Setting up a Regtest environment

For learning or testing purposes, it's safer and cheaper to use Bitcoin's test network --testnet (for more information, refer to https://bitcoin.org/en/glossary/testnet) or regression test mode --regtest (for more information, refer to https://bitcoin.org/en/glossary/regression-test-mode). We learned in the previous chapter how to use the Testnet network but this option stil requires us to download the blockchain and wait for delayed validation. However, there is a solution, and this time we are going  to use the Bitcoin client in Regtest mode.

In this mode, we can set up a local testing network and a private blockchain whereby we can instantly validate transactions and create new bitcoins locally. Similar to running a web application in localhost mode, you'll find the Regtest option more suitable for developing and testing new applications.

You have to follow the same procedure as in the previous chapter and add an extra step: change bitcoin.conf to select the Regtest network by defining the parameter regtest=1.

rpcuser=<user> 
rpcpassword=<password> 
#testnet=1
#prune=550
regtest=1
server=1