diff --git a/2016/day16.py b/2016/day16.py
new file mode 100644
index 0000000..815d5d3
--- /dev/null
+++ b/2016/day16.py
@@ -0,0 +1,34 @@
+import fileinput
+
+
+def generate_data(data, size):
+    def dragon(a):
+        b = ''.join('1' if c == '0' else '0' for c in a)
+        return a + '0' + b[::-1]
+
+    while len(data) < size:
+        data = dragon(data)
+
+    return data[:size]
+
+
+def checksum(s):
+    def checksum_iteration(s):
+        tmp = []
+        for a, b in zip(s[::2], s[1::2]):
+            tmp.append('1' if a == b else '0')
+
+        return ''.join(tmp)
+
+    res = checksum_iteration(s)
+
+    while len(res) % 2 == 0:
+        res = checksum_iteration(res)
+
+    return res
+
+
+if __name__ == '__main__':
+    data = fileinput.input()[0].strip()
+    print 'Checksum #1:', checksum(generate_data(data, 272))
+    print 'Checksum #2:', checksum(generate_data(data, 35651584))
diff --git a/2016/input16.txt b/2016/input16.txt
new file mode 100644
index 0000000..f8492ed
--- /dev/null
+++ b/2016/input16.txt
@@ -0,0 +1 @@
+00101000101111010