diff --git a/packaging/travis/install_dependencies_and_run_tests.sh b/packaging/travis/install_dependencies_and_run_tests.sh
index f55ab609b..6014087e1 100755
--- a/packaging/travis/install_dependencies_and_run_tests.sh
+++ b/packaging/travis/install_dependencies_and_run_tests.sh
@@ -38,8 +38,8 @@ rm get-pip.py
 
 pip install -r requirements.txt
 
-pip install nose coverage coveralls pylint
-nosetests --with-coverage --cover-package=lbrynet -v -I functional_tests.py tests/
+pip install mock pylint
+trial tests
 # TODO: submit coverage report to coveralls
 
 # TODO: as code quality improves, make pylint be more strict
diff --git a/tests/__init__.py b/tests/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/tests/lbrynet/__init__.py b/tests/lbrynet/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/tests/lbrynet/core/__init__.py b/tests/lbrynet/core/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/tests/lbrynet/core/server/__init__.py b/tests/lbrynet/core/server/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/tests/lbrynet/core/server/test_BlobRequestHandler.py b/tests/lbrynet/core/server/test_BlobRequestHandler.py
new file mode 100644
index 000000000..4cd04259a
--- /dev/null
+++ b/tests/lbrynet/core/server/test_BlobRequestHandler.py
@@ -0,0 +1,104 @@
+import mock
+from twisted.internet import defer
+from twisted.trial import unittest
+
+from lbrynet.core.server import BlobRequestHandler
+
+
+class TestBlobRequestHandlerQueries(unittest.TestCase):
+    def setUp(self):
+        self.blob_manager = mock.Mock()
+        self.payment_rate_manager = mock.Mock()
+        self.handler = BlobRequestHandler.BlobRequestHandler(
+            self.blob_manager, None, self.payment_rate_manager)
+
+    def test_empty_response_when_empty_query(self):
+        self.assertEqual({}, self.successResultOf(self.handler.handle_queries({})))
+        
+    def test_error_set_when_rate_is_missing(self):
+        query = {'requested_blob': 'blob'}
+        deferred = self.handler.handle_queries(query)
+        response = {'incoming_blob': {'error': 'RATE_UNSET'}}
+        self.assertEqual(response, self.successResultOf(deferred))
+
+    def test_error_set_when_rate_too_low(self):
+        self.payment_rate_manager.accept_rate_blob_data.return_value = False
+        query = {
+            'blob_data_payment_rate': 'way_too_low',
+            'requested_blob': 'blob'
+        }
+        deferred = self.handler.handle_queries(query)
+        response = {
+            'blob_data_payment_rate': 'RATE_TOO_LOW',
+            'incoming_blob': {'error': 'RATE_UNSET'}
+        }
+        self.assertEqual(response, self.successResultOf(deferred))
+
+    def test_response_when_rate_too_low(self):
+        self.payment_rate_manager.accept_rate_blob_data.return_value = False
+        query = {
+            'blob_data_payment_rate': 'way_too_low',
+        }
+        deferred = self.handler.handle_queries(query)
+        response = {
+            'blob_data_payment_rate': 'RATE_TOO_LOW',
+        }
+        self.assertEqual(response, self.successResultOf(deferred))
+
+    def test_blob_unavailable_when_blob_not_validated(self):
+        self.payment_rate_manager.accept_rate_blob_data.return_value = True
+        blob = mock.Mock()
+        blob.is_validated.return_value = False
+        self.blob_manager.get_blob.return_value = defer.succeed(blob)
+        query = {
+            'blob_data_payment_rate': 'rate',
+            'requested_blob': 'blob'
+        }
+        deferred = self.handler.handle_queries(query)
+        response = {
+            'blob_data_payment_rate': 'RATE_ACCEPTED',
+            'incoming_blob': {'error': 'BLOB_UNAVAILABLE'}
+        }
+        self.assertEqual(response, self.successResultOf(deferred))
+
+    def test_blob_unavailable_when_blob_cannot_be_opened(self):
+        self.payment_rate_manager.accept_rate_blob_data.return_value = True
+        blob = mock.Mock()
+        blob.is_validated.return_value = True
+        blob.open_for_reading.return_value = None
+        self.blob_manager.get_blob.return_value = defer.succeed(blob)
+        query = {
+            'blob_data_payment_rate': 'rate',
+            'requested_blob': 'blob'
+        }
+        deferred = self.handler.handle_queries(query)
+        response = {
+            'blob_data_payment_rate': 'RATE_ACCEPTED',
+            'incoming_blob': {'error': 'BLOB_UNAVAILABLE'}
+        }
+        self.assertEqual(response, self.successResultOf(deferred))
+
+    def test_blob_details_are_set_when_all_conditions_are_met(self):
+        self.payment_rate_manager.accept_rate_blob_data.return_value = True
+        blob = mock.Mock()
+        blob.is_validated.return_value = True
+        blob.open_for_reading.return_value = True
+        blob.blob_hash = 'DEADBEEF'
+        blob.length = 42
+        self.blob_manager.get_blob.return_value = defer.succeed(blob)
+        query = {
+            'blob_data_payment_rate': 'rate',
+            'requested_blob': 'blob'
+        }
+        deferred = self.handler.handle_queries(query)
+        response = {
+            'blob_data_payment_rate': 'RATE_ACCEPTED',
+            'incoming_blob': {
+                'blob_hash': 'DEADBEEF',
+                'length': 42
+            }
+        }
+        self.assertEqual(response, self.successResultOf(deferred))
+        
+
+