diff --git a/contractcourt/breach_arbitrator_test.go b/contractcourt/breach_arbitrator_test.go
index c387c2179..99ed85269 100644
--- a/contractcourt/breach_arbitrator_test.go
+++ b/contractcourt/breach_arbitrator_test.go
@@ -36,7 +36,7 @@ import (
 )
 
 var (
-	defaultTimeout = 30 * time.Second
+	defaultTimeout = 10 * time.Second
 
 	breachOutPoints = []wire.OutPoint{
 		{
diff --git a/contractcourt/chain_arbitrator.go b/contractcourt/chain_arbitrator.go
index e8ba2907a..0a42dd57b 100644
--- a/contractcourt/chain_arbitrator.go
+++ b/contractcourt/chain_arbitrator.go
@@ -267,6 +267,9 @@ type ChainArbitrator struct {
 	// active channels that it must still watch over.
 	chanSource *channeldb.DB
 
+	// beat is the current best known blockbeat.
+	beat chainio.Blockbeat
+
 	quit chan struct{}
 
 	wg sync.WaitGroup
@@ -797,18 +800,11 @@ func (c *ChainArbitrator) Start() error {
 		}
 	}
 
-	// Subscribe to a single stream of block epoch notifications that we
-	// will dispatch to all active arbitrators.
-	blockEpoch, err := c.cfg.Notifier.RegisterBlockEpochNtfn(nil)
-	if err != nil {
-		return err
-	}
-
 	// Start our goroutine which will dispatch blocks to each arbitrator.
 	c.wg.Add(1)
 	go func() {
 		defer c.wg.Done()
-		c.dispatchBlocks(blockEpoch)
+		c.dispatchBlocks()
 	}()
 
 	// TODO(roasbeef): eventually move all breach watching here
@@ -816,94 +812,22 @@ func (c *ChainArbitrator) Start() error {
 	return nil
 }
 
-// blockRecipient contains the information we need to dispatch a block to a
-// channel arbitrator.
-type blockRecipient struct {
-	// chanPoint is the funding outpoint of the channel.
-	chanPoint wire.OutPoint
-
-	// blocks is the channel that new block heights are sent into. This
-	// channel should be sufficiently buffered as to not block the sender.
-	blocks chan<- int32
-
-	// quit is closed if the receiving entity is shutting down.
-	quit chan struct{}
-}
-
 // dispatchBlocks consumes a block epoch notification stream and dispatches
 // blocks to each of the chain arb's active channel arbitrators. This function
 // must be run in a goroutine.
-func (c *ChainArbitrator) dispatchBlocks(
-	blockEpoch *chainntnfs.BlockEpochEvent) {
-
-	// getRecipients is a helper function which acquires the chain arb
-	// lock and returns a set of block recipients which can be used to
-	// dispatch blocks.
-	getRecipients := func() []blockRecipient {
-		c.Lock()
-		blocks := make([]blockRecipient, 0, len(c.activeChannels))
-		for _, channel := range c.activeChannels {
-			blocks = append(blocks, blockRecipient{
-				chanPoint: channel.cfg.ChanPoint,
-				blocks:    channel.blocks,
-				quit:      channel.quit,
-			})
-		}
-		c.Unlock()
-
-		return blocks
-	}
-
-	// On exit, cancel our blocks subscription and close each block channel
-	// so that the arbitrators know they will no longer be receiving blocks.
-	defer func() {
-		blockEpoch.Cancel()
-
-		recipients := getRecipients()
-		for _, recipient := range recipients {
-			close(recipient.blocks)
-		}
-	}()
-
+func (c *ChainArbitrator) dispatchBlocks() {
 	// Consume block epochs until we receive the instruction to shutdown.
 	for {
 		select {
 		// Consume block epochs, exiting if our subscription is
 		// terminated.
-		case block, ok := <-blockEpoch.Epochs:
-			if !ok {
-				log.Trace("dispatchBlocks block epoch " +
-					"cancelled")
-				return
-			}
+		case beat := <-c.BlockbeatChan:
+			// Set the current blockbeat.
+			c.beat = beat
 
-			// Get the set of currently active channels block
-			// subscription channels and dispatch the block to
-			// each.
-			for _, recipient := range getRecipients() {
-				select {
-				// Deliver the block to the arbitrator.
-				case recipient.blocks <- block.Height:
-
-				// If the recipient is shutting down, exit
-				// without delivering the block. This may be
-				// the case when two blocks are mined in quick
-				// succession, and the arbitrator resolves
-				// after the first block, and does not need to
-				// consume the second block.
-				case <-recipient.quit:
-					log.Debugf("channel: %v exit without "+
-						"receiving block: %v",
-						recipient.chanPoint,
-						block.Height)
-
-				// If the chain arb is shutting down, we don't
-				// need to deliver any more blocks (everything
-				// will be shutting down).
-				case <-c.quit:
-					return
-				}
-			}
+			// Send this blockbeat to all the active channels and
+			// wait for them to finish processing it.
+			c.handleBlockbeat(beat)
 
 		// Exit if the chain arbitrator is shutting down.
 		case <-c.quit:
@@ -912,6 +836,32 @@ func (c *ChainArbitrator) dispatchBlocks(
 	}
 }
 
+// handleBlockbeat sends the blockbeat to all active channel arbitrator in
+// parallel and wait for them to finish processing it.
+func (c *ChainArbitrator) handleBlockbeat(beat chainio.Blockbeat) {
+	// Read the active channels in a lock.
+	c.Lock()
+
+	// Create a slice to record active channel arbitrator.
+	channels := make([]chainio.Consumer, 0, len(c.activeChannels))
+
+	// Copy the active channels to the slice.
+	for _, channel := range c.activeChannels {
+		channels = append(channels, channel)
+	}
+
+	c.Unlock()
+
+	// Iterate all the copied channels and send the blockbeat to them.
+	//
+	// NOTE: This method will timeout if the processing of blocks of the
+	// subsystems is too long (60s).
+	err := chainio.DispatchConcurrent(beat, channels)
+
+	// Notify the chain arbitrator has processed the block.
+	c.NotifyBlockProcessed(beat, err)
+}
+
 // republishClosingTxs will load any stored cooperative or unilateral closing
 // transactions and republish them. This helps ensure propagation of the
 // transactions in the event that prior publications failed.
diff --git a/contractcourt/chain_arbitrator_test.go b/contractcourt/chain_arbitrator_test.go
index fe2603ca5..de6d69900 100644
--- a/contractcourt/chain_arbitrator_test.go
+++ b/contractcourt/chain_arbitrator_test.go
@@ -77,7 +77,6 @@ func TestChainArbitratorRepublishCloses(t *testing.T) {
 		ChainIO: &mock.ChainIO{},
 		Notifier: &mock.ChainNotifier{
 			SpendChan: make(chan *chainntnfs.SpendDetail),
-			EpochChan: make(chan *chainntnfs.BlockEpoch),
 			ConfChan:  make(chan *chainntnfs.TxConfirmation),
 		},
 		PublishTx: func(tx *wire.MsgTx, _ string) error {
@@ -158,7 +157,6 @@ func TestResolveContract(t *testing.T) {
 		ChainIO: &mock.ChainIO{},
 		Notifier: &mock.ChainNotifier{
 			SpendChan: make(chan *chainntnfs.SpendDetail),
-			EpochChan: make(chan *chainntnfs.BlockEpoch),
 			ConfChan:  make(chan *chainntnfs.TxConfirmation),
 		},
 		PublishTx: func(tx *wire.MsgTx, _ string) error {