diff --git a/blockstore/splitstore/README.md b/blockstore/splitstore/README.md
index f69a056ca43..1490004cf03 100644
--- a/blockstore/splitstore/README.md
+++ b/blockstore/splitstore/README.md
@@ -49,10 +49,11 @@ These are options in the `[Chainstore.Splitstore]` section of the configuration:
   blockstore and discards writes; this is necessary to support syncing from a snapshot.
 - `MarkSetType` -- specifies the type of markset to use during compaction.
   The markset is the data structure used by compaction/gc to track live objects.
-  The default value is `"map"`, which will use an in-memory map; if you are limited
-  in memory (or indeed see compaction run out of memory), you can also specify
-  `"badger"` which will use an disk backed markset, using badger. This will use
-  much less memory, but will also make compaction slower.
+  The default value is "badger", which will use a disk backed markset using badger.
+  If you have a lot of memory (48G or more) you can also use "map", which will use
+  an in memory markset, speeding up compaction at the cost of higher memory usage.
+  Note: If you are using a VPS with a network volume, you need to provision at least
+  3000 IOPs with the badger markset.
 - `HotStoreMessageRetention` -- specifies how many finalities, beyond the 4
   finalities maintained by default, to maintain messages and message receipts in the
   hotstore. This is useful for assistive nodes that want to support syncing for other
@@ -105,6 +106,12 @@ Compaction works transactionally with the following algorithm:
   - We delete in small batches taking a lock; each batch is checked again for marks, from the concurrent transactional mark, so as to never delete anything live
 - We then end the transaction and compact/gc the hotstore.
 
+As of [#8008](https://github.com/filecoin-project/lotus/pull/8008) the compaction algorithm has been
+modified to eliminate sorting and maintain the cold object set on disk. This drastically reduces
+memory usage; in fact, when using badger as the markset compaction uses very little memory, and
+it should be now possible to run splitstore with 32GB of RAM or less without danger of running out of
+memory during compaction.
+
 ## Garbage Collection
 
 TBD -- see [#6577](https://github.com/filecoin-project/lotus/issues/6577)
diff --git a/blockstore/splitstore/checkpoint.go b/blockstore/splitstore/checkpoint.go
new file mode 100644
index 00000000000..d3cd4cba7dc
--- /dev/null
+++ b/blockstore/splitstore/checkpoint.go
@@ -0,0 +1,118 @@
+package splitstore
+
+import (
+	"bufio"
+	"io"
+	"os"
+
+	"golang.org/x/xerrors"
+
+	cid "github.com/ipfs/go-cid"
+	mh "github.com/multiformats/go-multihash"
+)
+
+type Checkpoint struct {
+	file *os.File
+	buf  *bufio.Writer
+}
+
+func NewCheckpoint(path string) (*Checkpoint, error) {
+	file, err := os.OpenFile(path, os.O_CREATE|os.O_TRUNC|os.O_WRONLY|os.O_SYNC, 0644)
+	if err != nil {
+		return nil, xerrors.Errorf("error creating checkpoint: %w", err)
+	}
+	buf := bufio.NewWriter(file)
+
+	return &Checkpoint{
+		file: file,
+		buf:  buf,
+	}, nil
+}
+
+func OpenCheckpoint(path string) (*Checkpoint, cid.Cid, error) {
+	filein, err := os.Open(path)
+	if err != nil {
+		return nil, cid.Undef, xerrors.Errorf("error opening checkpoint for reading: %w", err)
+	}
+	defer filein.Close() //nolint:errcheck
+
+	bufin := bufio.NewReader(filein)
+	start, err := readRawCid(bufin, nil)
+	if err != nil && err != io.EOF {
+		return nil, cid.Undef, xerrors.Errorf("error reading cid from checkpoint: %w", err)
+	}
+
+	fileout, err := os.OpenFile(path, os.O_WRONLY|os.O_SYNC, 0644)
+	if err != nil {
+		return nil, cid.Undef, xerrors.Errorf("error opening checkpoint for writing: %w", err)
+	}
+	bufout := bufio.NewWriter(fileout)
+
+	return &Checkpoint{
+		file: fileout,
+		buf:  bufout,
+	}, start, nil
+}
+
+func (cp *Checkpoint) Set(c cid.Cid) error {
+	if _, err := cp.file.Seek(0, io.SeekStart); err != nil {
+		return xerrors.Errorf("error seeking beginning of checkpoint: %w", err)
+	}
+
+	if err := writeRawCid(cp.buf, c, true); err != nil {
+		return xerrors.Errorf("error writing cid to checkpoint: %w", err)
+	}
+
+	return nil
+}
+
+func (cp *Checkpoint) Close() error {
+	if cp.file == nil {
+		return nil
+	}
+
+	err := cp.file.Close()
+	cp.file = nil
+	cp.buf = nil
+
+	return err
+}
+
+func readRawCid(buf *bufio.Reader, hbuf []byte) (cid.Cid, error) {
+	sz, err := buf.ReadByte()
+	if err != nil {
+		return cid.Undef, err // don't wrap EOF as it is not an error here
+	}
+
+	if hbuf == nil {
+		hbuf = make([]byte, int(sz))
+	} else {
+		hbuf = hbuf[:int(sz)]
+	}
+
+	if _, err := io.ReadFull(buf, hbuf); err != nil {
+		return cid.Undef, xerrors.Errorf("error reading hash: %w", err) // wrap EOF, it's corrupt
+	}
+
+	hash, err := mh.Cast(hbuf)
+	if err != nil {
+		return cid.Undef, xerrors.Errorf("error casting multihash: %w", err)
+	}
+
+	return cid.NewCidV1(cid.Raw, hash), nil
+}
+
+func writeRawCid(buf *bufio.Writer, c cid.Cid, flush bool) error {
+	hash := c.Hash()
+	if err := buf.WriteByte(byte(len(hash))); err != nil {
+		return err
+	}
+	if _, err := buf.Write(hash); err != nil {
+		return err
+	}
+	if flush {
+		return buf.Flush()
+	}
+
+	return nil
+}
diff --git a/blockstore/splitstore/checkpoint_test.go b/blockstore/splitstore/checkpoint_test.go
new file mode 100644
index 00000000000..4fefe40cf6f
--- /dev/null
+++ b/blockstore/splitstore/checkpoint_test.go
@@ -0,0 +1,147 @@
+package splitstore
+
+import (
+	"io/ioutil"
+	"os"
+	"path/filepath"
+	"testing"
+
+	"github.com/ipfs/go-cid"
+	"github.com/multiformats/go-multihash"
+)
+
+func TestCheckpoint(t *testing.T) {
+	dir, err := ioutil.TempDir("", "checkpoint.*")
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	t.Cleanup(func() {
+		_ = os.RemoveAll(dir)
+	})
+
+	path := filepath.Join(dir, "checkpoint")
+
+	makeCid := func(key string) cid.Cid {
+		h, err := multihash.Sum([]byte(key), multihash.SHA2_256, -1)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		return cid.NewCidV1(cid.Raw, h)
+	}
+
+	k1 := makeCid("a")
+	k2 := makeCid("b")
+	k3 := makeCid("c")
+	k4 := makeCid("d")
+
+	cp, err := NewCheckpoint(path)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	if err := cp.Set(k1); err != nil {
+		t.Fatal(err)
+	}
+	if err := cp.Set(k2); err != nil {
+		t.Fatal(err)
+	}
+
+	if err := cp.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+	cp, start, err := OpenCheckpoint(path)
+	if err != nil {
+		t.Fatal(err)
+	}
+	if !start.Equals(k2) {
+		t.Fatalf("expected start to be %s; got %s", k2, start)
+	}
+
+	if err := cp.Set(k3); err != nil {
+		t.Fatal(err)
+	}
+	if err := cp.Set(k4); err != nil {
+		t.Fatal(err)
+	}
+
+	if err := cp.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+	cp, start, err = OpenCheckpoint(path)
+	if err != nil {
+		t.Fatal(err)
+	}
+	if !start.Equals(k4) {
+		t.Fatalf("expected start to be %s; got %s", k4, start)
+	}
+
+	if err := cp.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+	// also test correct operation with an empty checkpoint
+	cp, err = NewCheckpoint(path)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	if err := cp.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+	cp, start, err = OpenCheckpoint(path)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	if start.Defined() {
+		t.Fatal("expected start to be undefined")
+	}
+
+	if err := cp.Set(k1); err != nil {
+		t.Fatal(err)
+	}
+	if err := cp.Set(k2); err != nil {
+		t.Fatal(err)
+	}
+
+	if err := cp.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+	cp, start, err = OpenCheckpoint(path)
+	if err != nil {
+		t.Fatal(err)
+	}
+	if !start.Equals(k2) {
+		t.Fatalf("expected start to be %s; got %s", k2, start)
+	}
+
+	if err := cp.Set(k3); err != nil {
+		t.Fatal(err)
+	}
+	if err := cp.Set(k4); err != nil {
+		t.Fatal(err)
+	}
+
+	if err := cp.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+	cp, start, err = OpenCheckpoint(path)
+	if err != nil {
+		t.Fatal(err)
+	}
+	if !start.Equals(k4) {
+		t.Fatalf("expected start to be %s; got %s", k4, start)
+	}
+
+	if err := cp.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+}
diff --git a/blockstore/splitstore/coldset.go b/blockstore/splitstore/coldset.go
new file mode 100644
index 00000000000..129e2ed9226
--- /dev/null
+++ b/blockstore/splitstore/coldset.go
@@ -0,0 +1,102 @@
+package splitstore
+
+import (
+	"bufio"
+	"io"
+	"os"
+
+	"golang.org/x/xerrors"
+
+	cid "github.com/ipfs/go-cid"
+)
+
+type ColdSetWriter struct {
+	file *os.File
+	buf  *bufio.Writer
+}
+
+type ColdSetReader struct {
+	file *os.File
+	buf  *bufio.Reader
+}
+
+func NewColdSetWriter(path string) (*ColdSetWriter, error) {
+	file, err := os.OpenFile(path, os.O_CREATE|os.O_TRUNC|os.O_WRONLY, 0644)
+	if err != nil {
+		return nil, xerrors.Errorf("error creating coldset: %w", err)
+	}
+	buf := bufio.NewWriter(file)
+
+	return &ColdSetWriter{
+		file: file,
+		buf:  buf,
+	}, nil
+}
+
+func NewColdSetReader(path string) (*ColdSetReader, error) {
+	file, err := os.Open(path)
+	if err != nil {
+		return nil, xerrors.Errorf("error opening coldset: %w", err)
+	}
+	buf := bufio.NewReader(file)
+
+	return &ColdSetReader{
+		file: file,
+		buf:  buf,
+	}, nil
+}
+
+func (s *ColdSetWriter) Write(c cid.Cid) error {
+	return writeRawCid(s.buf, c, false)
+}
+
+func (s *ColdSetWriter) Close() error {
+	if s.file == nil {
+		return nil
+	}
+
+	err1 := s.buf.Flush()
+	err2 := s.file.Close()
+	s.buf = nil
+	s.file = nil
+
+	if err1 != nil {
+		return err1
+	}
+	return err2
+}
+
+func (s *ColdSetReader) ForEach(f func(cid.Cid) error) error {
+	hbuf := make([]byte, 256)
+	for {
+		next, err := readRawCid(s.buf, hbuf)
+		if err != nil {
+			if err == io.EOF {
+				return nil
+			}
+
+			return xerrors.Errorf("error reading coldset: %w", err)
+		}
+
+		if err := f(next); err != nil {
+			return err
+		}
+	}
+}
+
+func (s *ColdSetReader) Reset() error {
+	_, err := s.file.Seek(0, io.SeekStart)
+	return err
+}
+
+func (s *ColdSetReader) Close() error {
+	if s.file == nil {
+		return nil
+	}
+
+	err := s.file.Close()
+	s.file = nil
+	s.buf = nil
+
+	return err
+}
diff --git a/blockstore/splitstore/coldset_test.go b/blockstore/splitstore/coldset_test.go
new file mode 100644
index 00000000000..60216ebd4e6
--- /dev/null
+++ b/blockstore/splitstore/coldset_test.go
@@ -0,0 +1,99 @@
+package splitstore
+
+import (
+	"fmt"
+	"io/ioutil"
+	"os"
+	"path/filepath"
+	"testing"
+
+	"github.com/ipfs/go-cid"
+	"github.com/multiformats/go-multihash"
+)
+
+func TestColdSet(t *testing.T) {
+	dir, err := ioutil.TempDir("", "coldset.*")
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	t.Cleanup(func() {
+		_ = os.RemoveAll(dir)
+	})
+
+	path := filepath.Join(dir, "coldset")
+
+	makeCid := func(i int) cid.Cid {
+		h, err := multihash.Sum([]byte(fmt.Sprintf("cid.%d", i)), multihash.SHA2_256, -1)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		return cid.NewCidV1(cid.Raw, h)
+	}
+
+	const count = 1000
+	cids := make([]cid.Cid, 0, count)
+	for i := 0; i < count; i++ {
+		cids = append(cids, makeCid(i))
+	}
+
+	cw, err := NewColdSetWriter(path)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	for _, c := range cids {
+		if err := cw.Write(c); err != nil {
+			t.Fatal(err)
+		}
+	}
+
+	if err := cw.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+	cr, err := NewColdSetReader(path)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	index := 0
+	err = cr.ForEach(func(c cid.Cid) error {
+		if index >= count {
+			t.Fatal("too many cids")
+		}
+
+		if !c.Equals(cids[index]) {
+			t.Fatalf("wrong cid %d; expected %s but got %s", index, cids[index], c)
+		}
+
+		index++
+		return nil
+	})
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	if err := cr.Reset(); err != nil {
+		t.Fatal(err)
+	}
+
+	index = 0
+	err = cr.ForEach(func(c cid.Cid) error {
+		if index >= count {
+			t.Fatal("too many cids")
+		}
+
+		if !c.Equals(cids[index]) {
+			t.Fatalf("wrong cid; expected %s but got %s", cids[index], c)
+		}
+
+		index++
+		return nil
+	})
+	if err != nil {
+		t.Fatal(err)
+	}
+
+}
diff --git a/blockstore/splitstore/markset.go b/blockstore/splitstore/markset.go
index f173be575b4..e6749453887 100644
--- a/blockstore/splitstore/markset.go
+++ b/blockstore/splitstore/markset.go
@@ -14,15 +14,24 @@ var errMarkSetClosed = errors.New("markset closed")
 type MarkSet interface {
 	ObjectVisitor
 	Mark(cid.Cid) error
+	MarkMany([]cid.Cid) error
 	Has(cid.Cid) (bool, error)
 	Close() error
+
+	// BeginCriticalSection ensures that the markset is persisted to disk for recovery in case
+	// of abnormal termination during the critical section span.
+	BeginCriticalSection() error
+	// EndCriticalSection ends the critical section span.
+	EndCriticalSection()
 }
 
 type MarkSetEnv interface {
-	// Create creates a new markset within the environment.
-	// name is a unique name for this markset, mapped to the filesystem in disk-backed environments
+	// New creates a new markset within the environment.
+	// name is a unique name for this markset, mapped to the filesystem for on-disk persistence.
 	// sizeHint is a hint about the expected size of the markset
-	Create(name string, sizeHint int64) (MarkSet, error)
+	New(name string, sizeHint int64) (MarkSet, error)
+	// Recover recovers an existing markset persisted on-disk.
+	Recover(name string) (MarkSet, error)
 	// Close closes the markset
 	Close() error
 }
@@ -30,7 +39,7 @@ type MarkSetEnv interface {
 func OpenMarkSetEnv(path string, mtype string) (MarkSetEnv, error) {
 	switch mtype {
 	case "map":
-		return NewMapMarkSetEnv()
+		return NewMapMarkSetEnv(path)
 	case "badger":
 		return NewBadgerMarkSetEnv(path)
 	default:
diff --git a/blockstore/splitstore/markset_badger.go b/blockstore/splitstore/markset_badger.go
index e30334b8912..659d3b5ddc7 100644
--- a/blockstore/splitstore/markset_badger.go
+++ b/blockstore/splitstore/markset_badger.go
@@ -3,6 +3,7 @@ package splitstore
 import (
 	"os"
 	"path/filepath"
+	"runtime"
 	"sync"
 
 	"golang.org/x/xerrors"
@@ -28,6 +29,7 @@ type BadgerMarkSet struct {
 	writers int
 	seqno   int
 	version int
+	persist bool
 
 	db   *badger.DB
 	path string
@@ -47,11 +49,10 @@ func NewBadgerMarkSetEnv(path string) (MarkSetEnv, error) {
 	return &BadgerMarkSetEnv{path: msPath}, nil
 }
 
-func (e *BadgerMarkSetEnv) Create(name string, sizeHint int64) (MarkSet, error) {
-	name += ".tmp"
+func (e *BadgerMarkSetEnv) New(name string, sizeHint int64) (MarkSet, error) {
 	path := filepath.Join(e.path, name)
 
-	db, err := openTransientBadgerDB(path)
+	db, err := openBadgerDB(path, false)
 	if err != nil {
 		return nil, xerrors.Errorf("error creating badger db: %w", err)
 	}
@@ -67,8 +68,72 @@ func (e *BadgerMarkSetEnv) Create(name string, sizeHint int64) (MarkSet, error)
 	return ms, nil
 }
 
+func (e *BadgerMarkSetEnv) Recover(name string) (MarkSet, error) {
+	path := filepath.Join(e.path, name)
+
+	if _, err := os.Stat(path); err != nil {
+		return nil, xerrors.Errorf("error stating badger db path: %w", err)
+	}
+
+	db, err := openBadgerDB(path, true)
+	if err != nil {
+		return nil, xerrors.Errorf("error creating badger db: %w", err)
+	}
+
+	ms := &BadgerMarkSet{
+		pend:    make(map[string]struct{}),
+		writing: make(map[int]map[string]struct{}),
+		db:      db,
+		path:    path,
+		persist: true,
+	}
+	ms.cond.L = &ms.mx
+
+	return ms, nil
+}
+
 func (e *BadgerMarkSetEnv) Close() error {
-	return os.RemoveAll(e.path)
+	return nil
+}
+
+func (s *BadgerMarkSet) BeginCriticalSection() error {
+	s.mx.Lock()
+
+	if s.persist {
+		s.mx.Unlock()
+		return nil
+	}
+
+	var write bool
+	var seqno int
+	if len(s.pend) > 0 {
+		write = true
+		seqno = s.nextBatch()
+	}
+
+	s.persist = true
+	s.mx.Unlock()
+
+	if write {
+		// all writes sync once perist is true
+		return s.write(seqno)
+	}
+
+	// wait for any pending writes and sync
+	s.mx.Lock()
+	for s.writers > 0 {
+		s.cond.Wait()
+	}
+	s.mx.Unlock()
+
+	return s.db.Sync()
+}
+
+func (s *BadgerMarkSet) EndCriticalSection() {
+	s.mx.Lock()
+	defer s.mx.Unlock()
+
+	s.persist = false
 }
 
 func (s *BadgerMarkSet) Mark(c cid.Cid) error {
@@ -88,6 +153,23 @@ func (s *BadgerMarkSet) Mark(c cid.Cid) error {
 	return nil
 }
 
+func (s *BadgerMarkSet) MarkMany(batch []cid.Cid) error {
+	s.mx.Lock()
+	if s.pend == nil {
+		s.mx.Unlock()
+		return errMarkSetClosed
+	}
+
+	write, seqno := s.putMany(batch)
+	s.mx.Unlock()
+
+	if write {
+		return s.write(seqno)
+	}
+
+	return nil
+}
+
 func (s *BadgerMarkSet) Has(c cid.Cid) (bool, error) {
 	s.mx.RLock()
 	defer s.mx.RUnlock()
@@ -193,16 +275,34 @@ func (s *BadgerMarkSet) tryDB(key []byte) (has bool, err error) {
 // writer holds the exclusive lock
 func (s *BadgerMarkSet) put(key string) (write bool, seqno int) {
 	s.pend[key] = struct{}{}
-	if len(s.pend) < badgerMarkSetBatchSize {
+	if !s.persist && len(s.pend) < badgerMarkSetBatchSize {
 		return false, 0
 	}
 
-	seqno = s.seqno
+	seqno = s.nextBatch()
+	return true, seqno
+}
+
+func (s *BadgerMarkSet) putMany(batch []cid.Cid) (write bool, seqno int) {
+	for _, c := range batch {
+		key := string(c.Hash())
+		s.pend[key] = struct{}{}
+	}
+
+	if !s.persist && len(s.pend) < badgerMarkSetBatchSize {
+		return false, 0
+	}
+
+	seqno = s.nextBatch()
+	return true, seqno
+}
+
+func (s *BadgerMarkSet) nextBatch() int {
+	seqno := s.seqno
 	s.seqno++
 	s.writing[seqno] = s.pend
 	s.pend = make(map[string]struct{})
-
-	return true, seqno
+	return seqno
 }
 
 func (s *BadgerMarkSet) write(seqno int) (err error) {
@@ -247,6 +347,14 @@ func (s *BadgerMarkSet) write(seqno int) (err error) {
 		return xerrors.Errorf("error flushing batch to badger markset: %w", err)
 	}
 
+	s.mx.RLock()
+	persist := s.persist
+	s.mx.RUnlock()
+
+	if persist {
+		return s.db.Sync()
+	}
+
 	return nil
 }
 
@@ -266,26 +374,29 @@ func (s *BadgerMarkSet) Close() error {
 	db := s.db
 	s.db = nil
 
-	return closeTransientBadgerDB(db, s.path)
+	return closeBadgerDB(db, s.path, s.persist)
 }
 
-func (s *BadgerMarkSet) SetConcurrent() {}
-
-func openTransientBadgerDB(path string) (*badger.DB, error) {
-	// clean up first
-	err := os.RemoveAll(path)
-	if err != nil {
-		return nil, xerrors.Errorf("error clearing markset directory: %w", err)
-	}
+func openBadgerDB(path string, recover bool) (*badger.DB, error) {
+	// if it is not a recovery, clean up first
+	if !recover {
+		err := os.RemoveAll(path)
+		if err != nil {
+			return nil, xerrors.Errorf("error clearing markset directory: %w", err)
+		}
 
-	err = os.MkdirAll(path, 0755) //nolint:gosec
-	if err != nil {
-		return nil, xerrors.Errorf("error creating markset directory: %w", err)
+		err = os.MkdirAll(path, 0755) //nolint:gosec
+		if err != nil {
+			return nil, xerrors.Errorf("error creating markset directory: %w", err)
+		}
 	}
 
 	opts := badger.DefaultOptions(path)
+	// we manually sync when we are in critical section
 	opts.SyncWrites = false
+	// no need to do that
 	opts.CompactL0OnClose = false
+	// we store hashes, not much to gain by compression
 	opts.Compression = options.None
 	// Note: We use FileIO for loading modes to avoid memory thrashing and interference
 	//       between the system blockstore and the markset.
@@ -294,6 +405,15 @@ func openTransientBadgerDB(path string) (*badger.DB, error) {
 	//       exceeded 1GB in size.
 	opts.TableLoadingMode = options.FileIO
 	opts.ValueLogLoadingMode = options.FileIO
+	// We increase the number of L0 tables before compaction to make it unlikely to
+	// be necessary.
+	opts.NumLevelZeroTables = 20      // default is 5
+	opts.NumLevelZeroTablesStall = 30 // default is 10
+	// increase the number of compactors from default 2 so that if we ever have to
+	// compact, it is fast
+	if runtime.NumCPU()/2 > opts.NumCompactors {
+		opts.NumCompactors = runtime.NumCPU() / 2
+	}
 	opts.Logger = &badgerLogger{
 		SugaredLogger: log.Desugar().WithOptions(zap.AddCallerSkip(1)).Sugar(),
 		skip2:         log.Desugar().WithOptions(zap.AddCallerSkip(2)).Sugar(),
@@ -302,12 +422,16 @@ func openTransientBadgerDB(path string) (*badger.DB, error) {
 	return badger.Open(opts)
 }
 
-func closeTransientBadgerDB(db *badger.DB, path string) error {
+func closeBadgerDB(db *badger.DB, path string, persist bool) error {
 	err := db.Close()
 	if err != nil {
 		return xerrors.Errorf("error closing badger markset: %w", err)
 	}
 
+	if persist {
+		return nil
+	}
+
 	err = os.RemoveAll(path)
 	if err != nil {
 		return xerrors.Errorf("error deleting badger markset: %w", err)
diff --git a/blockstore/splitstore/markset_map.go b/blockstore/splitstore/markset_map.go
index fda964663ef..8216bcd812f 100644
--- a/blockstore/splitstore/markset_map.go
+++ b/blockstore/splitstore/markset_map.go
@@ -1,37 +1,104 @@
 package splitstore
 
 import (
+	"bufio"
+	"io"
+	"os"
+	"path/filepath"
 	"sync"
 
+	"golang.org/x/xerrors"
+
 	cid "github.com/ipfs/go-cid"
 )
 
-type MapMarkSetEnv struct{}
+type MapMarkSetEnv struct {
+	path string
+}
 
 var _ MarkSetEnv = (*MapMarkSetEnv)(nil)
 
 type MapMarkSet struct {
 	mx  sync.RWMutex
 	set map[string]struct{}
+
+	persist bool
+	file    *os.File
+	buf     *bufio.Writer
+
+	path string
 }
 
 var _ MarkSet = (*MapMarkSet)(nil)
 
-func NewMapMarkSetEnv() (*MapMarkSetEnv, error) {
-	return &MapMarkSetEnv{}, nil
+func NewMapMarkSetEnv(path string) (*MapMarkSetEnv, error) {
+	msPath := filepath.Join(path, "markset.map")
+	err := os.MkdirAll(msPath, 0755) //nolint:gosec
+	if err != nil {
+		return nil, xerrors.Errorf("error creating markset directory: %w", err)
+	}
+
+	return &MapMarkSetEnv{path: msPath}, nil
 }
 
-func (e *MapMarkSetEnv) Create(name string, sizeHint int64) (MarkSet, error) {
+func (e *MapMarkSetEnv) New(name string, sizeHint int64) (MarkSet, error) {
+	path := filepath.Join(e.path, name)
 	return &MapMarkSet{
-		set: make(map[string]struct{}, sizeHint),
+		set:  make(map[string]struct{}, sizeHint),
+		path: path,
 	}, nil
 }
 
+func (e *MapMarkSetEnv) Recover(name string) (MarkSet, error) {
+	path := filepath.Join(e.path, name)
+	s := &MapMarkSet{
+		set:  make(map[string]struct{}),
+		path: path,
+	}
+
+	in, err := os.Open(path)
+	if err != nil {
+		return nil, xerrors.Errorf("error opening markset file for read: %w", err)
+	}
+	defer in.Close() //nolint:errcheck
+
+	// wrap a buffered reader to make this faster
+	buf := bufio.NewReader(in)
+	for {
+		var sz byte
+		if sz, err = buf.ReadByte(); err != nil {
+			break
+		}
+
+		key := make([]byte, int(sz))
+		if _, err = io.ReadFull(buf, key); err != nil {
+			break
+		}
+
+		s.set[string(key)] = struct{}{}
+	}
+
+	if err != io.EOF {
+		return nil, xerrors.Errorf("error reading markset file: %w", err)
+	}
+
+	file, err := os.OpenFile(s.path, os.O_WRONLY|os.O_APPEND, 0)
+	if err != nil {
+		return nil, xerrors.Errorf("error opening markset file for write: %w", err)
+	}
+
+	s.persist = true
+	s.file = file
+	s.buf = bufio.NewWriter(file)
+
+	return s, nil
+}
+
 func (e *MapMarkSetEnv) Close() error {
 	return nil
 }
 
-func (s *MapMarkSet) Mark(cid cid.Cid) error {
+func (s *MapMarkSet) BeginCriticalSection() error {
 	s.mx.Lock()
 	defer s.mx.Unlock()
 
@@ -39,7 +106,104 @@ func (s *MapMarkSet) Mark(cid cid.Cid) error {
 		return errMarkSetClosed
 	}
 
-	s.set[string(cid.Hash())] = struct{}{}
+	if s.persist {
+		return nil
+	}
+
+	file, err := os.OpenFile(s.path, os.O_CREATE|os.O_TRUNC|os.O_WRONLY, 0644)
+	if err != nil {
+		return xerrors.Errorf("error opening markset file: %w", err)
+	}
+
+	// wrap a buffered writer to make this faster
+	s.buf = bufio.NewWriter(file)
+	for key := range s.set {
+		if err := s.writeKey([]byte(key), false); err != nil {
+			_ = file.Close()
+			s.buf = nil
+			return err
+		}
+	}
+	if err := s.buf.Flush(); err != nil {
+		_ = file.Close()
+		s.buf = nil
+		return xerrors.Errorf("error flushing markset file buffer: %w", err)
+	}
+
+	s.file = file
+	s.persist = true
+
+	return nil
+}
+
+func (s *MapMarkSet) EndCriticalSection() {
+	s.mx.Lock()
+	defer s.mx.Unlock()
+
+	if !s.persist {
+		return
+	}
+
+	_ = s.file.Close()
+	_ = os.Remove(s.path)
+	s.file = nil
+	s.buf = nil
+	s.persist = false
+}
+
+func (s *MapMarkSet) Mark(c cid.Cid) error {
+	s.mx.Lock()
+	defer s.mx.Unlock()
+
+	if s.set == nil {
+		return errMarkSetClosed
+	}
+
+	hash := c.Hash()
+	s.set[string(hash)] = struct{}{}
+
+	if s.persist {
+		if err := s.writeKey(hash, true); err != nil {
+			return err
+		}
+
+		if err := s.file.Sync(); err != nil {
+			return xerrors.Errorf("error syncing markset: %w", err)
+		}
+	}
+
+	return nil
+}
+
+func (s *MapMarkSet) MarkMany(batch []cid.Cid) error {
+	s.mx.Lock()
+	defer s.mx.Unlock()
+
+	if s.set == nil {
+		return errMarkSetClosed
+	}
+
+	for _, c := range batch {
+		hash := c.Hash()
+		s.set[string(hash)] = struct{}{}
+
+		if s.persist {
+			if err := s.writeKey(hash, false); err != nil {
+				return err
+			}
+		}
+	}
+
+	if s.persist {
+		if err := s.buf.Flush(); err != nil {
+			return xerrors.Errorf("error flushing markset buffer to disk: %w", err)
+		}
+
+		if err := s.file.Sync(); err != nil {
+			return xerrors.Errorf("error syncing markset: %w", err)
+		}
+	}
+
 	return nil
 }
 
@@ -63,12 +227,23 @@ func (s *MapMarkSet) Visit(c cid.Cid) (bool, error) {
 		return false, errMarkSetClosed
 	}
 
-	key := string(c.Hash())
+	hash := c.Hash()
+	key := string(hash)
 	if _, ok := s.set[key]; ok {
 		return false, nil
 	}
 
 	s.set[key] = struct{}{}
+
+	if s.persist {
+		if err := s.writeKey(hash, true); err != nil {
+			return false, err
+		}
+		if err := s.file.Sync(); err != nil {
+			return false, xerrors.Errorf("error syncing markset: %w", err)
+		}
+	}
+
 	return true, nil
 }
 
@@ -76,6 +251,39 @@ func (s *MapMarkSet) Close() error {
 	s.mx.Lock()
 	defer s.mx.Unlock()
 
+	if s.set == nil {
+		return nil
+	}
+
 	s.set = nil
+
+	if s.file != nil {
+		if err := s.file.Close(); err != nil {
+			log.Warnf("error closing markset file: %s", err)
+		}
+
+		if !s.persist {
+			if err := os.Remove(s.path); err != nil {
+				log.Warnf("error removing markset file: %s", err)
+			}
+		}
+	}
+
+	return nil
+}
+
+func (s *MapMarkSet) writeKey(k []byte, flush bool) error {
+	if err := s.buf.WriteByte(byte(len(k))); err != nil {
+		return xerrors.Errorf("error writing markset key length to disk: %w", err)
+	}
+	if _, err := s.buf.Write(k); err != nil {
+		return xerrors.Errorf("error writing markset key to disk: %w", err)
+	}
+	if flush {
+		if err := s.buf.Flush(); err != nil {
+			return xerrors.Errorf("error flushing markset buffer to disk: %w", err)
+		}
+	}
+
 	return nil
 }
diff --git a/blockstore/splitstore/markset_test.go b/blockstore/splitstore/markset_test.go
index de9421f0894..b4b87160215 100644
--- a/blockstore/splitstore/markset_test.go
+++ b/blockstore/splitstore/markset_test.go
@@ -11,7 +11,10 @@ import (
 
 func TestMapMarkSet(t *testing.T) {
 	testMarkSet(t, "map")
+	testMarkSetRecovery(t, "map")
+	testMarkSetMarkMany(t, "map")
 	testMarkSetVisitor(t, "map")
+	testMarkSetVisitorRecovery(t, "map")
 }
 
 func TestBadgerMarkSet(t *testing.T) {
@@ -21,12 +24,13 @@ func TestBadgerMarkSet(t *testing.T) {
 		badgerMarkSetBatchSize = bs
 	})
 	testMarkSet(t, "badger")
+	testMarkSetRecovery(t, "badger")
+	testMarkSetMarkMany(t, "badger")
 	testMarkSetVisitor(t, "badger")
+	testMarkSetVisitorRecovery(t, "badger")
 }
 
 func testMarkSet(t *testing.T, lsType string) {
-	t.Helper()
-
 	path, err := ioutil.TempDir("", "markset.*")
 	if err != nil {
 		t.Fatal(err)
@@ -42,12 +46,12 @@ func testMarkSet(t *testing.T, lsType string) {
 	}
 	defer env.Close() //nolint:errcheck
 
-	hotSet, err := env.Create("hot", 0)
+	hotSet, err := env.New("hot", 0)
 	if err != nil {
 		t.Fatal(err)
 	}
 
-	coldSet, err := env.Create("cold", 0)
+	coldSet, err := env.New("cold", 0)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -62,6 +66,7 @@ func testMarkSet(t *testing.T, lsType string) {
 	}
 
 	mustHave := func(s MarkSet, cid cid.Cid) {
+		t.Helper()
 		has, err := s.Has(cid)
 		if err != nil {
 			t.Fatal(err)
@@ -73,6 +78,7 @@ func testMarkSet(t *testing.T, lsType string) {
 	}
 
 	mustNotHave := func(s MarkSet, cid cid.Cid) {
+		t.Helper()
 		has, err := s.Has(cid)
 		if err != nil {
 			t.Fatal(err)
@@ -114,12 +120,12 @@ func testMarkSet(t *testing.T, lsType string) {
 		t.Fatal(err)
 	}
 
-	hotSet, err = env.Create("hot", 0)
+	hotSet, err = env.New("hot", 0)
 	if err != nil {
 		t.Fatal(err)
 	}
 
-	coldSet, err = env.Create("cold", 0)
+	coldSet, err = env.New("cold", 0)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -150,8 +156,75 @@ func testMarkSet(t *testing.T, lsType string) {
 }
 
 func testMarkSetVisitor(t *testing.T, lsType string) {
-	t.Helper()
+	path, err := ioutil.TempDir("", "markset.*")
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	t.Cleanup(func() {
+		_ = os.RemoveAll(path)
+	})
+
+	env, err := OpenMarkSetEnv(path, lsType)
+	if err != nil {
+		t.Fatal(err)
+	}
+	defer env.Close() //nolint:errcheck
+
+	visitor, err := env.New("test", 0)
+	if err != nil {
+		t.Fatal(err)
+	}
+	defer visitor.Close() //nolint:errcheck
+
+	makeCid := func(key string) cid.Cid {
+		h, err := multihash.Sum([]byte(key), multihash.SHA2_256, -1)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		return cid.NewCidV1(cid.Raw, h)
+	}
+
+	mustVisit := func(v ObjectVisitor, cid cid.Cid) {
+		visit, err := v.Visit(cid)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		if !visit {
+			t.Fatal("object should be visited")
+		}
+	}
+
+	mustNotVisit := func(v ObjectVisitor, cid cid.Cid) {
+		visit, err := v.Visit(cid)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		if visit {
+			t.Fatal("unexpected visit")
+		}
+	}
+
+	k1 := makeCid("a")
+	k2 := makeCid("b")
+	k3 := makeCid("c")
+	k4 := makeCid("d")
+
+	mustVisit(visitor, k1)
+	mustVisit(visitor, k2)
+	mustVisit(visitor, k3)
+	mustVisit(visitor, k4)
+
+	mustNotVisit(visitor, k1)
+	mustNotVisit(visitor, k2)
+	mustNotVisit(visitor, k3)
+	mustNotVisit(visitor, k4)
+}
 
+func testMarkSetVisitorRecovery(t *testing.T, lsType string) {
 	path, err := ioutil.TempDir("", "markset.*")
 	if err != nil {
 		t.Fatal(err)
@@ -167,7 +240,7 @@ func testMarkSetVisitor(t *testing.T, lsType string) {
 	}
 	defer env.Close() //nolint:errcheck
 
-	visitor, err := env.Create("test", 0)
+	visitor, err := env.New("test", 0)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -211,6 +284,11 @@ func testMarkSetVisitor(t *testing.T, lsType string) {
 
 	mustVisit(visitor, k1)
 	mustVisit(visitor, k2)
+
+	if err := visitor.BeginCriticalSection(); err != nil {
+		t.Fatal(err)
+	}
+
 	mustVisit(visitor, k3)
 	mustVisit(visitor, k4)
 
@@ -218,4 +296,249 @@ func testMarkSetVisitor(t *testing.T, lsType string) {
 	mustNotVisit(visitor, k2)
 	mustNotVisit(visitor, k3)
 	mustNotVisit(visitor, k4)
+
+	if err := visitor.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+	visitor, err = env.Recover("test")
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	mustNotVisit(visitor, k1)
+	mustNotVisit(visitor, k2)
+	mustNotVisit(visitor, k3)
+	mustNotVisit(visitor, k4)
+
+	visitor.EndCriticalSection()
+
+	if err := visitor.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+	_, err = env.Recover("test")
+	if err == nil {
+		t.Fatal("expected recovery to fail")
+	}
+}
+
+func testMarkSetRecovery(t *testing.T, lsType string) {
+	path, err := ioutil.TempDir("", "markset.*")
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	t.Cleanup(func() {
+		_ = os.RemoveAll(path)
+	})
+
+	env, err := OpenMarkSetEnv(path, lsType)
+	if err != nil {
+		t.Fatal(err)
+	}
+	defer env.Close() //nolint:errcheck
+
+	markSet, err := env.New("test", 0)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	makeCid := func(key string) cid.Cid {
+		h, err := multihash.Sum([]byte(key), multihash.SHA2_256, -1)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		return cid.NewCidV1(cid.Raw, h)
+	}
+
+	mustHave := func(s MarkSet, cid cid.Cid) {
+		t.Helper()
+		has, err := s.Has(cid)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		if !has {
+			t.Fatal("mark not found")
+		}
+	}
+
+	mustNotHave := func(s MarkSet, cid cid.Cid) {
+		t.Helper()
+		has, err := s.Has(cid)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		if has {
+			t.Fatal("unexpected mark")
+		}
+	}
+
+	k1 := makeCid("a")
+	k2 := makeCid("b")
+	k3 := makeCid("c")
+	k4 := makeCid("d")
+
+	if err := markSet.Mark(k1); err != nil {
+		t.Fatal(err)
+	}
+	if err := markSet.Mark(k2); err != nil {
+		t.Fatal(err)
+	}
+
+	mustHave(markSet, k1)
+	mustHave(markSet, k2)
+	mustNotHave(markSet, k3)
+	mustNotHave(markSet, k4)
+
+	if err := markSet.BeginCriticalSection(); err != nil {
+		t.Fatal(err)
+	}
+
+	if err := markSet.Mark(k3); err != nil {
+		t.Fatal(err)
+	}
+	if err := markSet.Mark(k4); err != nil {
+		t.Fatal(err)
+	}
+
+	mustHave(markSet, k1)
+	mustHave(markSet, k2)
+	mustHave(markSet, k3)
+	mustHave(markSet, k4)
+
+	if err := markSet.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+	markSet, err = env.Recover("test")
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	mustHave(markSet, k1)
+	mustHave(markSet, k2)
+	mustHave(markSet, k3)
+	mustHave(markSet, k4)
+
+	markSet.EndCriticalSection()
+
+	if err := markSet.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+	_, err = env.Recover("test")
+	if err == nil {
+		t.Fatal("expected recovery to fail")
+	}
+}
+
+func testMarkSetMarkMany(t *testing.T, lsType string) {
+	path, err := ioutil.TempDir("", "markset.*")
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	t.Cleanup(func() {
+		_ = os.RemoveAll(path)
+	})
+
+	env, err := OpenMarkSetEnv(path, lsType)
+	if err != nil {
+		t.Fatal(err)
+	}
+	defer env.Close() //nolint:errcheck
+
+	markSet, err := env.New("test", 0)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	makeCid := func(key string) cid.Cid {
+		h, err := multihash.Sum([]byte(key), multihash.SHA2_256, -1)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		return cid.NewCidV1(cid.Raw, h)
+	}
+
+	mustHave := func(s MarkSet, cid cid.Cid) {
+		t.Helper()
+		has, err := s.Has(cid)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		if !has {
+			t.Fatal("mark not found")
+		}
+	}
+
+	mustNotHave := func(s MarkSet, cid cid.Cid) {
+		t.Helper()
+		has, err := s.Has(cid)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		if has {
+			t.Fatal("unexpected mark")
+		}
+	}
+
+	k1 := makeCid("a")
+	k2 := makeCid("b")
+	k3 := makeCid("c")
+	k4 := makeCid("d")
+
+	if err := markSet.MarkMany([]cid.Cid{k1, k2}); err != nil {
+		t.Fatal(err)
+	}
+
+	mustHave(markSet, k1)
+	mustHave(markSet, k2)
+	mustNotHave(markSet, k3)
+	mustNotHave(markSet, k4)
+
+	if err := markSet.BeginCriticalSection(); err != nil {
+		t.Fatal(err)
+	}
+
+	if err := markSet.MarkMany([]cid.Cid{k3, k4}); err != nil {
+		t.Fatal(err)
+	}
+
+	mustHave(markSet, k1)
+	mustHave(markSet, k2)
+	mustHave(markSet, k3)
+	mustHave(markSet, k4)
+
+	if err := markSet.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+	markSet, err = env.Recover("test")
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	mustHave(markSet, k1)
+	mustHave(markSet, k2)
+	mustHave(markSet, k3)
+	mustHave(markSet, k4)
+
+	markSet.EndCriticalSection()
+
+	if err := markSet.Close(); err != nil {
+		t.Fatal(err)
+	}
+
+	_, err = env.Recover("test")
+	if err == nil {
+		t.Fatal("expected recovery to fail")
+	}
 }
diff --git a/blockstore/splitstore/splitstore.go b/blockstore/splitstore/splitstore.go
index 62cb2459e54..6a65e01df36 100644
--- a/blockstore/splitstore/splitstore.go
+++ b/blockstore/splitstore/splitstore.go
@@ -129,8 +129,6 @@ type SplitStore struct {
 
 	headChangeMx sync.Mutex
 
-	coldPurgeSize int
-
 	chain ChainAccessor
 	ds    dstore.Datastore
 	cold  bstore.Blockstore
@@ -158,6 +156,10 @@ type SplitStore struct {
 	txnRefsMx       sync.Mutex
 	txnRefs         map[cid.Cid]struct{}
 	txnMissing      map[cid.Cid]struct{}
+	txnMarkSet      MarkSet
+	txnSyncMx       sync.Mutex
+	txnSyncCond     sync.Cond
+	txnSync         bool
 
 	// registered protectors
 	protectors []func(func(cid.Cid) error) error
@@ -194,11 +196,10 @@ func Open(path string, ds dstore.Datastore, hot, cold bstore.Blockstore, cfg *Co
 		cold:       cold,
 		hot:        hots,
 		markSetEnv: markSetEnv,
-
-		coldPurgeSize: defaultColdPurgeSize,
 	}
 
 	ss.txnViewsCond.L = &ss.txnViewsMx
+	ss.txnSyncCond.L = &ss.txnSyncMx
 	ss.ctx, ss.cancel = context.WithCancel(context.Background())
 
 	if enableDebugLog {
@@ -208,6 +209,14 @@ func Open(path string, ds dstore.Datastore, hot, cold bstore.Blockstore, cfg *Co
 		}
 	}
 
+	if ss.checkpointExists() {
+		log.Info("found compaction checkpoint; resuming compaction")
+		if err := ss.completeCompaction(); err != nil {
+			markSetEnv.Close() //nolint:errcheck
+			return nil, xerrors.Errorf("error resuming compaction: %w", err)
+		}
+	}
+
 	return ss, nil
 }
 
@@ -230,6 +239,20 @@ func (s *SplitStore) Has(ctx context.Context, cid cid.Cid) (bool, error) {
 	s.txnLk.RLock()
 	defer s.txnLk.RUnlock()
 
+	// critical section
+	if s.txnMarkSet != nil {
+		has, err := s.txnMarkSet.Has(cid)
+		if err != nil {
+			return false, err
+		}
+
+		if has {
+			return s.has(cid)
+		}
+
+		return s.cold.Has(ctx, cid)
+	}
+
 	has, err := s.hot.Has(ctx, cid)
 
 	if err != nil {
@@ -257,6 +280,20 @@ func (s *SplitStore) Get(ctx context.Context, cid cid.Cid) (blocks.Block, error)
 	s.txnLk.RLock()
 	defer s.txnLk.RUnlock()
 
+	// critical section
+	if s.txnMarkSet != nil {
+		has, err := s.txnMarkSet.Has(cid)
+		if err != nil {
+			return nil, err
+		}
+
+		if has {
+			return s.get(cid)
+		}
+
+		return s.cold.Get(ctx, cid)
+	}
+
 	blk, err := s.hot.Get(ctx, cid)
 
 	switch err {
@@ -294,6 +331,20 @@ func (s *SplitStore) GetSize(ctx context.Context, cid cid.Cid) (int, error) {
 	s.txnLk.RLock()
 	defer s.txnLk.RUnlock()
 
+	// critical section
+	if s.txnMarkSet != nil {
+		has, err := s.txnMarkSet.Has(cid)
+		if err != nil {
+			return 0, err
+		}
+
+		if has {
+			return s.getSize(cid)
+		}
+
+		return s.cold.GetSize(ctx, cid)
+	}
+
 	size, err := s.hot.GetSize(ctx, cid)
 
 	switch err {
@@ -332,6 +383,12 @@ func (s *SplitStore) Put(ctx context.Context, blk blocks.Block) error {
 
 	s.debug.LogWrite(blk)
 
+	// critical section
+	if s.txnMarkSet != nil {
+		s.markLiveRefs([]cid.Cid{blk.Cid()})
+		return nil
+	}
+
 	s.trackTxnRef(blk.Cid())
 	return nil
 }
@@ -377,6 +434,12 @@ func (s *SplitStore) PutMany(ctx context.Context, blks []blocks.Block) error {
 
 	s.debug.LogWriteMany(blks)
 
+	// critical section
+	if s.txnMarkSet != nil {
+		s.markLiveRefs(batch)
+		return nil
+	}
+
 	s.trackTxnRefMany(batch)
 	return nil
 }
@@ -436,6 +499,23 @@ func (s *SplitStore) View(ctx context.Context, cid cid.Cid, cb func([]byte) erro
 		return cb(data)
 	}
 
+	// critical section
+	s.txnLk.RLock() // the lock is released in protectView if we are not in critical section
+	if s.txnMarkSet != nil {
+		has, err := s.txnMarkSet.Has(cid)
+		s.txnLk.RUnlock()
+
+		if err != nil {
+			return err
+		}
+
+		if has {
+			return s.view(cid, cb)
+		}
+
+		return s.cold.View(ctx, cid, cb)
+	}
+
 	// views are (optimistically) protected two-fold:
 	// - if there is an active transaction, then the reference is protected.
 	// - if there is no active transaction, active views are tracked in a
@@ -585,6 +665,11 @@ func (s *SplitStore) Close() error {
 	}
 
 	if atomic.LoadInt32(&s.compacting) == 1 {
+		s.txnSyncMx.Lock()
+		s.txnSync = true
+		s.txnSyncCond.Broadcast()
+		s.txnSyncMx.Unlock()
+
 		log.Warn("close with ongoing compaction in progress; waiting for it to finish...")
 		for atomic.LoadInt32(&s.compacting) == 1 {
 			time.Sleep(time.Second)
diff --git a/blockstore/splitstore/splitstore_check.go b/blockstore/splitstore/splitstore_check.go
index 0b4cfe04472..d7c9b2ef97b 100644
--- a/blockstore/splitstore/splitstore_check.go
+++ b/blockstore/splitstore/splitstore_check.go
@@ -89,7 +89,7 @@ func (s *SplitStore) doCheck(curTs *types.TipSet) error {
 	coldCnt := new(int64)
 	missingCnt := new(int64)
 
-	visitor, err := s.markSetEnv.Create("check", 0)
+	visitor, err := s.markSetEnv.New("check", 0)
 	if err != nil {
 		return xerrors.Errorf("error creating visitor: %w", err)
 	}
diff --git a/blockstore/splitstore/splitstore_compact.go b/blockstore/splitstore/splitstore_compact.go
index 20f99af35c0..ae123abc9c3 100644
--- a/blockstore/splitstore/splitstore_compact.go
+++ b/blockstore/splitstore/splitstore_compact.go
@@ -3,8 +3,9 @@ package splitstore
 import (
 	"bytes"
 	"errors"
+	"os"
+	"path/filepath"
 	"runtime"
-	"sort"
 	"sync"
 	"sync/atomic"
 	"time"
@@ -48,6 +49,10 @@ var (
 	// SyncGapTime is the time delay from a tipset's min timestamp before we decide
 	// there is a sync gap
 	SyncGapTime = time.Minute
+
+	// SyncWaitTime is the time delay from a tipset's min timestamp before we decide
+	// we have synced.
+	SyncWaitTime = 30 * time.Second
 )
 
 var (
@@ -57,8 +62,6 @@ var (
 
 const (
 	batchSize = 16384
-
-	defaultColdPurgeSize = 7_000_000
 )
 
 func (s *SplitStore) HeadChange(_, apply []*types.TipSet) error {
@@ -141,9 +144,9 @@ func (s *SplitStore) isNearUpgrade(epoch abi.ChainEpoch) bool {
 // transactionally protect incoming tipsets
 func (s *SplitStore) protectTipSets(apply []*types.TipSet) {
 	s.txnLk.RLock()
-	defer s.txnLk.RUnlock()
 
 	if !s.txnActive {
+		s.txnLk.RUnlock()
 		return
 	}
 
@@ -152,12 +155,115 @@ func (s *SplitStore) protectTipSets(apply []*types.TipSet) {
 		cids = append(cids, ts.Cids()...)
 	}
 
+	if len(cids) == 0 {
+		s.txnLk.RUnlock()
+		return
+	}
+
+	// critical section
+	if s.txnMarkSet != nil {
+		curTs := apply[len(apply)-1]
+		timestamp := time.Unix(int64(curTs.MinTimestamp()), 0)
+		doSync := time.Since(timestamp) < SyncWaitTime
+		go func() {
+			if doSync {
+				defer func() {
+					s.txnSyncMx.Lock()
+					defer s.txnSyncMx.Unlock()
+					s.txnSync = true
+					s.txnSyncCond.Broadcast()
+				}()
+			}
+			defer s.txnLk.RUnlock()
+			s.markLiveRefs(cids)
+
+		}()
+		return
+	}
+
 	s.trackTxnRefMany(cids)
+	s.txnLk.RUnlock()
+}
+
+func (s *SplitStore) markLiveRefs(cids []cid.Cid) {
+	log.Debugf("marking %d live refs", len(cids))
+	startMark := time.Now()
+
+	count := new(int32)
+	visitor := newConcurrentVisitor()
+	walkObject := func(c cid.Cid) error {
+		return s.walkObjectIncomplete(c, visitor,
+			func(c cid.Cid) error {
+				if isUnitaryObject(c) {
+					return errStopWalk
+				}
+
+				visit, err := s.txnMarkSet.Visit(c)
+				if err != nil {
+					return xerrors.Errorf("error visiting object: %w", err)
+				}
+
+				if !visit {
+					return errStopWalk
+				}
+
+				atomic.AddInt32(count, 1)
+				return nil
+			},
+			func(missing cid.Cid) error {
+				log.Warnf("missing object reference %s in %s", missing, c)
+				return errStopWalk
+			})
+	}
+
+	// optimize the common case of single put
+	if len(cids) == 1 {
+		if err := walkObject(cids[0]); err != nil {
+			log.Errorf("error marking tipset refs: %s", err)
+		}
+		log.Debugw("marking live refs done", "took", time.Since(startMark), "marked", *count)
+		return
+	}
+
+	workch := make(chan cid.Cid, len(cids))
+	for _, c := range cids {
+		workch <- c
+	}
+	close(workch)
+
+	worker := func() error {
+		for c := range workch {
+			if err := walkObject(c); err != nil {
+				return err
+			}
+		}
+
+		return nil
+	}
+
+	workers := runtime.NumCPU() / 2
+	if workers < 2 {
+		workers = 2
+	}
+	if workers > len(cids) {
+		workers = len(cids)
+	}
+
+	g := new(errgroup.Group)
+	for i := 0; i < workers; i++ {
+		g.Go(worker)
+	}
+
+	if err := g.Wait(); err != nil {
+		log.Errorf("error marking tipset refs: %s", err)
+	}
+
+	log.Debugw("marking live refs done", "took", time.Since(startMark), "marked", *count)
 }
 
 // transactionally protect a view
 func (s *SplitStore) protectView(c cid.Cid) {
-	s.txnLk.RLock()
+	//  the txnLk is held for read
 	defer s.txnLk.RUnlock()
 
 	if s.txnActive {
@@ -387,6 +493,12 @@ func (s *SplitStore) compact(curTs *types.TipSet) {
 }
 
 func (s *SplitStore) doCompact(curTs *types.TipSet) error {
+	if s.checkpointExists() {
+		// this really shouldn't happen, but if it somehow does, it means that the hotstore
+		// might be potentially inconsistent; abort compaction and notify the user to intervene.
+		return xerrors.Errorf("checkpoint exists; aborting compaction")
+	}
+
 	currentEpoch := curTs.Height()
 	boundaryEpoch := currentEpoch - CompactionBoundary
 
@@ -398,7 +510,7 @@ func (s *SplitStore) doCompact(curTs *types.TipSet) error {
 
 	log.Infow("running compaction", "currentEpoch", currentEpoch, "baseEpoch", s.baseEpoch, "boundaryEpoch", boundaryEpoch, "inclMsgsEpoch", inclMsgsEpoch, "compactionIndex", s.compactionIndex)
 
-	markSet, err := s.markSetEnv.Create("live", s.markSetSize)
+	markSet, err := s.markSetEnv.New("live", s.markSetSize)
 	if err != nil {
 		return xerrors.Errorf("error creating mark set: %w", err)
 	}
@@ -409,9 +521,6 @@ func (s *SplitStore) doCompact(curTs *types.TipSet) error {
 		return err
 	}
 
-	// we are ready for concurrent marking
-	s.beginTxnMarking(markSet)
-
 	// 0. track all protected references at beginning of compaction; anything added later should
 	//    be transactionally protected by the write
 	log.Info("protecting references with registered protectors")
@@ -425,7 +534,7 @@ func (s *SplitStore) doCompact(curTs *types.TipSet) error {
 	log.Info("marking reachable objects")
 	startMark := time.Now()
 
-	var count int64
+	count := new(int64)
 	err = s.walkChain(curTs, boundaryEpoch, inclMsgsEpoch, &noopVisitor{},
 		func(c cid.Cid) error {
 			if isUnitaryObject(c) {
@@ -441,7 +550,7 @@ func (s *SplitStore) doCompact(curTs *types.TipSet) error {
 				return errStopWalk
 			}
 
-			count++
+			atomic.AddInt64(count, 1)
 			return nil
 		})
 
@@ -449,9 +558,9 @@ func (s *SplitStore) doCompact(curTs *types.TipSet) error {
 		return xerrors.Errorf("error marking: %w", err)
 	}
 
-	s.markSetSize = count + count>>2 // overestimate a bit
+	s.markSetSize = *count + *count>>2 // overestimate a bit
 
-	log.Infow("marking done", "took", time.Since(startMark), "marked", count)
+	log.Infow("marking done", "took", time.Since(startMark), "marked", *count)
 
 	if err := s.checkClosing(); err != nil {
 		return err
@@ -471,10 +580,15 @@ func (s *SplitStore) doCompact(curTs *types.TipSet) error {
 	log.Info("collecting cold objects")
 	startCollect := time.Now()
 
+	coldw, err := NewColdSetWriter(s.coldSetPath())
+	if err != nil {
+		return xerrors.Errorf("error creating coldset: %w", err)
+	}
+	defer coldw.Close() //nolint:errcheck
+
 	// some stats for logging
 	var hotCnt, coldCnt int
 
-	cold := make([]cid.Cid, 0, s.coldPurgeSize)
 	err = s.hot.ForEachKey(func(c cid.Cid) error {
 		// was it marked?
 		mark, err := markSet.Has(c)
@@ -488,7 +602,9 @@ func (s *SplitStore) doCompact(curTs *types.TipSet) error {
 		}
 
 		// it's cold, mark it as candidate for move
-		cold = append(cold, c)
+		if err := coldw.Write(c); err != nil {
+			return xerrors.Errorf("error writing cid to coldstore: %w", err)
+		}
 		coldCnt++
 
 		return nil
@@ -498,12 +614,12 @@ func (s *SplitStore) doCompact(curTs *types.TipSet) error {
 		return xerrors.Errorf("error collecting cold objects: %w", err)
 	}
 
-	log.Infow("cold collection done", "took", time.Since(startCollect))
-
-	if coldCnt > 0 {
-		s.coldPurgeSize = coldCnt + coldCnt>>2 // overestimate a bit
+	if err := coldw.Close(); err != nil {
+		return xerrors.Errorf("error closing coldset: %w", err)
 	}
 
+	log.Infow("cold collection done", "took", time.Since(startCollect))
+
 	log.Infow("compaction stats", "hot", hotCnt, "cold", coldCnt)
 	stats.Record(s.ctx, metrics.SplitstoreCompactionHot.M(int64(hotCnt)))
 	stats.Record(s.ctx, metrics.SplitstoreCompactionCold.M(int64(coldCnt)))
@@ -521,11 +637,17 @@ func (s *SplitStore) doCompact(curTs *types.TipSet) error {
 		return err
 	}
 
+	coldr, err := NewColdSetReader(s.coldSetPath())
+	if err != nil {
+		return xerrors.Errorf("error opening coldset: %w", err)
+	}
+	defer coldr.Close() //nolint:errcheck
+
 	// 3. copy the cold objects to the coldstore -- if we have one
 	if !s.cfg.DiscardColdBlocks {
 		log.Info("moving cold objects to the coldstore")
 		startMove := time.Now()
-		err = s.moveColdBlocks(cold)
+		err = s.moveColdBlocks(coldr)
 		if err != nil {
 			return xerrors.Errorf("error moving cold objects: %w", err)
 		}
@@ -534,41 +656,64 @@ func (s *SplitStore) doCompact(curTs *types.TipSet) error {
 		if err := s.checkClosing(); err != nil {
 			return err
 		}
+
+		if err := coldr.Reset(); err != nil {
+			return xerrors.Errorf("error resetting coldset: %w", err)
+		}
 	}
 
-	// 4. sort cold objects so that the dags with most references are deleted first
-	//    this ensures that we can't refer to a dag with its consituents already deleted, ie
-	//    we lave no dangling references.
-	log.Info("sorting cold objects")
-	startSort := time.Now()
-	err = s.sortObjects(cold)
-	if err != nil {
-		return xerrors.Errorf("error sorting objects: %w", err)
+	// 4. Purge cold objects with checkpointing for recovery.
+	// This is the critical section of compaction, whereby any cold object not in the markSet is
+	// considered already deleted.
+	// We delete cold objects in batches, holding the transaction lock, where we check the markSet
+	// again for new references created by the VM.
+	// After each batch, we write a checkpoint to disk; if the process is interrupted before completion,
+	// the process will continue from the checkpoint in the next recovery.
+	if err := s.beginCriticalSection(markSet); err != nil {
+		return xerrors.Errorf("error beginning critical section: %w", err)
 	}
-	log.Infow("sorting done", "took", time.Since(startSort))
 
-	// 4.1 protect transactional refs once more
-	//     strictly speaking, this is not necessary as purge will do it before deleting each
-	//     batch.  however, there is likely a largish number of references accumulated during
-	//     ths sort and this protects before entering pruge context.
-	err = s.protectTxnRefs(markSet)
-	if err != nil {
-		return xerrors.Errorf("error protecting transactional refs: %w", err)
+	if err := s.checkClosing(); err != nil {
+		return err
 	}
 
+	// wait for the head to catch up so that the current tipset is marked
+	s.waitForSync()
+
 	if err := s.checkClosing(); err != nil {
 		return err
 	}
 
+	checkpoint, err := NewCheckpoint(s.checkpointPath())
+	if err != nil {
+		return xerrors.Errorf("error creating checkpoint: %w", err)
+	}
+	defer checkpoint.Close() //nolint:errcheck
+
 	// 5. purge cold objects from the hotstore, taking protected references into account
 	log.Info("purging cold objects from the hotstore")
 	startPurge := time.Now()
-	err = s.purge(cold, markSet)
+	err = s.purge(coldr, checkpoint, markSet)
 	if err != nil {
-		return xerrors.Errorf("error purging cold blocks: %w", err)
+		return xerrors.Errorf("error purging cold objects: %w", err)
 	}
 	log.Infow("purging cold objects from hotstore done", "took", time.Since(startPurge))
 
+	s.endCriticalSection()
+
+	if err := checkpoint.Close(); err != nil {
+		log.Warnf("error closing checkpoint: %s", err)
+	}
+	if err := os.Remove(s.checkpointPath()); err != nil {
+		log.Warnf("error removing checkpoint: %s", err)
+	}
+	if err := coldr.Close(); err != nil {
+		log.Warnf("error closing coldset: %s", err)
+	}
+	if err := os.Remove(s.coldSetPath()); err != nil {
+		log.Warnf("error removing coldset: %s", err)
+	}
+
 	// we are done; do some housekeeping
 	s.endTxnProtect()
 	s.gcHotstore()
@@ -599,12 +744,51 @@ func (s *SplitStore) beginTxnProtect() {
 	defer s.txnLk.Unlock()
 
 	s.txnActive = true
+	s.txnSync = false
 	s.txnRefs = make(map[cid.Cid]struct{})
 	s.txnMissing = make(map[cid.Cid]struct{})
 }
 
-func (s *SplitStore) beginTxnMarking(markSet MarkSet) {
-	log.Info("beginning transactional marking")
+func (s *SplitStore) beginCriticalSection(markSet MarkSet) error {
+	log.Info("beginning critical section")
+
+	// do that once first to get the bulk before the markset is in critical section
+	if err := s.protectTxnRefs(markSet); err != nil {
+		return xerrors.Errorf("error protecting transactional references: %w", err)
+	}
+
+	if err := markSet.BeginCriticalSection(); err != nil {
+		return xerrors.Errorf("error beginning critical section for markset: %w", err)
+	}
+
+	s.txnLk.Lock()
+	defer s.txnLk.Unlock()
+
+	s.txnMarkSet = markSet
+
+	// and do it again while holding the lock to mark references that might have been created
+	// in the meantime and avoid races of the type Has->txnRef->enterCS->Get fails because
+	// it's not in the markset
+	if err := s.protectTxnRefs(markSet); err != nil {
+		return xerrors.Errorf("error protecting transactional references: %w", err)
+	}
+
+	return nil
+}
+
+func (s *SplitStore) waitForSync() {
+	log.Info("waiting for sync")
+	startWait := time.Now()
+	defer func() {
+		log.Infow("waiting for sync done", "took", time.Since(startWait))
+	}()
+
+	s.txnSyncMx.Lock()
+	defer s.txnSyncMx.Unlock()
+
+	for !s.txnSync {
+		s.txnSyncCond.Wait()
+	}
 }
 
 func (s *SplitStore) endTxnProtect() {
@@ -616,8 +800,20 @@ func (s *SplitStore) endTxnProtect() {
 	}
 
 	s.txnActive = false
+	s.txnSync = false
 	s.txnRefs = nil
 	s.txnMissing = nil
+	s.txnMarkSet = nil
+}
+
+func (s *SplitStore) endCriticalSection() {
+	log.Info("ending critical section")
+
+	s.txnLk.Lock()
+	defer s.txnLk.Unlock()
+
+	s.txnMarkSet.EndCriticalSection()
+	s.txnMarkSet = nil
 }
 
 func (s *SplitStore) walkChain(ts *types.TipSet, inclState, inclMsgs abi.ChainEpoch,
@@ -857,7 +1053,7 @@ func (s *SplitStore) walkObjectIncomplete(c cid.Cid, visitor ObjectVisitor, f, m
 	return nil
 }
 
-// internal version used by walk
+// internal version used during compaction and related operations
 func (s *SplitStore) view(c cid.Cid, cb func([]byte) error) error {
 	if isIdentiyCid(c) {
 		data, err := decodeIdentityCid(c)
@@ -892,10 +1088,34 @@ func (s *SplitStore) has(c cid.Cid) (bool, error) {
 	return s.cold.Has(s.ctx, c)
 }
 
-func (s *SplitStore) moveColdBlocks(cold []cid.Cid) error {
+func (s *SplitStore) get(c cid.Cid) (blocks.Block, error) {
+	blk, err := s.hot.Get(s.ctx, c)
+	switch err {
+	case nil:
+		return blk, nil
+	case bstore.ErrNotFound:
+		return s.cold.Get(s.ctx, c)
+	default:
+		return nil, err
+	}
+}
+
+func (s *SplitStore) getSize(c cid.Cid) (int, error) {
+	sz, err := s.hot.GetSize(s.ctx, c)
+	switch err {
+	case nil:
+		return sz, nil
+	case bstore.ErrNotFound:
+		return s.cold.GetSize(s.ctx, c)
+	default:
+		return 0, err
+	}
+}
+
+func (s *SplitStore) moveColdBlocks(coldr *ColdSetReader) error {
 	batch := make([]blocks.Block, 0, batchSize)
 
-	for _, c := range cold {
+	err := coldr.ForEach(func(c cid.Cid) error {
 		if err := s.checkClosing(); err != nil {
 			return err
 		}
@@ -904,7 +1124,7 @@ func (s *SplitStore) moveColdBlocks(cold []cid.Cid) error {
 		if err != nil {
 			if err == bstore.ErrNotFound {
 				log.Warnf("hotstore missing block %s", c)
-				continue
+				return nil
 			}
 
 			return xerrors.Errorf("error retrieving block %s from hotstore: %w", c, err)
@@ -918,6 +1138,12 @@ func (s *SplitStore) moveColdBlocks(cold []cid.Cid) error {
 			}
 			batch = batch[:0]
 		}
+
+		return nil
+	})
+
+	if err != nil {
+		return xerrors.Errorf("error iterating coldset: %w", err)
 	}
 
 	if len(batch) > 0 {
@@ -930,177 +1156,202 @@ func (s *SplitStore) moveColdBlocks(cold []cid.Cid) error {
 	return nil
 }
 
-// sorts a slice of objects heaviest first -- it's a little expensive but worth the
-// guarantee that we don't leave dangling references behind, e.g. if we die in the middle
-// of a purge.
-func (s *SplitStore) sortObjects(cids []cid.Cid) error {
-	// we cache the keys to avoid making a gazillion of strings
-	keys := make(map[cid.Cid]string)
-	key := func(c cid.Cid) string {
-		s, ok := keys[c]
-		if !ok {
-			s = string(c.Hash())
-			keys[c] = s
-		}
-		return s
-	}
+func (s *SplitStore) purge(coldr *ColdSetReader, checkpoint *Checkpoint, markSet MarkSet) error {
+	batch := make([]cid.Cid, 0, batchSize)
+	deadCids := make([]cid.Cid, 0, batchSize)
 
-	// compute sorting weights as the cumulative number of DAG links
-	weights := make(map[string]int)
-	for _, c := range cids {
-		// this can take quite a while, so check for shutdown with every opportunity
-		if err := s.checkClosing(); err != nil {
-			return err
-		}
+	var purgeCnt, liveCnt int
+	defer func() {
+		log.Infow("purged cold objects", "purged", purgeCnt, "live", liveCnt)
+	}()
+
+	deleteBatch := func() error {
+		pc, lc, err := s.purgeBatch(batch, deadCids, checkpoint, markSet)
 
-		w := s.getObjectWeight(c, weights, key)
-		weights[key(c)] = w
+		purgeCnt += pc
+		liveCnt += lc
+		batch = batch[:0]
+
+		return err
 	}
 
-	// sort!
-	sort.Slice(cids, func(i, j int) bool {
-		wi := weights[key(cids[i])]
-		wj := weights[key(cids[j])]
-		if wi == wj {
-			return bytes.Compare(cids[i].Hash(), cids[j].Hash()) > 0
+	err := coldr.ForEach(func(c cid.Cid) error {
+		batch = append(batch, c)
+		if len(batch) == batchSize {
+			return deleteBatch()
 		}
 
-		return wi > wj
+		return nil
 	})
 
+	if err != nil {
+		return err
+	}
+
+	if len(batch) > 0 {
+		return deleteBatch()
+	}
+
 	return nil
 }
 
-func (s *SplitStore) getObjectWeight(c cid.Cid, weights map[string]int, key func(cid.Cid) string) int {
-	w, ok := weights[key(c)]
-	if ok {
-		return w
+func (s *SplitStore) purgeBatch(batch, deadCids []cid.Cid, checkpoint *Checkpoint, markSet MarkSet) (purgeCnt int, liveCnt int, err error) {
+	if err := s.checkClosing(); err != nil {
+		return 0, 0, err
 	}
 
-	// we treat block headers specially to avoid walking the entire chain
-	var hdr types.BlockHeader
-	err := s.view(c, func(data []byte) error {
-		return hdr.UnmarshalCBOR(bytes.NewBuffer(data))
-	})
-	if err == nil {
-		w1 := s.getObjectWeight(hdr.ParentStateRoot, weights, key)
-		weights[key(hdr.ParentStateRoot)] = w1
+	s.txnLk.Lock()
+	defer s.txnLk.Unlock()
 
-		w2 := s.getObjectWeight(hdr.Messages, weights, key)
-		weights[key(hdr.Messages)] = w2
+	for _, c := range batch {
+		has, err := markSet.Has(c)
+		if err != nil {
+			return 0, 0, xerrors.Errorf("error checking markset for liveness: %w", err)
+		}
 
-		return 1 + w1 + w2
-	}
+		if has {
+			liveCnt++
+			continue
+		}
 
-	var links []cid.Cid
-	err = s.view(c, func(data []byte) error {
-		return cbg.ScanForLinks(bytes.NewReader(data), func(c cid.Cid) {
-			links = append(links, c)
-		})
-	})
-	if err != nil {
-		return 1
+		deadCids = append(deadCids, c)
 	}
 
-	w = 1
-	for _, c := range links {
-		// these are internal refs, so dags will be dags
-		if c.Prefix().Codec != cid.DagCBOR {
-			w++
-			continue
+	if len(deadCids) == 0 {
+		if err := checkpoint.Set(batch[len(batch)-1]); err != nil {
+			return 0, 0, xerrors.Errorf("error setting checkpoint: %w", err)
 		}
 
-		wc := s.getObjectWeight(c, weights, key)
-		weights[key(c)] = wc
+		return 0, liveCnt, nil
+	}
 
-		w += wc
+	if err := s.hot.DeleteMany(s.ctx, deadCids); err != nil {
+		return 0, liveCnt, xerrors.Errorf("error purging cold objects: %w", err)
 	}
 
-	return w
+	s.debug.LogDelete(deadCids)
+	purgeCnt = len(deadCids)
+
+	if err := checkpoint.Set(batch[len(batch)-1]); err != nil {
+		return purgeCnt, liveCnt, xerrors.Errorf("error setting checkpoint: %w", err)
+	}
+
+	return purgeCnt, liveCnt, nil
 }
 
-func (s *SplitStore) purgeBatch(cids []cid.Cid, deleteBatch func([]cid.Cid) error) error {
-	if len(cids) == 0 {
-		return nil
+func (s *SplitStore) coldSetPath() string {
+	return filepath.Join(s.path, "coldset")
+}
+
+func (s *SplitStore) checkpointPath() string {
+	return filepath.Join(s.path, "checkpoint")
+}
+
+func (s *SplitStore) checkpointExists() bool {
+	_, err := os.Stat(s.checkpointPath())
+	return err == nil
+}
+
+func (s *SplitStore) completeCompaction() error {
+	checkpoint, last, err := OpenCheckpoint(s.checkpointPath())
+	if err != nil {
+		return xerrors.Errorf("error opening checkpoint: %w", err)
 	}
+	defer checkpoint.Close() //nolint:errcheck
 
-	// we don't delete one giant batch of millions of objects, but rather do smaller batches
-	// so that we don't stop the world for an extended period of time
-	done := false
-	for i := 0; !done; i++ {
-		start := i * batchSize
-		end := start + batchSize
-		if end >= len(cids) {
-			end = len(cids)
-			done = true
-		}
+	coldr, err := NewColdSetReader(s.coldSetPath())
+	if err != nil {
+		return xerrors.Errorf("error opening coldset: %w", err)
+	}
+	defer coldr.Close() //nolint:errcheck
 
-		err := deleteBatch(cids[start:end])
-		if err != nil {
-			return xerrors.Errorf("error deleting batch: %w", err)
-		}
+	markSet, err := s.markSetEnv.Recover("live")
+	if err != nil {
+		return xerrors.Errorf("error recovering markset: %w", err)
 	}
+	defer markSet.Close() //nolint:errcheck
 
+	// PURGE
+	log.Info("purging cold objects from the hotstore")
+	startPurge := time.Now()
+	err = s.completePurge(coldr, checkpoint, last, markSet)
+	if err != nil {
+		return xerrors.Errorf("error purging cold objects: %w", err)
+	}
+	log.Infow("purging cold objects from hotstore done", "took", time.Since(startPurge))
+
+	markSet.EndCriticalSection()
+
+	if err := checkpoint.Close(); err != nil {
+		log.Warnf("error closing checkpoint: %s", err)
+	}
+	if err := os.Remove(s.checkpointPath()); err != nil {
+		log.Warnf("error removing checkpoint: %s", err)
+	}
+	if err := coldr.Close(); err != nil {
+		log.Warnf("error closing coldset: %s", err)
+	}
+	if err := os.Remove(s.coldSetPath()); err != nil {
+		log.Warnf("error removing coldset: %s", err)
+	}
+
+	// Note: at this point we can start the splitstore; a compaction should run on
+	//       the first head change, which will trigger gc on the hotstore.
+	//       We don't mind the second (back-to-back) compaction as the head will
+	//       have advanced during marking and coldset accumulation.
 	return nil
 }
 
-func (s *SplitStore) purge(cids []cid.Cid, markSet MarkSet) error {
+func (s *SplitStore) completePurge(coldr *ColdSetReader, checkpoint *Checkpoint, start cid.Cid, markSet MarkSet) error {
+	if !start.Defined() {
+		return s.purge(coldr, checkpoint, markSet)
+	}
+
+	seeking := true
+	batch := make([]cid.Cid, 0, batchSize)
 	deadCids := make([]cid.Cid, 0, batchSize)
+
 	var purgeCnt, liveCnt int
 	defer func() {
 		log.Infow("purged cold objects", "purged", purgeCnt, "live", liveCnt)
 	}()
 
-	return s.purgeBatch(cids,
-		func(cids []cid.Cid) error {
-			deadCids := deadCids[:0]
-
-			for {
-				if err := s.checkClosing(); err != nil {
-					return err
-				}
+	deleteBatch := func() error {
+		pc, lc, err := s.purgeBatch(batch, deadCids, checkpoint, markSet)
 
-				s.txnLk.Lock()
-				if len(s.txnRefs) == 0 {
-					// keep the lock!
-					break
-				}
+		purgeCnt += pc
+		liveCnt += lc
+		batch = batch[:0]
 
-				// unlock and protect
-				s.txnLk.Unlock()
+		return err
+	}
 
-				err := s.protectTxnRefs(markSet)
-				if err != nil {
-					return xerrors.Errorf("error protecting transactional refs: %w", err)
-				}
+	err := coldr.ForEach(func(c cid.Cid) error {
+		if seeking {
+			if start.Equals(c) {
+				seeking = false
 			}
 
-			defer s.txnLk.Unlock()
-
-			for _, c := range cids {
-				live, err := markSet.Has(c)
-				if err != nil {
-					return xerrors.Errorf("error checking for liveness: %w", err)
-				}
+			return nil
+		}
 
-				if live {
-					liveCnt++
-					continue
-				}
+		batch = append(batch, c)
+		if len(batch) == batchSize {
+			return deleteBatch()
+		}
 
-				deadCids = append(deadCids, c)
-			}
+		return nil
+	})
 
-			err := s.hot.DeleteMany(s.ctx, deadCids)
-			if err != nil {
-				return xerrors.Errorf("error purging cold objects: %w", err)
-			}
+	if err != nil {
+		return err
+	}
 
-			s.debug.LogDelete(deadCids)
+	if len(batch) > 0 {
+		return deleteBatch()
+	}
 
-			purgeCnt += len(deadCids)
-			return nil
-		})
+	return nil
 }
 
 // I really don't like having this code, but we seem to have some occasional DAG references with
diff --git a/blockstore/splitstore/splitstore_test.go b/blockstore/splitstore/splitstore_test.go
index 7d84e0a4ca6..27d58bf1043 100644
--- a/blockstore/splitstore/splitstore_test.go
+++ b/blockstore/splitstore/splitstore_test.go
@@ -4,6 +4,8 @@ import (
 	"context"
 	"errors"
 	"fmt"
+	"io/ioutil"
+	"os"
 	"sync"
 	"sync/atomic"
 	"testing"
@@ -20,12 +22,14 @@ import (
 	datastore "github.com/ipfs/go-datastore"
 	dssync "github.com/ipfs/go-datastore/sync"
 	logging "github.com/ipfs/go-log/v2"
+	mh "github.com/multiformats/go-multihash"
 )
 
 func init() {
 	CompactionThreshold = 5
 	CompactionBoundary = 2
 	WarmupBoundary = 0
+	SyncWaitTime = time.Millisecond
 	logging.SetLogLevel("splitstore", "DEBUG")
 }
 
@@ -80,8 +84,17 @@ func testSplitStore(t *testing.T, cfg *Config) {
 		t.Fatal(err)
 	}
 
+	path, err := ioutil.TempDir("", "splitstore.*")
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	t.Cleanup(func() {
+		_ = os.RemoveAll(path)
+	})
+
 	// open the splitstore
-	ss, err := Open("", ds, hot, cold, cfg)
+	ss, err := Open(path, ds, hot, cold, cfg)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -125,6 +138,10 @@ func testSplitStore(t *testing.T, cfg *Config) {
 	}
 
 	waitForCompaction := func() {
+		ss.txnSyncMx.Lock()
+		ss.txnSync = true
+		ss.txnSyncCond.Broadcast()
+		ss.txnSyncMx.Unlock()
 		for atomic.LoadInt32(&ss.compacting) == 1 {
 			time.Sleep(100 * time.Millisecond)
 		}
@@ -259,8 +276,17 @@ func TestSplitStoreSuppressCompactionNearUpgrade(t *testing.T) {
 		t.Fatal(err)
 	}
 
+	path, err := ioutil.TempDir("", "splitstore.*")
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	t.Cleanup(func() {
+		_ = os.RemoveAll(path)
+	})
+
 	// open the splitstore
-	ss, err := Open("", ds, hot, cold, &Config{MarkSetType: "map"})
+	ss, err := Open(path, ds, hot, cold, &Config{MarkSetType: "map"})
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -305,6 +331,10 @@ func TestSplitStoreSuppressCompactionNearUpgrade(t *testing.T) {
 	}
 
 	waitForCompaction := func() {
+		ss.txnSyncMx.Lock()
+		ss.txnSync = true
+		ss.txnSyncCond.Broadcast()
+		ss.txnSyncMx.Unlock()
 		for atomic.LoadInt32(&ss.compacting) == 1 {
 			time.Sleep(100 * time.Millisecond)
 		}
@@ -426,17 +456,25 @@ func (c *mockChain) SubscribeHeadChanges(change func(revert []*types.TipSet, app
 
 type mockStore struct {
 	mx  sync.Mutex
-	set map[cid.Cid]blocks.Block
+	set map[string]blocks.Block
 }
 
 func newMockStore() *mockStore {
-	return &mockStore{set: make(map[cid.Cid]blocks.Block)}
+	return &mockStore{set: make(map[string]blocks.Block)}
+}
+
+func (b *mockStore) keyOf(c cid.Cid) string {
+	return string(c.Hash())
+}
+
+func (b *mockStore) cidOf(k string) cid.Cid {
+	return cid.NewCidV1(cid.Raw, mh.Multihash([]byte(k)))
 }
 
 func (b *mockStore) Has(_ context.Context, cid cid.Cid) (bool, error) {
 	b.mx.Lock()
 	defer b.mx.Unlock()
-	_, ok := b.set[cid]
+	_, ok := b.set[b.keyOf(cid)]
 	return ok, nil
 }
 
@@ -446,7 +484,7 @@ func (b *mockStore) Get(_ context.Context, cid cid.Cid) (blocks.Block, error) {
 	b.mx.Lock()
 	defer b.mx.Unlock()
 
-	blk, ok := b.set[cid]
+	blk, ok := b.set[b.keyOf(cid)]
 	if !ok {
 		return nil, blockstore.ErrNotFound
 	}
@@ -474,7 +512,7 @@ func (b *mockStore) Put(_ context.Context, blk blocks.Block) error {
 	b.mx.Lock()
 	defer b.mx.Unlock()
 
-	b.set[blk.Cid()] = blk
+	b.set[b.keyOf(blk.Cid())] = blk
 	return nil
 }
 
@@ -483,7 +521,7 @@ func (b *mockStore) PutMany(_ context.Context, blks []blocks.Block) error {
 	defer b.mx.Unlock()
 
 	for _, blk := range blks {
-		b.set[blk.Cid()] = blk
+		b.set[b.keyOf(blk.Cid())] = blk
 	}
 	return nil
 }
@@ -492,7 +530,7 @@ func (b *mockStore) DeleteBlock(_ context.Context, cid cid.Cid) error {
 	b.mx.Lock()
 	defer b.mx.Unlock()
 
-	delete(b.set, cid)
+	delete(b.set, b.keyOf(cid))
 	return nil
 }
 
@@ -501,7 +539,7 @@ func (b *mockStore) DeleteMany(_ context.Context, cids []cid.Cid) error {
 	defer b.mx.Unlock()
 
 	for _, c := range cids {
-		delete(b.set, c)
+		delete(b.set, b.keyOf(c))
 	}
 	return nil
 }
@@ -515,7 +553,7 @@ func (b *mockStore) ForEachKey(f func(cid.Cid) error) error {
 	defer b.mx.Unlock()
 
 	for c := range b.set {
-		err := f(c)
+		err := f(b.cidOf(c))
 		if err != nil {
 			return err
 		}
diff --git a/blockstore/splitstore/splitstore_warmup.go b/blockstore/splitstore/splitstore_warmup.go
index 0670bd0f6ff..b564f03c795 100644
--- a/blockstore/splitstore/splitstore_warmup.go
+++ b/blockstore/splitstore/splitstore_warmup.go
@@ -62,7 +62,7 @@ func (s *SplitStore) doWarmup(curTs *types.TipSet) error {
 	xcount := new(int64)
 	missing := new(int64)
 
-	visitor, err := s.markSetEnv.Create("warmup", 0)
+	visitor, err := s.markSetEnv.New("warmup", 0)
 	if err != nil {
 		return xerrors.Errorf("error creating visitor: %w", err)
 	}
diff --git a/documentation/en/default-lotus-config.toml b/documentation/en/default-lotus-config.toml
index 3cb8977b290..0bc22c9d772 100644
--- a/documentation/en/default-lotus-config.toml
+++ b/documentation/en/default-lotus-config.toml
@@ -163,11 +163,11 @@
     #HotStoreType = "badger"
 
     # MarkSetType specifies the type of the markset.
-    # It can be "map" (default) for in memory marking or "badger" for on-disk marking.
+    # It can be "map" for in memory marking or "badger" (default) for on-disk marking.
     #
     # type: string
     # env var: LOTUS_CHAINSTORE_SPLITSTORE_MARKSETTYPE
-    #MarkSetType = "map"
+    #MarkSetType = "badger"
 
     # HotStoreMessageRetention specifies the retention policy for messages, in finalities beyond
     # the compaction boundary; default is 0.
diff --git a/node/config/def.go b/node/config/def.go
index eded665fff8..1573508665c 100644
--- a/node/config/def.go
+++ b/node/config/def.go
@@ -85,7 +85,7 @@ func DefaultFullNode() *FullNode {
 			Splitstore: Splitstore{
 				ColdStoreType: "universal",
 				HotStoreType:  "badger",
-				MarkSetType:   "map",
+				MarkSetType:   "badger",
 
 				HotStoreFullGCFrequency: 20,
 			},
diff --git a/node/config/doc_gen.go b/node/config/doc_gen.go
index 79fcf7e43c6..80748d1e6e7 100644
--- a/node/config/doc_gen.go
+++ b/node/config/doc_gen.go
@@ -810,7 +810,7 @@ Only currently supported value is "badger".`,
 			Type: "string",
 
 			Comment: `MarkSetType specifies the type of the markset.
-It can be "map" (default) for in memory marking or "badger" for on-disk marking.`,
+It can be "map" for in memory marking or "badger" (default) for on-disk marking.`,
 		},
 		{
 			Name: "HotStoreMessageRetention",
diff --git a/node/config/types.go b/node/config/types.go
index a03e3d3eade..93f5459e650 100644
--- a/node/config/types.go
+++ b/node/config/types.go
@@ -363,7 +363,7 @@ type Splitstore struct {
 	// Only currently supported value is "badger".
 	HotStoreType string
 	// MarkSetType specifies the type of the markset.
-	// It can be "map" (default) for in memory marking or "badger" for on-disk marking.
+	// It can be "map" for in memory marking or "badger" (default) for on-disk marking.
 	MarkSetType string
 
 	// HotStoreMessageRetention specifies the retention policy for messages, in finalities beyond