diff --git a/docs/IMPLEMENTATION.md b/docs/IMPLEMENTATION.md
index 8673278..3b0e54f 100644
--- a/docs/IMPLEMENTATION.md
+++ b/docs/IMPLEMENTATION.md
@@ -68,23 +68,35 @@
 - [X] Create message validation and bounds checking
 - [X] Write unit tests for protocol components
 
-## Phase 5: Basic Server Architecture
+## Phase 5: Binary Protocol Reworking & Application Layer Integration
+- [X] Refactor protocol codec into streaming MessageDecoder
+- [X] Implement streaming message processing with io.Reader
+- [X] Create request/response encoding and decoding methods
+- [X] Add comprehensive round-trip testing for protocol validation
+- [X] Update application layer to use streaming Message interface
+- [X] Fix application tests for new protocol design
+
+## Phase 6: TCP Server & Connection Management
+- [ ] Implement TCP server with connection handling
+- [ ] Add dual timeout protection:
+  - [ ] Connection timeout (max total connection time)
+  - [ ] Read timeout (max idle time between bytes - slowloris protection)
+- [ ] Implement proper connection lifecycle management
+- [ ] Create protocol state machine for request/response flow
+- [ ] Add graceful connection cleanup and error handling
+- [ ] Implement basic client for testing
+- [ ] Write integration tests for client-server communication
+
+## Phase 7: Basic Server Architecture
 - [ ] Set up structured logging (zerolog/logrus)
 - [ ] Set up metrics collection (prometheus)
 - [ ] Create configuration management
 - [ ] Integrate all components into server architecture
 
-## Phase 6: TCP Protocol & Connection Handling
-- [ ] Implement connection handler with proper error handling
-- [ ] Create protocol state machine
-- [ ] Implement connection lifecycle management
-- [ ] Add connection timeout and lifecycle management
-
-## Phase 7: Server Core & Request Handling
-- [ ] Implement TCP server with connection pooling
-- [ ] Create request router and handler dispatcher
-- [ ] Add connection timeout and lifecycle management
+## Phase 8: Advanced Server Features
+- [ ] Add connection pooling and advanced connection management
 - [ ] Implement graceful shutdown mechanism
+- [ ] Add health check endpoints
 - [ ] Add request/response logging middleware
 - [ ] Create health check endpoints
 - [ ] Write integration tests for server core
@@ -98,7 +110,7 @@
 - [ ] Add monitoring for attack detection
 - [ ] Write tests for protection mechanisms
 
-## Phase 9: Observability & Monitoring
+## Phase 10: Observability & Monitoring
 - [ ] Add structured logging throughout application
 - [ ] Implement metrics for key performance indicators:
   - [ ] Active connections count
@@ -110,7 +122,7 @@
 - [ ] Add error categorization and reporting
 - [ ] Implement health check endpoints
 
-## Phase 10: Configuration & Environment Setup
+## Phase 11: Configuration & Environment Setup
 - [ ] Create configuration structure with validation
 - [ ] Support environment variables and config files
 - [ ] Add configuration for different environments (dev/prod)
@@ -118,7 +130,7 @@
 - [ ] Create deployment configuration templates
 - [ ] Add configuration validation and defaults
 
-## Phase 11: Client Implementation
+## Phase 12: Client Implementation
 - [ ] Create client application structure
 - [ ] Implement PoW solver algorithm
 - [ ] Create client-side protocol implementation
@@ -128,7 +140,7 @@
 - [ ] Add client metrics and logging
 - [ ] Write client unit and integration tests
 
-## Phase 12: Docker & Deployment
+## Phase 13: Docker & Deployment
 - [ ] Create multi-stage Dockerfile for server
 - [ ] Create Dockerfile for client
 - [ ] Create docker-compose.yml for local development
@@ -137,7 +149,7 @@
 - [ ] Add environment-specific configurations
 - [ ] Create deployment documentation
 
-## Phase 13: Testing & Quality Assurance
+## Phase 14: Testing & Quality Assurance
 - [ ] Write comprehensive unit tests (>80% coverage):
   - [ ] PoW algorithm tests
   - [ ] Protocol handler tests
@@ -152,7 +164,7 @@
 - [ ] Add benchmark tests for performance validation
 - [ ] Create stress testing scenarios
 
-## Phase 14: Documentation & Final Polish
+## Phase 15: Documentation & Final Polish
 - [ ] Write comprehensive README with setup instructions
 - [ ] Create API documentation for all interfaces
 - [ ] Add inline code documentation
@@ -161,7 +173,7 @@
 - [ ] Add performance tuning recommendations
 - [ ] Create monitoring and alerting guide
 
-## Phase 15: Production Readiness Checklist
+## Phase 16: Production Readiness Checklist
 - [ ] Security audit of all components
 - [ ] Performance benchmarking and optimization
 - [ ] Memory leak detection and prevention