diff --git a/README.md b/README.md
index e3913a033..a869cdfb6 100644
--- a/README.md
+++ b/README.md
@@ -26,6 +26,7 @@ A complete toolkit for the NEO blockchain, including:
 - [NEO virtual machine](docs/vm.md)
 - [Smart contract examples](examples/README.md)
 - [Oracle service](docs/oracle.md)
+- [State validation service](docs/stateroots.md)
 
 This branch (**master**) is under active development now (read: won't work
 out of the box) and aims to be compatible with Neo 3. For the current stable
diff --git a/docs/stateroots.md b/docs/stateroots.md
new file mode 100644
index 000000000..9cc41930c
--- /dev/null
+++ b/docs/stateroots.md
@@ -0,0 +1,53 @@
+# NeoGo state validation
+
+NeoGo supports state validation using N3 stateroots and can also act as state
+validator (run state validation service).
+
+All NeoGo nodes always calculate MPT root hash for data stored by contracts,
+unlike in Neo Legacy this behavior can't be turned off. They also process
+stateroot messages broadcasted through the network and save validated
+signatures from them if state root hash specified there matches the one signed
+by validators (or shouts loud in the log if it doesn't, because it should be
+the same).
+
+## State validation service
+
+The service is configured as `StateRoot` subsection of
+`ApplicationConfiguration` section in your node config.
+
+Parameters:
+ * `Enabled`: boolean value, enables/disables the service, `true` for service
+   to be enabled
+ * `UnlockWallet`: service's wallet configuration:
+     - `Path`: path to NEP-6 wallet.
+     - `Password`: password for the account to be used by state validation
+       node.
+
+### Example
+
+```
+  StateRoot:
+    Enabled: true
+    UnlockWallet:
+      Path: "/path/to/stateroot.wallet.json"
+      Password: "knowyouare"
+```
+
+### Operation
+
+To run state validation service on your network you need to:
+ * set state validation node keys in `RoleManagement` contract
+ * configure and run appropriate number of state validation nodes with keys
+   specified in `RoleManagement` contract
+
+
+## StateRootInHeader option
+
+NeoGo also supports protocol extension to include state root hashes right into
+header blocks. It's not compatible with regular Neo N3 state validation
+service and it's not compatible with public Neo N3 networks, but you can use
+it on private networks if there is a need to.
+
+The option is `StateRootInHeader` and it's specified in
+`ProtocolConfiguration` section, set it to true and run your network with it
+(whole network needs to be configured this way then).