diff --git a/docker-compose.yml b/docker-compose.yml
index 9c0d59d5..af9b53a2 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -64,8 +64,6 @@ services:
     logging: *default-logging
     env_file:
       - .env
-    environment:
-      - SKYD_DISK_CACHE_ENABLED=${SKYD_DISK_CACHE_ENABLED:-true}
     volumes:
       - ./docker/data/nginx/cache:/data/nginx/cache
       - ./docker/data/nginx/blocker:/data/nginx/blocker
diff --git a/docker/nginx/conf.d/include/location-skylink b/docker/nginx/conf.d/include/location-skylink
index da4727c7..cfacf5c1 100644
--- a/docker/nginx/conf.d/include/location-skylink
+++ b/docker/nginx/conf.d/include/location-skylink
@@ -1,6 +1,5 @@
 include /etc/nginx/conf.d/include/cors;
 include /etc/nginx/conf.d/include/proxy-buffer;
-include /etc/nginx/conf.d/include/proxy-cache-downloads;
 include /etc/nginx/conf.d/include/track-download;
 
 limit_conn downloads_by_ip 100; # ddos protection: max 100 downloads at a time
@@ -9,62 +8,10 @@ limit_conn downloads_by_ip 100; # ddos protection: max 100 downloads at a time
 # this is important because we want only one format in cache keys and logs
 set_by_lua_block $skylink { return require("skynet.skylink").parse(ngx.var.skylink) }
 
-# $skylink_v1 and $skylink_v2 variables default to the same value but in case the requested skylink was:
-# a) skylink v1 - it would not matter, no additional logic is executed
-# b) skylink v2 - in a lua block below we will resolve the skylink v2 into skylink v1 and update 
-#      $skylink_v1 variable so then the proxy request to skyd can be cached in nginx (proxy_cache_key 
-#      in proxy-cache-downloads includes $skylink_v1 as a part of the cache key)
-set $skylink_v1 $skylink;
-set $skylink_v2 $skylink;
-
-# variable for Skynet-Proof header that we need to inject 
-# into a response if the request was for skylink v2
-set $skynet_proof '';
-
 # default download rate to unlimited
 set $limit_rate 0;
 
 access_by_lua_block {
-    -- the block below only makes sense if we are using nginx cache
-    if not ngx.var.skyd_disk_cache_enabled then
-        local httpc = require("resty.http").new()
-
-        -- detect whether requested skylink is v2
-        local isBase32v2 = string.len(ngx.var.skylink) == 55 and string.sub(ngx.var.skylink, 0, 2) == "04"
-        local isBase64v2 = string.len(ngx.var.skylink) == 46 and string.sub(ngx.var.skylink, 0, 2) == "AQ"
-        
-        if isBase32v2 or isBase64v2 then
-            -- 10.10.10.10 points to sia service (alias not available when using resty-http)
-            local res, err = httpc:request_uri("http://10.10.10.10:9980/skynet/resolve/" .. ngx.var.skylink_v2, {
-                headers = { ["User-Agent"] = "Sia-Agent" }
-            })
-
-            -- print error and exit with 500 or exit with response if status is not 200
-            if err or (res and res.status ~= ngx.HTTP_OK) then
-                ngx.status = (err and ngx.HTTP_INTERNAL_SERVER_ERROR) or res.status
-                ngx.header["content-type"] = "text/plain"
-                ngx.say(err or res.body)
-                return ngx.exit(ngx.status)
-            end
-
-            local json = require('cjson')
-            local resolve = json.decode(res.body)
-            ngx.var.skylink_v1 = resolve.skylink
-            ngx.var.skynet_proof = res.headers["Skynet-Proof"]
-        end
-
-        -- check if skylink v1 is present on blocklist (compare hashes)
-        if require("skynet.blocklist").is_blocked(ngx.var.skylink_v1) then
-            return require("skynet.blocklist").exit_illegal()
-        end
-
-        -- if skylink is found on nocache list then set internal nocache variable
-        -- to tell nginx that it should not try and cache this file (too large)
-        if ngx.shared.nocache:get(ngx.var.skylink_v1) then
-            ngx.var.nocache = "1"
-        end
-    end
-
     if require("skynet.account").accounts_enabled() then
         -- check if portal is in authenticated only mode
         if require("skynet.account").is_access_unauthorized() then
@@ -84,36 +31,10 @@ access_by_lua_block {
     end
 }
 
-header_filter_by_lua_block {
-    ngx.header["Skynet-Portal-Api"] = ngx.var.scheme .. "://" .. ngx.var.skynet_portal_domain
-    ngx.header["Skynet-Server-Api"] = ngx.var.scheme .. "://" .. ngx.var.skynet_server_domain
-
-    -- the block below only makes sense if we are using nginx cache
-    if not ngx.var.skyd_disk_cache_enabled then
-        -- not empty skynet_proof means this is a skylink v2 request
-        -- so we should replace the Skynet-Proof header with the one
-        -- we got from /skynet/resolve/ endpoint, otherwise we would
-        -- be serving cached empty v1 skylink Skynet-Proof header
-        if ngx.var.skynet_proof and ngx.var.skynet_proof ~= "" then
-            ngx.header["Skynet-Proof"] = ngx.var.skynet_proof
-        end
-
-        -- add skylink to nocache list if it exceeds 1GB (1e+9 bytes) threshold
-        -- (content length can be nil for already cached files - we can ignore them)
-        if ngx.header["Content-Length"] and tonumber(ngx.header["Content-Length"]) > 1e+9 then
-            ngx.shared.nocache:set(ngx.var.skylink_v1, ngx.header["Content-Length"])
-        end
-    end
-}
-
 limit_rate_after 512k;
 limit_rate $limit_rate;
 
 proxy_read_timeout 600;
 proxy_set_header User-Agent: Sia-Agent;
 
-# in case the requested skylink was v2 and we already resolved it to skylink v1, we are going to pass resolved 
-# skylink v1 to skyd to save that extra skylink v2 lookup in skyd but in turn, in case skyd returns a redirect 
-# we need to rewrite the skylink v1 to skylink v2 in the location header with proxy_redirect
-proxy_redirect $skylink_v1 $skylink_v2;
-proxy_pass http://sia:9980/skynet/skylink/$skylink_v1$path$is_args$args;
+proxy_pass http://sia:9980/skynet/skylink/$skylink$path$is_args$args;
diff --git a/docker/nginx/conf.d/include/proxy-cache-downloads b/docker/nginx/conf.d/include/proxy-cache-downloads
deleted file mode 100644
index 85aeeb9e..00000000
--- a/docker/nginx/conf.d/include/proxy-cache-downloads
+++ /dev/null
@@ -1,21 +0,0 @@
-proxy_cache skynet; # cache name
-proxy_cache_key $skylink_v1$path$arg_format$arg_attachment$arg_start$arg_end$http_range; # unique cache key
-proxy_cache_min_uses 3; # cache after 3 uses
-proxy_cache_valid 200 206 307 308 48h; # keep 200, 206, 307 and 308 responses valid for up to 2 days
-add_header X-Proxy-Cache $upstream_cache_status; # add response header to indicate cache hits and misses
-
-# map skyd env variable value to "1" for true and "0" for false (expected by proxy_no_cache)
-set_by_lua_block $skyd_disk_cache_enabled {
-    return os.getenv("SKYD_DISK_CACHE_ENABLED") == "true" and "1" or "0"
-}
-
-# bypass - this will bypass cache hit on request (status BYPASS)
-# but still stores file in cache if cache conditions are met
-proxy_cache_bypass $cookie_nocache $arg_nocache $skyd_disk_cache_enabled;
-
-# no cache - this will ignore cache on request (status MISS)
-# and does not store file in cache under no condition
-set_if_empty $nocache "0";
-
-# disable cache when nocache is set or skyd cache is enabled
-proxy_no_cache $nocache $skyd_disk_cache_enabled;
diff --git a/docker/nginx/conf.d/server.local.conf b/docker/nginx/conf.d/server.local.conf
deleted file mode 100644
index 8a487a53..00000000
--- a/docker/nginx/conf.d/server.local.conf
+++ /dev/null
@@ -1,9 +0,0 @@
-server {
-    # local server - do not expose this port externally
-    listen 8000;
-
-    # secure traffic by limiting to only local networks
-    include /etc/nginx/conf.d/include/local-network-only;
-
-    include /etc/nginx/conf.d/server/server.local;
-}
diff --git a/docker/nginx/conf.d/server/server.dnslink b/docker/nginx/conf.d/server/server.dnslink
index 32e454cc..cf385a1d 100644
--- a/docker/nginx/conf.d/server/server.dnslink
+++ b/docker/nginx/conf.d/server/server.dnslink
@@ -38,8 +38,6 @@ location / {
         end
 
         ngx.var.skylink = require("skynet.skylink").parse(ngx.var.skylink)
-        ngx.var.skylink_v1 = ngx.var.skylink
-        ngx.var.skylink_v2 = ngx.var.skylink
     }
 
     include /etc/nginx/conf.d/include/location-skylink;
diff --git a/docker/nginx/conf.d/server/server.local b/docker/nginx/conf.d/server/server.local
deleted file mode 100644
index 3a8ac118..00000000
--- a/docker/nginx/conf.d/server/server.local
+++ /dev/null
@@ -1,37 +0,0 @@
-include /etc/nginx/conf.d/include/init-optional-variables;
-
-location /skynet/blocklist {
-    client_max_body_size 10m; # increase max body size to account for large lists
-    client_body_buffer_size 10m; # force whole body to memory so we can read it
-
-    content_by_lua_block {        
-        local httpc = require("resty.http").new()
-
-        ngx.req.read_body() -- ensure the post body data is read before using get_body_data
-
-        -- proxy blocklist update request
-        -- 10.10.10.10 points to sia service (alias not available when using resty-http)
-        local res, err = httpc:request_uri("http://10.10.10.10:9980/skynet/blocklist", {
-            method = "POST",
-            body = ngx.req.get_body_data(),
-            headers = {
-                ["Content-Type"] = "application/x-www-form-urlencoded",
-                ["Authorization"] = require("skynet.utils").authorization_header(),
-                ["User-Agent"] = "Sia-Agent",
-            }
-        })
-
-        -- print error and exit with 500 or exit with response if status is not 204
-        if err or (res and res.status ~= ngx.HTTP_NO_CONTENT) then
-            ngx.status = (err and ngx.HTTP_INTERNAL_SERVER_ERROR) or res.status
-            ngx.header["content-type"] = "text/plain"
-            ngx.say(err or res.body)
-            return ngx.exit(ngx.status)
-        end
-
-        require("skynet.blocklist").reload()
-
-        ngx.status = ngx.HTTP_NO_CONTENT
-        return ngx.exit(ngx.status)
-    }
-}
diff --git a/docker/nginx/libs/skynet/blocklist.lua b/docker/nginx/libs/skynet/blocklist.lua
deleted file mode 100644
index 29f53032..00000000
--- a/docker/nginx/libs/skynet/blocklist.lua
+++ /dev/null
@@ -1,66 +0,0 @@
-local _M = {}
-
-function _M.reload()
-    local httpc = require("resty.http").new()
-
-    -- fetch blocklist records (all blocked skylink hashes)
-    -- 10.10.10.10 points to sia service (alias not available when using resty-http)
-    local res, err = httpc:request_uri("http://10.10.10.10:9980/skynet/blocklist", {
-        headers = {
-            ["User-Agent"] = "Sia-Agent",
-        }
-    })
-
-    -- fail whole request in case this request failed, we want to make sure
-    -- the blocklist is pre cached before serving first skylink
-    if err or (res and res.status ~= ngx.HTTP_OK) then
-        ngx.log(ngx.ERR, "Failed skyd service request /skynet/blocklist: ", err or ("[HTTP " .. res.status .. "] " .. res.body))
-        ngx.status = (err and ngx.HTTP_INTERNAL_SERVER_ERROR) or res.status
-        ngx.header["content-type"] = "text/plain"
-        ngx.say(err or res.body)
-        return ngx.exit(ngx.status)
-    elseif res and res.status == ngx.HTTP_OK then
-        local json = require('cjson')
-        local data = json.decode(res.body)
-
-        -- mark all existing entries as expired
-        ngx.shared.blocklist:flush_all()
-
-        -- check if blocklist is table (it is null when empty)
-        if type(data.blocklist) == "table" then
-            -- set all cache entries one by one (resets expiration)
-            for i, hash in ipairs(data.blocklist) do
-                ngx.shared.blocklist:set(hash, true)
-            end
-        end
-
-        -- ensure that init flag is persisted
-        ngx.shared.blocklist:set("__init", true)
-
-        -- remove all leftover expired entries
-        ngx.shared.blocklist:flush_expired()
-    end
-end
-
-function _M.is_blocked(skylink)
-    -- make sure that blocklist has been preloaded
-    if not ngx.shared.blocklist:get("__init") then _M.reload() end
-
-    -- hash skylink before comparing it with blocklist
-    local hash = require("skynet.skylink").hash(skylink)
-
-    -- we need to use get_stale because we are expiring previous
-    -- entries when the blocklist is reloading and we still want
-    -- to block them until the reloading is finished
-    return ngx.shared.blocklist:get_stale(hash) == true
-end
-
--- exit with 416 illegal content status code
-function _M.exit_illegal()
-    ngx.status = ngx.HTTP_ILLEGAL
-    ngx.header["content-type"] = "text/plain"
-    ngx.say("Unavailable For Legal Reasons")
-    return ngx.exit(ngx.status)
-end
-
-return _M
diff --git a/docker/nginx/nginx.conf b/docker/nginx/nginx.conf
index 7f43d192..95bb61ac 100644
--- a/docker/nginx/nginx.conf
+++ b/docker/nginx/nginx.conf
@@ -31,7 +31,6 @@ env SERVER_DOMAIN;
 env PORTAL_MODULES;
 env ACCOUNTS_LIMIT_ACCESS;
 env SIA_API_PASSWORD;
-env SKYD_DISK_CACHE_ENABLED;
 
 events {
     worker_connections 8192;
@@ -75,20 +74,10 @@ http {
     # proxy cache definition
     proxy_cache_path /data/nginx/cache levels=1:2 keys_zone=skynet:10m max_size=50g min_free=100g inactive=48h use_temp_path=off;
 
-    # create a shared blocklist dictionary with size of 30 megabytes
-    # estimated capacity of 1 megabyte dictionary is 3500 blocklist entries
-    # that gives us capacity of around 100k entries in 30 megabyte dictionary
-    lua_shared_dict blocklist 30m;
-
-    # create a shared dictionary to fill with skylinks that should not
-    # be cached due to the large size or some other reasons
-    lua_shared_dict nocache 10m;
-
     # this runs before forking out nginx worker processes
     init_by_lua_block { 
         require "cjson"
         require "resty.http"
-        require "skynet.blocklist"
         require "skynet.skylink"
         require "skynet.utils"
     }
diff --git a/scripts/README.md b/scripts/README.md
index 2085eff7..e7b909b4 100644
--- a/scripts/README.md
+++ b/scripts/README.md
@@ -29,12 +29,6 @@ the health check.
 The `portal-upgrade.sh` script upgrades the docker images for a portal and
 clears and leftover images.
 
-**nginx-prune.sh**\
-The `nginx-prune.sh` script deletes all entries from nginx cache larger than
-the given size and smaller entries until nginx cache disk size is smaller than
-the given cache size limit. Both values are configured in
-`lib/nginx-prune-cache-subscript.sh`. The script doesn't require `sudo`.
-
 ## Webportal Upgrade Procedures
 
 TODO...
diff --git a/scripts/blocklist-skylink.sh b/scripts/blocklist-skylink.sh
index ee19c9c2..cb60bbdb 100755
--- a/scripts/blocklist-skylink.sh
+++ b/scripts/blocklist-skylink.sh
@@ -34,18 +34,16 @@ else
     skylinks=("$1") # just single skylink passed as input argument
 fi
 
-# get local nginx ip adress
-nginx_ip=$(docker inspect -f '{{range.NetworkSettings.Networks}}{{.IPAddress}}{{end}}' nginx)
+# get local skyd ip adress
+ipaddress=$(docker inspect -f '{{range.NetworkSettings.Networks}}{{.IPAddress}}{{end}}' sia)
+
+# get sia api password either from env variable if exists or from apipassword file in sia-data directory
+apipassword=$(docker exec sia sh -c '[ ! -z "${SIA_API_PASSWORD}" ] && echo ${SIA_API_PASSWORD} || $(cat /sia-data/apipassword | tr -d '\n')')
 
 # iterate over provided skylinks and block them one by one
 for skylink in "${skylinks[@]}"; do
-    printf "Blocking ${skylink} ... "
-    status_code=$(curl --write-out '%{http_code}' --silent --output /dev/null --data "{\"add\":[\"$skylink\"]}" "http://${nginx_ip}:8000/skynet/blocklist")
+    echo "> Blocking ${skylink} ... "
 
-    # print blocklist response status code
-    if [ $status_code = "204" ]; then
-        echo "done"
-    else
-        echo "error $status_code"
-    fi
+    # POST /skynet/blocklist always returns 200 and in case of failure print error message
+    curl -A Sia-Agent -u "":${apipassword} --data "{\"add\":[\"$skylink\"]}" "http://${ipaddress}:9980/skynet/blocklist"
 done
diff --git a/scripts/lib/nginx-prune-cache-subscript.sh b/scripts/lib/nginx-prune-cache-subscript.sh
deleted file mode 100755
index 99edb899..00000000
--- a/scripts/lib/nginx-prune-cache-subscript.sh
+++ /dev/null
@@ -1,30 +0,0 @@
-#!/usr/local/bin/bash
-
-# This subscript is expected to be run inside docker container using 'bash'
-# image. The image is based on Alpine Linux. It's tools (find, stat, awk, sort)
-# are non-standard versions from BusyBox.
-
-MAX_CACHE_DIR_SIZE=20000000000
-MAX_KEEP_FILE_SIZE=1000000000
-
-total=0
-
-# We sort files by time, newest files are first. Format is:
-# time (last modification as seconds since Epoch), filepath, size (bytes)
-find /home/user/skynet-webportal/docker/data/nginx/cache -type f -exec stat -c "%Y %n %s" {} + | sort -rgk1 | while read line
-do
-    size=$(echo $line | awk '{print $3}')
-    new_total=$(($total + $size))
-
-    # We always delete all files larger than MAX_KEEP_FILE_SIZE.
-    # We keep all files smaller than MAX_KEEP_FILE_SIZE when cache size is
-    # below MAX_CACHE_DIR_SIZE, then we delete also smaller files.
-    if (("$size" <= "$MAX_KEEP_FILE_SIZE" && "$new_total" < "$MAX_CACHE_DIR_SIZE"))
-    then
-        total=$new_total
-        continue
-    fi
-
-    filename=$(echo $line | awk '{print $2}')
-    rm $filename
-done
diff --git a/scripts/nginx-prune.sh b/scripts/nginx-prune.sh
deleted file mode 100755
index ea5a1384..00000000
--- a/scripts/nginx-prune.sh
+++ /dev/null
@@ -1,9 +0,0 @@
-#!/bin/bash
-
-# We execute the nginx cache pruning subscript from docker container so that we
-# can run the pruning script in user crontab without sudo.
-docker run --rm -v /home/user:/home/user bash /home/user/skynet-webportal/scripts/lib/nginx-prune-cache-subscript.sh
-
-# Some cache files are deleted, but are kept open, we hot reload nginx to get
-# them closed and removed from filesystem.
-docker exec nginx nginx -s reload
diff --git a/setup-scripts/blocklist-airtable.py b/setup-scripts/blocklist-airtable.py
index 09711605..8bd9d2dc 100755
--- a/setup-scripts/blocklist-airtable.py
+++ b/setup-scripts/blocklist-airtable.py
@@ -1,6 +1,6 @@
 #!/usr/bin/env python3
 
-from bot_utils import setup, send_msg
+from bot_utils import get_api_password, setup, send_msg
 from random import randint
 from time import sleep
 
@@ -11,6 +11,8 @@ import asyncio
 import requests
 import json
 
+from requests.auth import HTTPBasicAuth
+
 setup()
 
 
@@ -38,14 +40,14 @@ def exec(command):
 
 
 async def block_skylinks_from_airtable():
-    # Get nginx's IP before doing anything else. If this step fails we don't
+    # Get sia IP before doing anything else. If this step fails we don't
     # need to continue with the execution of the script.
     ipaddress = exec(
-        "docker inspect -f '{{range.NetworkSettings.Networks}}{{.IPAddress}}{{end}}' nginx"
+        "docker inspect -f '{{range.NetworkSettings.Networks}}{{.IPAddress}}{{end}}' sia"
     )
 
     if ipaddress == "":
-        print("Nginx's IP could not be detected. Exiting.")
+        print("Skyd IP could not be detected. Exiting.")
         return
 
     print("Pulling blocked skylinks from Airtable via api integration")
@@ -117,11 +119,13 @@ async def block_skylinks_from_airtable():
     print(
         "Sending /skynet/blocklist request with "
         + str(len(skylinks))
-        + " skylinks to siad through nginx"
+        + " skylinks to siad"
     )
     response = requests.post(
-        "http://" + ipaddress + ":8000/skynet/blocklist",
+        "http://" + ipaddress + ":9980/skynet/blocklist",
         data=json.dumps({"add": skylinks}),
+        headers={"User-Agent": "Sia-Agent"},
+        auth=HTTPBasicAuth("", get_api_password()),
     )
 
     if response.status_code != 200:
@@ -153,5 +157,5 @@ loop.run_until_complete(run_checks())
 
 # --- BASH EQUIVALENT
 # skylinks=$(curl "https://api.airtable.com/v0/${AIRTABLE_BASE}/${AIRTABLE_TABLE}?fields%5B%5D=${AIRTABLE_FIELD}" -H "Authorization: Bearer ${AIRTABLE_KEY}" | python3 -c "import sys, json; print('[\"' + '\",\"'.join([entry['fields']['Link'] for entry in json.load(sys.stdin)['records']]) + '\"]')")
-# ipaddress=$(docker inspect -f '{{range.NetworkSettings.Networks}}{{.IPAddress}}{{end}}' nginx)
+# ipaddress=$(docker inspect -f '{{range.NetworkSettings.Networks}}{{.IPAddress}}{{end}}' sia)
 # curl --data "{\"add\" : ${skylinks}}" "${ipaddress}:8000/skynet/blocklist"
diff --git a/setup-scripts/support/crontab b/setup-scripts/support/crontab
index 2181d09c..7fffdfb9 100644
--- a/setup-scripts/support/crontab
+++ b/setup-scripts/support/crontab
@@ -5,4 +5,3 @@
 44 5 * * * /home/user/skynet-webportal/scripts/backup-aws-s3.sh 1>>/home/user/skynet-webportal/logs/backup-aws-s3.log 2>>/home/user/skynet-webportal/logs/backup-aws-s3.log
 6 13 * * * /home/user/skynet-webportal/scripts/db_backup.sh 1>>/home/user/skynet-webportal/logs/db_backup.log 2>>/home/user/skynet-webportal/logs/db_backup.log
 0 5 * * * /home/user/skynet-webportal/scripts/es_cleaner.py 1 http://localhost:9200
-15 * * * * /home/user/skynet-webportal/scripts/nginx-prune.sh