) error {
+	if _, err := w.Write([]byte{byte(response)}); err != nil {
+		return fmt.Errorf("failed to accept transport settlement: write failed: %w", err)
+	}
+	return nil
+}
diff --git a/pkg/transport/managed_transport.go b/pkg/transport/managed_transport.go
index 63dc345e9d..2cbcf4874e 100644
--- a/pkg/transport/managed_transport.go
+++ b/pkg/transport/managed_transport.go
@@ -36,10 +36,11 @@ var (
 
 // Constants associated with transport redial loop.
 const (
-	tpInitBO = time.Millisecond * 500
-	tpMaxBO  = time.Minute
-	tpTries  = 0
-	tpFactor = 2
+	tpInitBO  = time.Millisecond * 500
+	tpMaxBO   = time.Minute
+	tpTries   = 0
+	tpFactor  = 2
+	tpTimeout = time.Second * 3 // timeout for a single try
 )
 
 // ManagedTransportConfig is a configuration for managed transport.
@@ -92,7 +93,11 @@ type ManagedTransport struct {
 }
 
 // NewManagedTransport creates a new ManagedTransport.
-func NewManagedTransport(conf ManagedTransportConfig) *ManagedTransport {
+func NewManagedTransport(conf ManagedTransportConfig, isInitiator bool) *ManagedTransport {
+	initiator, target := conf.Net.LocalPK(), conf.RemotePK
+	if !isInitiator {
+		initiator, target = target, initiator
+	}
 	mt := &ManagedTransport{
 		log:         logging.MustGetLogger(fmt.Sprintf("tp:%s", conf.RemotePK.String()[:6])),
 		rPK:         conf.RemotePK,
@@ -100,7 +105,7 @@ func NewManagedTransport(conf ManagedTransportConfig) *ManagedTransport {
 		n:           conf.Net,
 		dc:          conf.DC,
 		ls:          conf.LS,
-		Entry:       MakeEntry(conf.Net.LocalPK(), conf.RemotePK, conf.NetName, true, conf.TransportLabel),
+		Entry:       MakeEntry(initiator, target, conf.NetName, true, conf.TransportLabel),
 		LogEntry:    new(LogEntry),
 		connCh:      make(chan struct{}, 1),
 		done:        make(chan struct{}),
@@ -204,8 +209,8 @@ func (mt *ManagedTransport) Serve(readCh chan<- routing.Packet) {
 				continue
 			}
 
-			// Only least significant edge is responsible for redialing.
-			if !mt.isLeastSignificantEdge() {
+			// Only initiator is responsible for redialing.
+			if !mt.isInitiator() {
 				continue
 			}
 
@@ -371,9 +376,11 @@ func (mt *ManagedTransport) redialLoop(ctx context.Context) error {
 
 	// Only redial when there is no underlying conn.
 	return retry.Do(ctx, func() (err error) {
+		tryCtx, cancel := context.WithTimeout(ctx, tpTimeout)
+		defer cancel()
 		mt.connMx.Lock()
 		if mt.conn == nil {
-			err = mt.redial(ctx)
+			err = mt.redial(tryCtx)
 		}
 		mt.connMx.Unlock()
 		return err
@@ -381,6 +388,11 @@ func (mt *ManagedTransport) redialLoop(ctx context.Context) error {
 }
 
 func (mt *ManagedTransport) isLeastSignificantEdge() bool {
+	sorted := SortEdges(mt.Entry.Edges[0], mt.Entry.Edges[1])
+	return sorted[0] == mt.n.LocalPK()
+}
+
+func (mt *ManagedTransport) isInitiator() bool {
 	return mt.Entry.EdgeIndex(mt.n.LocalPK()) == 0
 }
 
diff --git a/pkg/transport/manager.go b/pkg/transport/manager.go
index 37f1bc8e56..2486d484b1 100644
--- a/pkg/transport/manager.go
+++ b/pkg/transport/manager.go
@@ -191,7 +191,8 @@ func (tm *Manager) initTransports(ctx context.Context) {
 			remote = entry.Entry.RemoteEdge(tm.Conf.PubKey)
 			tpID   = entry.Entry.ID
 		)
-		if _, err := tm.saveTransport(remote, tpType, entry.Entry.Label); err != nil {
+		isInitiator := tm.n.LocalPK() == entry.Entry.Edges[0]
+		if _, err := tm.saveTransport(remote, isInitiator, tpType, entry.Entry.Label); err != nil {
 			tm.Logger.Warnf("INIT: failed to init tp: type(%s) remote(%s) tpID(%s)", tpType, remote, tpID)
 		} else {
 			tm.Logger.Debugf("Successfully initialized TP %v", *entry.Entry)
@@ -230,7 +231,7 @@ func (tm *Manager) acceptTransport(ctx context.Context, lis *snet.Listener) erro
 			NetName:        lis.Network(),
 			AfterClosed:    tm.afterTPClosed,
 			TransportLabel: LabelUser,
-		})
+		}, false)
 
 		go func() {
 			mTp.Serve(tm.readCh)
@@ -303,7 +304,7 @@ func (tm *Manager) SaveTransport(ctx context.Context, remote cipher.PubKey, tpTy
 	}
 
 	for {
-		mTp, err := tm.saveTransport(remote, tpType, label)
+		mTp, err := tm.saveTransport(remote, true, tpType, label)
 		if err != nil {
 			return nil, fmt.Errorf("save transport: %w", err)
 		}
@@ -346,7 +347,7 @@ func isSTCPTableError(remotePK cipher.PubKey, err error) bool {
 	return err.Error() == fmt.Sprintf("pk table: entry of %s does not exist", remotePK.String())
 }
 
-func (tm *Manager) saveTransport(remote cipher.PubKey, netName string, label Label) (*ManagedTransport, error) {
+func (tm *Manager) saveTransport(remote cipher.PubKey, initiator bool, netName string, label Label) (*ManagedTransport, error) {
 	tm.mx.Lock()
 	defer tm.mx.Unlock()
 	if !snet.IsKnownNetwork(netName) {
@@ -372,7 +373,7 @@ func (tm *Manager) saveTransport(remote cipher.PubKey, netName string, label Lab
 		NetName:        netName,
 		AfterClosed:    afterTPClosed,
 		TransportLabel: label,
-	})
+	}, initiator)
 
 	if mTp.netName == tptypes.STCPR {
 		ar := mTp.n.Conf().ARClient
diff --git a/pkg/transport/tpdclient/client_test.go b/pkg/transport/tpdclient/client_test.go
index c557c25779..d081df4512 100644
--- a/pkg/transport/tpdclient/client_test.go
+++ b/pkg/transport/tpdclient/client_test.go
@@ -45,7 +45,8 @@ func newTestEntry() *transport.Entry {
 		Type:   "dmsg",
 		Public: true,
 	}
-	entry.SetEdges(pk1, testPubKey)
+	entry.Edges[0] = pk1
+	entry.Edges[1] = testPubKey
 
 	return entry
 }
diff --git a/pkg/util/netutil/net.go b/pkg/util/netutil/net.go
index f01856f33b..e35c88b30c 100644
--- a/pkg/util/netutil/net.go
+++ b/pkg/util/netutil/net.go
@@ -103,3 +103,18 @@ func DefaultNetworkInterfaceIPs() ([]net.IP, error) {
 	}
 	return localIPs, nil
 }
+
+// HasPublicIP returns true if this machine has at least one
+// publically available IP address
+func HasPublicIP() (bool, error) {
+	localIPs, err := LocalNetworkInterfaceIPs()
+	if err != nil {
+		return false, err
+	}
+	for _, IP := range localIPs {
+		if IsPublicIP(IP) {
+			return true, nil
+		}
+	}
+	return false, nil
+}