diff --git a/src/components/structures/MatrixChat.js b/src/components/structures/MatrixChat.js
index af3f4d2598..e093e9dff9 100644
--- a/src/components/structures/MatrixChat.js
+++ b/src/components/structures/MatrixChat.js
@@ -1458,20 +1458,16 @@ export default createReactClass({
 
         if (SettingsStore.isFeatureEnabled("feature_cross_signing")) {
             cli.on("crypto.verification.request", request => {
-                let requestObserver;
-                if (request.event.getRoomId()) {
-                    requestObserver = new KeyVerificationStateObserver(
-                        request.event, MatrixClientPeg.get());
-                }
-
-                if (!requestObserver || requestObserver.pending) {
+                console.log(`MatrixChat got a .request ${request.channel.transactionId}`, request.event.getRoomId());
+                if (request.pending) {
+                    console.log(`emitting toast for verification request with txnid ${request.channel.transactionId}`, request.event && request.event.getId());
                     dis.dispatch({
                         action: "show_toast",
                         toast: {
                             key: request.event.getId(),
                             title: _t("Verification Request"),
                             icon: "verification",
-                            props: {request, requestObserver},
+                            props: {request},
                             component: sdk.getComponent("toasts.VerificationRequestToast"),
                         },
                     });
diff --git a/src/components/structures/RightPanel.js b/src/components/structures/RightPanel.js
index ff987a8f30..f5648a6d02 100644
--- a/src/components/structures/RightPanel.js
+++ b/src/components/structures/RightPanel.js
@@ -160,6 +160,7 @@ export default class RightPanel extends React.Component {
                 groupId: payload.groupId,
                 member: payload.member,
                 event: payload.event,
+                verificationRequest: payload.verificationRequest,
             });
         }
     }
@@ -168,6 +169,7 @@ export default class RightPanel extends React.Component {
         const MemberList = sdk.getComponent('rooms.MemberList');
         const MemberInfo = sdk.getComponent('rooms.MemberInfo');
         const UserInfo = sdk.getComponent('right_panel.UserInfo');
+        const EncryptionPanel = sdk.getComponent('right_panel.EncryptionPanel');
         const ThirdPartyMemberInfo = sdk.getComponent('rooms.ThirdPartyMemberInfo');
         const NotificationPanel = sdk.getComponent('structures.NotificationPanel');
         const FilePanel = sdk.getComponent('structures.FilePanel');
@@ -235,6 +237,8 @@ export default class RightPanel extends React.Component {
             panel = <NotificationPanel />;
         } else if (this.state.phase === RIGHT_PANEL_PHASES.FilePanel) {
             panel = <FilePanel roomId={this.props.roomId} resizeNotifier={this.props.resizeNotifier} />;
+        } else if (this.state.phase === RIGHT_PANEL_PHASES.EncryptionPanel) {
+            panel = <EncryptionPanel member={this.state.member} verificationRequest={this.state.verificationRequest} />;
         }
 
         const classes = classNames("mx_RightPanel", "mx_fadable", {
diff --git a/src/components/structures/ToastContainer.js b/src/components/structures/ToastContainer.js
index a8dca35747..a9c8267d0d 100644
--- a/src/components/structures/ToastContainer.js
+++ b/src/components/structures/ToastContainer.js
@@ -26,6 +26,7 @@ export default class ToastContainer extends React.Component {
     }
 
     componentDidMount() {
+        console.log("ToastContainer mounted");
         this._dispatcherRef = dis.register(this.onAction);
     }
 
diff --git a/src/components/views/dialogs/DeviceVerifyDialog.js b/src/components/views/dialogs/DeviceVerifyDialog.js
index 6408245452..ca05d74964 100644
--- a/src/components/views/dialogs/DeviceVerifyDialog.js
+++ b/src/components/views/dialogs/DeviceVerifyDialog.js
@@ -100,9 +100,15 @@ export default class DeviceVerifyDialog extends React.Component {
             if (!verifyingOwnDevice && SettingsStore.getValue("feature_cross_signing")) {
                 const roomId = await ensureDMExistsAndOpen(this.props.userId);
                 // throws upon cancellation before having started
-                this._verifier = await client.requestVerificationDM(
+                const request = await client.requestVerificationDM(
                     this.props.userId, roomId, [verificationMethods.SAS],
                 );
+                await request.waitFor(r => r.ready || r.started);
+                if (request.ready) {
+                    this._verifier = request.beginKeyVerification(verificationMethods.SAS);
+                } else {
+                    this._verifier = request.verifier;
+                }
             } else {
                 this._verifier = client.beginKeyVerification(
                     verificationMethods.SAS, this.props.userId, this.props.device.deviceId,
diff --git a/src/components/views/messages/MKeyVerificationRequest.js b/src/components/views/messages/MKeyVerificationRequest.js
index 4faa1b20aa..f31a823ac9 100644
--- a/src/components/views/messages/MKeyVerificationRequest.js
+++ b/src/components/views/messages/MKeyVerificationRequest.js
@@ -17,48 +17,62 @@ limitations under the License.
 import React from 'react';
 import PropTypes from 'prop-types';
 import MatrixClientPeg from '../../../MatrixClientPeg';
-import {verificationMethods} from 'matrix-js-sdk/lib/crypto';
 import sdk from '../../../index';
-import Modal from "../../../Modal";
 import { _t } from '../../../languageHandler';
-import KeyVerificationStateObserver, {getNameForEventRoom, userLabelForEventRoom}
+import {getNameForEventRoom, userLabelForEventRoom}
     from '../../../utils/KeyVerificationStateObserver';
+import dis from "../../../dispatcher";
+import {RIGHT_PANEL_PHASES} from "../../../stores/RightPanelStorePhases";
 
 export default class MKeyVerificationRequest extends React.Component {
     constructor(props) {
         super(props);
-        this.keyVerificationState = new KeyVerificationStateObserver(this.props.mxEvent, MatrixClientPeg.get(), () => {
-            this.setState(this._copyState());
-        });
-        this.state = this._copyState();
-    }
-
-    _copyState() {
-        const {accepted, done, cancelled, cancelPartyUserId, otherPartyUserId} = this.keyVerificationState;
-        return {accepted, done, cancelled, cancelPartyUserId, otherPartyUserId};
     }
 
     componentDidMount() {
-        this.keyVerificationState.attach();
+        const request = this.props.mxEvent.verificationRequest;
+        if (request) {
+            request.on("change", this._onRequestChanged);
+        }
     }
 
     componentWillUnmount() {
-        this.keyVerificationState.detach();
+        const request = this.props.mxEvent.verificationRequest;
+        if (request) {
+            request.off("change", this._onRequestChanged);
+        }
     }
 
-    _onAcceptClicked = () => {
-        const IncomingSasDialog = sdk.getComponent('views.dialogs.IncomingSasDialog');
-        // todo: validate event, for example if it has sas in the methods.
-        const verifier = MatrixClientPeg.get().acceptVerificationDM(this.props.mxEvent, verificationMethods.SAS);
-        Modal.createTrackedDialog('Incoming Verification', '', IncomingSasDialog, {
-            verifier,
-        }, null, /* priority = */ false, /* static = */ true);
+    _onRequestChanged = () => {
+        this.forceUpdate();
     };
 
-    _onRejectClicked = () => {
-        // todo: validate event, for example if it has sas in the methods.
-        const verifier = MatrixClientPeg.get().acceptVerificationDM(this.props.mxEvent, verificationMethods.SAS);
-        verifier.cancel("User declined");
+    _onAcceptClicked = async () => {
+        const request = this.props.mxEvent.verificationRequest;
+        if (request) {
+            try {
+                await request.accept();
+                dis.dispatch({action: "show_right_panel"});
+                dis.dispatch({
+                    action: "set_right_panel_phase",
+                    phase: RIGHT_PANEL_PHASES.EncryptionPanel,
+                    verificationRequest: request,
+                });
+            } catch (err) {
+                console.error(err.message);
+            }
+        }
+    };
+
+    _onRejectClicked = async () => {
+        const request = this.props.mxEvent.verificationRequest;
+        if (request) {
+            try {
+                await request.cancel();
+            } catch (err) {
+                console.error(err.message);
+            }
+        }
     };
 
     _acceptedLabel(userId) {
@@ -83,45 +97,43 @@ export default class MKeyVerificationRequest extends React.Component {
 
     render() {
         const {mxEvent} = this.props;
-        const fromUserId = mxEvent.getSender();
-        const content = mxEvent.getContent();
-        const toUserId = content.to;
-        const client = MatrixClientPeg.get();
-        const myUserId = client.getUserId();
-        const isOwn = fromUserId === myUserId;
+        const request = mxEvent.verificationRequest;
 
         let title;
         let subtitle;
         let stateNode;
 
-        if (this.state.accepted || this.state.cancelled) {
+        if (!request) {
+            return <p>This is an invalid request, ho ho ho!</p>;
+        }
+
+        if (request.ready || request.started || request.cancelled) {
             let stateLabel;
-            if (this.state.accepted) {
-                stateLabel = this._acceptedLabel(toUserId);
-            } else if (this.state.cancelled) {
-                stateLabel = this._cancelledLabel(this.state.cancelPartyUserId);
+            if (request.ready || request.started) {
+                stateLabel = this._acceptedLabel(request.receivingUserId);
+            } else if (request.cancelled) {
+                stateLabel = this._cancelledLabel(request.cancellingUserId);
             }
             stateNode = (<div className="mx_KeyVerification_state">{stateLabel}</div>);
         }
 
-        if (toUserId === myUserId) { // request sent to us
+        if (!request.initiatedByMe) {
             title = (<div className="mx_KeyVerification_title">{
-                _t("%(name)s wants to verify", {name: getNameForEventRoom(fromUserId, mxEvent)})}</div>);
+                _t("%(name)s wants to verify", {name: getNameForEventRoom(request.requestingUserId, mxEvent)})}</div>);
             subtitle = (<div className="mx_KeyVerification_subtitle">{
-                userLabelForEventRoom(fromUserId, mxEvent)}</div>);
-            const isResolved = !(this.state.accepted || this.state.cancelled || this.state.done);
-            if (isResolved) {
+                userLabelForEventRoom(request.requestingUserId, mxEvent)}</div>);
+            if (request.requested) {
                 const FormButton = sdk.getComponent("elements.FormButton");
                 stateNode = (<div className="mx_KeyVerification_buttons">
                     <FormButton kind="danger" onClick={this._onRejectClicked} label={_t("Decline")} />
                     <FormButton onClick={this._onAcceptClicked} label={_t("Accept")} />
                 </div>);
             }
-        } else if (isOwn) { // request sent by us
+        } else { // request sent by us
             title = (<div className="mx_KeyVerification_title">{
                 _t("You sent a verification request")}</div>);
             subtitle = (<div className="mx_KeyVerification_subtitle">{
-                userLabelForEventRoom(this.state.otherPartyUserId, mxEvent)}</div>);
+                userLabelForEventRoom(request.receivingUserId, mxEvent)}</div>);
         }
 
         if (title) {
diff --git a/src/components/views/right_panel/EncryptionPanel.js b/src/components/views/right_panel/EncryptionPanel.js
new file mode 100644
index 0000000000..2050ad8072
--- /dev/null
+++ b/src/components/views/right_panel/EncryptionPanel.js
@@ -0,0 +1,33 @@
+/*
+Copyright 2015, 2016 OpenMarket Ltd
+Copyright 2017, 2018 Vector Creations Ltd
+Copyright 2019 Michael Telatynski <7t3chguy@gmail.com>
+Copyright 2019 The Matrix.org Foundation C.I.C.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import React from 'react';
+
+export default class EncryptionPanel extends React.PureComponent {
+    render() {
+        const request = this.props.verificationRequest;
+        if (request) {
+            return <p>got a request, go straight to wizard</p>;
+        } else if (this.props.member) {
+            return <p>show encryption options for member {this.props.member.name}</p>;
+        } else {
+            return <p>nada</p>;
+        }
+    }
+}
diff --git a/src/components/views/right_panel/RoomHeaderButtons.js b/src/components/views/right_panel/RoomHeaderButtons.js
index f59159d1d9..2b5ea3aa27 100644
--- a/src/components/views/right_panel/RoomHeaderButtons.js
+++ b/src/components/views/right_panel/RoomHeaderButtons.js
@@ -27,6 +27,7 @@ import {RIGHT_PANEL_PHASES} from "../../../stores/RightPanelStorePhases";
 const MEMBER_PHASES = [
     RIGHT_PANEL_PHASES.RoomMemberList,
     RIGHT_PANEL_PHASES.RoomMemberInfo,
+    RIGHT_PANEL_PHASES.EncryptionPanel,
     RIGHT_PANEL_PHASES.Room3pidMemberInfo,
 ];
 
diff --git a/src/stores/RightPanelStore.js b/src/stores/RightPanelStore.js
index 02775b847b..1b3cb3d64b 100644
--- a/src/stores/RightPanelStore.js
+++ b/src/stores/RightPanelStore.js
@@ -123,7 +123,11 @@ export default class RightPanelStore extends Store {
 
         if (payload.action === 'view_room' || payload.action === 'view_group') {
             // Reset to the member list if we're viewing member info
-            const memberInfoPhases = [RIGHT_PANEL_PHASES.RoomMemberInfo, RIGHT_PANEL_PHASES.Room3pidMemberInfo];
+            const memberInfoPhases = [
+                RIGHT_PANEL_PHASES.RoomMemberInfo,
+                RIGHT_PANEL_PHASES.Room3pidMemberInfo,
+                RIGHT_PANEL_PHASES.EncryptionPanel,
+            ];
             if (memberInfoPhases.includes(this._state.lastRoomPhase)) {
                 this._setState({lastRoomPhase: RIGHT_PANEL_PHASES.RoomMemberList, lastRoomPhaseParams: {}});
             }
diff --git a/src/stores/RightPanelStorePhases.js b/src/stores/RightPanelStorePhases.js
index 96807ebf5b..7783f960d6 100644
--- a/src/stores/RightPanelStorePhases.js
+++ b/src/stores/RightPanelStorePhases.js
@@ -22,7 +22,7 @@ export const RIGHT_PANEL_PHASES = Object.freeze({
     NotificationPanel: 'NotificationPanel',
     RoomMemberInfo: 'RoomMemberInfo',
     Room3pidMemberInfo: 'Room3pidMemberInfo',
-
+    EncryptionPanel: 'EncryptionPanel',
     // Group stuff
     GroupMemberList: 'GroupMemberList',
     GroupRoomList: 'GroupRoomList',
diff --git a/src/utils/KeyVerificationStateObserver.js b/src/utils/KeyVerificationStateObserver.js
index 2f7c0367ad..7e33c29214 100644
--- a/src/utils/KeyVerificationStateObserver.js
+++ b/src/utils/KeyVerificationStateObserver.js
@@ -161,6 +161,7 @@ export default class KeyVerificationStateObserver {
         }
 
         this.otherPartyUserId = fromUserId === this._client.getUserId() ? toUserId : fromUserId;
+        console.log("KeyVerificationStateObserver update for txnId", this._requestEvent.getId(), {accepted: this.accepted, cancelled: this.cancelled, done: this.done});
     }
 }