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How to Set Up a Hedera Local Node

The Hedera Local Node project enables developers to establish their own local network for development and testing. The local network comprises the consensus node, mirror node, JSON-RPC relay, and other Hedera products, and can be set up using the CLI tool and Docker. This setup allows you to seamlessly build and deploy smart contracts from your local environment.
By the end of this tutorial, you'll be equipped to run a Hedera local node and generate keys, allowing you to test your projects and deploy projects in your local environment.

Prerequisites

  • Node.js >= v14.x
  • NPM >= v6.14.17**
  • Minimum 16GB RAM
  • Docker >= v20.10.x
  • Docker Compose >= v2.12.2
  • Have Docker running on your machine with the correct configurations.
Ensure the VirtioFS file sharing implementation is enabled in the docker settings.
Ensure the following configurations are set at minimum in Docker Settings -> Resources and are available for use:
  • CPUs: 6
  • Memory: 8GB
  • Swap: 1 GB
  • Disk Image Size: 64 GB
Ensure the Allow the default Docker sockets to be used (requires password) is enabled in Docker Settings -> Advanced.
Note: The image may look different if you are on a different version
**Local node can be run using Docker or NPM but we will use Docker for this tutorial. Here are the installation steps for NPM.

Table of Contents


Start Your Local Network

Open a new terminal and navigate to your preferred directory where your Hedera Local Node project will live. Run the following command to clone the repo and install dependencies to your local machine:
git clone https://github.com/hashgraph/hedera-local-node.git
cd hedera-local-node
npm install
For Windows users: You will need to update the file endings of compose-network/mirror-node/init.sh by running this in WSL:
dos2unix compose-network/mirror-node/init.sh
Ensure Docker is installed and open on your machine before running this command to get the network up and running:
docker compose up -d

Generate Keys

To generate accounts with random private keys, run the generate-accounts command. Specify the number of accounts generated by appending the number to the hedera generate-account command. For example, to generate 5 accounts, run hedera generate-accounts 5.
hedera generate-accounts 5
Generating accounts in synchronous mode...
|-----------------------------------------------------------------------------------------|
|-----------------------------| Accounts list ( ECDSA keys) |----------------------------|
|-----------------------------------------------------------------------------------------|
| id | private key | balance |
|-----------------------------------------------------------------------------------------|
| 0.0.1033 - 0xced34a00d3fff542e350a5e61cb41509812bf23ea581f83a0a862c94d8c69704 - 10000 ℏ |
| 0.0.1034 - 0xa4189ab682ba43925ce654ca09800bba86cf8b1b7f889006d5170d95f4fed365 - 10000 ℏ |
| 0.0.1035 - 0xf9106e9841677136c9cbe8c114dab80470ca62a15bfe9c777006bcb114288c22 - 10000 ℏ |
| 0.0.1036 - 0xe3517a9235971be1e1f95e791f3ffd7d753a652799fa11f1ace626036c4db275 - 10000 ℏ |
| 0.0.1037 - 0x636926cf2f6f9fd0a58043c600390eeef0bbed9d4b8a113ea68a8d67f922d04e - 10000 ℏ |
|-----------------------------------------------------------------------------------------|
|--------------------------------------------------------------------------------------------------------------------------------------|
|------------------------------------------------| Accounts list (Alias ECDSA keys) |--------------------------------------------------|
|--------------------------------------------------------------------------------------------------------------------------------------|
| id | public address | private key | balance |
|--------------------------------------------------------------------------------------------------------------------------------------|
| 0.0.1038 - 0xaBE90e20f394629e054Bc1E8F1338Fe8ea94F0b5 - 0x444913bd258f764e62db6c87abde7ca52ec22985db8c91b8c3b2b4f2c51775f0 - 10000 ℏ |
| 0.0.1039 - 0x26d941d8E1f6bF9B0F7e5156fA6ff02acEd0DF3E - 0xea25f427caf7029989669f93926b7902dde5361b176b4bc17b8ec0a967beaa0b - 10000 ℏ |
| 0.0.1040 - 0x64001c2d1f3a8d3574435B4F125944018E2E584D - 0xf2deb678a1e67e288d8a128334f41c890e7600b2a5471ecc9a3af4824e3021b7 - 10000 ℏ |
| 0.0.1041 - 0x6bE22CD9D16b64969683B74897E4EBB30c7c30E8 - 0xb9c2480cdbdddb2ecd6e032b87820c29e8791ad4f53b89f829269d856c835819 - 10000 ℏ |
| 0.0.1042 - 0x992d8aD211b28B23589c0b3Fe30de6C90662C4aB - 0x7e8bb0d85a8d80fa2eb2c9f6bd5c9b1a2c2f9f6992c7fffd201c8e81f0ec0000 - 10000 ℏ |
|--------------------------------------------------------------------------------------------------------------------------------------|
|-----------------------------------------------------------------------------------------|
|-----------------------------| Accounts list (ED25519 keys) |----------------------------|
|-----------------------------------------------------------------------------------------|
| id | private key | balance |
|-----------------------------------------------------------------------------------------|
| 0.0.1043 - 0xd4917e152ca922b8bfbafffc3486512ae25ec0a75b05c44f517b11cd12fd949b - 10000 ℏ |
| 0.0.1044 - 0xbaeec69382fbb43e4d521b3d8717c9cba610a1fbcaededaaf4408c3138a683ae - 10000 ℏ |
| 0.0.1045 - 0x1f5c4b2efd3c36d29e9d2e16a825abd001f99bff2388bb8c6011cd5f956023c9 - 10000 ℏ |
| 0.0.1046 - 0x1976acdd5e71ce7e8db4cb0aa112fa1c16876155f0f20b9b7029916073f1d67f - 10000 ℏ |
| 0.0.1047 - 0x6e29f48b11ffc77e277f0500d607b35956da58f1ed30aad003fb1846bfffc483 - 10000 ℏ |
|-----------------------------------------------------------------------------------------|
Please note: Since the first 10 accounts generated are with predefined private keys, if you need 5 generated with random keys, you will run hedera start 15. The same rule applies when you use the hedera generate-accounts command.
Grab any of the account private keys generated from the Alias ECDSA keys Accounts list. This will be used as the LOCAL_NODE_OPERATOR_PRIVATE_KEY environment variable value in your .env file of your project.

Stop Your Local Network

To stop your local node, you can run the hedera stop command. If you want to keep any files created manually in the working directory, please save them before executing this command.
hedera stop
Stopping the network...
Stopping the docker containers...
Cleaning the volumes and temp files...
Alternatively, run docker compose down -v; git clean -xfd; git reset --hard to stop the local node and reset it to its original state.
docker compose down -v; git clean -xfd; git reset --hard
[+] Running 27/27
✔ Container mirror-node-web3 Removed 3.5s
✔ Container json-rpc-relay-ws Removed 10.8s
✔ Container mirror-node-monitor Removed 3.7s
✔ Container relay-cache Removed 0.9s
✔ Container prometheus Removed 0.9s
✔ Container record-sidecar-uploader Removed 0.0s
✔ Container grafana Removed 0.9s
✔ Container hedera-explorer Removed 10.4s
✔ Container json-rpc-relay Removed 10.7s
✔ Container account-balances-uploader Removed 0.1s
✔ Container envoy-proxy Removed 1.0s
✔ Container mirror-node-grpc Removed 2.7s
✔ Container mirror-node-rest Removed 10.4s
✔ Container network-node Removed 10.8s
✔ Container mirror-node-importer Removed 10.4s
✔ Container record-streams-uploader Removed 0.0s
✔ Container haveged Removed 0.0s
✔ Container mirror-node-db Removed 0.3s
✔ Container minio Removed 0.0s
✔ Volume prometheus-data Removed 0.0s
✔ Volume minio-data Removed 0.0s
✔ Volume mirror-node-postgres Removed 0.1s
✔ Volume grafana-data Removed 0.2s
✔ Network network-node-bridge Removed 0.1s
✔ Network hedera-local-node_default Removed 0.2s
✔ Network cloud-storage Removed 0.2s
✔ Network mirror-node Removed 0.2s
Removing .husky/_/
Removing network-logs/
Removing node_modules/
HEAD is now at ......
📣 Note: All available commands can be checked out here.

Additional Resources