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.

Docker configuration 🛠️

Ensure the VirtioFS file sharing implementation is enabled in the docker settings.

Note: The image may look different if you are on a different version

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

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.

Step 1: Local Node Setup

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 && npm install -g

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

Step 2: Start Local Node

Let's start by initializing and starting your local environment. Make sure Docker is installed and open on your machine before running this command:

hedera start -d

The hedera start -d command will start your local node and generate 10 accounts with predefined private keys for each key type. There are three key types: ECDSA, ECDSA alias, and ED25519. All of them are usable via HederaSDK. Only Alias ECDSA accounts can be imported into a wallet like Metamask or used in ethers.

hedera start -d

Checking docker compose version...
Applying local config settings...
Successfully applied local config settings
Starting hedera local node in single-node mode...
Stopping the network...
Stopping the docker containers...
Cleaning the volumes and temp files...
Detecting the network...
Starting the network...
Preparing Node...
Importing fees...
Waiting for topic creation...
Generating accounts in synchronous mode...
|-----------------------------------------------------------------------------------------|
|-----------------------------| Accounts list ( ECDSA  keys) |----------------------------|
|-----------------------------------------------------------------------------------------|
|    id    |                            private key                            |  balance |
|-----------------------------------------------------------------------------------------|
| 0.0.1002 - 0xb65eb09db3e76bab4aa06988f445b40d6ef6fae8a8d401ac1693bab9ac927df1 - 10000 ℏ |
| 0.0.1003 - 0x1f5c6e6d1bb629c545d44b21b895b7c2b667f430d27f4998c2e2d36bf1568746 - 10000 ℏ |
| 0.0.1004 - 0xfe7086884f8863f0ccf66fbcd7dfc7485f9ff88d7705e6c55b4e2366161edb89 - 10000 ℏ |
| 0.0.1005 - 0x1c6a05ee1a00e0b7b46d1693fbad7d4d7f2da322d4b7e11e26b2f099d7293ecb - 10000 ℏ |
| 0.0.1006 - 0x1144fb7da2f1f4f2f9cde0d5742a8be8e6bae842f978de3ef65bd8591f2e5fe8 - 10000 ℏ |
| 0.0.1007 - 0x13182eadc0f7ff7624926b194f62fab8b09ff78ca54d5138d1af4131c070459e - 10000 ℏ |
| 0.0.1008 - 0x78fa1228d87f870c6515e6a43acb2fd0dd306f538a41c57c9f90d47a8fd076e1 - 10000 ℏ |
| 0.0.1009 - 0x6c7ac42aa92ea72d1e3eef0a095ecbe7dba1830b83080d068b6d28215140cd61 - 10000 ℏ |
| 0.0.1010 - 0xd91171ea81f8bfe4555b40f6e2997465a785853266ad0ef7f2e1f9843c0e502d - 10000 ℏ |
| 0.0.1011 - 0x4a48ae9ec00c80c811836dd0225f22a0b7fbc44a48dc7db45d8748e036db7353 - 10000 ℏ |
|-----------------------------------------------------------------------------------------|

|--------------------------------------------------------------------------------------------------------------------------------------|
|------------------------------------------------| Accounts list (Alias ECDSA keys) |--------------------------------------------------|
|--------------------------------------------------------------------------------------------------------------------------------------|
|    id    |               public address               |                             private key                            | balance |
|--------------------------------------------------------------------------------------------------------------------------------------|
| 0.0.1012 - 0x67D8d32E9Bf1a9968a5ff53B87d777Aa8EBBEe69 - 0x105d050185ccb907fba04dd92d8de9e32c18305e097ab41dadda21489a211524 - 10000 ℏ |
| 0.0.1013 - 0x05FbA803Be258049A27B820088bab1cAD2058871 - 0x2e1d968b041d84dd120a5860cee60cd83f9374ef527ca86996317ada3d0d03e7 - 10000 ℏ |
| 0.0.1014 - 0x927E41Ff8307835A1C081e0d7fD250625F2D4D0E - 0x45a5a7108a18dd5013cf2d5857a28144beadc9c70b3bdbd914e38df4e804b8d8 - 10000 ℏ |
| 0.0.1015 - 0xc37f417fA09933335240FCA72DD257BFBdE9C275 - 0x6e9d61a325be3f6675cf8b7676c70e4a004d2308e3e182370a41f5653d52c6bd - 10000 ℏ |
| 0.0.1016 - 0xD927017F5a6a7A92458b81468Dc71FCE6115B325 - 0x0b58b1bd44469ac9f813b5aeaf6213ddaea26720f0b2f133d08b6f234130a64f - 10000 ℏ |
| 0.0.1017 - 0x5C41A21F14cFe9808cBEc1d91b55Ba75ed327Eb6 - 0x95eac372e0f0df3b43740fa780e62458b2d2cc32d6a440877f1cc2a9ad0c35cc - 10000 ℏ |
| 0.0.1018 - 0xcdaD5844f865F379beA057fb435AEfeF38361B68 - 0x6c6e6727b40c8d4b616ab0d26af357af09337299f09c66704146e14236972106 - 10000 ℏ |
| 0.0.1019 - 0x6e5D3858f53FC66727188690946631bDE0466B1A - 0x5072e7aa1b03f531b4731a32a021f6a5d20d5ddc4e55acbb71ae202fc6f3a26d - 10000 ℏ |
| 0.0.1020 - 0x29cbb51A44fd332c14180b4D471FBBc6654b1657 - 0x60fe891f13824a2c1da20fb6a14e28fa353421191069ba6b6d09dd6c29b90eff - 10000 ℏ |
| 0.0.1021 - 0x17b2B8c63Fa35402088640e426c6709A254c7fFb - 0xeae4e00ece872dd14fb6dc7a04f390563c7d69d16326f2a703ec8e0934060cc7 - 10000 ℏ |
|--------------------------------------------------------------------------------------------------------------------------------------|

|-----------------------------------------------------------------------------------------|
|-----------------------------| Accounts list (ED25519 keys) |----------------------------|
|-----------------------------------------------------------------------------------------|
|    id    |                            private key                            |  balance |
|-----------------------------------------------------------------------------------------|
| 0.0.1022 - 0x1d0bdde18f1a570a0204297e1cba9b3f90a3c7774ac01bc7dd8d83db436085c0 - 10000 ℏ |
| 0.0.1023 - 0x1c174991c38b78ad063117625587275fa0ee74e7bc72513a6453f1bfd247248f - 10000 ℏ |
| 0.0.1024 - 0x10745c43037fd81cd4ef1524cb2270b7de45485c30f70468a4c3a87a4272271d - 10000 ℏ |
| 0.0.1025 - 0xd19f919d393efbfc6895d52b084d07f0cc95f3cb80345aba76677081c0aea39c - 10000 ℏ |
| 0.0.1026 - 0xb1ef6aa2a56f7ee88c3572d87e53f97b59ec6ff2079b232a9662b29b95c3db6f - 10000 ℏ |
| 0.0.1027 - 0xea54f3665ac84365b1db0eb5b04aab227237d0d0c6e0e80ee773b0ffc6f8b551 - 10000 ℏ |
| 0.0.1028 - 0x15f5ba26f0367b62ee06804bec3347144a0edcc748fa589e609f32462dae389c - 10000 ℏ |
| 0.0.1029 - 0x069ba185244a4ee23e9464fc620d8337527eca2df3df596052bb524fe51811ba - 10000 ℏ |
| 0.0.1030 - 0xd078136746079fb394a6d4442e2be55e9350c5734423835d14926099021d4ee0 - 10000 ℏ |
| 0.0.1031 - 0xd1bd93d037cdb0d53bdc5cf35db51989c1d6e7a08747eecd1ae16ea81fe76fd0 - 10000 ℏ |
|-----------------------------------------------------------------------------------------|

Local node has been successfully started in detached mode.

Step 3: 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 start or hedera generate-account command. For example, to generate 5 accounts at startup, run hedera start 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.

Step 4: Stop Local Node

To stop your local node, you can run the hedera stop command to stop and remove the Docker container volumes and clean the manually generated files. 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
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