diff --git a/doc/01-basic-usage.md b/doc/01-basic-usage.md
index 10e81cbfd..13180bca8 100644
--- a/doc/01-basic-usage.md
+++ b/doc/01-basic-usage.md
@@ -64,9 +64,6 @@ allows adding more related projects under the same namespace later on. If you
 are maintaining a library, this would make it really easy to split it up into
 smaller decoupled parts.
 
-If you don't know what to use as a vendor name, your GitHub username is usually
-a good bet.
-
 ## Package versions
 
 We are also requiring the version `1.0.*` of monolog. This means any version
diff --git a/doc/02-libraries.md b/doc/02-libraries.md
new file mode 100644
index 000000000..48632489e
--- /dev/null
+++ b/doc/02-libraries.md
@@ -0,0 +1,62 @@
+# Libraries
+
+This chapter will tell you how to make your library installable through composer.
+
+## Every project is a package
+
+As soon as you have a `composer.json` in a directory, that directory is a package. When you add a `require` to a project, you are making a package that depends on other packages. The only difference between your project and libraries is that your project is a package without a name.
+
+In order to make that package installable you need to give it a name. You do this by adding a `name` to `composer.json`:
+
+```json
+{
+    "name": "acme/hello-world",
+    "require": {
+        "monolog/monolog": "1.0.*"
+    }
+}
+```
+
+In this case the project name is `acme/hello-world`, where `acme` is the vendor name. Supplying a vendor name is mandatory.
+
+**Note:** If you don't know what to use as a vendor name, your GitHub username is usually a good bet. The convention for word separation is to use dashes.
+
+## Specifying the version
+
+You need to specify the version some way. Depending on the type of repository you are using, it might be possible to omit it from `composer.json`, because the repository is able to infer the version from elsewhere.
+
+If you do want to specify it explicitly, you can just add a `version` field:
+
+```json
+{
+    "version": "1.0.0"
+}
+```
+
+However if you are using git, svn or hg, you don't have to specify it. Composer will detect versions as follows:
+
+### Tags
+
+For every tag that looks like a version, a package version of that tag will be created. It should match 'X.Y.Z' or 'vX.Y.Z', with an optional suffix for RC, beta, alpha or patch.
+
+Here are a few examples of valid tag names:
+
+    1.0.0
+    v1.0.0
+    1.10.5-RC1
+    v4.4.4beta2
+    v2.0.0-alpha
+    v2.0.4-p1
+
+**Note:** If you specify an explicit version in `composer.json`, the tag name must match the specified version.
+
+### Branches
+
+For every branch, a package development version will be created. If the branch name looks like a version, the version will be `{branchname}-dev`. For example a branch `2.0` will get a version `2.0-dev`. If the branch does not look like a version, it will be `dev-{branchname}`. `master` results in a `dev-master` version.
+
+Here are some examples of version branch names:
+
+    1.0
+    1.*
+    1.1.x
+    1.1.*