diff --git a/lib/runtime/version.go b/lib/runtime/version.go
index 9b0f3aadd3..fba9720303 100644
--- a/lib/runtime/version.go
+++ b/lib/runtime/version.go
@@ -4,6 +4,7 @@
 package runtime
 
 import (
+	"errors"
 	"fmt"
 	"strings"
 
@@ -54,6 +55,11 @@ func (v *Version) Encode() (encoded []byte, err error) {
 	return scale.Marshal(toEncode)
 }
 
+var (
+	ErrDecodingVersion       = errors.New("decoding version")
+	ErrDecodingLegacyVersion = errors.New("decoding legacy version")
+)
+
 // DecodeVersion scale decodes the encoded version data and returns an error.
 // It first tries to decode the data using the current version format.
 // If that fails with an EOF error, it then tries to decode the data
@@ -65,15 +71,18 @@ func DecodeVersion(encoded []byte) (version Version, err error) {
 	}
 
 	if !strings.Contains(err.Error(), "EOF") {
-		// TODO io.EOF should be wrapped in scale
-		return version, err
+		// TODO io.EOF should be wrapped in scale and
+		// ErrDecodingVersion should be removed once this is done.
+		return version, fmt.Errorf("%w: %s", ErrDecodingVersion, err)
 	}
 
 	// TODO: kusama seems to use the legacy version format
 	var legacy legacyData
 	err = scale.Unmarshal(encoded, &legacy)
 	if err != nil {
-		return version, fmt.Errorf("decoding legacy version: %w", err)
+		// TODO sentinel error should be wrapped in scale and
+		// ErrDecodingLegacyVersion should be removed once this is done.
+		return version, fmt.Errorf("%w: %s", ErrDecodingLegacyVersion, err)
 	}
 
 	return Version{
diff --git a/lib/runtime/version_test.go b/lib/runtime/version_test.go
index 1671c0174e..a88761c758 100644
--- a/lib/runtime/version_test.go
+++ b/lib/runtime/version_test.go
@@ -10,7 +10,134 @@ import (
 	"github.com/stretchr/testify/require"
 )
 
-func Test_VersionData_Scale(t *testing.T) {
+func Test_Version_Encode(t *testing.T) {
+	t.Parallel()
+
+	someVersion := Version{
+		SpecName:         []byte{1},
+		ImplName:         []byte{2},
+		AuthoringVersion: 3,
+		SpecVersion:      4,
+		ImplVersion:      5,
+		APIItems: []APIItem{{
+			Name: [8]byte{1, 2, 3, 4, 5, 6, 7, 8},
+			Ver:  6,
+		}},
+		TransactionVersion: 7,
+	}
+
+	testCases := map[string]struct {
+		version    Version
+		encoding   []byte
+		errWrapped error
+		errMessage string
+	}{
+		"not legacy": {
+			version: someVersion,
+			encoding: []byte{
+				0x4, 0x1, 0x4, 0x2, 0x3, 0x0, 0x0, 0x0, 0x4, 0x0, 0x0, 0x0,
+				0x5, 0x0, 0x0, 0x0, 0x4, 0x1, 0x2, 0x3, 0x4, 0x5, 0x6, 0x7,
+				0x8, 0x6, 0x0, 0x0, 0x0, 0x7, 0x0, 0x0, 0x0},
+		},
+		"legacy": {
+			version: someVersion.WithLegacy(),
+			encoding: []byte{
+				0x4, 0x1, 0x4, 0x2, 0x3, 0x0, 0x0, 0x0, 0x4, 0x0, 0x0, 0x0,
+				0x5, 0x0, 0x0, 0x0, 0x4, 0x1, 0x2, 0x3, 0x4, 0x5, 0x6, 0x7,
+				0x8, 0x6, 0x0, 0x0, 0x0},
+		},
+	}
+
+	for name, testCase := range testCases {
+		testCase := testCase
+		t.Run(name, func(t *testing.T) {
+			t.Parallel()
+
+			encoded, err := testCase.version.Encode()
+
+			assert.ErrorIs(t, err, testCase.errWrapped)
+			if testCase.errWrapped != nil {
+				require.EqualError(t, err, testCase.errMessage)
+			}
+			assert.Equal(t, testCase.encoding, encoded)
+		})
+	}
+}
+
+func Test_DecodeVersion(t *testing.T) {
+	t.Parallel()
+
+	testCases := map[string]struct {
+		encoded    []byte
+		version    Version
+		errWrapped error
+		errMessage string
+	}{
+		"unmarshal success": {
+			encoded: []byte{
+				0x4, 0x1, 0x4, 0x2, 0x3, 0x0, 0x0, 0x0, 0x4, 0x0, 0x0, 0x0,
+				0x5, 0x0, 0x0, 0x0, 0x4, 0x1, 0x2, 0x3, 0x4, 0x5, 0x6, 0x7,
+				0x8, 0x6, 0x0, 0x0, 0x0, 0x7, 0x0, 0x0, 0x0},
+			version: Version{
+				SpecName:         []byte{1},
+				ImplName:         []byte{2},
+				AuthoringVersion: 3,
+				SpecVersion:      4,
+				ImplVersion:      5,
+				APIItems: []APIItem{{
+					Name: [8]byte{1, 2, 3, 4, 5, 6, 7, 8},
+					Ver:  6,
+				}},
+				TransactionVersion: 7,
+			},
+		},
+		"unmarshal error": {
+			encoded:    []byte{255, 255},
+			errWrapped: ErrDecodingVersion,
+			errMessage: "decoding version: could not decode invalid integer, field: []",
+		},
+		"legacy unmarshal error": {
+			encoded:    []byte{0},
+			errWrapped: ErrDecodingLegacyVersion,
+			errMessage: "decoding legacy version: EOF, field: []",
+		},
+		"legacy unmarshal success": {
+			encoded: []byte{
+				0x4, 0x1, 0x4, 0x2, 0x3, 0x0, 0x0, 0x0, 0x4, 0x0, 0x0, 0x0,
+				0x5, 0x0, 0x0, 0x0, 0x4, 0x1, 0x2, 0x3, 0x4, 0x5, 0x6, 0x7,
+				0x8, 0x6, 0x0, 0x0, 0x0},
+			version: Version{
+				SpecName:         []byte{1},
+				ImplName:         []byte{2},
+				AuthoringVersion: 3,
+				SpecVersion:      4,
+				ImplVersion:      5,
+				APIItems: []APIItem{{
+					Name: [8]byte{1, 2, 3, 4, 5, 6, 7, 8},
+					Ver:  6,
+				}},
+				legacy: true,
+			},
+		},
+	}
+
+	for name, testCase := range testCases {
+		testCase := testCase
+		t.Run(name, func(t *testing.T) {
+			t.Parallel()
+
+			version, err := DecodeVersion(testCase.encoded)
+
+			assert.ErrorIs(t, err, testCase.errWrapped)
+			if testCase.errWrapped != nil {
+				require.EqualError(t, err, testCase.errMessage)
+			}
+			assert.Equal(t, testCase.version, version)
+		})
+	}
+}
+
+func Test_Version_Scale(t *testing.T) {
 	t.Parallel()
 
 	testCases := map[string]struct {