diff --git a/first-network/byfn.sh b/first-network/byfn.sh
index 01287c6391..161a5dc615 100755
--- a/first-network/byfn.sh
+++ b/first-network/byfn.sh
@@ -34,13 +34,14 @@ export FABRIC_CFG_PATH=${PWD}
 # Print the usage message
 function printHelp () {
   echo "Usage: "
-  echo "  byfn.sh up|down|restart|generate [-c <channel name>] [-t <timeout>] [-d <delay>] [-f <docker-compose-file>] [-s <dbtype>] [-i <imagetag>]"
+  echo "  byfn.sh up|down|restart|generate|upgrade [-c <channel name>] [-t <timeout>] [-d <delay>] [-f <docker-compose-file>] [-s <dbtype>] [-i <imagetag>]"
   echo "  byfn.sh -h|--help (print this message)"
   echo "    <mode> - one of 'up', 'down', 'restart' or 'generate'"
   echo "      - 'up' - bring up the network with docker-compose up"
   echo "      - 'down' - clear the network with docker-compose down"
   echo "      - 'restart' - restart the network"
   echo "      - 'generate' - generate required certificates and genesis block"
+  echo "      - 'upgrade'  - upgrade the network from v1.0.x to v1.1"
   echo "    -c <channel name> - channel name to use (defaults to \"mychannel\")"
   echo "    -t <timeout> - CLI timeout duration in seconds (defaults to 10)"
   echo "    -d <delay> - delay duration in seconds (defaults to 3)"
@@ -58,6 +59,7 @@ function printHelp () {
   echo "        byfn.sh up -c mychannel -s couchdb -i 1.1.0-alpha"
   echo "	byfn.sh up -l node"
   echo "	byfn.sh down -c mychannel"
+  echo "        byfn.sh upgrade -c mychannel"
   echo
   echo "Taking all defaults:"
   echo "	byfn.sh generate"
@@ -141,6 +143,65 @@ function networkUp () {
   fi
 }
 
+# Upgrade the network from v1.0.x to v1.1
+# Stop the orderer and peers, backup the ledger from orderer and peers, cleanup chaincode containers and images
+# and relaunch the orderer and peers with latest tag
+function upgradeNetwork () {
+  if [ ! -d ledgers ]; then
+    echo "ERROR !!!! There is no persisted ledgers directory, did you start your network with -p?"
+    exit 1
+  fi
+
+  LEDGERS_BACKUP=./ledgers-backup
+
+  # create ledger-backup directory
+  mkdir -p $LEDGERS_BACKUP
+
+  export IMAGE_TAG=$IMAGETAG
+  if [ "${IF_COUCHDB}" == "couchdb" ]; then
+      COMPOSE_FILES="-f $COMPOSE_FILE -f $COMPOSE_FILE_PERSIST -f $COMPOSE_FILE_COUCH"
+  else
+      COMPOSE_FILES="-f $COMPOSE_FILE -f $COMPOSE_FILE_PERSIST"
+  fi
+
+  # removing the cli container
+  docker-compose $COMPOSE_FILES stop cli
+  docker-compose $COMPOSE_FILES up -d --no-deps cli
+
+  echo "Upgrading orderer"
+  docker-compose $COMPOSE_FILES stop orderer.example.com
+  docker cp -a orderer.example.com:/var/hyperledger/production/orderer $LEDGERS_BACKUP/orderer.example.com
+  docker-compose $COMPOSE_FILES up -d --no-deps orderer.example.com
+
+  for PEER in peer0.org1.example.com peer1.org1.example.com peer0.org2.example.com peer1.org2.example.com; do
+    echo "Upgrading peer $PEER"
+
+    # Stop the peer and backup its ledger
+    docker-compose $COMPOSE_FILES stop $PEER
+    docker cp -a $PEER:/var/hyperledger/production $LEDGERS_BACKUP/$PEER/
+
+    # Remove any old containers and images for this peer
+    CC_CONTAINERS=$(docker ps | grep dev-$PEER | awk '{print $1}')
+    if [ -n "$CC_CONTAINERS" ] ; then
+        docker rm -f $CC_CONTAINERS
+    fi
+    CC_IMAGES=$(docker images | grep dev-$PEER | awk '{print $1}')
+    if [ -n "$CC_IMAGES" ] ; then
+        docker rmi -f $CC_IMAGES
+    fi
+
+    # Start the peer again
+    docker-compose $COMPOSE_FILES up -d --no-deps $PEER
+  done
+
+  docker exec cli scripts/upgrade_to_v11.sh $CHANNEL_NAME $CLI_DELAY $LANGUAGE $CLI_TIMEOUT
+  if [ $? -ne 0 ]; then
+    echo "ERROR !!!! Test failed"
+    exit 1
+  fi
+}
+
+
 # Tear down running network
 function networkDown () {
   docker-compose -f $COMPOSE_FILE down
@@ -149,6 +210,7 @@ function networkDown () {
   if [ "$MODE" != "restart" ]; then
     #Delete any persisted ledgers
     docker run -v $PWD:/tmp/first-network --rm hyperledger/fabric-tools:$IMAGETAG rm -Rf /tmp/first-network/ledgers
+    docker run -v $PWD:/tmp/first-network --rm hyperledger/fabric-tools:$IMAGETAG rm -Rf /tmp/first-network/ledgers-backup
     #Cleanup the chaincode containers
     clearContainers
     #Cleanup images
@@ -356,6 +418,8 @@ elif [ "$MODE" == "restart" ]; then
   EXPMODE="Restarting"
 elif [ "$MODE" == "generate" ]; then
   EXPMODE="Generating certs and genesis block for"
+elif [ "$MODE" == "upgrade" ]; then
+  EXPMODE="Upgrading the network"
 else
   printHelp
   exit 1
@@ -409,6 +473,8 @@ elif [ "${MODE}" == "generate" ]; then ## Generate Artifacts
 elif [ "${MODE}" == "restart" ]; then ## Restart the network
   networkDown
   networkUp
+elif [ "${MODE}" == "upgrade" ]; then ## Upgrade the network from v1.0.x to v1.1
+  upgradeNetwork
 else
   printHelp
   exit 1
diff --git a/first-network/scripts/capabilities.json b/first-network/scripts/capabilities.json
new file mode 100644
index 0000000000..f6120bbf5d
--- /dev/null
+++ b/first-network/scripts/capabilities.json
@@ -0,0 +1,9 @@
+{
+    "mod_policy": "Admins",
+    "value": {
+      "capabilities": {
+        "V1_1": {}
+      }
+    },
+    "version": "0"
+}
diff --git a/first-network/scripts/step1org3.sh b/first-network/scripts/step1org3.sh
index 1f16216750..1e468d3c4d 100755
--- a/first-network/scripts/step1org3.sh
+++ b/first-network/scripts/step1org3.sh
@@ -29,6 +29,9 @@ if [ "$LANGUAGE" = "node" ]; then
 	CC_SRC_PATH="/opt/gopath/src/github.com/chaincode/chaincode_example02/node/"
 fi
 
+# import utils
+. scripts/utils.sh
+
 echo
 echo "========= Creating config transaction to add org3 to network =========== "
 echo
@@ -36,34 +39,14 @@ echo
 echo "Installing jq"
 apt-get -y update && apt-get -y install jq
 
-echo "Fetching the most recent configuration block for the channel"
-peer channel fetch config config_block.pb -o orderer.example.com:7050 -c ${CHANNEL_NAME} --tls --cafile ${ORDERER_CA}
-
-echo "Creating config transaction adding org3 to the network"
-# translate channel configuration block into JSON format
-configtxlator proto_decode --input config_block.pb --type common.Block --output config_block.json
+# Fetch the config for the channel, writing it to config.json
+fetchChannelConfig ${CHANNEL_NAME} config.json
 
-# strip away all of the encapsulating wrappers
-jq .data.data[0].payload.data.config config_block.json > config.json
-
-# append new org to the configuration
+# Modify the configuration to append the new org
 jq -s '.[0] * {"channel_group":{"groups":{"Application":{"groups": {"Org3MSP":.[1]}}}}}' config.json ./channel-artifacts/org3.json > modified_config.json
 
-# translate json config files back to protobuf
-configtxlator proto_encode --input config.json --type common.Config --output config.pb
-configtxlator proto_encode --input modified_config.json --type common.Config --output modified_config.pb
-
-# get delta between old and new configs
-configtxlator compute_update --channel_id ${CHANNEL_NAME} --original config.pb --updated modified_config.pb --output org3_update.pb
-
-# translate protobuf delta to json
-configtxlator proto_decode --input org3_update.pb --type common.ConfigUpdate --output org3_update.json
-
-# wrap delta in an envelope message
-echo '{"payload":{"header":{"channel_header":{"channel_id":"'${CHANNEL_NAME}'", "type":2}},"data":{"config_update":'$(cat org3_update.json)'}}}' | jq . > org3_update_in_envelope.json
-
-# translate json back to protobuf
-configtxlator proto_encode --input org3_update_in_envelope.json --type common.Envelope --output org3_update_in_envelope.pb
+# Compute a config update, based on the differences between config.json and modified_config.json, write it as a transaction to org3_update_in_envelope.pb
+createConfigUpdate ${CHANNEL_NAME} config.json modified_config.json org3_update_in_envelope.pb
 
 echo
 echo "========= Config transaction to add org3 to network created ===== "
@@ -71,15 +54,12 @@ echo
 
 echo "Signing config transaction"
 echo
-peer channel signconfigtx -f org3_update_in_envelope.pb
+signConfigtxAsPeerOrg 1 org3_update_in_envelope.pb
 
 echo
 echo "========= Submitting transaction from a different peer (peer0.org2) which also signs it ========= "
 echo
-export CORE_PEER_LOCALMSPID="Org2MSP"
-export CORE_PEER_TLS_ROOTCERT_FILE=/opt/gopath/src/github.com/hyperledger/fabric/peer/crypto/peerOrganizations/org2.example.com/peers/peer0.org2.example.com/tls/ca.crt
-export CORE_PEER_MSPCONFIGPATH=/opt/gopath/src/github.com/hyperledger/fabric/peer/crypto/peerOrganizations/org2.example.com/users/Admin@org2.example.com/msp
-export CORE_PEER_ADDRESS=peer0.org2.example.com:7051
+setGlobals 0 2
 peer channel update -f org3_update_in_envelope.pb -c ${CHANNEL_NAME} -o orderer.example.com:7050 --tls --cafile ${ORDERER_CA}
 
 echo
diff --git a/first-network/scripts/upgrade_to_v11.sh b/first-network/scripts/upgrade_to_v11.sh
new file mode 100755
index 0000000000..8ce98a675e
--- /dev/null
+++ b/first-network/scripts/upgrade_to_v11.sh
@@ -0,0 +1,168 @@
+#!/bin/bash
+
+echo
+echo " ____    _____      _      ____    _____ "
+echo "/ ___|  |_   _|    / \    |  _ \  |_   _|"
+echo "\___ \    | |     / _ \   | |_) |   | |  "
+echo " ___) |   | |    / ___ \  |  _ <    | |  "
+echo "|____/    |_|   /_/   \_\ |_| \_\   |_|  "
+echo
+echo "Upgrade your first network (BYFN) from v1.0.x to v1.1 end-to-end test"
+echo
+CHANNEL_NAME="$1"
+DELAY="$2"
+LANGUAGE="$3"
+TIMEOUT="$4"
+: ${CHANNEL_NAME:="mychannel"}
+: ${DELAY:="5"}
+: ${LANGUAGE:="golang"}
+: ${TIMEOUT:="10"}
+LANGUAGE=`echo "$LANGUAGE" | tr [:upper:] [:lower:]`
+COUNTER=1
+MAX_RETRY=5
+ORDERER_CA=/opt/gopath/src/github.com/hyperledger/fabric/peer/crypto/ordererOrganizations/example.com/orderers/orderer.example.com/msp/tlscacerts/tlsca.example.com-cert.pem
+
+CC_SRC_PATH="github.com/chaincode/chaincode_example02/go/"
+if [ "$LANGUAGE" = "node" ]; then
+        CC_SRC_PATH="/opt/gopath/src/github.com/chaincode/chaincode_example02/node/"
+fi
+
+echo "Channel name : "$CHANNEL_NAME
+
+# import utils
+. scripts/utils.sh
+
+# addCapabilityToChannel <channel_id> <capabilities_group>
+# This function pulls the current channel config, modifies it with capabilities
+# for the specified group, computes the config update, signs, and submits it.
+addCapabilityToChannel() {
+        CH_NAME=$1
+        GROUP=$2
+
+        setOrdererGlobals
+
+        # Get the current channel config, decode and write it to config.json
+        fetchChannelConfig $CH_NAME config.json
+
+        # Modify the correct section of the config based on capabilities group
+        if [ $GROUP == "orderer" ]; then
+                jq -s '.[0] * {"channel_group":{"groups":{"Orderer": {"values": {"Capabilities": .[1]}}}}}' config.json ./scripts/capabilities.json > modified_config.json
+        elif [ $GROUP == "channel" ]; then
+                jq -s '.[0] * {"channel_group":{"values": {"Capabilities": .[1]}}}' config.json ./scripts/capabilities.json > modified_config.json
+        elif [ $GROUP == "application" ]; then
+                jq -s '.[0] * {"channel_group":{"groups":{"Application": {"values": {"Capabilities": .[1]}}}}}' config.json ./scripts/capabilities.json > modified_config.json
+        fi
+
+        # Create a config updated for this channel based on the differences between config.json and modified_config.json
+        # write the output to config_update_in_envelope.pb
+        createConfigUpdate "$CH_NAME" config.json modified_config.json config_update_in_envelope.pb
+
+        # Sign, and set the correct identity for submission.
+        if [ $CH_NAME != "testchainid" ] ; then
+                if [ $GROUP == "orderer" ]; then
+                      # Modifying the orderer group requires only the Orderer admin to sign.
+                      # Prepare to sign the update as the OrdererOrg.Admin
+                      setOrdererGlobals
+                elif [ $GROUP == "channel" ]; then
+                      # Modifying the channel group requires a majority of application admins and the orderer admin to sign.
+                      # Sign with PeerOrg1.Admin
+                      signConfigtxAsPeerOrg 1 config_update_in_envelope.pb
+                      # Sign with PeerOrg2.Admin
+                      signConfigtxAsPeerOrg 2 config_update_in_envelope.pb
+                      # Prepare to sign the update as the OrdererOrg.Admin
+                      setOrdererGlobals
+                elif [ $GROUP == "application" ]; then
+                      # Modifying the application group requires a majority of application admins to sign.
+                      # Sign with PeerOrg1.Admin
+                      signConfigtxAsPeerOrg 1 config_update_in_envelope.pb
+                      # Prepare to sign the update as the PeerOrg2.Admin
+                      setGlobals 0 2
+                fi
+        else
+               # For the orderer system channel, only the orderer admin needs sign
+               # which will be attached during the update
+               setOrdererGlobals
+        fi
+
+        if [ -z "$CORE_PEER_TLS_ENABLED" -o "$CORE_PEER_TLS_ENABLED" = "false" ]; then
+                peer channel update -f config_update_in_envelope.pb -c $CH_NAME -o orderer.example.com:7050 --cafile $ORDERER_CA
+        else
+                peer channel update -f config_update_in_envelope.pb -c $CH_NAME -o orderer.example.com:7050 --tls true --cafile $ORDERER_CA
+        fi
+        res=$?
+        verifyResult $res "Config update for \"$GROUP\" on \"$CH_NAME\" failed"
+        echo "===================== Config update for \"$GROUP\" on \"$CH_NAME\" is completed ===================== "
+
+}
+
+echo "Installing jq"
+apt-get update
+apt-get install -y jq
+
+sleep $DELAY
+
+#Config update for /Channel/Orderer on testchainid
+echo "Config update for /Channel/Orderer on testchainid"
+addCapabilityToChannel testchainid orderer
+
+sleep $DELAY
+
+#Config update for /Channel on testchainid
+echo "Config update for /Channel on testchainid"
+addCapabilityToChannel testchainid channel
+
+sleep $DELAY
+
+#Config update for /Channel/Orderer
+echo "Config update for /Channel/Orderer on \"$CHANNEL_NAME\""
+addCapabilityToChannel $CHANNEL_NAME orderer
+
+sleep $DELAY
+
+#Config update for /Channel/Application
+echo "Config update for /Channel/Application on \"$CHANNEL_NAME\""
+addCapabilityToChannel $CHANNEL_NAME application
+
+sleep $DELAY
+
+#Config update for /Channel
+echo "Config update for /Channel on \"$CHANNEL_NAME\""
+addCapabilityToChannel $CHANNEL_NAME channel
+
+#Query on chaincode on Peer0/Org1
+echo "Querying chaincode on org1/peer0..."
+chaincodeQuery 0 1 90
+
+#Invoke on chaincode on Peer0/Org1
+echo "Sending invoke transaction on org1/peer0..."
+chaincodeInvoke 0 1
+
+sleep $DELAY
+
+#Query on chaincode on Peer0/Org1
+echo "Querying chaincode on org1/peer0..."
+chaincodeQuery 0 1 80
+
+##Invoke on chaincode on Peer0/Org2
+echo "Sending invoke transaction on org2/peer0..."
+chaincodeInvoke 0 2
+
+sleep $DELAY
+
+#Query on chaincode on Peer0/Org2
+echo "Querying chaincode on org2/peer0..."
+chaincodeQuery 0 2 70
+
+echo
+echo "===================== All GOOD, End-2-End UPGRADE Scenario execution completed ===================== "
+echo
+
+echo
+echo " _____   _   _   ____            _____   ____    _____ "
+echo "| ____| | \ | | |  _ \          | ____| |___ \  | ____|"
+echo "|  _|   |  \| | | | | |  _____  |  _|     __) | |  _|  "
+echo "| |___  | |\  | | |_| | |_____| | |___   / __/  | |___ "
+echo "|_____| |_| \_| |____/          |_____| |_____| |_____|"
+echo
+
+exit 0
diff --git a/first-network/scripts/utils.sh b/first-network/scripts/utils.sh
index dd481c0e78..5a7005adb5 100755
--- a/first-network/scripts/utils.sh
+++ b/first-network/scripts/utils.sh
@@ -17,6 +17,13 @@ verifyResult () {
 	fi
 }
 
+# Set OrdererOrg.Admin globals
+setOrdererGlobals() {
+        CORE_PEER_LOCALMSPID="OrdererMSP"
+        CORE_PEER_TLS_ROOTCERT_FILE=/opt/gopath/src/github.com/hyperledger/fabric/peer/crypto/ordererOrganizations/example.com/orderers/orderer.example.com/msp/tlscacerts/tlsca.example.com-cert.pem
+        CORE_PEER_MSPCONFIGPATH=/opt/gopath/src/github.com/hyperledger/fabric/peer/crypto/ordererOrganizations/example.com/users/Admin@example.com/msp
+}
+
 setGlobals () {
 	PEER=$1
 	ORG=$2
@@ -171,6 +178,50 @@ chaincodeQuery () {
   fi
 }
 
+# fetchChannelConfig <channel_id> <output_json>
+# Writes the current channel config for a given channel to a JSON file
+fetchChannelConfig() {
+  CHANNEL=$1
+  OUTPUT=$2
+
+  setOrdererGlobals
+
+  echo "Fetching the most recent configuration block for the channel"
+  if [ -z "$CORE_PEER_TLS_ENABLED" -o "$CORE_PEER_TLS_ENABLED" = "false" ]; then
+    peer channel fetch config config_block.pb -o orderer.example.com:7050 -c $CHANNEL --cafile $ORDERER_CA
+  else
+    peer channel fetch config config_block.pb -o orderer.example.com:7050 -c $CHANNEL --tls --cafile $ORDERER_CA
+  fi
+
+  echo "Decoding config block to JSON and isolating config to ${OUTPUT}"
+  configtxlator proto_decode --input config_block.pb --type common.Block | jq .data.data[0].payload.data.config > "${OUTPUT}"
+}
+
+# signConfigtxAsPeerOrg <org> <configtx.pb>
+# Set the peerOrg admin of an org and signing the config update
+signConfigtxAsPeerOrg() {
+        PEERORG=$1
+        TX=$2
+        setGlobals 0 $PEERORG
+        peer channel signconfigtx -f "${TX}"
+}
+
+# createConfigUpdate <channel_id> <original_config.json> <modified_config.json> <output.pb>
+# Takes an original and modified config, and produces the config update tx which transitions between the two
+createConfigUpdate() {
+  CHANNEL=$1
+  ORIGINAL=$2
+  MODIFIED=$3
+  OUTPUT=$4
+
+  configtxlator proto_encode --input "${ORIGINAL}" --type common.Config > original_config.pb
+  configtxlator proto_encode --input "${MODIFIED}" --type common.Config > modified_config.pb
+  configtxlator compute_update --channel_id "${CHANNEL}" --original original_config.pb --updated modified_config.pb > config_update.pb
+  configtxlator proto_decode --input config_update.pb  --type common.ConfigUpdate > config_update.json
+  echo '{"payload":{"header":{"channel_header":{"channel_id":"'$CHANNEL'", "type":2}},"data":{"config_update":'$(cat config_update.json)'}}}' | jq . > config_update_in_envelope.json
+  configtxlator proto_encode --input config_update_in_envelope.json --type common.Envelope > "${OUTPUT}"
+}
+
 chaincodeInvoke () {
 	PEER=$1
 	ORG=$2