diff --git a/README.md b/README.md
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 |[UIP-0021](https://github.com/dtr-org/uips/blob/master/UIP-0021.md)|Transfer Esperanza Transactions|Proposed|2018-11-08|
 |[UIP-0024](https://github.com/dtr-org/uips/blob/master/UIP-0024.md)|CTOR - Canonical Transactions Ordering Rule|Proposed|2018-12-14|
 |[UIP-0026](https://github.com/dtr-org/uips/blob/master/UIP-0026.md)|Graphene - block propagation protocol|Proposed|2019-02-21|
+|[UIP-0027](https://github.com/dtr-org/uips/blob/master/UIP-0027.md)|Transaction service fields|Draft|2019-05-07|
 
 The team is committed to fostering a welcoming and harassment-free
 environment. All participants are expected to adhere to our [code of
diff --git a/UIP-0027.md b/UIP-0027.md
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+# UIP-27: Transaction service fields
+
+```
+Author:   Dima Saveliev <dima@thirdhash.com>
+Status:   Draft
+Created:  2019-05-07
+```
+
+## Abstract
+
+  This document describes protocol changes in the transaction structure:
+the `nVersion` field is going to be replaced by four separate service fields:
+* type
+* version
+* two more fields are vacant
+
+
+## Motivation
+
+  [UIP-0018](https://github.com/dtr-org/uips/blob/master/UIP-0018.md) introduced **a transaction type** concept 
+and added the corresponding field as a part of already existing `nVersion` field. 
+That was achieved by overloading `nVersion` with bit arithmetic at the cost of increasing complexity of the code.
+
+  By implementing separate service fields we solve the following problems:
+  
+  1. Clean-up the logic behind the `type` and `version` fields.
+  2. Minimize the size of `type` and `version` fields.
+  3. Minimize the impact on the existing test suite.
+  
+  As an additional benefit, we will have two more fields for possible future needs.
+  
+  
+## Specification
+
+At the moment we have this `nVersion` field structure:
+ 
+_These pictures illustrate `nVersion` in big-endian order as we have it in the runtime. 
+It's worth noting, however, that the serialized bytes will have a little-endian order._
+
+```
+  0x00      0x00     0x00      0x00   
+^------^  ^------^  ^----------------^
+ unused     type         version      
+^------------------------------------^
+             nVersion
+```
+
+* `nVersion` - original `uint32_t` value
+* `type` - derived `uint8_t` attribute
+* `version` - derived `uint16_t` attribute
+
+Proposed layout for the same bytes:
+```
+  0x00      0x00      0x00      0x00     
+^------^  ^------^  ^------^  ^------^   
+reserved    type    reserved  version    
+```
+
+* `type` - independent`uint8_t` field
+* `version` - independent`uint8_t` field
+
+
+## Rationale
+
+This format was chosen in order to preserve the existing byte order and to minimize the impact on the existing test suite.
+It's very hard to add, remove or even swap existing bytes due to a couple of reasons:
+
+* Tests contain a lot of magic numbers, based on the assumptions regarding transaction size.
+* Some tests heavily rely on hardcoded, unique transactions from the real Bitcoin network.
+* Unit-e wants to sync regularly with Bitcoin Core with minimal effort.
+
+All these conditions make structural changes hard, thus it's much more effective
+to act in the context of the existing layout.
+
+By implementing four separate fields we decouple unrelated entities, remove technical debt
+without a tremendous amount of extra work and keep our test suite intact hence eliminate some range of security risks.
+
+
+## Backwards compatibility
+
+The proposed change will have a minimal impact on existing Unit-e codebase and will not change the byte order of existing messages.
+We shrink the actual size of `version` field down to 1 byte, but it's not a problem, because the range
+of [0, 255] integer values is more than enough to reflect existing transaction versions.
+
+## Reference implementation
+
+Work in progress.
+
+## Copyright
+
+This document and all its auxiliary files are dual-licensed under
+[CC0](https://creativecommons.org/publicdomain/zero/1.0/) and
+[MIT](https://opensource.org/licenses/MIT).