diff --git a/migrations/index.js b/migrations/index.js
index e4e7d8f..75cce24 100644
--- a/migrations/index.js
+++ b/migrations/index.js
@@ -12,4 +12,5 @@ const emptyMigration = {
 
 module.exports = [
   Object.assign({version: 7}, emptyMigration),
+  require('./migration-8')
 ]
diff --git a/migrations/migration-8/blocks-to-multihash.js b/migrations/migration-8/blocks-to-multihash.js
new file mode 100644
index 0000000..d6897cd
--- /dev/null
+++ b/migrations/migration-8/blocks-to-multihash.js
@@ -0,0 +1,79 @@
+const path = require('path')
+const CID = require('cids')
+const Key = require('interface-datastore').Key
+const core = require('datastore-core')
+const ShardingStore = core.ShardingDatastore
+const base32 = require('base32.js')
+const utils = require('../../src/utils')
+const log = require('debug')('ipfs-repo-migrations:migration-8')
+
+// This function in js-ipfs-repo defaults to not using sharding
+// but the default value of the options.sharding is True hence this
+// function defaults to use sharding.
+async function maybeWithSharding (filestore, options) {
+  if (options.sharding === false) {
+    return filestore
+  }
+
+  const shard = new core.shard.NextToLast(2)
+  return await ShardingStore.createOrOpen(filestore, shard)
+}
+
+function keyToMultihash(key){
+  // Key to CID
+  const decoder = new base32.Decoder()
+  const buff = decoder.finalize(key.toString().slice(1))
+  const cid = new CID(Buffer.from(buff))
+
+  // CID to multihash
+  const enc = new base32.Encoder()
+  return new Key('/' + enc.finalize(cid.multihash), false)
+}
+
+function keyToCid(key){
+  // Key to CID
+  const decoder = new base32.Decoder()
+  const buff = decoder.write(key.toString().slice(1)).finalize()
+  const cid = new CID(1, 'raw', Buffer.from(buff))
+
+  // CID to Key
+  const enc = new base32.Encoder()
+  return new Key('/' + enc.finalize(cid.buffer), false)
+}
+
+async function process(repoPath, options, keyFunction){
+  const { StorageBackend, storageOptions } = utils.getDatastoreAndOptions(options, 'blocks')
+
+  const baseStore = new StorageBackend(path.join(repoPath, 'blocks'), storageOptions)
+  const store = await maybeWithSharding(baseStore, storageOptions)
+
+  try {
+    const batch = store.batch()
+    let counter = 0
+    for await (const block of store.query({})) {
+      const newKey = keyFunction(block.key)
+
+      // If the Key is CIDv0 then it is raw multihash and nothing is changing
+      if(newKey.toString() !== block.key.toString()){
+        counter += 1
+
+        log(`Migrating Block from ${block.key.toString()} to ${newKey.toString()}`)
+        batch.delete(block.key)
+        batch.put(newKey, block.value)
+      }
+    }
+
+    log(`Changing ${ counter } blocks`)
+    await batch.commit()
+  } finally {
+    await store.close()
+  }
+}
+
+exports.migrate = function blocksMigrate (repoPath, options) {
+  return process(repoPath, options, keyToMultihash)
+}
+
+exports.revert = function blocksRevert (repoPath, options) {
+  return process(repoPath, options, keyToCid)
+}
diff --git a/migrations/migration-8/index.js b/migrations/migration-8/index.js
new file mode 100644
index 0000000..949f7d5
--- /dev/null
+++ b/migrations/migration-8/index.js
@@ -0,0 +1,38 @@
+'use strict'
+
+const keysEncoding = require('./keys-encoding')
+const blocksToMultihash = require('./blocks-to-multihash')
+const log = require('debug')('ipfs-repo-migrations:migration-8')
+
+async function migrate (repoPath, options) {
+  await keysEncoding.migrate(repoPath, options)
+
+  try{
+    await blocksToMultihash.migrate(repoPath, options)
+  }catch (e) {
+    log('During migration of Blockstore to multihash exception was raised! Reverting keys part of migration!')
+    await keysEncoding.revert(repoPath, options)
+
+    throw e
+  }
+}
+
+async function revert (repoPath, options) {
+  await keysEncoding.revert(repoPath, options)
+
+  try{
+    await blocksToMultihash.revert(repoPath, options)
+  }catch (e) {
+    log('During reversion of Blockstore to CID exception was raised! Migrating keys part of migration!')
+    await keysEncoding.migrate(repoPath, options)
+
+    throw e
+  }
+}
+
+module.exports = {
+  version: 8,
+  description: 'Transforms key\'s names into base32 encoding and converts Block store to use multihashes',
+  migrate,
+  revert
+}
diff --git a/migrations/migration-8/keys-encoding.js b/migrations/migration-8/keys-encoding.js
new file mode 100644
index 0000000..029e17d
--- /dev/null
+++ b/migrations/migration-8/keys-encoding.js
@@ -0,0 +1,62 @@
+const utils = require('../../src/utils')
+const path = require('path')
+const base32 = require('base32.js')
+const Key = require('interface-datastore').Key
+const log = require('debug')('ipfs-repo-migrations:migration-8')
+
+const KEY_PREFIX = 'key_'
+
+function encode (name) {
+  name = Buffer.from(name)
+  const encoder = new base32.Encoder({ type: 'rfc4648' })
+  return (KEY_PREFIX + encoder.finalize(name)).toLowerCase()
+}
+
+function decode (name) {
+  if (!name.startsWith(KEY_PREFIX)) {
+    throw Error('Unknown format of key\'s name!')
+  }
+
+  const decoder = new base32.Decoder({ type: 'rfc4648' })
+  const decodedNameBuff = decoder.finalize(name.replace(KEY_PREFIX, '').toUpperCase())
+  return Buffer.from(decodedNameBuff).toString()
+}
+
+async function processFolder (store, prefix, fileNameProcessor) {
+  const query = {
+    prefix: `/${ prefix }`
+  }
+
+  const files = store.query(query)
+  for await (let file of files) {
+    const name = String(file.key._buf).replace(`/${ prefix }/`, '')
+    const encodedFileName = fileNameProcessor(name)
+    const newKey = new Key(`${ prefix }/${ encodedFileName }`)
+
+    await store.delete(file.key)
+    log(`Translating key's name '${ file.key }' into '${ newKey }'`)
+    await store.put(newKey, file.value)
+  }
+}
+
+async function process (repoPath, options, processor) {
+  const { StorageBackend, storageOptions } = utils.getDatastoreAndOptions(options, 'keys')
+
+  const store = new StorageBackend(path.join(repoPath, 'keys'), storageOptions)
+  try {
+    const info = processFolder(store, 'info', processor)
+    const data = processFolder(store, 'pkcs8', processor)
+
+    return await Promise.all([info, data])
+  } finally {
+    await store.close()
+  }
+}
+
+exports.migrate = async function keyEncode (repoPath, options) {
+  return process(repoPath, options, encode)
+}
+
+exports.revert = async function keyDecode (repoPath, options) {
+  return process(repoPath, options, decode)
+}
diff --git a/package.json b/package.json
index a80f413..5b26148 100644
--- a/package.json
+++ b/package.json
@@ -44,13 +44,16 @@
     "docs": "aegir docs"
   },
   "dependencies": {
+    "base32.js": "~0.1.0",
     "chalk": "^2.4.2",
-    "datastore-fs": "~0.9.1",
-    "datastore-level": "~0.12.1",
+    "cids": "~0.7.0",
+    "datastore-core": "~0.7.0",
+    "datastore-fs": "~0.9.0",
+    "datastore-level": "~0.12.0",
     "debug": "^4.1.0",
-    "interface-datastore": "~0.8.0",
-    "proper-lockfile": "^4.1.1",
-    "yargs": "^14.2.0",
+    "interface-datastore": "~0.7.0",
+    "proper-lockfile": "^3.2.0",
+    "yargs": "^12.0.5",
     "yargs-promise": "^1.1.0"
   },
   "devDependencies": {
diff --git a/test/browser.js b/test/browser.js
index b341bf9..f0646cf 100644
--- a/test/browser.js
+++ b/test/browser.js
@@ -43,6 +43,10 @@ describe('Browser specific tests', () => {
     require('./version-test')(createRepo, repoCleanup)
   })
 
+  describe('migrations tests', () => {
+    require('./migrations/migration-8-test')(createRepo, repoCleanup)
+  })
+
   describe('init tests', () => {
     require('./init-test')(createRepo, repoCleanup)
   })
diff --git a/test/migrations/migration-8-test.js b/test/migrations/migration-8-test.js
new file mode 100644
index 0000000..ee44ee3
--- /dev/null
+++ b/test/migrations/migration-8-test.js
@@ -0,0 +1,131 @@
+/* eslint-env mocha */
+'use strict'
+
+const chai = require('chai')
+chai.use(require('dirty-chai'))
+const chaiAsPromised = require('chai-as-promised')
+chai.use(chaiAsPromised)
+const expect = chai.expect
+
+const path = require('path')
+const keysMigration = require('../../migrations/migration-8/keys-encoding')
+const blocksMigration = require('../../migrations/migration-8/blocks-to-multihash')
+const Key = require('interface-datastore').Key
+const Datastore = require('datastore-fs')
+const core = require('datastore-core')
+const ShardingStore = core.ShardingDatastore
+
+const keysFixtures = [
+  ['aAa', 'key_mfawc'],
+  ['bbb', 'key_mjrge'],
+  ['self', 'key_onswyzq']
+]
+
+const blocksFixtures = [
+  ['AFKREIBFG77IKIKDMBDUFDCSPK7H5TE5LNPMCSXYLPML27WSTT5YA5IUNU', 'CIQCKN76QUQUGYCHIKGFE6V6P3GJ2W26YFFPQW6YXV7NFHH3QB2RI3I']
+]
+
+async function bootstrapKeys (dir, encoded) {
+  const store = new Datastore(path.join(dir, 'keys'), { extension: '.data', createIfMissing: true })
+  await store.open()
+
+  let name
+  for (const keyNames of keysFixtures) {
+    name = encoded ? keyNames[1] : keyNames[0]
+    await store.put(new Key(`/pkcs8/${name}`), '')
+    await store.put(new Key(`/info/${name}`), '')
+  }
+
+  await store.close()
+}
+
+async function validateKeys (dir, shouldBeEncoded) {
+  const store = new Datastore(path.join(dir, 'keys'), { extension: '.data', createIfMissing: false })
+  await store.open()
+
+  let name
+  for (const keyNames of keysFixtures) {
+    name = shouldBeEncoded ? keyNames[1] : keyNames[0]
+    expect(await store.has(new Key(`/pkcs8/${name}`))).to.be.true(name)
+    expect(await store.has(new Key(`/info/${name}`))).to.be.true(name)
+  }
+
+  await store.close()
+}
+
+async function bootstrapBlocks (dir, encoded) {
+  const baseStore = new Datastore(path.join(dir, 'blocks'), { extension: '.data', createIfMissing: true })
+  const shard = new core.shard.NextToLast(2)
+  const store = await ShardingStore.createOrOpen(baseStore, shard)
+
+  let name
+  for (const blocksNames of blocksFixtures) {
+    name = encoded ? blocksNames[1] : blocksNames[0]
+    await store.put(new Key(name), '')
+  }
+
+  await store.close()
+}
+
+async function validateBlocks (dir, shouldBeEncoded) {
+  const baseStore = new Datastore(path.join(dir, 'blocks'), { extension: '.data', createIfMissing: false })
+  const shard = new core.shard.NextToLast(2)
+  const store = await ShardingStore.createOrOpen(baseStore, shard)
+
+  let newName, oldName
+  for (const blockNames of blocksFixtures) {
+    newName = shouldBeEncoded ? blockNames[1] : blockNames[0]
+    oldName = shouldBeEncoded ? blockNames[0] : blockNames[1]
+    expect(await store.has(new Key(oldName))).to.be.false(oldName)
+    expect(await store.has(new Key(newName))).to.be.true(newName)
+  }
+
+  await store.close()
+}
+
+module.exports = (setup, cleanup) => {
+  describe('migration 8', () => {
+    let dir
+
+    beforeEach(async () => {
+      dir = await setup()
+    })
+    afterEach(() => cleanup(dir))
+
+    it('should migrate keys forward', async () => {
+      await bootstrapKeys(dir, false)
+      await keysMigration.migrate(dir)
+      await validateKeys(dir, true)
+    })
+
+    it('should migrate keys backward', async () => {
+      await bootstrapKeys(dir, true)
+      await keysMigration.revert(dir)
+      await validateKeys(dir, false)
+    })
+
+    it('should fail to migrate keys backward with invalid key name', async () => {
+      const store = new Datastore(path.join(dir, 'keys'), { extension: '.data', createIfMissing: true })
+      await store.open()
+
+      await store.put(new Key('/pkcs8/mfawc'), '')
+      await store.put(new Key('/info/mfawc'), '')
+
+      await store.close()
+
+      expect(keysMigration.revert(dir)).to.eventually.rejectedWith('Unknown format of key\'s name!')
+    })
+
+    it('should migrate blocks forward', async () => {
+      await bootstrapBlocks(dir, false)
+      await blocksMigration.migrate(dir)
+      await validateBlocks(dir, true)
+    })
+    //
+    // it('should migrate blocks backward', async () => {
+    //   await bootstrapKeys(dir, true)
+    //   await blocksMigration.revert(dir)
+    //   await validateKeys(dir, false)
+    // })
+  })
+}
diff --git a/test/node.js b/test/node.js
index 032889c..584275d 100644
--- a/test/node.js
+++ b/test/node.js
@@ -43,6 +43,10 @@ describe('Node specific tests', () => {
     require('./version-test')(createRepo, repoCleanup)
   })
 
+  describe('migrations tests', () => {
+    require('./migrations/migration-8-test')(createRepo, repoCleanup)
+  })
+
   describe('init tests', () => {
     require('./init-test')(createRepo, repoCleanup)
   })