diff --git a/.dockerignore b/.dockerignore
new file mode 100644
index 0000000000000..2b0e81eaf0a60
--- /dev/null
+++ b/.dockerignore
@@ -0,0 +1,2 @@
+doc
+target
diff --git a/Dockerfile b/Dockerfile
new file mode 100644
index 0000000000000..e07e647ce41c5
--- /dev/null
+++ b/Dockerfile
@@ -0,0 +1,38 @@
+FROM phusion/baseimage:0.10.1 as builder
+LABEL maintainer "chevdor@gmail.com"
+LABEL description="This is the build stage for Polkadot. Here we create the binary."
+
+ARG PROFILE=release
+WORKDIR /polkadot
+
+COPY . /polkadot
+
+RUN apt-get update && \
+	apt-get upgrade -y && \
+	apt-get install -y cmake pkg-config libssl-dev git
+
+RUN curl https://sh.rustup.rs -sSf | sh -s -- -y && \
+	export PATH=$PATH:$HOME/.cargo/bin && \
+	cargo build --$PROFILE
+
+# ===== SECOND STAGE ======
+
+FROM phusion/baseimage:0.10.0
+LABEL maintainer "chevdor@gmail.com"
+LABEL description="This is the 2nd stage: a very small image where we copy the Polkadot binary."
+ARG PROFILE=release
+COPY --from=builder /polkadot/target/$PROFILE/polkadot /usr/local/bin
+
+RUN mv /usr/share/ca* /tmp && \
+	rm -rf /usr/share/*  && \
+	mv /tmp/ca-certificates /usr/share/ && \
+	rm -rf /usr/lib/python* && \
+	mkdir -p /root/.local/share/Polkadot && \
+	ln -s /root/.local/share/Polkadot /data
+
+RUN	rm -rf /usr/bin /usr/sbin
+
+EXPOSE 30333 9933 9944
+VOLUME ["/data"]
+
+CMD ["/usr/local/bin/polkadot"]
diff --git a/README.adoc b/README.adoc
index f54896e5e2100..07a864c55a075 100644
--- a/README.adoc
+++ b/README.adoc
@@ -92,7 +92,7 @@ Then build the code:
 
 [source, shell]
 ----
-./build.sh  # Builds the WebAssembly binaries
+./scripts/build.sh  # Builds the WebAssembly binaries
 cargo build # Builds all native code
 ----
 
@@ -118,7 +118,7 @@ The easiest/faster option is to use the latest image.
 Let´s first check the version we have. The first time you run this command, the polkadot docker image will be downloaded. This takes a bit of time and bandwidth, be patient:
 
 [source, shell]
-docker run --rm -it chevdor/polkadot:latest ./version
+docker run --rm -it chevdor/polkadot:latest pokadot --version
 
 
 .Polkadot arguments
@@ -149,8 +149,7 @@ You can either build it yourself (it takes a while...):
 
 [source, shell]
 ----
-cd docker
-./build.sh
+./docker/build.sh
 ----
 
 === Reporting issues
@@ -159,7 +158,7 @@ If you run into issues with polkadot when using docker, please run the following
 (replace the tag with the appropriate one if you do not use latest):
 
 [source, shell]
-docker run --rm -it chevdor/polkadot:latest version
+docker run --rm -it chevdor/polkadot:latest polkadot --version
 
 This will show you the polkadot version as well as the git commit ref that was used to build your container.
 Just paste that in the issue you create.
diff --git a/ci/script.sh b/ci/script.sh
index 8d8ded7d7bdd8..dafe2ad5a6d9c 100755
--- a/ci/script.sh
+++ b/ci/script.sh
@@ -22,7 +22,8 @@ case $TARGET in
 
 	"wasm")
 		# Install prerequisites and build all wasm projects
-		./init.sh
-		./build.sh
+		./scripts/init.sh
+		./scripts/build.sh
+		./scripts/build-demos.sh
 		;;
 esac
diff --git a/docker/Dockerfile b/docker/Dockerfile
deleted file mode 100644
index dfc4ff77877b1..0000000000000
--- a/docker/Dockerfile
+++ /dev/null
@@ -1,33 +0,0 @@
-FROM phusion/baseimage:0.10.1
-LABEL maintainer "chevdor@gmail.com"
-
-ARG PROFILE=release
-
-RUN mkdir -p polkadot && \
-	apt-get update && \
-	apt-get upgrade -y && \
-	apt-get install -y cmake pkg-config libssl-dev git && \
-	apt-get clean && \
-	mkdir -p /root/.local/share/Polkadot && \
-	ln -s /root/.local/share/Polkadot /data
-
-RUN curl https://sh.rustup.rs -sSf | sh -s -- -y && \
-	export PATH=$PATH:$HOME/.cargo/bin && \
-	rustup update nightly && \
-	rustup target add wasm32-unknown-unknown --toolchain nightly && \
-	rustup update stable && \
-	cargo install --git https://github.com/alexcrichton/wasm-gc && \
-	git clone https://github.com/paritytech/polkadot.git && \
-	cd polkadot && \
-	./build.sh && \
-	cargo build --$PROFILE && \
-	mv target/$PROFILE/polkadot /usr/local/bin && \
-	cargo clean && \
-	rm -rf /root/.cargo /root/.rustup /tmp/*
-
-COPY version /polkadot
-WORKDIR /polkadot
-EXPOSE 30333 9933 9944
-VOLUME ["/data"]
-
-CMD ["/bin/sh", "polkadot"]
diff --git a/docker/build.sh b/docker/build.sh
index fdbe8c3f8108c..a4c6831676ff2 100755
--- a/docker/build.sh
+++ b/docker/build.sh
@@ -1,18 +1,26 @@
 #!/usr/bin/env bash
 set -e
 
+pushd .
+
+# The following line ensure we run from the project root
+PROJECT_ROOT=`git rev-parse --show-toplevel`
+cd $PROJECT_ROOT
+
 # Find the current version from Cargo.toml
-VERSION=`grep "^version" ../Cargo.toml | egrep -o "([0-9\.]+)"`
+VERSION=`grep "^version" ./Cargo.toml | egrep -o "([0-9\.]+)"`
 GITUSER=chevdor
 GITREPO=polkadot
 
 # Build the image
-echo "Building ${GITREPO}:$VERSION docker image, hang on!"
-time docker build --build-arg PROFILE=release -t ${GITUSER}/${GITREPO}:$VERSION .
+echo "Building ${GITUSER}/${GITREPO}:latest docker image, hang on!"
+time docker build -f ./docker/Dockerfile --build-arg PROFILE=release -t ${GITUSER}/${GITREPO}:latest .
 
 # Show the list of available images for this repo
 echo "Image is ready"
 docker images | grep ${GITREPO}
 
-echo -e "\nIf you just built the latest, you may want to update your tag:"
-echo " $ docker tag ${GITUSER}/${GITREPO}:$VERSION ${GITUSER}/${GITREPO}:latest"
+echo -e "\nIf you just built version ${VERSION}, you may want to update your tag:"
+echo " $ docker tag ${GITUSER}/${GITREPO}:$VERSION ${GITUSER}/${GITREPO}:${VERSION}"
+
+popd
diff --git a/docker/cleanup.sh b/docker/cleanup.sh
deleted file mode 100755
index b4de473a1b54f..0000000000000
--- a/docker/cleanup.sh
+++ /dev/null
@@ -1,8 +0,0 @@
-#!/usr/bin/env bash
-# This script helps reduce the size of the built image
-# It removes data that is not required.
-
-export PATH=$PATH:$HOME/.cargo/bin
-
-cargo clean
-rm -rf /root/.cargo /root/.rustup /tmp/*
diff --git a/docker/readme-docker.adoc b/docker/readme-docker.adoc
index bbaceacd7f5c6..6e41f792cc22b 100644
--- a/docker/readme-docker.adoc
+++ b/docker/readme-docker.adoc
@@ -5,12 +5,12 @@
 
 Run the following command
 
-	docker run -d chevdor/polkadot:latest polkadot
+	docker run -d -P --name polkadot chevdor/polkadot:latest
 
 === Building the image
 
 To build your own image from the source, you can run the following command:
 
-	./build.sh
+	./docker/build.sh
 
 NOTE: Building the image takes a while. Count at least 30min on a good machine.
diff --git a/docker/version b/docker/version
deleted file mode 100755
index 047da3302ab95..0000000000000
--- a/docker/version
+++ /dev/null
@@ -1,13 +0,0 @@
-#!/usr/bin/env bash
-# This script show the polkadot version and commit ref that was
-# used to build the image.
-# If you report an issue, call this script to get all details.
-# This script will no longer be required once the polkadot cli
-# can report its commit ref.
-
-echo "-----------------------------------------"
-printf "Polkadot Docker Container: "
-polkadot --version
-printf " "
-git rev-parse HEAD
-echo "-----------------------------------------"
diff --git a/scripts/build-demos.sh b/scripts/build-demos.sh
new file mode 100755
index 0000000000000..285da143c17d8
--- /dev/null
+++ b/scripts/build-demos.sh
@@ -0,0 +1,28 @@
+#!/usr/bin/env bash
+
+# This script assumes that all pre-requisites are installed.
+
+set -e
+
+PROJECT_ROOT=`git rev-parse --show-toplevel`
+source `dirname "$0"`/common.sh
+
+export CARGO_INCREMENTAL=0
+
+# Save current directory.
+pushd .
+
+cd $ROOT
+
+for DEMO in "${DEMOS[@]}"
+do
+  echo "*** Building wasm binaries in $DEMO"
+  cd "$PROJECT_ROOT/$DEMO"
+
+  ./build.sh
+
+  cd - >> /dev/null
+done
+
+# Restore initial directory.
+popd
diff --git a/build.sh b/scripts/build.sh
similarity index 82%
rename from build.sh
rename to scripts/build.sh
index f2ced1300ac03..9cacf74dbb07a 100755
--- a/build.sh
+++ b/scripts/build.sh
@@ -4,6 +4,7 @@
 
 set -e
 
+PROJECT_ROOT=`git rev-parse --show-toplevel`
 source `dirname "$0"`/common.sh
 
 export CARGO_INCREMENTAL=0
@@ -16,7 +17,7 @@ cd $ROOT
 for SRC in "${SRCS[@]}"
 do
   echo "*** Building wasm binaries in $SRC"
-  cd $SRC
+  cd "$PROJECT_ROOT/$SRC"
 
   ./build.sh
 
diff --git a/common.sh b/scripts/common.sh
similarity index 96%
rename from common.sh
rename to scripts/common.sh
index 254a4260e4bd6..9d6cc471447ea 100644
--- a/common.sh
+++ b/scripts/common.sh
@@ -6,6 +6,9 @@ ROOT=`dirname "$0"`
 SRCS=(
 	"polkadot/runtime/wasm"
 	"substrate/executor/wasm"
+)
+
+DEMOS=(
 	"demo/runtime/wasm"
 	"substrate/test-runtime/wasm"
 	"polkadot/test-parachains/"
diff --git a/init.sh b/scripts/init.sh
similarity index 86%
rename from init.sh
rename to scripts/init.sh
index 2bd46709b8e88..e3618783c14a7 100755
--- a/init.sh
+++ b/scripts/init.sh
@@ -2,7 +2,7 @@
 
 set -e
 
-echo "*** Initilising WASM build environment"
+echo "*** Initialising WASM build environment"
 
 rustup update nightly
 rustup target add wasm32-unknown-unknown --toolchain nightly