diff --git a/bin/www b/bin/www
index ca32874bb..5110e3f5b 100755
--- a/bin/www
+++ b/bin/www
@@ -18,6 +18,7 @@ const log = require('../services/log');
 const app_info = require('../services/app_info');
 const messaging = require('../services/messaging');
 const utils = require('../services/utils');
+const sql = require('../services/sql');
 
 const port = normalizePort(config['Network']['port'] || '3000');
 app.set('port', port);
@@ -53,7 +54,7 @@ httpServer.listen(port);
 httpServer.on('error', onError);
 httpServer.on('listening', onListening);
 
-messaging.init(httpServer, sessionParser);
+sql.dbReady.then(() => messaging.init(httpServer, sessionParser));
 
 if (utils.isElectron()) {
     const electronRouting = require('../routes/electron');
diff --git a/export-schema.sh b/export-schema.sh
new file mode 100755
index 000000000..95cc7655d
--- /dev/null
+++ b/export-schema.sh
@@ -0,0 +1,3 @@
+#!/usr/bin/env bash
+
+sqlite3 ~/trilium-data/document.db .schema > schema.sql
\ No newline at end of file
diff --git a/migrations/0049__rename_start_note_tree_id_to_note_path.sql b/migrations/0049__rename_start_note_tree_id_to_note_path.sql
new file mode 100644
index 000000000..0ba12b4e9
--- /dev/null
+++ b/migrations/0049__rename_start_note_tree_id_to_note_path.sql
@@ -0,0 +1 @@
+UPDATE options SET opt_name = 'start_note_path' WHERE opt_name = 'start_note_tree_id';
\ No newline at end of file
diff --git a/package-lock.json b/package-lock.json
index 5ec4549df..df1b5b6e1 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -2419,19 +2419,19 @@
       "integrity": "sha1-zIcsFoiArjxxiXYv1f/ACJbJUYo="
     },
     "electron": {
-      "version": "1.8.2-beta.2",
-      "resolved": "https://registry.npmjs.org/electron/-/electron-1.8.2-beta.2.tgz",
-      "integrity": "sha1-tTLHEFDd0tSwDi4NNV3k51vB5f0=",
+      "version": "1.8.2-beta.3",
+      "resolved": "https://registry.npmjs.org/electron/-/electron-1.8.2-beta.3.tgz",
+      "integrity": "sha1-Ljkcy9YnaKOzsmC48uPxZHNWeuw=",
       "requires": {
-        "@types/node": "8.0.49",
+        "@types/node": "8.0.56",
         "electron-download": "3.3.0",
         "extract-zip": "1.6.5"
       },
       "dependencies": {
         "@types/node": {
-          "version": "8.0.49",
-          "resolved": "https://registry.npmjs.org/@types/node/-/node-8.0.49.tgz",
-          "integrity": "sha512-Oq3cV/mrMKy6Tv42llfS8YIH30ooDdhbJ40h1zoWl+goOJw8Kjy8j8RfjGZtZIUDO0gLwCfcbYM7+LModnbeMw=="
+          "version": "8.0.56",
+          "resolved": "https://registry.npmjs.org/@types/node/-/node-8.0.56.tgz",
+          "integrity": "sha512-JAlQv3hUWbrnruuTiLDf1scd4F/TBT0LgGEe+BBeF3p/Rc3yL6RV57WJN2nK5i+BshEz1sDllwH0Fzbuo7G4QA=="
         }
       }
     },
@@ -2590,7 +2590,7 @@
         },
         "fs-extra": {
           "version": "0.30.0",
-          "resolved": "https://registry.npmjs.org/fs-extra/-/fs-extra-0.30.0.tgz",
+          "resolved": "http://registry.npmjs.org/fs-extra/-/fs-extra-0.30.0.tgz",
           "integrity": "sha1-8jP/zAjU2n1DLapEl3aYnbHfk/A=",
           "requires": {
             "graceful-fs": "4.1.11",
@@ -2807,6 +2807,23 @@
         "yargs": "6.6.0"
       },
       "dependencies": {
+        "@types/node": {
+          "version": "8.0.56",
+          "resolved": "https://registry.npmjs.org/@types/node/-/node-8.0.56.tgz",
+          "integrity": "sha512-JAlQv3hUWbrnruuTiLDf1scd4F/TBT0LgGEe+BBeF3p/Rc3yL6RV57WJN2nK5i+BshEz1sDllwH0Fzbuo7G4QA==",
+          "dev": true
+        },
+        "electron": {
+          "version": "1.8.2-beta.2",
+          "resolved": "https://registry.npmjs.org/electron/-/electron-1.8.2-beta.2.tgz",
+          "integrity": "sha1-tTLHEFDd0tSwDi4NNV3k51vB5f0=",
+          "dev": true,
+          "requires": {
+            "@types/node": "8.0.56",
+            "electron-download": "3.3.0",
+            "extract-zip": "1.6.5"
+          }
+        },
         "yargs": {
           "version": "6.6.0",
           "resolved": "https://registry.npmjs.org/yargs/-/yargs-6.6.0.tgz",
diff --git a/package.json b/package.json
index 2476f4942..cd7c317df 100644
--- a/package.json
+++ b/package.json
@@ -19,7 +19,7 @@
     "debug": "~3.1.0",
     "devtron": "^1.4.0",
     "ejs": "~2.5.7",
-    "electron": "^1.8.2-beta.2",
+    "electron": "^1.8.2-beta.3",
     "electron-debug": "^1.0.0",
     "express": "~4.16.2",
     "express-session": "^1.15.6",
diff --git a/public/javascripts/context_menu.js b/public/javascripts/context_menu.js
index 9f5043363..59e498479 100644
--- a/public/javascripts/context_menu.js
+++ b/public/javascripts/context_menu.js
@@ -19,7 +19,7 @@ const contextMenu = (function() {
             // just do nothing
         }
         else {
-            throw new Error("Unrecognized clipboard mode=" + clipboardMode);
+            throwError("Unrecognized clipboard mode=" + clipboardMode);
         }
 
         clipboardId = null;
@@ -36,7 +36,7 @@ const contextMenu = (function() {
             treeChanges.cloneNoteTo(clipboardId, node.data.note_id);
         }
         else {
-            throw new Error("Unrecognized clipboard mode=" + mode);
+            throwError("Unrecognized clipboard mode=" + mode);
         }
 
         clipboardId = null;
diff --git a/public/javascripts/dialogs/note_history.js b/public/javascripts/dialogs/note_history.js
index a6da3321b..3bbbfd2c8 100644
--- a/public/javascripts/dialogs/note_history.js
+++ b/public/javascripts/dialogs/note_history.js
@@ -27,7 +27,7 @@ const noteHistory = (function() {
         historyItems = await server.get('notes-history/' + noteId);
 
         for (const item of historyItems) {
-            const dateModified = getDateFromTS(item.date_modified_to);
+            const dateModified = getDateFromTS(item.date_modified_from);
 
             $("#note-history-list").append($('<option>', {
                 value: item.note_history_id,
diff --git a/public/javascripts/messaging.js b/public/javascripts/messaging.js
index af3888e16..1a1b272be 100644
--- a/public/javascripts/messaging.js
+++ b/public/javascripts/messaging.js
@@ -4,7 +4,7 @@ const messaging = (function() {
     let ws = null;
 
     function logError(message) {
-        console.error(message);
+        console.trace(message);
 
         if (ws && ws.readyState === 1) {
             ws.send(JSON.stringify({
diff --git a/public/javascripts/note_tree.js b/public/javascripts/note_tree.js
index 8fa2d537d..7267949e0 100644
--- a/public/javascripts/note_tree.js
+++ b/public/javascripts/note_tree.js
@@ -4,7 +4,7 @@ const noteTree = (function() {
     const treeEl = $("#tree");
     const parentListEl = $("#parent-list");
 
-    let startNoteTreeId = null;
+    let startNotePath = null;
     let notesTreeMap = {};
 
     let parentToChildren = {};
@@ -25,7 +25,7 @@ const noteTree = (function() {
         let title = noteIdToTitle[noteId];
 
         if (!title) {
-            throw new Error("Can't find title for noteId='" + noteId + "'");
+            throwError("Can't find title for noteId='" + noteId + "'");
         }
 
         if (parentNoteId !== null) {
@@ -265,7 +265,7 @@ const noteTree = (function() {
         const parents = childToParents[noteId];
 
         if (!parents) {
-            throw new Error("Can't find parents for noteId=" + noteId);
+            throwError("Can't find parents for noteId=" + noteId);
         }
 
         if (parents.length <= 1) {
@@ -278,7 +278,9 @@ const noteTree = (function() {
             const list = $("<ul/>");
 
             for (const parentNoteId of parents) {
-                const notePath = getSomeNotePath(parentNoteId) + '/' + noteId;
+                const parentNotePath = getSomeNotePath(parentNoteId);
+                // this is to avoid having root notes leading '/'
+                const notePath = parentNotePath ? (parentNotePath + '/' + noteId) : noteId;
                 const title = getNotePathTitle(notePath);
 
                 let item;
@@ -303,6 +305,8 @@ const noteTree = (function() {
         let parentNoteId = 'root';
 
         for (const noteId of notePath.split('/')) {
+            console.log('noteId: ' + noteId);
+
             titlePath.push(getNoteTitle(noteId, parentNoteId));
 
             parentNoteId = noteId;
@@ -403,8 +407,8 @@ const noteTree = (function() {
                 setExpandedToServer(data.node.data.note_tree_id, false);
             },
             init: (event, data) => {
-                if (startNoteTreeId) {
-                    activateNode(startNoteTreeId);
+                if (startNotePath) {
+                    activateNode(startNotePath);
                 }
                 else {
                     showAppIfHidden();
@@ -494,10 +498,10 @@ const noteTree = (function() {
 
     function loadTree() {
         return server.get('tree').then(resp => {
-            startNoteTreeId = resp.start_note_tree_id;
+            startNotePath = resp.start_note_path;
 
             if (document.location.hash) {
-                startNoteTreeId = document.location.hash.substr(1); // strip initial #
+                startNotePath = document.location.hash.substr(1); // strip initial #
             }
 
             return prepareNoteTree(resp.notes, resp.notes_parent);
diff --git a/public/javascripts/setup.js b/public/javascripts/setup.js
new file mode 100644
index 000000000..ddc9fa9c4
--- /dev/null
+++ b/public/javascripts/setup.js
@@ -0,0 +1,34 @@
+$("#setup-form").submit(() => {
+    const username = $("#username").val();
+    const password1 = $("#password1").val();
+    const password2 = $("#password2").val();
+
+    if (!username) {
+        showAlert("Username can't be empty");
+        return false;
+    }
+
+    if (!password1) {
+        showAlert("Password can't be empty");
+        return false;
+    }
+
+    if (password1 !== password2) {
+        showAlert("Both password fields need be identical.");
+        return false;
+    }
+
+    server.post('setup', {
+        username: username,
+        password: password1
+    }).then(() => {
+        window.location.replace("/");
+    });
+
+    return false;
+});
+
+function showAlert(message) {
+    $("#alert").html(message);
+    $("#alert").show();
+}
\ No newline at end of file
diff --git a/public/javascripts/utils.js b/public/javascripts/utils.js
index 030ba1e8b..ab03172be 100644
--- a/public/javascripts/utils.js
+++ b/public/javascripts/utils.js
@@ -30,6 +30,12 @@ function showError(message) {
     });
 }
 
+function throwError(message) {
+    messaging.logError(message);
+
+    throw new Error(message);
+}
+
 function getDateFromTS(timestamp) {
     // Date accepts number of milliseconds since epoch so UTC timestamp works without any extra handling
     // see https://stackoverflow.com/questions/4631928/convert-utc-epoch-to-local-date-with-javascript
diff --git a/public/stylesheets/style.css b/public/stylesheets/style.css
index 798918866..d28f352ce 100644
--- a/public/stylesheets/style.css
+++ b/public/stylesheets/style.css
@@ -85,6 +85,10 @@ span.fancytree-node.fancytree-active-clone:not(.fancytree-active) .fancytree-tit
     text-decoration: none;
 }
 
+.icon-action {
+    cursor: pointer;
+}
+
 #protect-button, #unprotect-button {
     display: none;
 }
@@ -115,6 +119,17 @@ div.ui-tooltip {
     width: auto;
 }
 
+#parent-list {
+    display: none;
+    margin-left: 20px;
+    border-top: 2px solid #eee;
+    padding-top: 10px;
+}
+
+#parent-list ul {
+    padding-left: 20px;
+}
+
 #loader-wrapper{position:fixed;top:0;left:0;width:100%;height:100%;z-index:1000;background-color:#fff;opacity:1;transition:opacity 2s ease}
 #loader{display:block;position:relative;left:50%;top:50%;width:150px;height:150px;margin:-75px 0 0 -75px;border-radius:50%;border:3px solid transparent;border-top-color:#777;-webkit-animation:spin 2s linear infinite;animation:spin 2s linear infinite}
 #loader:before{content:"";position:absolute;top:5px;left:5px;right:5px;bottom:5px;border-radius:50%;border:3px solid transparent;border-top-color:#aaa;-webkit-animation:spin 3s linear infinite;animation:spin 3s linear infinite}
diff --git a/routes/api/login.js b/routes/api/login.js
index ea729254c..e09063e57 100644
--- a/routes/api/login.js
+++ b/routes/api/login.js
@@ -9,6 +9,7 @@ const source_id = require('../../services/source_id');
 const auth = require('../../services/auth');
 const password_encryption = require('../../services/password_encryption');
 const protected_session = require('../../services/protected_session');
+const app_info = require('../../services/app_info');
 
 router.post('/sync', async (req, res, next) => {
     const timestamp = req.body.timestamp;
@@ -22,9 +23,9 @@ router.post('/sync', async (req, res, next) => {
 
     const dbVersion = req.body.dbVersion;
 
-    if (dbVersion !== migration.APP_DB_VERSION) {
+    if (dbVersion !== app_info.db_version) {
         res.status(400);
-        res.send({ message: 'Non-matching db versions, local is version ' + migration.APP_DB_VERSION });
+        res.send({ message: 'Non-matching db versions, local is version ' + app_info.db_version });
     }
 
     const documentSecret = await options.getOption('document_secret');
diff --git a/routes/api/migration.js b/routes/api/migration.js
index cae0c1c4d..9d75ceab2 100644
--- a/routes/api/migration.js
+++ b/routes/api/migration.js
@@ -5,11 +5,12 @@ const router = express.Router();
 const auth = require('../../services/auth');
 const options = require('../../services/options');
 const migration = require('../../services/migration');
+const app_info = require('../../services/app_info');
 
 router.get('', auth.checkApiAuthForMigrationPage, async (req, res, next) => {
     res.send({
         db_version: parseInt(await options.getOption('db_version')),
-        app_db_version: migration.APP_DB_VERSION
+        app_db_version: app_info.db_version
     });
 });
 
diff --git a/routes/api/recent_notes.js b/routes/api/recent_notes.js
index 1b78c8151..eda3cbac7 100644
--- a/routes/api/recent_notes.js
+++ b/routes/api/recent_notes.js
@@ -26,7 +26,7 @@ router.put('/:noteTreeId/:notePath', auth.checkApiAuth, async (req, res, next) =
 
         await sync_table.addRecentNoteSync(noteTreeId);
 
-        await options.setOption('start_note_tree_id', notePath);
+        await options.setOption('start_note_path', notePath);
     });
 
     res.send(await getRecentNotes());
diff --git a/routes/api/setup.js b/routes/api/setup.js
new file mode 100644
index 000000000..ea31c84a7
--- /dev/null
+++ b/routes/api/setup.js
@@ -0,0 +1,32 @@
+"use strict";
+
+const express = require('express');
+const router = express.Router();
+const auth = require('../../services/auth');
+const options = require('../../services/options');
+const sql = require('../../services/sql');
+const utils = require('../../services/utils');
+const my_scrypt = require('../../services/my_scrypt');
+const password_encryption = require('../../services/password_encryption');
+
+router.post('', auth.checkAppNotInitialized, async (req, res, next) => {
+    const { username, password } = req.body;
+
+    await sql.doInTransaction(async () => {
+        await options.setOption('username', username);
+
+        await options.setOption('password_verification_salt', utils.randomSecureToken(32));
+        await options.setOption('password_derived_key_salt', utils.randomSecureToken(32));
+
+        const passwordVerificationKey = utils.toBase64(await my_scrypt.getVerificationHash(password));
+        await options.setOption('password_verification_hash', passwordVerificationKey);
+
+        await password_encryption.setDataKey(password, utils.randomSecureToken(16));
+    });
+
+    sql.setDbReadyAsResolved();
+
+    res.send({});
+});
+
+module.exports = router;
\ No newline at end of file
diff --git a/routes/api/tree.js b/routes/api/tree.js
index 50186750d..6cdab2ee9 100644
--- a/routes/api/tree.js
+++ b/routes/api/tree.js
@@ -31,7 +31,7 @@ router.get('/', auth.checkApiAuth, async (req, res, next) => {
 
     res.send({
         notes: notes,
-        start_note_tree_id: await options.getOption('start_note_tree_id')
+        start_note_path: await options.getOption('start_note_path')
     });
 });
 
diff --git a/routes/routes.js b/routes/routes.js
index 37aa816b4..888dbfc0a 100644
--- a/routes/routes.js
+++ b/routes/routes.js
@@ -2,6 +2,7 @@ const indexRoute = require('./index');
 const loginRoute = require('./login');
 const logoutRoute = require('./logout');
 const migrationRoute = require('./migration');
+const setupRoute = require('./setup');
 
 // API routes
 const treeApiRoute = require('./api/tree');
@@ -19,12 +20,14 @@ const recentNotesRoute = require('./api/recent_notes');
 const appInfoRoute = require('./api/app_info');
 const exportRoute = require('./api/export');
 const importRoute = require('./api/import');
+const setupApiRoute = require('./api/setup');
 
 function register(app) {
     app.use('/', indexRoute);
     app.use('/login', loginRoute);
     app.use('/logout', logoutRoute);
     app.use('/migration', migrationRoute);
+    app.use('/setup', setupRoute);
 
     app.use('/api/tree', treeApiRoute);
     app.use('/api/notes', notesApiRoute);
@@ -41,6 +44,7 @@ function register(app) {
     app.use('/api/app-info', appInfoRoute);
     app.use('/api/export', exportRoute);
     app.use('/api/import', importRoute);
+    app.use('/api/setup', setupApiRoute);
 }
 
 module.exports = {
diff --git a/routes/setup.js b/routes/setup.js
new file mode 100644
index 000000000..083c90611
--- /dev/null
+++ b/routes/setup.js
@@ -0,0 +1,11 @@
+"use strict";
+
+const express = require('express');
+const router = express.Router();
+const auth = require('../services/auth');
+
+router.get('', auth.checkAppNotInitialized, (req, res, next) => {
+    res.render('setup', {});
+});
+
+module.exports = router;
diff --git a/schema.sql b/schema.sql
new file mode 100644
index 000000000..3dbe8b647
--- /dev/null
+++ b/schema.sql
@@ -0,0 +1,92 @@
+CREATE TABLE `migrations` (
+	`id`	INTEGER NOT NULL PRIMARY KEY AUTOINCREMENT,
+	`name`	TEXT NOT NULL,
+	`version`	INTEGER NOT NULL,
+	`success`	INTEGER NOT NULL,
+	`error`	TEXT
+);
+CREATE TABLE `sync` (
+	`id`	INTEGER NOT NULL PRIMARY KEY AUTOINCREMENT,
+	`entity_name`	TEXT NOT NULL,
+	`entity_id`	TEXT NOT NULL,
+	`sync_date`	INTEGER NOT NULL
+, source_id TEXT);
+CREATE UNIQUE INDEX `IDX_sync_entity_name_id` ON `sync` (
+	`entity_name`,
+	`entity_id`
+);
+CREATE INDEX `IDX_sync_sync_date` ON `sync` (
+	`sync_date`
+);
+CREATE TABLE IF NOT EXISTS "options" (
+	`opt_name`	TEXT NOT NULL PRIMARY KEY,
+	`opt_value`	TEXT,
+	`date_modified` INT
+);
+CREATE TABLE `event_log` (
+	`id`	INTEGER NOT NULL PRIMARY KEY AUTOINCREMENT,
+	`note_id`	TEXT,
+	`comment`	TEXT,
+	`date_added`	INTEGER NOT NULL
+);
+CREATE INDEX `IDX_event_log_date_added` ON `event_log` (
+	`date_added`
+);
+CREATE TABLE IF NOT EXISTS "notes" (
+	`note_id`	TEXT NOT NULL,
+	`note_title`	TEXT,
+	`note_text`	TEXT,
+	`date_created`	INT,
+	`date_modified`	INT,
+	`is_protected`	INT NOT NULL DEFAULT 0,
+	`is_deleted`	INT NOT NULL DEFAULT 0,
+	PRIMARY KEY(`note_id`)
+);
+CREATE INDEX `IDX_notes_is_deleted` ON `notes` (
+	`is_deleted`
+);
+CREATE TABLE IF NOT EXISTS "notes_history" (
+	`note_history_id`	TEXT NOT NULL PRIMARY KEY,
+	`note_id`	TEXT NOT NULL,
+	`note_title`	TEXT,
+	`note_text`	TEXT,
+	`is_protected`	INT,
+	`date_modified_from` INT,
+	`date_modified_to` INT
+);
+CREATE INDEX `IDX_notes_history_note_id` ON `notes_history` (
+	`note_id`
+);
+CREATE INDEX `IDX_notes_history_note_date_modified_from` ON `notes_history` (
+	`date_modified_from`
+);
+CREATE INDEX `IDX_notes_history_note_date_modified_to` ON `notes_history` (
+	`date_modified_to`
+);
+CREATE TABLE `source_ids` (
+	`source_id`	TEXT NOT NULL,
+	`date_created`	INTEGER NOT NULL,
+	PRIMARY KEY(`source_id`)
+);
+CREATE TABLE IF NOT EXISTS "notes_tree" (
+    [note_tree_id] VARCHAR(30) PRIMARY KEY NOT NULL,
+    [note_id] VARCHAR(30) NOT NULL,
+    [note_pid] VARCHAR(30) NOT NULL,
+    [note_pos] INTEGER NOT NULL,
+    [is_expanded] BOOLEAN NULL ,
+    date_modified INTEGER NOT NULL DEFAULT 0,
+    is_deleted INTEGER NOT NULL DEFAULT 0
+, `prefix` TEXT);
+CREATE INDEX `IDX_notes_tree_note_tree_id` ON `notes_tree` (
+	`note_tree_id`
+);
+CREATE INDEX `IDX_notes_tree_note_id_note_pid` ON `notes_tree` (
+	`note_id`,
+	`note_pid`
+);
+CREATE TABLE `recent_notes` (
+  'note_tree_id'TEXT NOT NULL PRIMARY KEY,
+  `note_path` TEXT NOT NULL,
+  `date_accessed` INTEGER NOT NULL ,
+  is_deleted INT
+);
diff --git a/services/app_info.js b/services/app_info.js
index 74bab1ec0..88194af3c 100644
--- a/services/app_info.js
+++ b/services/app_info.js
@@ -2,11 +2,12 @@
 
 const build = require('./build');
 const packageJson = require('../package');
-const migration = require('./migration');
+
+const APP_DB_VERSION = 49;
 
 module.exports = {
     app_version: packageJson.version,
-    db_version: migration.APP_DB_VERSION,
+    db_version: APP_DB_VERSION,
     build_date: build.build_date,
     build_revision: build.build_revision
 };
\ No newline at end of file
diff --git a/services/auth.js b/services/auth.js
index 9ccb5da35..ca5d0a9c7 100644
--- a/services/auth.js
+++ b/services/auth.js
@@ -2,16 +2,22 @@
 
 const migration = require('./migration');
 const utils = require('./utils');
+const options = require('./options');
 
 async function checkAuth(req, res, next) {
-    if (!req.session.loggedIn && !utils.isElectron()) {
+    const username = await options.getOption('username');
+
+    if (!username) {
+        res.redirect("setup");
+    }
+    else if (!req.session.loggedIn && !utils.isElectron()) {
         res.redirect("login");
     }
-    else if (await migration.isDbUpToDate()) {
-        next();
+    else if (!await migration.isDbUpToDate()) {
+        res.redirect("migration");
     }
     else {
-        res.redirect("migration");
+        next();
     }
 }
 
@@ -45,9 +51,21 @@ async function checkApiAuthForMigrationPage(req, res, next) {
     }
 }
 
+async function checkAppNotInitialized(req, res, next) {
+    const username = await options.getOption('username');
+
+    if (username) {
+        res.status(400).send("App already initialized.");
+    }
+    else {
+        next();
+    }
+}
+
 module.exports = {
     checkAuth,
     checkAuthForMigrationPage,
     checkApiAuth,
-    checkApiAuthForMigrationPage
+    checkApiAuthForMigrationPage,
+    checkAppNotInitialized
 };
\ No newline at end of file
diff --git a/services/backup.js b/services/backup.js
index 513ba932e..9e355fc9e 100644
--- a/services/backup.js
+++ b/services/backup.js
@@ -58,10 +58,12 @@ if (!fs.existsSync(dataDir.BACKUP_DIR)) {
     fs.mkdirSync(dataDir.BACKUP_DIR, 0o700);
 }
 
-setInterval(regularBackup, 60 * 60 * 1000);
+sql.dbReady.then(() => {
+    setInterval(regularBackup, 60 * 60 * 1000);
 
-// kickoff backup immediately
-setTimeout(regularBackup, 1000);
+    // kickoff backup immediately
+    setTimeout(regularBackup, 1000);
+});
 
 module.exports = {
     backupNow
diff --git a/services/build.js b/services/build.js
index 129528bca..3581c3965 100644
--- a/services/build.js
+++ b/services/build.js
@@ -1 +1 @@
-module.exports = { build_date:"2017-11-30T00:11:04-05:00", build_revision: "719f5530544efa1d7aae16afd8a9e64db04ff206" };
+module.exports = { build_date:"2017-12-06T21:44:45-05:00", build_revision: "4f47c4d6e919aefd303617ac459cea41a1761385" };
diff --git a/services/log.js b/services/log.js
index 6cd78cded..f00b2d037 100644
--- a/services/log.js
+++ b/services/log.js
@@ -1,15 +1,15 @@
 "use strict";
 
 const fs = require('fs');
-const LOG_DIR = require('./data_dir').LOG_DIR;
+const data_dir = require('./data_dir');
 
-if (!fs.existsSync(LOG_DIR)) {
-    fs.mkdirSync(LOG_DIR, 0o700);
+if (!fs.existsSync(data_dir.LOG_DIR)) {
+    fs.mkdirSync(data_dir.LOG_DIR, 0o700);
 }
 
 const logger = require('simple-node-logger').createRollingFileLogger({
     errorEventName: 'error',
-    logDirectory: LOG_DIR,
+    logDirectory: data_dir.LOG_DIR,
     fileNamePattern: 'trilium-<DATE>.log',
     dateFormat:'YYYY-MM-DD'
 });
@@ -37,6 +37,8 @@ function request(req) {
     logger.info(req.method + " " + req.url);
 }
 
+info("Using data dir: " + data_dir.TRILIUM_DATA_DIR);
+
 module.exports = {
     info,
     error,
diff --git a/services/migration.js b/services/migration.js
index 39771eac4..f331c2341 100644
--- a/services/migration.js
+++ b/services/migration.js
@@ -3,9 +3,15 @@ const sql = require('./sql');
 const options = require('./options');
 const fs = require('fs-extra');
 const log = require('./log');
+const app_info = require('./app_info');
+const path = require('path');
 
-const APP_DB_VERSION = 48;
-const MIGRATIONS_DIR = "migrations";
+const MIGRATIONS_DIR = path.resolve(__dirname, "..", "migrations");
+
+if (!fs.existsSync(MIGRATIONS_DIR)) {
+    log.error("Could not find migration directory: " + MIGRATIONS_DIR);
+    process.exit(1);
+}
 
 async function migrate() {
     const migrations = [];
@@ -84,11 +90,10 @@ async function migrate() {
 async function isDbUpToDate() {
     const dbVersion = parseInt(await options.getOption('db_version'));
 
-    return dbVersion >= APP_DB_VERSION;
+    return dbVersion >= app_info.db_version;
 }
 
 module.exports = {
     migrate,
-    isDbUpToDate,
-    APP_DB_VERSION
+    isDbUpToDate
 };
\ No newline at end of file
diff --git a/services/notes.js b/services/notes.js
index 95e8cc4fb..7cbf41d8b 100644
--- a/services/notes.js
+++ b/services/notes.js
@@ -81,6 +81,12 @@ async function protectNoteRecursively(noteId, dataKey, protect) {
     }
 }
 
+function decryptNote(note, dataKey) {
+    note.note_title = data_encryption.decryptString(dataKey, data_encryption.noteTitleIv(note.note_id), note.note_title);
+    note.note_text = data_encryption.decryptString(dataKey, data_encryption.noteTextIv(note.note_id), note.note_text);
+    note.is_protected = false;
+}
+
 async function protectNote(note, dataKey, protect) {
     let changed = false;
 
@@ -92,9 +98,7 @@ async function protectNote(note, dataKey, protect) {
         changed = true;
     }
     else if (!protect && note.is_protected) {
-        note.note_title = data_encryption.decryptString(dataKey, data_encryption.noteTitleIv(note.note_id), note.note_title);
-        note.note_text = data_encryption.decryptString(dataKey, data_encryption.noteTextIv(note.note_id), note.note_text);
-        note.is_protected = false;
+        decryptNote(note, dataKey);
 
         changed = true;
     }
@@ -134,9 +138,6 @@ async function protectNoteHistory(noteId, dataKey, protect) {
 }
 
 async function updateNote(noteId, newNote, ctx) {
-    let noteTitleForHistory = newNote.detail.note_title;
-    let noteTextForHistory = newNote.detail.note_text;
-
     if (newNote.detail.is_protected) {
         await encryptNote(newNote, ctx);
     }
@@ -147,19 +148,26 @@ async function updateNote(noteId, newNote, ctx) {
 
     const historyCutoff = now - historySnapshotTimeInterval;
 
-    const existingNoteHistoryId = await sql.getSingleValue("SELECT note_history_id FROM notes_history WHERE note_id = ? AND date_modified_from >= ?", [noteId, historyCutoff]);
+    const existingNoteHistoryId = await sql.getSingleValue("SELECT note_history_id FROM notes_history WHERE note_id = ? AND date_modified_to >= ?", [noteId, historyCutoff]);
 
     await sql.doInTransaction(async () => {
         if (!existingNoteHistoryId && (now - newNote.detail.date_created) >= historySnapshotTimeInterval) {
+            const oldNote = await sql.getSingleResult("SELECT * FROM notes WHERE note_id = ?", [noteId]);
+
+            if (oldNote.is_protected) {
+                decryptNote(oldNote, ctx.getDataKey());
+            }
+
             const newNoteHistoryId = utils.newNoteHistoryId();
 
             await sql.insert('notes_history', {
                 note_history_id: newNoteHistoryId,
                 note_id: noteId,
-                note_title: noteTitleForHistory,
-                note_text: noteTextForHistory,
-                is_protected: false, // we don't care about encryption - this will be handled in protectNoteHistory()
-                date_modified_from: now,
+                // title and text should be decrypted now
+                note_title: oldNote.note_title,
+                note_text: oldNote.note_text,
+                is_protected: 0, // will be fixed in the protectNoteHistory() call
+                date_modified_from: oldNote.date_modified,
                 date_modified_to: now
             });
 
diff --git a/services/options.js b/services/options.js
index c6e236e21..129a9e991 100644
--- a/services/options.js
+++ b/services/options.js
@@ -1,6 +1,7 @@
 const sql = require('./sql');
 const utils = require('./utils');
 const sync_table = require('./sync_table');
+const app_info = require('./app_info');
 
 const SYNCED_OPTIONS = [ 'username', 'password_verification_hash', 'encrypted_data_key', 'protected_session_timeout',
     'history_snapshot_time_interval' ];
@@ -20,21 +21,38 @@ async function setOption(optName, optValue) {
         await sync_table.addOptionsSync(optName);
     }
 
-    await sql.execute("UPDATE options SET opt_value = ?, date_modified = ? WHERE opt_name = ?",
-        [optValue, utils.nowTimestamp(), optName]);
+    await sql.replace("options", {
+        opt_name: optName,
+        opt_value: optValue,
+        date_modified: utils.nowTimestamp()
+    });
 }
 
-sql.dbReady.then(async () => {
-    if (!await getOption('document_id') || !await getOption('document_secret')) {
-        await sql.doInTransaction(async () => {
-            await setOption('document_id', utils.randomSecureToken(16));
-            await setOption('document_secret', utils.randomSecureToken(16));
-        });
-    }
-});
+async function initOptions(startNotePath) {
+    await setOption('document_id', utils.randomSecureToken(16));
+    await setOption('document_secret', utils.randomSecureToken(16));
+
+    await setOption('username', '');
+    await setOption('password_verification_hash', '');
+    await setOption('password_verification_salt', '');
+    await setOption('password_derived_key_salt', '');
+    await setOption('encrypted_data_key', '');
+    await setOption('encrypted_data_key_iv', '');
+
+    await setOption('start_note_path', startNotePath);
+    await setOption('protected_session_timeout', 600);
+    await setOption('history_snapshot_time_interval', 600);
+    await setOption('last_backup_date', utils.nowTimestamp());
+    await setOption('db_version', app_info.db_version);
+
+    await setOption('last_synced_pull', app_info.db_version);
+    await setOption('last_synced_push', 0);
+    await setOption('last_synced_push', 0);
+}
 
 module.exports = {
     getOption,
     setOption,
+    initOptions,
     SYNCED_OPTIONS
 };
\ No newline at end of file
diff --git a/services/ping_job.js b/services/ping_job.js
index 80fc036b7..24445d0d1 100644
--- a/services/ping_job.js
+++ b/services/ping_job.js
@@ -8,7 +8,7 @@ const sync = require('./sync');
 let startTime = utils.nowTimestamp();
 let sentSyncId = [];
 
-setInterval(async () => {
+async function sendPing() {
     const syncs = await sql.getResults("SELECT * FROM sync WHERE sync_date >= ? AND source_id != ?", [startTime, source_id.currentSourceId]);
     startTime = utils.nowTimestamp();
 
@@ -41,4 +41,6 @@ setInterval(async () => {
     for (const syncId of syncIds) {
         sentSyncId.push(syncId);
     }
-}, 1000);
\ No newline at end of file
+}
+
+sql.dbReady.then(() => setInterval(sendPing, 1000));
\ No newline at end of file
diff --git a/services/sql.js b/services/sql.js
index 49d867999..8c232a3b7 100644
--- a/services/sql.js
+++ b/services/sql.js
@@ -2,13 +2,74 @@
 
 const log = require('./log');
 const dataDir = require('./data_dir');
+const fs = require('fs');
 const sqlite = require('sqlite');
+const utils = require('./utils');
 
 async function createConnection() {
     return await sqlite.open(dataDir.DOCUMENT_PATH, {Promise});
 }
 
-const dbReady = createConnection();
+const dbConnected = createConnection();
+
+let dbReadyResolve = null;
+const dbReady = new Promise((resolve, reject) => {
+    dbConnected.then(async db => {
+        dbReadyResolve = () => resolve(db);
+
+        const tableResults = await getResults("SELECT name FROM sqlite_master WHERE type='table' AND name='notes'");
+        if (tableResults.length !== 1) {
+            log.info("Connected to db, but schema doesn't exist. Initializing schema ...");
+
+            const schema = fs.readFileSync('schema.sql', 'UTF-8');
+
+            await doInTransaction(async () => {
+                await executeScript(schema);
+
+                const noteId = utils.newNoteId();
+
+                await insert('notes_tree', {
+                    note_tree_id: utils.newNoteTreeId(),
+                    note_id: noteId,
+                    note_pid: 'root',
+                    note_pos: 1,
+                    is_deleted: 0,
+                    date_modified: utils.nowTimestamp()
+                });
+
+                await insert('notes', {
+                    note_id: noteId,
+                    note_title: 'Welcome to Trilium!',
+                    note_text: 'Text',
+                    is_protected: 0,
+                    is_deleted: 0,
+                    date_created: utils.nowTimestamp(),
+                    date_modified: utils.nowTimestamp()
+                });
+
+                await require('./options').initOptions(noteId);
+            });
+
+            // we don't resolve dbReady promise because user needs to setup the username and password to initialize
+            // the database
+        }
+        else {
+            const username = await getSingleValue("SELECT opt_value FROM options WHERE opt_name = 'username'");
+
+            if (username) {
+                resolve(db);
+            }
+        }
+    })
+    .catch(e => {
+        console.log("Error connecting to DB.", e);
+        process.exit(1);
+    });
+});
+
+function setDbReadyAsResolved() {
+    dbReadyResolve();
+}
 
 async function insert(table_name, rec, replace = false) {
     const keys = Object.keys(rec);
@@ -44,13 +105,10 @@ async function rollback() {
 }
 
 async function getSingleResult(query, params = []) {
-    const db = await dbReady;
-
     return await wrap(async db => db.get(query, ...params));
 }
 
 async function getSingleResultOrNull(query, params = []) {
-    const db = await dbReady;
     const all = await wrap(async db => db.all(query, ...params));
 
     return all.length > 0 ? all[0] : null;
@@ -67,8 +125,6 @@ async function getSingleValue(query, params = []) {
 }
 
 async function getResults(query, params = []) {
-    const db = await dbReady;
-
     return await wrap(async db => db.all(query, ...params));
 }
 
@@ -106,7 +162,7 @@ async function executeScript(query) {
 
 async function wrap(func) {
     const thisError = new Error();
-    const db = await dbReady;
+    const db = await dbConnected;
 
     try {
         return await func(db);
@@ -157,20 +213,6 @@ async function doInTransaction(func) {
     }
 }
 
-dbReady
-    .then(async () => {
-        const tableResults = await getResults("SELECT name FROM sqlite_master WHERE type='table' AND name='notes'");
-
-        if (tableResults.length !== 1) {
-            console.log("No connection to initialized DB.");
-            process.exit(1);
-        }
-    })
-    .catch(e => {
-        console.log("Error connecting to DB.", e);
-        process.exit(1);
-    });
-
 module.exports = {
     dbReady,
     insert,
@@ -183,5 +225,6 @@ module.exports = {
     getFlattenedResults,
     execute,
     executeScript,
-    doInTransaction
+    doInTransaction,
+    setDbReadyAsResolved
 };
\ No newline at end of file
diff --git a/services/sync.js b/services/sync.js
index d59a74986..91d350eb3 100644
--- a/services/sync.js
+++ b/services/sync.js
@@ -13,6 +13,7 @@ const syncUpdate = require('./sync_update');
 const content_hash = require('./content_hash');
 const event_log = require('./event_log');
 const fs = require('fs');
+const app_info = require('./app_info');
 
 const SYNC_SERVER = config['Sync']['syncServerHost'];
 const isSyncSetup = !!SYNC_SERVER;
@@ -94,7 +95,7 @@ async function login() {
 
     const resp = await syncRequest(syncContext, 'POST', '/api/login/sync', {
         timestamp: timestamp,
-        dbVersion: migration.APP_DB_VERSION,
+        dbVersion: app_info.db_version,
         hash: hash
     });
 
@@ -305,29 +306,31 @@ async function syncRequest(syncContext, method, uri, body) {
     }
 }
 
-if (isSyncSetup) {
-    log.info("Setting up sync to " + SYNC_SERVER + " with timeout " + SYNC_TIMEOUT);
+sql.dbReady.then(() => {
+    if (isSyncSetup) {
+        log.info("Setting up sync to " + SYNC_SERVER + " with timeout " + SYNC_TIMEOUT);
 
-    if (SYNC_PROXY) {
-        log.info("Sync proxy: " + SYNC_PROXY);
+        if (SYNC_PROXY) {
+            log.info("Sync proxy: " + SYNC_PROXY);
+        }
+
+        const syncCertPath = config['Sync']['syncServerCertificate'];
+
+        if (syncCertPath) {
+            log.info('Sync certificate: ' + syncCertPath);
+
+            syncServerCertificate = fs.readFileSync(syncCertPath);
+        }
+
+        setInterval(sync, 60000);
+
+        // kickoff initial sync immediately
+        setTimeout(sync, 1000);
     }
-
-    const syncCertPath = config['Sync']['syncServerCertificate'];
-
-    if (syncCertPath) {
-        log.info('Sync certificate: ' + syncCertPath);
-
-        syncServerCertificate = fs.readFileSync(syncCertPath);
+    else {
+        log.info("Sync server not configured, sync timer not running.")
     }
-
-    setInterval(sync, 60000);
-
-    // kickoff initial sync immediately
-    setTimeout(sync, 1000);
-}
-else {
-    log.info("Sync server not configured, sync timer not running.")
-}
+});
 
 module.exports = {
     sync,
diff --git a/services/utils.js b/services/utils.js
index d0979dc12..28d4acaf1 100644
--- a/services/utils.js
+++ b/services/utils.js
@@ -3,7 +3,7 @@
 const crypto = require('crypto');
 
 function newNoteId() {
-    return randomString(8);
+    return randomString(12);
 }
 
 function newNoteTreeId() {
@@ -14,16 +14,10 @@ function newNoteHistoryId() {
     return randomString(12);
 }
 
-const ALPHA_NUMERIC = '0123456789abcdefghijklmnopqrstuvwxyzABCDEFGHIJKLMNOPQRSTUVWXYZ';
-
 function randomString(length) {
-    let result = '';
+    const token = randomSecureToken(32);
 
-    for (let i = length; i > 0; --i) {
-        result += ALPHA_NUMERIC[Math.floor(Math.random() * ALPHA_NUMERIC.length)];
-    }
-
-    return result;
+    return token.substr(0, length);
 }
 
 function randomSecureToken(bytes = 32) {
diff --git a/views/index.ejs b/views/index.ejs
index 35e471e1f..58e0dc3fc 100644
--- a/views/index.ejs
+++ b/views/index.ejs
@@ -33,22 +33,24 @@
         </div>
       </div>
 
-      <div class="hide-toggle" style="grid-area: tree-actions">
-        <a onclick="noteTree.createNewTopLevelNote()" title="Create new top level note" class="icon-action">
-          <img src="images/icons/file-plus.png" alt="Create new top level note"/>
-        </a>
+      <div class="hide-toggle" style="grid-area: tree-actions;">
+        <div style="display: flex; justify-content: space-evenly; padding: 10px 0 10px 0; margin: 0 20px 0 20px; border: 1px solid #ccc;">
+          <a onclick="noteTree.createNewTopLevelNote()" title="Create new top level note" class="icon-action">
+            <img src="images/icons/file-plus.png" alt="Create new top level note"/>
+          </a>
 
-        <a onclick="noteTree.collapseTree()" title="Collapse tree" class="icon-action">
-          <img src="images/icons/list.png" alt="Collapse tree"/>
-        </a>
+          <a onclick="noteTree.collapseTree()" title="Collapse tree" class="icon-action">
+            <img src="images/icons/list.png" alt="Collapse tree"/>
+          </a>
 
-        <a onclick="noteTree.scrollToCurrentNote()" title="Scroll to current note" class="icon-action">
-          <img src="images/icons/crosshair.png" alt="Collapse tree"/>
-        </a>
+          <a onclick="noteTree.scrollToCurrentNote()" title="Scroll to current note" class="icon-action">
+            <img src="images/icons/crosshair.png" alt="Collapse tree"/>
+          </a>
 
-        <a onclick="searchTree.toggleSearch()" title="Search in notes" class="icon-action">
-          <img src="images/icons/search.png" alt="Search in notes"/>
-        </a>
+          <a onclick="searchTree.toggleSearch()" title="Search in notes" class="icon-action">
+            <img src="images/icons/search.png" alt="Search in notes"/>
+          </a>
+        </div>
 
         <div id="search-box" style="display: none; padding: 10px; margin-top: 10px;">
           <p>
@@ -63,7 +65,7 @@
       <div id="tree" class="hide-toggle" style="grid-area: tree; overflow: auto;">
       </div>
 
-      <div id="parent-list" style="display: none;">
+      <div id="parent-list">
       </div>
 
       <div class="hide-toggle" style="grid-area: title;">
diff --git a/views/setup.ejs b/views/setup.ejs
new file mode 100644
index 000000000..8974ef94e
--- /dev/null
+++ b/views/setup.ejs
@@ -0,0 +1,48 @@
+<!DOCTYPE html>
+<html lang="en">
+<head>
+    <meta charset="utf-8">
+    <title>Setup</title>
+</head>
+<body>
+<div style="width: 500px; margin: auto;">
+    <h1>Trilium setup</h1>
+
+    <div class="alert alert-warning" id="alert" style="display: none;">
+    </div>
+
+    <form id="setup-form">
+        <div class="form-group">
+            <label for="username">Username</label>
+            <input type="text" class="form-control" id="username" placeholder="Arbitrary string">
+        </div>
+        <div class="form-group">
+            <label for="password1">Password</label>
+            <input type="password" class="form-control" id="password1" placeholder="Password">
+        </div>
+        <div class="form-group">
+            <label for="password2">Repeat password</label>
+            <input type="password" class="form-control" id="password2" placeholder="Password">
+        </div>
+
+        <button type="submit" class="btn btn-default">Save</button>
+    </form>
+</div>
+
+<script type="text/javascript">
+    const baseApiUrl = 'api/';
+</script>
+
+<!-- Required for correct loading of scripts in Electron -->
+<script>if (typeof module === 'object') {window.module = module; module = undefined;}</script>
+
+<script src="libraries/jquery.min.js"></script>
+
+<link href="libraries/bootstrap/css/bootstrap.css" rel="stylesheet">
+<script src="libraries/bootstrap/js/bootstrap.js"></script>
+
+<script src="javascripts/setup.js"></script>
+<script src="javascripts/utils.js"></script>
+<script src="javascripts/server.js"></script>
+</body>
+</html>
\ No newline at end of file