diff --git a/tests/unit/blockchain/test_database.py b/tests/unit/blockchain/test_database.py
new file mode 100644
index 000000000..7f24d1d5e
--- /dev/null
+++ b/tests/unit/blockchain/test_database.py
@@ -0,0 +1,22 @@
+import unittest
+from binascii import unhexlify
+from lbry.blockchain.database import FindShortestID
+
+
+class FindShortestIDTest(unittest.TestCase):
+
+    def test_canonical_find_shortest_id(self):
+        new_hash = unhexlify('abcdef0123456789beef')[::-1]
+        other0 = unhexlify('1bcdef0123456789beef')[::-1]
+        other1 = unhexlify('ab1def0123456789beef')[::-1]
+        other2 = unhexlify('abc1ef0123456789beef')[::-1]
+        other3 = unhexlify('abcdef0123456789bee1')[::-1]
+        f = FindShortestID()
+        f.step(other0, new_hash)
+        self.assertEqual('a', f.finalize())
+        f.step(other1, new_hash)
+        self.assertEqual('abc', f.finalize())
+        f.step(other2, new_hash)
+        self.assertEqual('abcd', f.finalize())
+        f.step(other3, new_hash)
+        self.assertEqual('abcdef0123456789beef', f.finalize())