diff --git a/abci/example/kvstore/kvstore.go b/abci/example/kvstore/kvstore.go
index 604861c9f..884d32c60 100644
--- a/abci/example/kvstore/kvstore.go
+++ b/abci/example/kvstore/kvstore.go
@@ -17,7 +17,7 @@ var (
 	stateKey        = []byte("stateKey")
 	kvPairPrefixKey = []byte("kvPairKey:")
 
-	ProtocolVersion uint64 = 0x1
+	ProtocolVersion uint64 = 99
 )
 
 type State struct {
diff --git a/blockchain/msgs_test.go b/blockchain/msgs_test.go
index ded3a4c3d..d10f15a48 100644
--- a/blockchain/msgs_test.go
+++ b/blockchain/msgs_test.go
@@ -10,6 +10,7 @@ import (
 	"github.com/stretchr/testify/require"
 
 	bcproto "github.com/line/ostracon/proto/ostracon/blockchain"
+	sm "github.com/line/ostracon/state"
 	"github.com/line/ostracon/types"
 )
 
@@ -80,8 +81,9 @@ func TestBcStatusResponseMessageValidateBasic(t *testing.T) {
 
 // nolint:lll // ignore line length in tests
 func TestBlockchainMessageVectors(t *testing.T) {
-	block := types.MakeBlock(int64(3), []types.Tx{types.Tx("Hello World")}, nil, nil)
+	block := types.MakeBlock(int64(3), []types.Tx{types.Tx("Hello World")}, nil, nil, sm.InitStateVersion.Consensus)
 	block.Version.Block = 11 // overwrite updated protocol version
+	block.Version.App = 11   // overwrite updated protocol version
 
 	bpb, err := block.ToProto()
 	require.NoError(t, err)
@@ -97,7 +99,7 @@ func TestBlockchainMessageVectors(t *testing.T) {
 			BlockRequest: &bcproto.BlockRequest{Height: math.MaxInt64}}},
 			"0a0a08ffffffffffffffff7f"},
 		{"BlockResponseMessage", &bcproto.Message{Sum: &bcproto.Message_BlockResponse{
-			BlockResponse: &bcproto.BlockResponse{Block: bpb}}}, "1a700a6e0a5b0a02080b1803220b088092b8c398feffffff012a0212003a20c4da88e876062aa1543400d50d0eaa0dac88096057949cfb7bca7f3a48c04bf96a20e3b0c44298fc1c149afbf4c8996fb92427ae41e4649b934ca495991b7852b855120d0a0b48656c6c6f20576f726c641a00"},
+			BlockResponse: &bcproto.BlockResponse{Block: bpb}}}, "1a720a700a5d0a04080b100b1803220b088092b8c398feffffff012a0212003a20c4da88e876062aa1543400d50d0eaa0dac88096057949cfb7bca7f3a48c04bf96a20e3b0c44298fc1c149afbf4c8996fb92427ae41e4649b934ca495991b7852b855120d0a0b48656c6c6f20576f726c641a00"},
 		{"NoBlockResponseMessage", &bcproto.Message{Sum: &bcproto.Message_NoBlockResponse{
 			NoBlockResponse: &bcproto.NoBlockResponse{Height: 1}}}, "12020801"},
 		{"NoBlockResponseMessage", &bcproto.Message{Sum: &bcproto.Message_NoBlockResponse{
diff --git a/blockchain/v1/peer_test.go b/blockchain/v1/peer_test.go
index 64841a004..ead24a794 100644
--- a/blockchain/v1/peer_test.go
+++ b/blockchain/v1/peer_test.go
@@ -11,6 +11,7 @@ import (
 	"github.com/line/ostracon/libs/log"
 	tmrand "github.com/line/ostracon/libs/rand"
 	"github.com/line/ostracon/p2p"
+	sm "github.com/line/ostracon/state"
 	"github.com/line/ostracon/types"
 )
 
@@ -276,5 +277,5 @@ func checkByStoppingPeerTimer(t *testing.T, peer *BpPeer, running bool) {
 }
 
 func makeSmallBlock(height int) *types.Block {
-	return types.MakeBlock(int64(height), []types.Tx{types.Tx("foo")}, nil, nil)
+	return types.MakeBlock(int64(height), []types.Tx{types.Tx("foo")}, nil, nil, sm.InitStateVersion.Consensus)
 }
diff --git a/blockchain/v1/pool_test.go b/blockchain/v1/pool_test.go
index d6a7ca061..72e32e54b 100644
--- a/blockchain/v1/pool_test.go
+++ b/blockchain/v1/pool_test.go
@@ -8,6 +8,7 @@ import (
 
 	"github.com/line/ostracon/libs/log"
 	"github.com/line/ostracon/p2p"
+	sm "github.com/line/ostracon/state"
 	"github.com/line/ostracon/types"
 )
 
@@ -81,7 +82,9 @@ func makeBlockPool(bcr *testBcR, height int64, peers []BpPeer, blocks map[int64]
 		bPool.peers[p.id].RequestSent(h)
 		if p.create {
 			// simulate that a block at height h has been received
-			_ = bPool.peers[p.id].AddBlock(types.MakeBlock(h, txs, nil, nil), 100)
+			_ = bPool.peers[p.id].AddBlock(
+				types.MakeBlock(h, txs, nil, nil, sm.InitStateVersion.Consensus),
+				100)
 		}
 	}
 	return bPool
@@ -392,7 +395,7 @@ func TestBlockPoolAddBlock(t *testing.T) {
 			pool: makeBlockPool(testBcR, 10, []BpPeer{{ID: "P1", Height: 100}}, map[int64]tPBlocks{}),
 			args: args{
 				peerID:    "P2",
-				block:     types.MakeBlock(int64(10), txs, nil, nil),
+				block:     types.MakeBlock(int64(10), txs, nil, nil, sm.InitStateVersion.Consensus),
 				blockSize: 100,
 			},
 			poolWanted: makeBlockPool(testBcR, 10, []BpPeer{{ID: "P1", Height: 100}}, map[int64]tPBlocks{}),
@@ -404,7 +407,7 @@ func TestBlockPoolAddBlock(t *testing.T) {
 				map[int64]tPBlocks{10: {"P1", false}}),
 			args: args{
 				peerID:    "P1",
-				block:     types.MakeBlock(int64(11), txs, nil, nil),
+				block:     types.MakeBlock(int64(11), txs, nil, nil, sm.InitStateVersion.Consensus),
 				blockSize: 100,
 			},
 			poolWanted: makeBlockPool(testBcR, 10,
@@ -418,7 +421,7 @@ func TestBlockPoolAddBlock(t *testing.T) {
 				map[int64]tPBlocks{10: {"P1", true}, 11: {"P1", false}}),
 			args: args{
 				peerID:    "P1",
-				block:     types.MakeBlock(int64(10), txs, nil, nil),
+				block:     types.MakeBlock(int64(10), txs, nil, nil, sm.InitStateVersion.Consensus),
 				blockSize: 100,
 			},
 			poolWanted: makeBlockPool(testBcR, 10,
@@ -432,7 +435,7 @@ func TestBlockPoolAddBlock(t *testing.T) {
 				map[int64]tPBlocks{10: {"P1", false}}),
 			args: args{
 				peerID:    "P2",
-				block:     types.MakeBlock(int64(10), txs, nil, nil),
+				block:     types.MakeBlock(int64(10), txs, nil, nil, sm.InitStateVersion.Consensus),
 				blockSize: 100,
 			},
 			poolWanted: makeBlockPool(testBcR, 10,
@@ -446,7 +449,7 @@ func TestBlockPoolAddBlock(t *testing.T) {
 				map[int64]tPBlocks{10: {"P1", false}}),
 			args: args{
 				peerID:    "P1",
-				block:     types.MakeBlock(int64(10), txs, nil, nil),
+				block:     types.MakeBlock(int64(10), txs, nil, nil, sm.InitStateVersion.Consensus),
 				blockSize: 100,
 			},
 			poolWanted: makeBlockPool(testBcR, 10,
diff --git a/blockchain/v1/reactor_fsm_test.go b/blockchain/v1/reactor_fsm_test.go
index 4f524fac0..f575539d1 100644
--- a/blockchain/v1/reactor_fsm_test.go
+++ b/blockchain/v1/reactor_fsm_test.go
@@ -11,6 +11,7 @@ import (
 	tmmath "github.com/line/ostracon/libs/math"
 	tmrand "github.com/line/ostracon/libs/rand"
 	"github.com/line/ostracon/p2p"
+	sm "github.com/line/ostracon/state"
 	"github.com/line/ostracon/types"
 )
 
@@ -142,7 +143,7 @@ func sBlockRespEv(current, expected string, peerID p2p.ID, height int64, prevBlo
 		data: bReactorEventData{
 			peerID: peerID,
 			height: height,
-			block:  types.MakeBlock(height, txs, nil, nil),
+			block:  types.MakeBlock(height, txs, nil, nil, sm.InitStateVersion.Consensus),
 			length: 100},
 		wantState:     expected,
 		wantNewBlocks: append(prevBlocks, height),
@@ -159,7 +160,7 @@ func sBlockRespEvErrored(current, expected string,
 		data: bReactorEventData{
 			peerID: peerID,
 			height: height,
-			block:  types.MakeBlock(height, txs, nil, nil),
+			block:  types.MakeBlock(height, txs, nil, nil, sm.InitStateVersion.Consensus),
 			length: 100},
 		wantState:        expected,
 		wantErr:          wantErr,
diff --git a/consensus/replay.go b/consensus/replay.go
index 55ce382aa..437f68013 100644
--- a/consensus/replay.go
+++ b/consensus/replay.go
@@ -261,6 +261,7 @@ func (h *Handshaker) Handshake(proxyApp proxy.AppConns) error {
 
 	// Only set the version if there is no existing state.
 	if h.initialState.LastBlockHeight == 0 {
+		h.initialState.ConsensusParams.Version.AppVersion = res.AppVersion
 		h.initialState.Version.Consensus.App = res.AppVersion
 	}
 
@@ -487,6 +488,7 @@ func (h *Handshaker) replayBlocks(
 
 	if mutateState {
 		// sync the final block
+		h.logger.Info("Replaying final block using real app", "height", storeBlockHeight)
 		state, err = h.replayBlock(state, storeBlockHeight, proxyApp.Consensus())
 		if err != nil {
 			return nil, err
@@ -502,13 +504,19 @@ func (h *Handshaker) replayBlocks(
 func (h *Handshaker) replayBlock(state sm.State, height int64, proxyApp proxy.AppConnConsensus) (sm.State, error) {
 	block := h.store.LoadBlock(height)
 	meta := h.store.LoadBlockMeta(height)
+	var err error
+	consensusParams, err := h.stateStore.LoadConsensusParams(height)
+	if err != nil {
+		return sm.State{}, err
+	}
+	state.ConsensusParams = consensusParams
+	state.Version.Consensus.App = consensusParams.Version.AppVersion
 
 	// Use stubs for both mempool and evidence pool since no transactions nor
 	// evidence are needed here - block already exists.
 	blockExec := sm.NewBlockExecutor(h.stateStore, h.logger, proxyApp, emptyMempool{}, sm.EmptyEvidencePool{})
 	blockExec.SetEventBus(h.eventBus)
 
-	var err error
 	state, _, err = blockExec.ApplyBlock(state, meta.BlockID, block, nil)
 	if err != nil {
 		return sm.State{}, err
diff --git a/consensus/replay_test.go b/consensus/replay_test.go
index eeb82ffb2..fc1b9c8e3 100644
--- a/consensus/replay_test.go
+++ b/consensus/replay_test.go
@@ -33,6 +33,7 @@ import (
 	"github.com/line/ostracon/proxy"
 	sm "github.com/line/ostracon/state"
 	"github.com/line/ostracon/types"
+	"github.com/line/ostracon/version"
 )
 
 func TestMain(m *testing.M) {
@@ -351,7 +352,8 @@ var (
 // 1 - saved block but app and state are behind
 // 2 - save block and committed but state is behind
 // 3 - save block and committed with truncated block store and state behind
-var modes = []uint{0, 1, 2, 3}
+// 4 - save block and committed with rollback state and state behind
+var modes = []uint{0, 1, 2, 3, 4}
 
 func getProposerIdx(state *State, height int64, round int32) (int32, *types.Validator) {
 	proposer := state.Validators.SelectProposer(state.state.LastProofHash, height, round)
@@ -682,6 +684,8 @@ func testHandshakeReplay(t *testing.T, config *cfg.Config, nBlocks int, mode uin
 			TestSimulateValidatorsChange(t)
 		}
 		genesisState = sim.GenesisState
+		genesisState.ConsensusParams.Version.AppVersion = kvstore.ProtocolVersion
+		genesisState.Version.Consensus.App = kvstore.ProtocolVersion
 		config = sim.Config
 		chain = append([]*types.Block{}, sim.Chain...) // copy chain
 		commits = sim.Commits
@@ -746,10 +750,17 @@ func testHandshakeReplay(t *testing.T, config *cfg.Config, nBlocks int, mode uin
 		require.EqualValues(t, 1, pruned)
 		expectError = int64(nBlocks) < 2
 	}
+	if mode == 4 {
+		rollbackHeight, rollbackAppHash, err := sm.Rollback(store, stateStore)
+		require.NoError(t, err)
+		require.EqualValues(t, state.LastBlockHeight, rollbackHeight)
+		require.EqualValues(t, state.AppHash, rollbackAppHash)
+	}
 
-	// now start the app using the handshake - it should sync
+	t.Log("####: now start the app using the handshake - it should sync")
 	genDoc, _ := sm.MakeGenesisDocFromFile(config.GenesisFile())
 	handshaker := NewHandshaker(stateStore, state, store, genDoc)
+	handshaker.SetLogger(log.TestingLogger())
 	proxyApp := proxy.NewAppConns(clientCreator2)
 	if err := proxyApp.Start(); err != nil {
 		t.Fatalf("Error starting proxy app connections: %v", err)
@@ -815,7 +826,8 @@ func buildAppStateFromChain(proxyApp proxy.AppConns, stateStore sm.Store,
 	}
 	defer proxyApp.Stop() //nolint:errcheck // ignore
 
-	state.Version.Consensus.App = kvstore.ProtocolVersion // simulate handshake, receive app version
+	state.ConsensusParams.Version.AppVersion = kvstore.ProtocolVersion // simulate handshake, receive app version
+	state.Version.Consensus.App = kvstore.ProtocolVersion              // simulate handshake, receive app version
 	validators := types.OC2PB.ValidatorUpdates(state.Validators)
 	if _, err := proxyApp.Consensus().InitChainSync(abci.RequestInitChain{
 		Validators: validators,
@@ -831,13 +843,13 @@ func buildAppStateFromChain(proxyApp proxy.AppConns, stateStore sm.Store,
 			block := chain[i]
 			state = applyBlock(stateStore, state, block, proxyApp)
 		}
-	case 1, 2, 3:
+	case 1, 2, 3, 4:
 		for i := 0; i < nBlocks-1; i++ {
 			block := chain[i]
 			state = applyBlock(stateStore, state, block, proxyApp)
 		}
 
-		if mode == 2 || mode == 3 {
+		if mode == 2 || mode == 3 || mode == 4 {
 			// update the kvstore height and apphash
 			// as if we ran commit but not
 			state = applyBlock(stateStore, state, chain[nBlocks-1], proxyApp)
@@ -865,7 +877,8 @@ func buildOCStateFromChain(
 	}
 	defer proxyApp.Stop() //nolint:errcheck
 
-	state.Version.Consensus.App = kvstore.ProtocolVersion // simulate handshake, receive app version
+	state.ConsensusParams.Version.AppVersion = kvstore.ProtocolVersion // simulate handshake, receive app version
+	state.Version.Consensus.App = kvstore.ProtocolVersion              // simulate handshake, receive app version
 	validators := types.OC2PB.ValidatorUpdates(state.Validators)
 	if _, err := proxyApp.Consensus().InitChainSync(abci.RequestInitChain{
 		Validators: validators,
@@ -882,7 +895,7 @@ func buildOCStateFromChain(
 			state = applyBlock(stateStore, state, block, proxyApp)
 		}
 
-	case 1, 2, 3:
+	case 1, 2, 3, 4:
 		// sync up to the penultimate as if we stored the block.
 		// whether we commit or not depends on the appHash
 		for _, block := range chain[:len(chain)-1] {
@@ -907,10 +920,9 @@ func TestHandshakePanicsIfAppReturnsWrongAppHash(t *testing.T) {
 	config := ResetConfig("handshake_test_")
 	defer os.RemoveAll(config.RootDir)
 	privVal := privval.LoadFilePV(config.PrivValidatorKeyFile(), config.PrivValidatorStateFile())
-	const appVersion = 0x0
 	pubKey, err := privVal.GetPubKey()
 	require.NoError(t, err)
-	stateDB, state, store := stateAndStore(config, pubKey, appVersion)
+	stateDB, state, store := stateAndStore(config, pubKey, version.AppProtocol)
 	stateStore := sm.NewStore(stateDB)
 	genDoc, _ := sm.MakeGenesisDocFromFile(config.GenesisFile())
 	state.LastVoters = state.Voters.Copy()
@@ -1173,6 +1185,7 @@ func stateAndStore(
 	stateDB := dbm.NewMemDB()
 	stateStore := sm.NewStore(stateDB)
 	state, _ := sm.MakeGenesisStateFromFile(config.GenesisFile())
+	state.ConsensusParams.Version.AppVersion = appVersion
 	state.Version.Consensus.App = appVersion
 	store := newMockBlockStore(config, state.ConsensusParams)
 	if err := stateStore.Save(state); err != nil {
@@ -1247,7 +1260,7 @@ func TestHandshakeUpdatesValidators(t *testing.T) {
 	privVal := privval.LoadFilePV(config.PrivValidatorKeyFile(), config.PrivValidatorStateFile())
 	pubKey, err := privVal.GetPubKey()
 	require.NoError(t, err)
-	stateDB, state, store := stateAndStore(config, pubKey, 0x0)
+	stateDB, state, store := stateAndStore(config, pubKey, version.AppProtocol)
 	stateStore := sm.NewStore(stateDB)
 
 	oldValAddr := state.Validators.Validators[0].Address
diff --git a/consensus/wal_generator.go b/consensus/wal_generator.go
index 57632e28e..538581562 100644
--- a/consensus/wal_generator.go
+++ b/consensus/wal_generator.go
@@ -20,7 +20,6 @@ import (
 	sm "github.com/line/ostracon/state"
 	"github.com/line/ostracon/store"
 	"github.com/line/ostracon/types"
-	"github.com/pkg/errors"
 )
 
 // WALGenerateNBlocks generates a consensus WAL. It does this by spinning up a
@@ -44,7 +43,7 @@ func WALGenerateNBlocks(t *testing.T, wr io.Writer, numBlocks int) (err error) {
 	privKeyType := config.PrivValidatorKeyType()
 	privValidator, err := privval.LoadOrGenFilePV(privValidatorKeyFile, privValidatorStateFile, privKeyType)
 	if err != nil {
-		return errors.Wrap(err, "failed to create a private key")
+		return fmt.Errorf("failed to load FilePV: %w", err)
 	}
 	genDoc, err := types.GenesisDocFromFile(config.GenesisFile())
 	if err != nil {
@@ -57,6 +56,7 @@ func WALGenerateNBlocks(t *testing.T, wr io.Writer, numBlocks int) (err error) {
 	if err != nil {
 		return fmt.Errorf("failed to make genesis state: %w", err)
 	}
+	state.ConsensusParams.Version.AppVersion = kvstore.ProtocolVersion
 	state.Version.Consensus.App = kvstore.ProtocolVersion
 	if err = stateStore.Save(state); err != nil {
 		t.Error(err)
diff --git a/evidence/pool_test.go b/evidence/pool_test.go
index 38b0b8f86..18cd4901d 100644
--- a/evidence/pool_test.go
+++ b/evidence/pool_test.go
@@ -6,17 +6,16 @@ import (
 	"testing"
 	"time"
 
-	"github.com/line/ostracon/crypto"
-	"github.com/line/ostracon/crypto/bls"
-	"github.com/line/ostracon/crypto/composite"
-	"github.com/line/ostracon/crypto/ed25519"
-
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/mock"
 	"github.com/stretchr/testify/require"
 
 	dbm "github.com/tendermint/tm-db"
 
+	"github.com/line/ostracon/crypto"
+	"github.com/line/ostracon/crypto/bls"
+	"github.com/line/ostracon/crypto/composite"
+	"github.com/line/ostracon/crypto/ed25519"
 	"github.com/line/ostracon/evidence"
 	"github.com/line/ostracon/evidence/mocks"
 	"github.com/line/ostracon/libs/log"
@@ -211,7 +210,7 @@ func TestEvidencePoolUpdate(t *testing.T) {
 	ev := types.NewMockDuplicateVoteEvidenceWithValidator(height, defaultEvidenceTime.Add(21*time.Minute),
 		val, evidenceChainID)
 	lastCommit := makeCommit(height, val.PrivKey.PubKey().Address())
-	block := types.MakeBlock(height+1, []types.Tx{}, lastCommit, []types.Evidence{ev})
+	block := types.MakeBlock(height+1, []types.Tx{}, lastCommit, []types.Evidence{ev}, sm.InitStateVersion.Consensus)
 	// update state (partially)
 	state.LastBlockHeight = height + 1
 	state.LastBlockTime = defaultEvidenceTime.Add(22 * time.Minute)
@@ -436,7 +435,7 @@ func initializeBlockStore(db dbm.DB, state sm.State, valPrivkey crypto.PrivKey)
 		block, _ := state.MakeBlock(i, []types.Tx{}, lastCommit, nil,
 			state.Validators.SelectProposer(proof, i, round).Address, round, proof)
 		block.Header.Time = defaultEvidenceTime.Add(time.Duration(i) * time.Minute)
-		block.Header.Version = tmversion.Consensus{Block: version.BlockProtocol, App: 1}
+		block.Header.Version = tmversion.Consensus{Block: version.BlockProtocol, App: version.AppProtocol}
 		const parts = 1
 		partSet := block.MakePartSet(parts)
 
diff --git a/evidence/verify_test.go b/evidence/verify_test.go
index b9b980fb0..be5e8b202 100644
--- a/evidence/verify_test.go
+++ b/evidence/verify_test.go
@@ -6,8 +6,6 @@ import (
 	"testing"
 	"time"
 
-	"github.com/line/ostracon/light"
-
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 
@@ -19,6 +17,7 @@ import (
 	"github.com/line/ostracon/evidence"
 	"github.com/line/ostracon/evidence/mocks"
 	"github.com/line/ostracon/libs/log"
+	"github.com/line/ostracon/light"
 	tmproto "github.com/line/ostracon/proto/ostracon/types"
 	tmversion "github.com/line/ostracon/proto/ostracon/version"
 	sm "github.com/line/ostracon/state"
@@ -725,7 +724,7 @@ func makeVote(
 
 func makeHeaderRandom(height int64) *types.Header {
 	return &types.Header{
-		Version:            tmversion.Consensus{Block: version.BlockProtocol, App: 1},
+		Version:            tmversion.Consensus{Block: version.BlockProtocol, App: version.AppProtocol},
 		ChainID:            evidenceChainID,
 		Height:             height,
 		Time:               defaultEvidenceTime,
diff --git a/light/helpers_test.go b/light/helpers_test.go
index 587d284d3..b007eddea 100644
--- a/light/helpers_test.go
+++ b/light/helpers_test.go
@@ -176,7 +176,7 @@ func genHeader(chainID string, height int64, bTime time.Time, txs types.Txs,
 	proof tmbytes.HexBytes) *types.Header {
 
 	return &types.Header{
-		Version: tmversion.Consensus{Block: version.BlockProtocol, App: 0},
+		Version: tmversion.Consensus{Block: version.BlockProtocol, App: version.AppProtocol},
 		ChainID: chainID,
 		Height:  height,
 		Time:    bTime,
diff --git a/light/store/db/db_test.go b/light/store/db/db_test.go
index 33dc3c086..babc1cd6c 100644
--- a/light/store/db/db_test.go
+++ b/light/store/db/db_test.go
@@ -175,7 +175,7 @@ func randLightBlock(height int64) *types.LightBlock {
 	return &types.LightBlock{
 		SignedHeader: &types.SignedHeader{
 			Header: &types.Header{
-				Version:            tmversion.Consensus{Block: version.BlockProtocol, App: 0},
+				Version:            tmversion.Consensus{Block: version.BlockProtocol, App: version.AppProtocol},
 				ChainID:            tmrand.Str(12),
 				Height:             height,
 				Time:               time.Now(),
diff --git a/mempool/clist_mempool_system_test.go b/mempool/clist_mempool_system_test.go
index d3062c568..2b8bd70fa 100644
--- a/mempool/clist_mempool_system_test.go
+++ b/mempool/clist_mempool_system_test.go
@@ -18,8 +18,10 @@ import (
 	abci "github.com/line/ostracon/abci/types"
 	"github.com/line/ostracon/config"
 	"github.com/line/ostracon/libs/log"
+	tmversion "github.com/line/ostracon/proto/ostracon/version"
 	"github.com/line/ostracon/proxy"
 	"github.com/line/ostracon/types"
+	"github.com/line/ostracon/version"
 	"github.com/stretchr/testify/require"
 )
 
@@ -93,7 +95,10 @@ func createProposalBlockAndDeliverTxs(
 	mem *CListMempool, height int64) (*types.Block, []*abci.ResponseDeliverTx) {
 	// mempool.lock/unlock in ReapMaxBytesMaxGasMaxTxs
 	txs := mem.ReapMaxBytesMaxGasMaxTxs(mem.config.MaxTxsBytes, 0, int64(mem.config.Size))
-	block := types.MakeBlock(height, txs, nil, nil)
+	block := types.MakeBlock(height, txs, nil, nil, tmversion.Consensus{
+		Block: version.BlockProtocol,
+		App:   version.AppProtocol,
+	})
 	deliverTxResponses := make([]*abci.ResponseDeliverTx, len(block.Txs))
 	for i, tx := range block.Txs {
 		deliverTxResponses[i] = &abci.ResponseDeliverTx{
diff --git a/node/node.go b/node/node.go
index 65aa7dd40..5fa528c09 100644
--- a/node/node.go
+++ b/node/node.go
@@ -360,7 +360,9 @@ func logNodeStartupInfo(state sm.State, pubKey crypto.PubKey, logger, consensusL
 	// Log the version info.
 	logger.Info("Version info",
 		"software", version.OCCoreSemVer,
-		"block", version.BlockProtocol,
+		"abci", version.ABCIVersion,
+		"app", state.Version.Consensus.App,
+		"block", state.Version.Consensus.Block,
 		"p2p", version.P2PProtocol,
 	)
 
diff --git a/p2p/node_info.go b/p2p/node_info.go
index 5eb30d927..1ce86db02 100644
--- a/p2p/node_info.go
+++ b/p2p/node_info.go
@@ -59,7 +59,7 @@ type ProtocolVersion struct {
 var defaultProtocolVersion = NewProtocolVersion(
 	version.P2PProtocol,
 	version.BlockProtocol,
-	0,
+	version.AppProtocol,
 )
 
 // NewProtocolVersion returns a fully populated ProtocolVersion.
diff --git a/state/execution_test.go b/state/execution_test.go
index 660a1bc9a..96fbccad6 100644
--- a/state/execution_test.go
+++ b/state/execution_test.go
@@ -5,8 +5,6 @@ import (
 	"testing"
 	"time"
 
-	"github.com/line/ostracon/libs/bytes"
-
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/mock"
 	"github.com/stretchr/testify/require"
@@ -16,6 +14,7 @@ import (
 	"github.com/line/ostracon/crypto/ed25519"
 	cryptoenc "github.com/line/ostracon/crypto/encoding"
 	"github.com/line/ostracon/crypto/tmhash"
+	"github.com/line/ostracon/libs/bytes"
 	"github.com/line/ostracon/libs/log"
 	mmock "github.com/line/ostracon/mempool/mock"
 	tmproto "github.com/line/ostracon/proto/ostracon/types"
@@ -56,7 +55,7 @@ func TestApplyBlock(t *testing.T) {
 	assert.EqualValues(t, retainHeight, 1)
 
 	// TODO check state and mempool
-	assert.EqualValues(t, 1, state.Version.Consensus.App, "App version wasn't updated")
+	assert.EqualValues(t, TestAppVersion, state.Version.Consensus.App, "App version wasn't updated")
 }
 
 // TestBeginBlockValidators ensures we send absent validators list.
@@ -143,7 +142,7 @@ func TestBeginBlockByzantineValidators(t *testing.T) {
 	privVal := privVals[state.Validators.Validators[0].Address.String()]
 	blockID := makeBlockID([]byte("headerhash"), 1000, []byte("partshash"))
 	header := &types.Header{
-		Version:            tmversion.Consensus{Block: version.BlockProtocol, App: 1},
+		Version:            tmversion.Consensus{Block: version.BlockProtocol, App: version.AppProtocol},
 		ChainID:            state.ChainID,
 		Height:             10,
 		Time:               defaultEvidenceTime,
diff --git a/state/helpers_test.go b/state/helpers_test.go
index 60bb7d880..21896ba21 100644
--- a/state/helpers_test.go
+++ b/state/helpers_test.go
@@ -257,6 +257,7 @@ type testApp struct {
 }
 
 var _ abci.Application = (*testApp)(nil)
+var TestAppVersion uint64 = 66
 
 func (app *testApp) Info(req abci.RequestInfo) (resInfo abci.ResponseInfo) {
 	return abci.ResponseInfo{}
@@ -273,7 +274,7 @@ func (app *testApp) EndBlock(req abci.RequestEndBlock) abci.ResponseEndBlock {
 		ValidatorUpdates: app.ValidatorUpdates,
 		ConsensusParamUpdates: &abci.ConsensusParams{
 			Version: &tmproto.VersionParams{
-				AppVersion: 1}}}
+				AppVersion: TestAppVersion}}}
 }
 
 func (app *testApp) DeliverTx(req abci.RequestDeliverTx) abci.ResponseDeliverTx {
diff --git a/state/rollback_test.go b/state/rollback_test.go
index cf1557423..9ee807b34 100644
--- a/state/rollback_test.go
+++ b/state/rollback_test.go
@@ -18,9 +18,8 @@ import (
 )
 
 var (
-	appVersion  uint64 = 10
-	proofHash          = []byte{0}
-	voterParams        = types.DefaultVoterParams()
+	proofHash   = []byte{0}
+	voterParams = types.DefaultVoterParams()
 )
 
 func TestRollback(t *testing.T) {
@@ -139,13 +138,13 @@ func setupStateStore(t *testing.T, height int64) state.Store {
 	nextValSet := initialValSet.CopyIncrementProposerPriority(1)
 
 	params := types.DefaultConsensusParams()
-	params.Version.AppVersion = appVersion
+	params.Version.AppVersion = 10
 
 	initialState := state.State{
 		Version: tmstate.Version{
 			Consensus: tmversion.Consensus{
 				Block: version.BlockProtocol,
-				App:   appVersion,
+				App:   10,
 			},
 			Software: version.OCCoreSemVer,
 		},
diff --git a/state/state.go b/state/state.go
index 49a89ebd6..addce6cff 100644
--- a/state/state.go
+++ b/state/state.go
@@ -8,7 +8,6 @@ import (
 	"time"
 
 	"github.com/line/ostracon/crypto"
-
 	tmstate "github.com/line/ostracon/proto/ostracon/state"
 	tmproto "github.com/line/ostracon/proto/ostracon/types"
 	tmversion "github.com/line/ostracon/proto/ostracon/version"
@@ -31,7 +30,7 @@ var (
 var InitStateVersion = tmstate.Version{
 	Consensus: tmversion.Consensus{
 		Block: version.BlockProtocol,
-		App:   0,
+		App:   version.AppProtocol,
 	},
 	Software: version.OCCoreSemVer,
 }
@@ -276,7 +275,7 @@ func (state State) MakeBlock(
 ) (*types.Block, *types.PartSet) {
 
 	// Build base block with block data.
-	block := types.MakeBlock(height, txs, commit, evidence)
+	block := types.MakeBlock(height, txs, commit, evidence, state.Version.Consensus)
 
 	// Set time.
 	var timestamp time.Time
diff --git a/statesync/reactor_test.go b/statesync/reactor_test.go
index 82abe3090..ed24c4604 100644
--- a/statesync/reactor_test.go
+++ b/statesync/reactor_test.go
@@ -242,7 +242,7 @@ func makeMockAppConnSnapshot(appHash string, snapshot *snapshot, chunks []*chunk
 func makeMockAppConnQuery(appHash string, height int64) *proxymocks.AppConnQuery {
 	connQuery := &proxymocks.AppConnQuery{}
 	connQuery.On("InfoSync", proxy.RequestInfo).Return(&abci.ResponseInfo{
-		AppVersion:       9,
+		AppVersion:       testAppVersion,
 		LastBlockHeight:  height,
 		LastBlockAppHash: []byte(appHash),
 	}, nil)
@@ -257,7 +257,7 @@ func makeTestStateAndCommit(appHash string, height int64) (sm.State, *types.Comm
 		Version: tmstate.Version{
 			Consensus: tmversion.Consensus{
 				Block: version.BlockProtocol,
-				App:   9,
+				App:   testAppVersion,
 			},
 
 			Software: version.OCCoreSemVer,
@@ -278,6 +278,7 @@ func makeTestStateAndCommit(appHash string, height int64) (sm.State, *types.Comm
 		ConsensusParams:                  *types.DefaultConsensusParams(),
 		LastHeightConsensusParamsChanged: 1,
 	}
+	state.ConsensusParams.Version.AppVersion = testAppVersion
 
 	commit := &types.Commit{BlockID: types.BlockID{Hash: []byte(blockHash)}}
 
diff --git a/statesync/stateprovider.go b/statesync/stateprovider.go
index c261bd4a7..15620d367 100644
--- a/statesync/stateprovider.go
+++ b/statesync/stateprovider.go
@@ -222,6 +222,7 @@ func (s *lightClientStateProvider) State(ctx context.Context, height uint64) (sm
 			nextLightBlock.Height, err)
 	}
 	state.ConsensusParams = result.ConsensusParams
+	state.Version.Consensus.App = state.ConsensusParams.Version.AppVersion
 	state.LastHeightConsensusParamsChanged = currentLightBlock.Height
 
 	// VoterParams
diff --git a/statesync/syncer.go b/statesync/syncer.go
index 983321aba..4372a2f88 100644
--- a/statesync/syncer.go
+++ b/statesync/syncer.go
@@ -489,6 +489,8 @@ func (s *syncer) requestChunk(snapshot *snapshot, chunk uint32) {
 
 // verifyApp verifies the sync, checking the app hash, last block height and app version
 func (s *syncer) verifyApp(snapshot *snapshot, appVersion uint64) error {
+	// XXX Is it okay to check with "ABCI.Info" only
+	// since AppVersion will be updated by "ABCI.InitChain" and "ABCI.EndBlock"?
 	resp, err := s.connQuery.InfoSync(proxy.RequestInfo)
 	if err != nil {
 		return fmt.Errorf("failed to query ABCI app for appHash: %w", err)
@@ -497,7 +499,7 @@ func (s *syncer) verifyApp(snapshot *snapshot, appVersion uint64) error {
 	// sanity check that the app version in the block matches the application's own record
 	// of its version
 	if resp.AppVersion != appVersion {
-		// An error here most likely means that the app hasn't inplemented state sync
+		// An error here most likely means that the app hasn't implemented state sync
 		// or the Info call correctly
 		return fmt.Errorf("app version mismatch. Expected: %d, got: %d",
 			appVersion, resp.AppVersion)
diff --git a/statesync/syncer_test.go b/statesync/syncer_test.go
index d6e663490..b810e164b 100644
--- a/statesync/syncer_test.go
+++ b/statesync/syncer_test.go
@@ -2,6 +2,7 @@ package statesync
 
 import (
 	"errors"
+	"fmt"
 	"testing"
 	"time"
 
@@ -621,7 +622,8 @@ func TestSyncer_applyChunks_RejectSenders(t *testing.T) {
 func TestSyncer_verifyApp(t *testing.T) {
 	boom := errors.New("boom")
 	const appVersion = 9
-	appVersionMismatchErr := errors.New("app version mismatch. Expected: 9, got: 2")
+	const invalidAppVersion = appVersion + 1
+	appVersionMismatchErr := fmt.Errorf("app version mismatch. Expected: %d, got: %d", appVersion, invalidAppVersion)
 	s := &snapshot{Height: 3, Format: 1, Chunks: 5, Hash: []byte{1, 2, 3}, trustedAppHash: []byte("app_hash")}
 
 	testcases := map[string]struct {
@@ -637,7 +639,7 @@ func TestSyncer_verifyApp(t *testing.T) {
 		"invalid app version": {&abci.ResponseInfo{
 			LastBlockHeight:  3,
 			LastBlockAppHash: []byte("app_hash"),
-			AppVersion:       2,
+			AppVersion:       invalidAppVersion,
 		}, nil, appVersionMismatchErr},
 		"invalid height": {&abci.ResponseInfo{
 			LastBlockHeight:  5,
diff --git a/store/store_test.go b/store/store_test.go
index c5672f86b..b78b7f14d 100644
--- a/store/store_test.go
+++ b/store/store_test.go
@@ -533,8 +533,10 @@ func TestLoadBlockMeta(t *testing.T) {
 
 	// 3. A good blockMeta serialized and saved to the DB should be retrievable
 	meta := &types.BlockMeta{Header: types.Header{
-		Version: tmversion.Consensus{
-			Block: version.BlockProtocol, App: 0}, Height: 1, ProposerAddress: tmrand.Bytes(crypto.AddressSize)}}
+		Version:         tmversion.Consensus{Block: version.BlockProtocol, App: version.AppProtocol},
+		Height:          1,
+		ProposerAddress: tmrand.Bytes(crypto.AddressSize)},
+	}
 	pbm := meta.ToProto()
 	err = db.Set(calcBlockMetaKey(height), mustEncode(pbm))
 	require.NoError(t, err)
diff --git a/test/e2e/app/app.go b/test/e2e/app/app.go
index ecb6f0ee9..d2def07cb 100644
--- a/test/e2e/app/app.go
+++ b/test/e2e/app/app.go
@@ -18,7 +18,7 @@ import (
 	"github.com/line/ostracon/version"
 )
 
-const appVersion = 1
+const E2EAppVersion = 999
 
 // Application is an ABCI application for use by end-to-end tests. It is a
 // simple key/value store for strings, storing data in memory and persisting
@@ -105,7 +105,7 @@ func NewApplication(cfg *Config) (*Application, error) {
 func (app *Application) Info(req abci.RequestInfo) abci.ResponseInfo {
 	return abci.ResponseInfo{
 		Version:          version.ABCIVersion,
-		AppVersion:       appVersion,
+		AppVersion:       E2EAppVersion,
 		LastBlockHeight:  int64(app.state.Height),
 		LastBlockAppHash: app.state.Hash,
 	}
diff --git a/test/e2e/runner/setup.go b/test/e2e/runner/setup.go
index 8f5a2f6a5..739aafc26 100644
--- a/test/e2e/runner/setup.go
+++ b/test/e2e/runner/setup.go
@@ -203,8 +203,6 @@ func MakeGenesis(testnet *e2e.Testnet) (types.GenesisDoc, error) {
 		ConsensusParams: types.DefaultConsensusParams(),
 		InitialHeight:   testnet.InitialHeight,
 	}
-	// set the app version to 1
-	genesis.ConsensusParams.Version.AppVersion = 1
 	for validator, power := range testnet.Validators {
 		genesis.Validators = append(genesis.Validators, types.GenesisValidator{
 			Name:    validator.Name,
diff --git a/test/fuzz/p2p/pex/reactor_receive.go b/test/fuzz/p2p/pex/reactor_receive.go
index 04c159063..e741cbd3a 100644
--- a/test/fuzz/p2p/pex/reactor_receive.go
+++ b/test/fuzz/p2p/pex/reactor_receive.go
@@ -61,7 +61,7 @@ var defaultNodeInfo = p2p.DefaultNodeInfo{
 	ProtocolVersion: p2p.NewProtocolVersion(
 		version.P2PProtocol,
 		version.BlockProtocol,
-		0,
+		version.AppProtocol,
 	),
 	DefaultNodeID: nodeID,
 	ListenAddr:    "0.0.0.0:98992",
diff --git a/test/maverick/consensus/replay.go b/test/maverick/consensus/replay.go
index 25842984e..dd182b12c 100644
--- a/test/maverick/consensus/replay.go
+++ b/test/maverick/consensus/replay.go
@@ -262,6 +262,7 @@ func (h *Handshaker) Handshake(proxyApp proxy.AppConns) error {
 
 	// Only set the version if there is no existing state.
 	if h.initialState.LastBlockHeight == 0 {
+		h.initialState.ConsensusParams.Version.AppVersion = res.AppVersion
 		h.initialState.Version.Consensus.App = res.AppVersion
 	}
 
@@ -488,6 +489,7 @@ func (h *Handshaker) replayBlocks(
 
 	if mutateState {
 		// sync the final block
+		h.logger.Info("Replaying final block using real app", "height", storeBlockHeight)
 		state, err = h.replayBlock(state, storeBlockHeight, proxyApp.Consensus())
 		if err != nil {
 			return nil, err
@@ -503,13 +505,19 @@ func (h *Handshaker) replayBlocks(
 func (h *Handshaker) replayBlock(state sm.State, height int64, proxyApp proxy.AppConnConsensus) (sm.State, error) {
 	block := h.store.LoadBlock(height)
 	meta := h.store.LoadBlockMeta(height)
+	var err error
+	consensusParams, err := h.stateStore.LoadConsensusParams(height)
+	if err != nil {
+		return sm.State{}, err
+	}
+	state.ConsensusParams = consensusParams
+	state.Version.Consensus.App = consensusParams.Version.AppVersion
 
 	// Use stubs for both mempool and evidence pool since no transactions nor
 	// evidence are needed here - block already exists.
 	blockExec := sm.NewBlockExecutor(h.stateStore, h.logger, proxyApp, emptyMempool{}, sm.EmptyEvidencePool{})
 	blockExec.SetEventBus(h.eventBus)
 
-	var err error
 	state, _, err = blockExec.ApplyBlock(state, meta.BlockID, block, nil)
 	if err != nil {
 		return sm.State{}, err
diff --git a/test/maverick/consensus/wal_generator.go b/test/maverick/consensus/wal_generator.go
index ea050c5e2..83bdd3865 100644
--- a/test/maverick/consensus/wal_generator.go
+++ b/test/maverick/consensus/wal_generator.go
@@ -42,7 +42,8 @@ func WALGenerateNBlocks(t *testing.T, wr io.Writer, numBlocks int) (err error) {
 	// NOTE: we don't do handshake so need to set state.Version.Consensus.App directly.
 	privValidatorKeyFile := config.PrivValidatorKeyFile()
 	privValidatorStateFile := config.PrivValidatorStateFile()
-	privValidator, err := privval.LoadOrGenFilePV(privValidatorKeyFile, privValidatorStateFile, privval.PrivKeyTypeEd25519)
+	privKeyType := config.PrivValidatorKeyType()
+	privValidator, err := privval.LoadOrGenFilePV(privValidatorKeyFile, privValidatorStateFile, privKeyType)
 	if err != nil {
 		return fmt.Errorf("failed to load FilePV: %w", err)
 	}
@@ -57,6 +58,7 @@ func WALGenerateNBlocks(t *testing.T, wr io.Writer, numBlocks int) (err error) {
 	if err != nil {
 		return fmt.Errorf("failed to make genesis state: %w", err)
 	}
+	state.ConsensusParams.Version.AppVersion = kvstore.ProtocolVersion
 	state.Version.Consensus.App = kvstore.ProtocolVersion
 	if err = stateStore.Save(state); err != nil {
 		t.Error(err)
diff --git a/test/maverick/node/node.go b/test/maverick/node/node.go
index a82565b4a..4baa95d3e 100644
--- a/test/maverick/node/node.go
+++ b/test/maverick/node/node.go
@@ -356,6 +356,8 @@ func logNodeStartupInfo(state sm.State, pubKey crypto.PubKey, logger, consensusL
 	// Log the version info.
 	logger.Info("Version info",
 		"software", version.OCCoreSemVer,
+		"abci", version.ABCIVersion,
+		"app", version.AppProtocol,
 		"block", version.BlockProtocol,
 		"p2p", version.P2PProtocol,
 	)
diff --git a/types/block.go b/types/block.go
index 88a2f2fa6..fdaedaa52 100644
--- a/types/block.go
+++ b/types/block.go
@@ -62,10 +62,10 @@ type Block struct {
 // MakeBlock returns a new block with an empty header, except what can be
 // computed from itself.
 // It populates the same set of fields validated by ValidateBasic.
-func MakeBlock(height int64, txs []Tx, lastCommit *Commit, evidence []Evidence) *Block {
+func MakeBlock(height int64, txs []Tx, lastCommit *Commit, evidence []Evidence, version tmversion.Consensus) *Block {
 	block := &Block{
 		Header: Header{
-			Version: tmversion.Consensus{Block: version.BlockProtocol, App: 0},
+			Version: version,
 			Height:  height,
 		},
 		Data: Data{
diff --git a/types/block_test.go b/types/block_test.go
index 7a0bc33be..7caba5826 100644
--- a/types/block_test.go
+++ b/types/block_test.go
@@ -34,6 +34,11 @@ import (
 	"github.com/line/ostracon/version"
 )
 
+var TestConsensusVersion = tmversion.Consensus{
+	Block: version.BlockProtocol,
+	App:   version.AppProtocol,
+}
+
 func TestMain(m *testing.M) {
 	code := m.Run()
 	os.Exit(code)
@@ -51,7 +56,7 @@ func TestBlockAddEvidence(t *testing.T) {
 	ev := NewMockDuplicateVoteEvidenceWithValidator(h, time.Now(), vals[0], "block-test-chain")
 	evList := []Evidence{ev}
 
-	block := MakeBlock(h, txs, commit, evList)
+	block := MakeBlock(h, txs, commit, evList, TestConsensusVersion)
 	require.NotNil(t, block)
 	require.Equal(t, 1, len(block.Evidence.Evidence))
 	require.NotNil(t, block.EvidenceHash)
@@ -132,7 +137,7 @@ func TestBlockValidateBasic(t *testing.T) {
 		tc := tc
 		i := i
 		t.Run(tc.testName, func(t *testing.T) {
-			block := MakeBlock(h, txs, commit, evList)
+			block := MakeBlock(h, txs, commit, evList, TestConsensusVersion)
 			block.ProposerAddress = valSet.SelectProposer([]byte{}, block.Height, 0).Address
 			tc.malleateBlock(block)
 			err = block.ValidateBasic()
@@ -143,13 +148,13 @@ func TestBlockValidateBasic(t *testing.T) {
 
 func TestBlockHash(t *testing.T) {
 	assert.Nil(t, (*Block)(nil).Hash())
-	assert.Nil(t, MakeBlock(int64(3), []Tx{Tx("Hello World")}, nil, nil).Hash())
+	assert.Nil(t, MakeBlock(int64(3), []Tx{Tx("Hello World")}, nil, nil, TestConsensusVersion).Hash())
 }
 
 func TestBlockMakePartSet(t *testing.T) {
 	assert.Nil(t, (*Block)(nil).MakePartSet(2))
 
-	partSet := MakeBlock(int64(3), []Tx{Tx("Hello World")}, nil, nil).MakePartSet(1024)
+	partSet := MakeBlock(int64(3), []Tx{Tx("Hello World")}, nil, nil, TestConsensusVersion).MakePartSet(1024)
 	assert.NotNil(t, partSet)
 	assert.EqualValues(t, 1, partSet.Total())
 }
@@ -167,7 +172,7 @@ func TestBlockMakePartSetWithEvidence(t *testing.T) {
 	ev := NewMockDuplicateVoteEvidenceWithValidator(h, time.Now(), vals[0], "block-test-chain")
 	evList := []Evidence{ev}
 
-	block := MakeBlock(h, []Tx{Tx("Hello World")}, commit, evList)
+	block := MakeBlock(h, []Tx{Tx("Hello World")}, commit, evList, TestConsensusVersion)
 	blockProto, err := block.ToProto()
 	assert.NoError(t, err)
 	bz, err := blockProto.Marshal()
@@ -190,7 +195,7 @@ func TestBlockHashesTo(t *testing.T) {
 	ev := NewMockDuplicateVoteEvidenceWithValidator(h, time.Now(), vals[0], "block-test-chain")
 	evList := []Evidence{ev}
 
-	block := MakeBlock(h, []Tx{Tx("Hello World")}, commit, evList)
+	block := MakeBlock(h, []Tx{Tx("Hello World")}, commit, evList, TestConsensusVersion)
 	block.ValidatorsHash = valSet.Hash()
 	block.VotersHash = voterSet.Hash()
 	assert.False(t, block.HashesTo([]byte{}))
@@ -199,7 +204,7 @@ func TestBlockHashesTo(t *testing.T) {
 }
 
 func TestBlockSize(t *testing.T) {
-	size := MakeBlock(int64(3), []Tx{Tx("Hello World")}, nil, nil).Size()
+	size := MakeBlock(int64(3), []Tx{Tx("Hello World")}, nil, nil, TestConsensusVersion).Size()
 	if size <= 0 {
 		t.Fatal("Size of the block is zero or negative")
 	}
@@ -210,7 +215,7 @@ func TestBlockString(t *testing.T) {
 	assert.Equal(t, "nil-Block", (*Block)(nil).StringIndented(""))
 	assert.Equal(t, "nil-Block", (*Block)(nil).StringShort())
 
-	block := MakeBlock(int64(3), []Tx{Tx("Hello World")}, nil, nil)
+	block := MakeBlock(int64(3), []Tx{Tx("Hello World")}, nil, nil, TestConsensusVersion)
 	assert.NotEqual(t, "nil-Block", block.String())
 	assert.NotEqual(t, "nil-Block", block.StringIndented(""))
 	assert.NotEqual(t, "nil-Block", block.StringShort())
@@ -706,7 +711,7 @@ func TestHeaderValidateBasic(t *testing.T) {
 		i := i
 		t.Run(tc.testName, func(t *testing.T) {
 			header := &Header{
-				Version:            tmversion.Consensus{Block: version.BlockProtocol, App: 2},
+				Version:            tmversion.Consensus{Block: version.BlockProtocol, App: version.AppProtocol},
 				ChainID:            "chainId",
 				Height:             3,
 				Time:               time.Date(2019, 10, 13, 16, 14, 44, 0, time.UTC),
@@ -1228,17 +1233,17 @@ func TestBlockIDValidateBasic(t *testing.T) {
 func TestBlockProtoBuf(t *testing.T) {
 	h := tmrand.Int63()
 	c1 := randCommit(time.Now())
-	b1 := MakeBlock(h, []Tx{Tx([]byte{1})}, &Commit{Signatures: []CommitSig{}}, []Evidence{})
+	b1 := MakeBlock(h, []Tx{Tx([]byte{1})}, &Commit{Signatures: []CommitSig{}}, []Evidence{}, TestConsensusVersion)
 	b1.ProposerAddress = tmrand.Bytes(crypto.AddressSize)
 
-	b2 := MakeBlock(h, []Tx{Tx([]byte{1})}, c1, []Evidence{})
+	b2 := MakeBlock(h, []Tx{Tx([]byte{1})}, c1, []Evidence{}, TestConsensusVersion)
 	b2.ProposerAddress = tmrand.Bytes(crypto.AddressSize)
 	evidenceTime := time.Date(2019, 1, 1, 0, 0, 0, 0, time.UTC)
 	evi := NewMockDuplicateVoteEvidence(h, evidenceTime, "block-test-chain")
 	b2.Evidence = EvidenceData{Evidence: EvidenceList{evi}}
 	b2.EvidenceHash = b2.Evidence.Hash()
 
-	b3 := MakeBlock(h, []Tx{}, c1, []Evidence{})
+	b3 := MakeBlock(h, []Tx{}, c1, []Evidence{}, TestConsensusVersion)
 	b3.ProposerAddress = tmrand.Bytes(crypto.AddressSize)
 	testCases := []struct {
 		msg      string
@@ -1339,7 +1344,7 @@ func makeRandHeader() Header {
 	randAddress := tmrand.Bytes(crypto.AddressSize)
 	randProof := tmrand.Bytes(vrf.ProofSize)
 	h := Header{
-		Version:            tmversion.Consensus{Block: version.BlockProtocol, App: 1},
+		Version:            tmversion.Consensus{Block: version.BlockProtocol, App: version.AppProtocol},
 		ChainID:            chainID,
 		Height:             height,
 		Time:               t,
diff --git a/types/event_bus_test.go b/types/event_bus_test.go
index c0d49b21c..f0e93a754 100644
--- a/types/event_bus_test.go
+++ b/types/event_bus_test.go
@@ -75,7 +75,7 @@ func TestEventBusPublishEventNewBlock(t *testing.T) {
 		}
 	})
 
-	block := MakeBlock(0, []Tx{}, nil, []Evidence{})
+	block := MakeBlock(0, []Tx{}, nil, []Evidence{}, TestConsensusVersion)
 	resultBeginBlock := abci.ResponseBeginBlock{
 		Events: []abci.Event{
 			{Type: "testType", Attributes: []abci.EventAttribute{{Key: []byte("baz"), Value: []byte("1")}}},
@@ -234,7 +234,7 @@ func TestEventBusPublishEventNewBlockHeader(t *testing.T) {
 		}
 	})
 
-	block := MakeBlock(0, []Tx{}, nil, []Evidence{})
+	block := MakeBlock(0, []Tx{}, nil, []Evidence{}, TestConsensusVersion)
 	resultBeginBlock := abci.ResponseBeginBlock{
 		Events: []abci.Event{
 			{Type: "testType", Attributes: []abci.EventAttribute{{Key: []byte("baz"), Value: []byte("1")}}},
diff --git a/types/evidence_test.go b/types/evidence_test.go
index 5acaf35f0..7ae396bde 100644
--- a/types/evidence_test.go
+++ b/types/evidence_test.go
@@ -299,7 +299,7 @@ func makeVote(
 
 func makeHeaderRandom() *Header {
 	return &Header{
-		Version:            tmversion.Consensus{Block: version.BlockProtocol, App: 1},
+		Version:            tmversion.Consensus{Block: version.BlockProtocol, App: version.AppProtocol},
 		ChainID:            tmrand.Str(12),
 		Height:             int64(tmrand.Uint16()) + 1,
 		Time:               time.Now(),
diff --git a/types/params.go b/types/params.go
index e315f4017..6aac0dfba 100644
--- a/types/params.go
+++ b/types/params.go
@@ -8,6 +8,7 @@ import (
 	abci "github.com/line/ostracon/abci/types"
 	"github.com/line/ostracon/crypto/tmhash"
 	tmproto "github.com/line/ostracon/proto/ostracon/types"
+	"github.com/line/ostracon/version"
 )
 
 const (
@@ -69,7 +70,7 @@ func DefaultValidatorParams() tmproto.ValidatorParams {
 
 func DefaultVersionParams() tmproto.VersionParams {
 	return tmproto.VersionParams{
-		AppVersion: 0,
+		AppVersion: version.AppProtocol,
 	}
 }
 
diff --git a/types/params_test.go b/types/params_test.go
index 68d1fefc1..b5a4a0836 100644
--- a/types/params_test.go
+++ b/types/params_test.go
@@ -145,9 +145,9 @@ func TestConsensusParamsUpdate_AppVersion(t *testing.T) {
 	assert.EqualValues(t, 0, params.Version.AppVersion)
 
 	updated := UpdateConsensusParams(params,
-		&abci.ConsensusParams{Version: &tmproto.VersionParams{AppVersion: 1}})
+		&abci.ConsensusParams{Version: &tmproto.VersionParams{AppVersion: 77}})
 
-	assert.EqualValues(t, 1, updated.Version.AppVersion)
+	assert.EqualValues(t, 77, updated.Version.AppVersion)
 }
 
 func TestVoterParamsValidate(t *testing.T) {
diff --git a/version/version.go b/version/version.go
index 68fcf279a..c6bbabaa8 100644
--- a/version/version.go
+++ b/version/version.go
@@ -21,4 +21,7 @@ var (
 	// BlockProtocol versions all block data structures and processing.
 	// This includes validity of blocks and state updates.
 	BlockProtocol uint64 = 11
+
+	// AppProtocol versions ABCI application.
+	AppProtocol uint64 = 0
 )