diff --git a/README.md b/README.md
index 37d50b9e..677926a4 100644
--- a/README.md
+++ b/README.md
@@ -1,6 +1,6 @@
 # mautrix-telegram
-**This is the python rewrite branch and can not yet be used.**
-**For a somewhat functional JavaScript version, check the master branch.**
+**This is the python rewrite branch and is only barely functional.**
+**For a JavaScript version with more bugs and features, check the master branch.**
 
 A Matrix-Telegram puppeting bridge.
 
@@ -53,7 +53,7 @@ does not do this automatically.
 
 ## Features & Roadmap
 * Matrix → Telegram
-  * [ ] Plaintext messages
+  * [x] Plaintext messages
   * [ ] Formatted messages
     * [ ] Bot commands (!command -> /command)
     * [ ] Mentions
@@ -72,7 +72,7 @@ does not do this automatically.
   * [ ] Room metadata changes
   * [ ] Room invites
 * Telegram → Matrix
-  * [ ] Plaintext messages
+  * [x] Plaintext messages
   * [ ] Formatted messages
     * [ ] Bot commands (/command -> !command)
     * [ ] Mentions
@@ -95,7 +95,7 @@ does not do this automatically.
   * [ ] Initial chat metadata
   * [ ] Message edits
 * Initiating chats
-  * [ ] Automatic portal creation for groups/channels at startup
+  * [x] Automatic portal creation for groups/channels at startup
   * [ ] Automatic portal creation for groups/channels when receiving invite/message
   * [ ] Private chat creation by inviting Telegram user to new room
   * [ ] Joining public channels/supergroups using room aliases
diff --git a/mautrix_appservice/__init__.py b/mautrix_appservice/__init__.py
new file mode 100644
index 00000000..3d104ad9
--- /dev/null
+++ b/mautrix_appservice/__init__.py
@@ -0,0 +1,4 @@
+from .appservice import AppService
+
+__version__ = "0.1.0"
+__author__ = "Tulir Asokan <tulir@maunium.net>"
diff --git a/mautrix_appservice/appservice.py b/mautrix_appservice/appservice.py
new file mode 100644
index 00000000..538a8e9e
--- /dev/null
+++ b/mautrix_appservice/appservice.py
@@ -0,0 +1,156 @@
+# matrix-appservice-python - A Matrix Application Service framework written in Python.
+# Copyright (C) 2018 Tulir Asokan
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU 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 General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+#
+# Partly based on github.com/Cadair/python-appservice-framework (MIT license)
+import asyncio
+import logging
+import aiohttp
+from aiohttp import web
+from functools import partial
+from contextlib import contextmanager
+from .intent_api import HTTPAPI
+
+
+class AppService:
+    def __init__(self, server, domain, as_token, hs_token, bot_localpart, loop=None, log=None,
+                 query_user=None, query_alias=None):
+        self.server = server
+        self.domain = domain
+        self.as_token = as_token
+        self.hs_token = hs_token
+        self.bot_mxid = f"@{bot_localpart}:{domain}"
+
+        self.transactions = []
+
+        self._http_session = None
+        self._intent = None
+
+        self.loop = loop or asyncio.get_event_loop()
+        self.log = log or logging.getLogger("mautrix_appservice")
+
+        self.query_user = query_user or (lambda: None)
+        self.query_alias = query_alias or (lambda: None)
+
+        self.event_handlers = []
+
+        self.app = web.Application(loop=self.loop)
+        self.app.router.add_route("PUT", "/transactions/{transaction_id}",
+                                  self._http_handle_transaction)
+        self.app.router.add_route("GET", "/rooms/{alias}", self._http_query_alias)
+        self.app.router.add_route("GET", "/users/{user_id}", self._http_query_user)
+
+    @property
+    def http_session(self):
+        if self._http_session is None:
+            raise AttributeError("the http_session attribute can only be used "
+                                 "from within the `AppService.run` context manager")
+        else:
+            return self._http_session
+
+    @property
+    def intent(self):
+        if self._intent is None:
+            raise AttributeError("the intent attribute can only be used from "
+                                 "within the `AppService.run` context manager")
+        else:
+            return self._intent
+
+    @contextmanager
+    def run(self, host="127.0.0.1", port=8080):
+        self._http_session = aiohttp.ClientSession(loop=self.loop)
+        self._intent = HTTPAPI(base_url=self.server, bot_mxid=self.bot_mxid, token=self.as_token, log=self.log).bot_intent()
+
+        yield partial(aiohttp.web.run_app, self.app, host=host, port=port)
+
+        self._intent = None
+        self._http_session.close()
+        self._http_session = None
+
+    def _check_token(self, request):
+        try:
+            token = request.rel_url.query["access_token"]
+        except KeyError:
+            return False
+
+        if token != self.hs_token:
+            return False
+
+        return True
+
+    async def _http_query_user(self, request):
+        if not self._check_token(request):
+            return web.Response(status=401)
+
+        user_id = request.match_info["userId"]
+
+        try:
+            response = self.query_user(user_id)
+        except:
+            self.log.exception("Exception in user query handler")
+            return web.Response(status=500)
+
+        if not response:
+            return web.Response(status=404)
+        return web.json_response(response)
+
+    async def _http_query_alias(self, request):
+        if not self._check_token(request):
+            return web.Response(status=401)
+
+        alias = request.match_info["alias"]
+
+        try:
+            response = self.query_alias(alias)
+        except:
+            self.log.exception("Exception in alias query handler")
+            return web.Response(status=500)
+
+        if not response:
+            return web.Response(status=404)
+        return web.json_response(response)
+
+    async def _http_handle_transaction(self, request):
+        if not self._check_token(request):
+            return web.Response(status=401)
+
+        transaction_id = request.match_info["transaction_id"]
+        if transaction_id in self.transactions:
+            return web.Response(status=200)
+
+        json = await request.json()
+
+        try:
+            events = json["events"]
+        except KeyError:
+            return web.Response(status=400)
+
+        for event in events:
+            self.handle_matrix_event(event)
+
+        self.transactions.append(transaction_id)
+
+        return web.json_response({})
+
+    def handle_matrix_event(self, event):
+        for handler in self.event_handlers:
+            try:
+                handler(event)
+            except:
+                self.log.exception("Exception in Matrix event handler")
+
+    def matrix_event_handler(self, func):
+        self.event_handlers.append(func)
+        return func
diff --git a/mautrix_appservice/intent_api.py b/mautrix_appservice/intent_api.py
new file mode 100644
index 00000000..f8a15d3d
--- /dev/null
+++ b/mautrix_appservice/intent_api.py
@@ -0,0 +1,201 @@
+# mautrix-telegram - A Matrix-Telegram puppeting bridge
+# Copyright (C) 2018 Tulir Asokan
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU 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 General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+import re
+import json
+from matrix_client.api import MatrixHttpApi
+from matrix_client.errors import MatrixRequestError
+
+
+class HTTPAPI(MatrixHttpApi):
+    def __init__(self, base_url, bot_mxid=None, token=None, identity=None, log=None):
+        self.base_url = base_url
+        self.token = token
+        self.identity = identity
+        self.txn_id = 0
+        self.bot_mxid = bot_mxid
+        self.log = log
+        self.validate_cert = True
+        self.children = {}
+
+    def user(self, user):
+        try:
+            return self.children[user]
+        except KeyError:
+            child = ChildHTTPAPI(user, self)
+            self.children[user] = child
+            return child
+
+    def bot_intent(self):
+        return IntentAPI(self.bot_mxid, self, log=self.log)
+
+    def intent(self, user):
+        return IntentAPI(user, self.user(user), self, log=self.log)
+
+    def _send(self, method, path, content=None, query_params={}, headers={}):
+        if not query_params:
+            query_params = {}
+        query_params["user_id"] = self.identity
+        self.log.debug("%s %s %s", method, path, content)
+        return super()._send(method, path, content, query_params, headers)
+
+    def create_room(self, alias=None, is_public=False, name=None, topic=None, is_direct=False, invitees=()):
+        """Perform /createRoom.
+        Args:
+            alias (str): Optional. The room alias name to set for this room.
+            is_public (bool): Optional. The public/private visibility.
+            name (str): Optional. The name for the room.
+            topic (str): Optional. The topic for the room.
+            invitees (list<str>): Optional. The list of user IDs to invite.
+        """
+        content = {
+            "visibility": "public" if is_public else "private"
+        }
+        if alias:
+            content["room_alias_name"] = alias
+        if invitees:
+            content["invite"] = invitees
+        if name:
+            content["name"] = name
+        if topic:
+            content["topic"] = topic
+        content["is_direct"] = is_direct
+
+        return self._send("POST", "/createRoom", content)
+
+
+class ChildHTTPAPI(HTTPAPI):
+    def __init__(self, user, parent):
+        self.identity = user
+        self.token = parent.token
+        self.base_url = parent.base_url
+        self.validate_cert = parent.validate_cert
+        self.log = parent.log
+        self.parent = parent
+
+    @property
+    def txn_id(self):
+        return self.parent.txn_id
+
+    @txn_id.setter
+    def txn_id(self, value):
+        self.parent.txn_id = value
+
+
+class IntentError(Exception):
+    def __init__(self, message, source):
+        super().__init__(message)
+        self.source = source
+
+
+def matrix_error_code(err):
+    try:
+        data = json.loads(err.content)
+        return data["errcode"]
+    except:
+        return err.content
+
+
+class IntentAPI:
+    mxid_regex = re.compile("@(.+):(.+)")
+
+    def __init__(self, mxid, client, bot=None, log=None):
+        self.client = client
+        self.bot = bot
+        self.mxid = mxid
+        self.log = log
+
+        results = self.mxid_regex.search(mxid)
+        if not results:
+            raise ValueError("invalid MXID")
+        self.localpart = results.group(1)
+
+        self.memberships = {}
+        self.power_levels = {}
+        self.registered = False
+
+    def user(self, user):
+        if not self.bot:
+            return self.client.intent(user)
+        else:
+            raise ValueError("IntentAPI#user() is only available for base intent objects.")
+
+    def set_display_name(self, name):
+        self._ensure_registered()
+        return self.client.set_display_name(self.mxid, name)
+
+    def create_room(self, alias=None, is_public=False, name=None, topic=None, is_direct=False, invitees=()):
+        self._ensure_registered()
+        return self.client.create_room(alias, is_public, name, topic, is_direct, invitees)
+
+    def send_text(self, room_id, text, html=False, unformatted_text=None, notice=False):
+        if html:
+            return self.send_message(room_id, {
+                "body": unformatted_text or text,
+                "msgtype": "m.notice" if notice else "m.text",
+                "format": "org.matrix.custom.html",
+                "formatted_body": text,
+            })
+        else:
+            return self.send_message(room_id, {
+                "body": text,
+                "msgtype": "m.notice" if notice else "m.text",
+            })
+
+    def send_message(self, room_id, body):
+        return self.send_event(room_id, "m.room.message", body)
+
+    def send_event(self, room_id, type, body, txn_id=None, timestamp=None):
+        self._ensure_joined(room_id)
+        self._ensure_has_power_level_for(room_id, type)
+        return self.client.send_message_event(room_id, type, body, txn_id, timestamp)
+
+    def send_state_event(self, room_id, type, body, state_key="", timestamp=None):
+        self._ensure_joined(room_id)
+        self._ensure_has_power_level_for(room_id, type)
+        return self.client.send_state_event(room_id, type, body, state_key, timestamp)
+
+    def join_room(self, room_id):
+        return self._ensure_joined(room_id, ignore_cache=True)
+
+    def _ensure_joined(self, room_id, ignore_cache=False):
+        if ignore_cache and self.memberships.get(room_id, "") == "join":
+            return
+        self._ensure_registered()
+        try:
+            self.client.join_room(room_id)
+            self.memberships[room_id] = "join"
+        except MatrixRequestError as e:
+            if matrix_error_code(e) != "M_FORBIDDEN" and not self.bot:
+                raise IntentError(f"Failed to join room {room_id} as {self.mxid}", e)
+            try:
+                self.bot.invite_user(room_id, self.mxid)
+                self.client.join_room(room_id)
+                self.memberships[room_id] = "join"
+            except MatrixRequestError as e2:
+                raise IntentError(f"Failed to join room {room_id} as {self.mxid}", e2)
+
+    def _ensure_registered(self):
+        if self.registered:
+            return
+        try:
+            self.client.register({"username": self.localpart})
+        except MatrixRequestError as e:
+            if matrix_error_code(e) != "M_USER_IN_USE":
+                raise IntentError(f"Failed to register {self.mxid}", e)
+        self.registered = True
+
+    def _ensure_has_power_level_for(self, room_id, event_type):
+        pass
diff --git a/mautrix_telegram/__init__.py b/mautrix_telegram/__init__.py
index cca5d9bd..c7327493 100644
--- a/mautrix_telegram/__init__.py
+++ b/mautrix_telegram/__init__.py
@@ -1 +1,2 @@
-from .config import Config
+__version__ = "0.1.0"
+__author__ = "Tulir Asokan <tulir@maunium.net>"
diff --git a/mautrix_telegram/__main__.py b/mautrix_telegram/__main__.py
index cc95e5f0..1111725a 100644
--- a/mautrix_telegram/__main__.py
+++ b/mautrix_telegram/__main__.py
@@ -15,7 +15,27 @@
 # along with this program.  If not, see <http://www.gnu.org/licenses/>.
 import argparse
 import sys
-from . import Config
+import logging
+
+import sqlalchemy as sql
+from sqlalchemy import orm
+
+from mautrix_appservice import AppService
+
+from .base import Base
+from .config import Config
+from .matrix import MatrixHandler
+
+from .db import init as init_db
+from .user import init as init_user
+from .portal import init as init_portal
+from .puppet import init as init_puppet
+
+log = logging.getLogger("mau")
+time_formatter = logging.Formatter("[%(asctime)s] [%(levelname)s@%(name)s] %(message)s")
+handler = logging.StreamHandler()
+handler.setFormatter(time_formatter)
+log.addHandler(handler)
 
 parser = argparse.ArgumentParser(
     description="A Matrix-Telegram puppeting bridge.",
@@ -36,3 +56,27 @@ if args.generate_registration:
     config.save()
     print(f"Registration generated and saved to {config.registration_path}")
     sys.exit(0)
+
+if config["appservice.debug"]:
+    log.setLevel(logging.DEBUG)
+    log.debug("Debug messages enabled.")
+
+db_engine = sql.create_engine(config.get("appservice.database", "sqlite:///mautrix-telegram.db"))
+db_factory = orm.sessionmaker(bind=db_engine)
+db = db_factory()
+Base.metadata.bind = db_engine
+Base.metadata.create_all()
+
+appserv = AppService(config["homeserver.address"], config["homeserver.domain"],
+                     config["appservice.as_token"], config["appservice.hs_token"],
+                     config["appservice.bot_username"], log=log.getChild("as"))
+context = (appserv, db, log, config)
+
+
+with appserv.run(config["appservice.hostname"], config["appservice.port"]) as start:
+    init_db(db_factory)
+    init_portal(context)
+    init_puppet(context)
+    init_user(context)
+    MatrixHandler(context)
+    start()
diff --git a/mautrix_telegram/base.py b/mautrix_telegram/base.py
new file mode 100644
index 00000000..c64447da
--- /dev/null
+++ b/mautrix_telegram/base.py
@@ -0,0 +1,2 @@
+from sqlalchemy.ext.declarative import declarative_base
+Base = declarative_base()
diff --git a/mautrix_telegram/commands.py b/mautrix_telegram/commands.py
new file mode 100644
index 00000000..968258f6
--- /dev/null
+++ b/mautrix_telegram/commands.py
@@ -0,0 +1,114 @@
+# mautrix-telegram - A Matrix-Telegram puppeting bridge
+# Copyright (C) 2018 Tulir Asokan
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU 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 General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+from contextlib import contextmanager
+import markdown
+
+command_handlers = {}
+
+
+def command_handler(func):
+    command_handlers[func.__name__] = func
+
+
+class CommandHandler:
+    def __init__(self, context):
+        self.appserv, self.db, log, self.config = context
+        self.log = log.getChild("commands")
+        self.command_prefix = self.config["bridge.commands.prefix"]
+        self._room_id = None
+
+    def handle(self, room, sender, command, args, is_management, is_portal):
+        with self.handler(sender, room, command) as handle_command:
+            handle_command(self, sender, args, is_management, is_portal)
+
+    @contextmanager
+    def handler(self, sender, room, command):
+        self._room_id = room
+        try:
+            command = command_handlers[command]
+        except KeyError:
+            if sender.command_status and "next" in sender.command_status:
+                command = sender.command_status["next"]
+            else:
+                command = command_handlers["unknown_command"]
+        yield command
+        self._room_id = None
+
+    def reply(self, message, allow_html=False, render_markdown=True):
+        if not self._room_id:
+            raise AttributeError("the reply function can only be used from within"
+                                 "the `CommandHandler.run` context manager")
+
+        message = message.replace("$cmdprefix", self.command_prefix)
+        html = None
+        if render_markdown:
+            html = markdown.markdown(message, safe_mode="escape" if allow_html else False)
+        elif allow_html:
+            html = message
+        self.appserv.api.send_message_event(self._room_id, "m.room.message", {
+            "msgtype": "m.notice",
+            "body": message,
+            "format": "org.matrix.custom.html" if html else None,
+            "formatted_body": html or None,
+        })
+
+    @command_handler
+    def cancel(self, sender, args, is_management, is_portal):
+        if sender.command_status:
+            sender.command_status = None
+            return self.reply(f"{sender.command_status.action} cancelled.")
+        else:
+            return self.reply("No ongoing command.")
+
+    @command_handler
+    def unknown_command(self, sender, args, is_management, is_portal):
+        if is_management:
+            return self.reply("Unknown command. Try `help` for help.")
+        else:
+            return self.reply("Unknown command. Try `$cmdprefix help` for help.")
+
+    @command_handler
+    def help(self, sender, args, is_management, is_portal):
+        if is_management:
+            management_status = ("This is a management room: prefixing commands"
+                                 "with `$cmdprefix` is not required.\n")
+        elif is_portal:
+            management_status = ("**This is a portal room**: you must always"
+                                 "prefix commands with `$cmdprefix`.\n"
+                                 "Management commands will not be sent to Telegram.")
+        else:
+            management_status = ("**This is not a management room**: you must"
+                                 "prefix commands with `$cmdprefix`.\n")
+        help = """
+_**Generic bridge commands**: commands for using the bridge that aren't related to Telegram._  
+**help** - Show this help message.  
+**cancel** - Cancel an ongoing action (such as login).  
+
+_**Telegram actions**: commands for using the bridge to interact with Telegram._  
+**login** <_phone_> - Request an authentication code.  
+**logout** - Log out from Telegram.  
+**search** [_-r|--remote_] <_query_> - Search your contacts or the Telegram servers for users.  
+**create** <_group/channel_> [_room ID_] - Create a Telegram chat of the given type for a Matrix room.
+                                           If the room ID is not specified, a chat for the current room is created.  
+**upgrade** - Upgrade a normal Telegram group to a supergroup.
+
+_**Temporary commands**: commands that will be replaced with more Matrix-y actions later._  
+**pm** <_id_> - Open a private chat with the given Telegram user ID.
+
+_**Debug commands**: commands to help in debugging the bridge. Disabled by default._  
+**api** <_method_> <_args_> - Call a Telegram API method. Args is always a single JSON object.
+"""
+        return self.reply(management_status + help)
diff --git a/mautrix_telegram/db.py b/mautrix_telegram/db.py
new file mode 100644
index 00000000..a9353daf
--- /dev/null
+++ b/mautrix_telegram/db.py
@@ -0,0 +1,53 @@
+# mautrix-telegram - A Matrix-Telegram puppeting bridge
+# Copyright (C) 2018 Tulir Asokan
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU 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 General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+from sqlalchemy import orm, \
+    Column, ForeignKey, \
+    Integer, String
+from sqlalchemy.orm.scoping import scoped_session
+from .base import Base
+
+
+class Portal(Base):
+    __tablename__ = "portal"
+
+    tgid = Column(Integer, primary_key=True)
+    peer_type = Column(String)
+    mxid = Column(String, unique=True, nullable=True)
+
+
+class User(Base):
+    __tablename__ = "user"
+
+    mxid = Column(String, primary_key=True)
+    tgid = Column(Integer, nullable=True)
+
+    def __init__(self, mxid, tgid=None):
+        self.mxid = mxid
+        self.tgid = tgid
+
+
+class Puppet(Base):
+    __tablename__ = "puppet"
+
+    id = Column(Integer, primary_key=True)
+    displayname = Column(String, nullable=True)
+
+
+def init(db_factory):
+    db = scoped_session(db_factory)
+    Portal.query = db.query_property()
+    User.query = db.query_property()
+    Puppet.query = db.query_property()
diff --git a/mautrix_telegram/matrix.py b/mautrix_telegram/matrix.py
new file mode 100644
index 00000000..5dec713d
--- /dev/null
+++ b/mautrix_telegram/matrix.py
@@ -0,0 +1,110 @@
+# mautrix-telegram - A Matrix-Telegram puppeting bridge
+# Copyright (C) 2018 Tulir Asokan
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU 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 General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+import re
+
+from .user import User
+from .portal import Portal
+from .commands import CommandHandler
+
+
+class MatrixHandler:
+    def __init__(self, context):
+        self.az, self.db, log, self.config = context
+        self.log = log.getChild("mx")
+        self.commands = CommandHandler(context)
+
+        alias_format = self.config.get("bridge.alias_template", "telegram_{}").format("(.+)")
+        hs = self.config["homeserver"]["domain"]
+        self.localpart_regex = re.compile(f"@{alias_format}:{hs}")
+
+        self.az.matrix_event_handler(self.handle_event)
+
+    def is_puppet(self, mxid):
+        match = self.localpart_regex.match(mxid)
+        return True if match else False
+
+    def handle_invite(self, room, user, inviter):
+        if user == self.az.bot_mxid:
+            self.az.intent.join_room(room)
+            return
+        tgid = self.get_puppet(user)
+        if tgid:
+            # TODO handle puppet invite
+            self.log.debug(f"{inviter} invited puppet for {tgid} to {room}")
+            return
+        # These can probably be ignored
+        self.log.debug(f"{inviter} invited {user} to {room}")
+
+    def handle_part(self, room, user):
+        self.log.debug(f"{user} left {room}")
+
+    def is_management(self, room):
+        memberships = self.az.intent.get_room_members(room)
+        return [membership["state_key"] for membership in memberships["chunk"] if
+                membership["content"]["membership"] == "join"]
+
+    def is_command(self, message):
+        text = message.get("body", "")
+        prefix = self.config["bridge.commands.prefix"]
+        is_command = text.startswith(prefix)
+        if is_command:
+            text = text[len(prefix) + 1:]
+        return is_command, text
+
+    def handle_message(self, room, sender, message):
+        self.log.debug(f"{sender} sent {message} to ${room}")
+
+        is_command, text = self.is_command(message)
+        sender = User.get_by_mxid(sender)
+
+        portal = Portal.get_by_mxid(room)
+        if portal and not is_command:
+            portal.handle_matrix_message(sender, message)
+            return
+
+        if message["msgtype"] != "m.text":
+            return
+
+        is_management = len(self.is_management(room)) == 2
+        if is_command or is_management:
+            try:
+                command, arguments = text.split(" ", 1)
+                args = arguments.split(" ")
+            except ValueError:
+                # Not enough values to unpack, i.e. no arguments
+                command = text
+                args = []
+            self.commands.handle(room, sender, command, args, is_management, is_portal=portal is not None)
+
+    def filter_matrix_event(self, event):
+        return event["sender"] == self.az.bot_mxid or self.is_puppet(event["sender"])
+
+    def handle_event(self, evt):
+        if self.filter_matrix_event(evt):
+            return
+        self.log.debug("Received event: %s", evt)
+        type = evt["type"]
+        content = evt.get("content", {})
+        if type == "m.room.member":
+            membership = content.get("membership", {})
+            if membership == "invite":
+                self.handle_invite(evt["room_id"], evt["state_key"], evt["sender"])
+            elif membership == "leave":
+                self.handle_part(evt["room_id"], evt["state_key"])
+            elif membership == "join":
+                pass
+        elif type == "m.room.message":
+            self.handle_message(evt["room_id"], evt["sender"], content)
diff --git a/mautrix_telegram/portal.py b/mautrix_telegram/portal.py
new file mode 100644
index 00000000..6f6ee043
--- /dev/null
+++ b/mautrix_telegram/portal.py
@@ -0,0 +1,163 @@
+# mautrix-telegram - A Matrix-Telegram puppeting bridge
+# Copyright (C) 2018 Tulir Asokan
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU 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 General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+from telethon.tl.functions.messages import GetFullChatRequest
+from telethon.tl.functions.channels import GetParticipantsRequest
+from telethon.tl.types import ChannelParticipantsRecent, PeerChat, PeerChannel, PeerUser
+from .db import Portal as DBPortal
+from . import puppet as p
+
+config = None
+
+
+class Portal:
+    by_mxid = {}
+    by_tgid = {}
+
+    def __init__(self, tgid, peer_type, mxid=None):
+        self.mxid = mxid
+        self.tgid = tgid
+        self.peer_type = peer_type
+
+        self.by_tgid[tgid] = self
+        if mxid:
+            self.by_mxid[mxid] = self
+
+    def create_room(self, user, entity=None, invites=[]):
+        self.log.debug("Creating room for %d", self.tgid)
+        if not entity:
+            entity = user.client.get_entity(self.peer)
+            self.log.debug("Fetched data: %s", entity)
+
+        if self.mxid:
+            self.invite_matrix(invites)
+            users = self.get_users(user, entity)
+            self.sync_telegram_users(users)
+            return self.mxid
+
+        try:
+            title = entity.title
+        except AttributeError:
+            title = None
+
+        direct = self.peer_type == "user"
+        puppet = p.Puppet.get(self.tgid) if direct else None
+        intent = puppet.intent if direct else self.az.intent
+        room = intent.create_room(invitees=invites, name=title,
+                                          is_direct=direct)
+        if not room:
+            raise Exception(f"Failed to create room for {self.tgid}")
+
+        self.mxid = room["room_id"]
+        self.by_mxid[self.mxid] = self
+        self.save()
+        if not direct:
+            users = self.get_users(user, entity)
+            self.sync_telegram_users(users)
+        else:
+            puppet.update_info(entity)
+            puppet.intent.join_room(self.mxid)
+
+
+    def sync_telegram_users(self, users=[]):
+        for entity in users:
+            user = p.Puppet.get(entity.id)
+            user.update_info(entity)
+            user.intent.join_room(self.mxid)
+
+    def handle_matrix_message(self, sender, message):
+        type = message["msgtype"]
+        if type == "m.text":
+            sender.client.send_message(self.peer, message["body"])
+
+    def handle_telegram_message(self, sender, message):
+        self.log.debug("Sending %s to %s by %d", message.message, self.mxid, sender.id)
+        sender.intent.send_text(self.mxid, message.message)
+
+    @property
+    def peer(self):
+        if self.peer_type == "user":
+            return PeerUser(user_id=self.tgid)
+        elif self.peer_type == "chat":
+            return PeerChat(chat_id=self.tgid)
+        elif self.peer_type == "channel":
+            return PeerChannel(channel_id=self.tgid)
+
+    def get_users(self, user, entity):
+        if self.peer_type == "chat":
+            return user.client(GetFullChatRequest(chat_id=self.tgid)).users
+        elif self.peer_type == "channel":
+            participants = user.client(GetParticipantsRequest(
+                entity, ChannelParticipantsRecent(), offset=0, limit=100, hash=0
+            ))
+            return participants.users
+        elif self.peer_type == "user":
+            return [entity]
+
+    def invite_matrix(self, users=[]):
+        pass
+
+    def to_db(self):
+        return self.db.merge(DBPortal(tgid=self.tgid, peer_type=self.peer_type, mxid=self.mxid))
+
+    def save(self):
+        self.to_db()
+        self.db.commit()
+
+    @classmethod
+    def from_db(cls, db_portal):
+        return Portal(db_portal.tgid, db_portal.peer_type, db_portal.mxid)
+
+    @classmethod
+    def get_by_mxid(cls, mxid):
+        try:
+            return cls.by_mxid[mxid]
+        except KeyError:
+            pass
+
+        portal = DBPortal.query.filter(DBPortal.mxid == mxid).one_or_none()
+        if portal:
+            return cls.from_db(portal)
+
+        return None
+
+    @classmethod
+    def get_by_tgid(cls, tgid, peer_type=None):
+        try:
+            return cls.by_tgid[tgid]
+        except KeyError:
+            pass
+
+        portal = DBPortal.query.get(tgid)
+        if portal:
+            return cls.from_db(portal)
+
+        if peer_type:
+            portal = Portal(tgid, peer_type)
+            cls.db.add(portal.to_db())
+            portal.save()
+            return portal
+
+        return None
+
+    @classmethod
+    def get_by_entity(cls, entity):
+        return cls.get_by_tgid(entity.id, entity.__class__.__name__.lower())
+
+
+def init(context):
+    global config
+    Portal.az, Portal.db, log, config = context
+    Portal.log = log.getChild("portal")
diff --git a/mautrix_telegram/puppet.py b/mautrix_telegram/puppet.py
new file mode 100644
index 00000000..14734956
--- /dev/null
+++ b/mautrix_telegram/puppet.py
@@ -0,0 +1,94 @@
+# mautrix-telegram - A Matrix-Telegram puppeting bridge
+# Copyright (C) 2018 Tulir Asokan
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU 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 General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+from telethon import TelegramClient
+from telethon.tl.types import User as UserEntity, Chat as ChatEntity, Channel as ChannelEntity
+from .db import Puppet as DBPuppet
+from . import portal as p
+
+config = None
+
+
+class Puppet:
+    cache = {}
+
+    def __init__(self, id=None, displayname=None):
+        self.id = id
+
+        self.localpart = config.get("bridge.alias_template", "telegram_{}").format(self.id)
+        hs = config["homeserver"]["domain"]
+        self.mxid = f"@{self.localpart}:{hs}"
+        self.displayname = displayname
+        self.intent = self.az.intent.user(self.mxid)
+
+        self.cache[id] = self
+
+    def to_db(self):
+        return self.db.merge(DBPuppet(id=self.id, displayname=self.displayname))
+
+    @classmethod
+    def from_db(cls, db_puppet):
+        return Puppet(db_puppet.id, db_puppet.displayname)
+
+    def save(self):
+        self.to_db()
+        self.db.commit()
+
+    def get_displayname(self, info):
+        if info.first_name or info.last_name:
+            name = " ".join([info.first_name or "", info.last_name or ""]).strip()
+        elif info.username:
+            name = info.username
+        elif info.phone_number:
+            name = info.phone_number
+        else:
+            name = info.id
+        return config.get("bridge.displayname_template", "{} (Telegram)").format(name)
+
+    def update_info(self, info):
+        changed = False
+        displayname = self.get_displayname(info)
+        if displayname != self.displayname:
+            self.intent.set_display_name(displayname)
+            self.displayname = displayname
+            changed = True
+
+        if changed:
+            self.save()
+
+    @classmethod
+    def get(cls, id, create=True):
+        try:
+            return cls.cache[id]
+        except KeyError:
+            pass
+
+        puppet = DBPuppet.query.get(id)
+        if puppet:
+            return cls.from_db(puppet)
+
+        if create:
+            puppet = cls(id)
+            cls.db.add(puppet.to_db())
+            cls.db.commit()
+            return puppet
+
+        return None
+
+
+def init(context):
+    global config
+    Puppet.az, Puppet.db, log, config = context
+    Puppet.log = log.getChild("puppet")
diff --git a/mautrix_telegram/user.py b/mautrix_telegram/user.py
new file mode 100644
index 00000000..3bda746d
--- /dev/null
+++ b/mautrix_telegram/user.py
@@ -0,0 +1,146 @@
+# mautrix-telegram - A Matrix-Telegram puppeting bridge
+# Copyright (C) 2018 Tulir Asokan
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU 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 General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+import traceback
+from telethon import TelegramClient
+from telethon.tl.types import User as UserEntity, Chat as ChatEntity, Channel as ChannelEntity, \
+    UpdateShortMessage, UpdateShortChatMessage
+from .db import User as DBUser
+from . import portal as po, puppet as pu
+
+config = None
+
+
+class User:
+    by_mxid = {}
+    by_tgid = {}
+
+    def __init__(self, mxid, tgid=None):
+        self.mxid = mxid
+        self.tgid = tgid
+
+        self.command_status = None
+        self.connected = False
+        self.logged_in = False
+        self.client = None
+
+        self.by_mxid[mxid] = self
+        if tgid:
+            self.by_tgid[tgid] = self
+
+    def to_db(self):
+        return self.db.merge(DBUser(self.mxid, self.tgid))
+
+    def save(self):
+        self.to_db()
+        self.db.commit()
+
+    @classmethod
+    def from_db(cls, db_user):
+        return User(db_user.mxid, db_user.tgid)
+
+    def start(self):
+        self.client = TelegramClient(self.mxid,
+                                     config["telegram.api_id"],
+                                     config["telegram.api_hash"],
+                                     update_workers=2)
+        self.connected = self.client.connect()
+        self.logged_in = self.client.is_user_authorized()
+        if self.logged_in:
+            self.sync_dialogs()
+        self.client.add_update_handler(self.update_catch)
+        return self
+
+    def stop(self):
+        self.client.disconnect()
+        self.client = None
+        self.connected = False
+
+    def sync_dialogs(self):
+        dialogs = self.client.get_dialogs(limit=30)
+        for dialog in dialogs:
+            entity = dialog.entity
+            if isinstance(entity, UserEntity):
+                continue
+            elif isinstance(entity, ChatEntity) and entity.deactivated:
+                continue
+            portal = po.Portal.get_by_entity(entity)
+            portal.create_room(self, entity, invites=[self.mxid])
+            # portal.update_info(self, entity)
+
+    def update_catch(self, update):
+        try:
+            self.update(update)
+        except:
+            self.log.exception("Failed to handle Telegram update")
+
+    def update(self, update):
+        if isinstance(update, UpdateShortChatMessage):
+            portal = po.Portal.get_by_tgid(update.chat_id, "chat")
+            sender = pu.Puppet.get(update.from_id)
+        elif isinstance(update, UpdateShortMessage):
+            portal = po.Portal.get_by_tgid(update.user_id, "user")
+            sender = pu.Puppet.get(self.tgid if update.out else update.user_id)
+        else:
+            self.log.debug("Unhandled update: %s", update)
+            return
+
+        if not portal.mxid:
+            portal.create_room(self, invites=[self.mxid])
+        self.log.debug("Handling message portal=%s sender=%s update=%s", portal, sender,
+                       update)
+        portal.handle_telegram_message(sender, update)
+
+    @classmethod
+    def get_by_mxid(cls, mxid, create=True):
+        try:
+            return cls.by_mxid[mxid]
+        except KeyError:
+            pass
+
+        user = DBUser.query.get(mxid)
+        if user:
+            return cls.from_db(user).start()
+
+        if create:
+            user = cls(mxid)
+            cls.db.add(user.to_db())
+            cls.db.commit()
+            return user.start()
+
+        return None
+
+    @classmethod
+    def get_by_tgid(cls, tgid):
+        try:
+            return cls.by_tgid[tgid]
+        except KeyError:
+            pass
+
+        user = DBUser.query.filter(DBUser.tgid == tgid).one_or_none()
+        if user:
+            return cls.from_db(user).start()
+
+        return None
+
+
+def init(context):
+    global config
+    User.az, User.db, log, config = context
+    User.log = log.getChild("user")
+
+    users = [User.from_db(user) for user in DBUser.query.all()]
+    for user in users:
+        user.start()
diff --git a/requirements.txt b/requirements.txt
index bfc386fc..bc946534 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1,17 +1,7 @@
-aiohttp==2.3.7
-async-timeout==2.0.0
-certifi==2017.11.5
-chardet==3.0.4
-idna==2.6
-matrix-client==0.0.6
-multidict==3.3.2
-pkg-resources==0.0.0
-pyaes==1.6.1
-pyasn1==0.4.2
-requests==2.18.4
-rsa==3.4.2
-ruamel.yaml==0.15.35
-SQLAlchemy==1.2.1
-Telethon==0.16.1.3
-urllib3==1.22
-yarl==0.17.0
+aiohttp
+-e git+git://github.com/Cadair/matrix-python-sdk#egg=matrix_client
+#matrix-client
+ruamel.yaml
+SQLAlchemy
+Telethon
+Markdown