diff --git a/src/common/command_line.cpp b/src/common/command_line.cpp
index 6f831af55..a2e7faf9f 100644
--- a/src/common/command_line.cpp
+++ b/src/common/command_line.cpp
@@ -47,4 +47,5 @@ namespace command_line
   const arg_descriptor<bool> arg_help = {"help", "Produce help message"};
   const arg_descriptor<bool> arg_version = {"version", "Output version information"};
   const arg_descriptor<std::string> arg_data_dir = {"data-dir", "Specify data directory"};
+  const arg_descriptor<std::string> arg_testnet_data_dir = {"testnet-data-dir", "Specify testnet data directory"};
 }
diff --git a/src/common/command_line.h b/src/common/command_line.h
index ca02c6088..09ae877d3 100644
--- a/src/common/command_line.h
+++ b/src/common/command_line.h
@@ -203,4 +203,5 @@ namespace command_line
   extern const arg_descriptor<bool> arg_help;
   extern const arg_descriptor<bool> arg_version;
   extern const arg_descriptor<std::string> arg_data_dir;
+  extern const arg_descriptor<std::string> arg_testnet_data_dir;
 }
diff --git a/src/connectivity_tool/conn_tool.cpp b/src/connectivity_tool/conn_tool.cpp
index c4364e225..abddd5245 100644
--- a/src/connectivity_tool/conn_tool.cpp
+++ b/src/connectivity_tool/conn_tool.cpp
@@ -259,7 +259,7 @@ bool handle_request_stat(po::variables_map& vm, peerid_type peer_id)
   pot.peer_id = peer_id;
   pot.time = time(NULL);
   crypto::public_key pubk = AUTO_VAL_INIT(pubk);
-  string_tools::hex_to_pod(P2P_STAT_TRUSTED_PUB_KEY, pubk);
+  string_tools::hex_to_pod(::config::P2P_REMOTE_DEBUG_TRUSTED_PUB_KEY, pubk);
   crypto::hash h = tools::get_proof_of_trust_hash(pot);
   crypto::generate_signature(h, pubk, prvk, pot.sign);
 
diff --git a/src/cryptonote_config.h b/src/cryptonote_config.h
index d7232aa6d..1ac8ab328 100644
--- a/src/cryptonote_config.h
+++ b/src/cryptonote_config.h
@@ -30,12 +30,14 @@
 
 #pragma once
 
+#include <string>
+#include <boost/uuid/uuid.hpp>
+
 #define CRYPTONOTE_MAX_BLOCK_NUMBER                     500000000
 #define CRYPTONOTE_MAX_BLOCK_SIZE                       500000000  // block header blob limit, never used!
 #define CRYPTONOTE_GETBLOCKTEMPLATE_MAX_BLOCK_SIZE	196608 //size of block (bytes) that is the maximum that miners will produce
 #define CRYPTONOTE_MAX_TX_SIZE                          1000000000
 #define CRYPTONOTE_PUBLIC_ADDRESS_TEXTBLOB_VER          0
-#define CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX         18 // addresses start with "4"
 #define CRYPTONOTE_MINED_MONEY_UNLOCK_WINDOW            60
 #define CURRENT_TRANSACTION_VERSION                     1
 #define CURRENT_BLOCK_MAJOR_VERSION                     1
@@ -81,8 +83,6 @@
 #define CRYPTONOTE_MEMPOOL_TX_LIVETIME                    86400 //seconds, one day
 #define CRYPTONOTE_MEMPOOL_TX_FROM_ALT_BLOCK_LIVETIME     604800 //seconds, one week
 
-#define P2P_DEFAULT_PORT                                18080
-#define RPC_DEFAULT_PORT                                18081
 #define COMMAND_RPC_GET_BLOCKS_FAST_MAX_COUNT           1000
 
 #define P2P_LOCAL_WHITE_PEERLIST_LIMIT                  1000
@@ -96,7 +96,6 @@
 #define P2P_DEFAULT_PING_CONNECTION_TIMEOUT             2000       //2 seconds
 #define P2P_DEFAULT_INVOKE_TIMEOUT                      60*2*1000  //2 minutes
 #define P2P_DEFAULT_HANDSHAKE_INVOKE_TIMEOUT            5000       //5 seconds
-#define P2P_STAT_TRUSTED_PUB_KEY                        "0000000000000000000000000000000000000000000000000000000000000000"
 #define P2P_DEFAULT_WHITELIST_CONNECTIONS_PERCENT       70
 
 #define ALLOW_DEBUG_COMMANDS
@@ -110,3 +109,32 @@
 
 #define THREAD_STACK_SIZE                       5 * 1024 * 1024
 
+// New constants are intended to go here
+namespace config
+{
+  uint64_t const DEFAULT_FEE_ATOMIC_XMR_PER_KB = 500; // Just a placeholder!  Change me!
+  uint8_t const FEE_CALCULATION_MAX_RETRIES = 10;
+  uint64_t const DEFAULT_DUST_THRESHOLD = 5000000000; // 5 * 10^9
+  std::string const P2P_REMOTE_DEBUG_TRUSTED_PUB_KEY = "0000000000000000000000000000000000000000000000000000000000000000";
+
+  uint64_t const CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX = 18;
+  uint16_t const P2P_DEFAULT_PORT = 18080;
+  uint16_t const RPC_DEFAULT_PORT = 18081;
+  boost::uuids::uuid const NETWORK_ID = { {
+      0x12 ,0x30, 0xF1, 0x71 , 0x61, 0x04 , 0x41, 0x61, 0x17, 0x31, 0x00, 0x82, 0x16, 0xA1, 0xA1, 0x10
+    } }; // Bender's nightmare
+  std::string const GENESIS_TX = "013c01ff0001ffffffffffff03029b2e4c0281c0b02e7c53291a94d1d0cbff8883f8024f5142ee494ffbbd08807121017767aafcde9be00dcfd098715ebcf7f410daebc582fda69d24a28e9d0bc890d1";
+  uint32_t const GENESIS_NONCE = 10000;
+
+  namespace testnet
+  {
+    uint64_t const CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX = 53;
+    uint16_t const P2P_DEFAULT_PORT = 28080;
+    uint16_t const RPC_DEFAULT_PORT = 28081;
+    boost::uuids::uuid const NETWORK_ID = { {
+        0x12 ,0x30, 0xF1, 0x71 , 0x61, 0x04 , 0x41, 0x61, 0x17, 0x31, 0x00, 0x82, 0x16, 0xA1, 0xA1, 0x11
+      } }; // Bender's daydream
+    std::string const GENESIS_TX = "013c01ff0001ffffffffffff0f029b2e4c0281c0b02e7c53291a94d1d0cbff8883f8024f5142ee494ffbbd0880712101168d0c4ca86fb55a4cf6a36d31431be1c53a3bd7411bb24e8832410289fa6f3b";
+    uint32_t const GENESIS_NONCE = 10001;
+  }
+}
diff --git a/src/cryptonote_core/account.cpp b/src/cryptonote_core/account.cpp
index d07dad33f..36043238d 100644
--- a/src/cryptonote_core/account.cpp
+++ b/src/cryptonote_core/account.cpp
@@ -93,10 +93,10 @@ DISABLE_VS_WARNINGS(4244 4345)
     return m_keys;
   }
   //-----------------------------------------------------------------
-  std::string account_base::get_public_address_str()
+  std::string account_base::get_public_address_str(bool testnet)
   {
     //TODO: change this code into base 58
-    return get_account_address_as_str(m_keys.m_account_address);
+    return get_account_address_as_str(testnet, m_keys.m_account_address);
   }
   //-----------------------------------------------------------------
 }
diff --git a/src/cryptonote_core/account.h b/src/cryptonote_core/account.h
index 06bd700a9..dd6618542 100644
--- a/src/cryptonote_core/account.h
+++ b/src/cryptonote_core/account.h
@@ -59,7 +59,7 @@ namespace cryptonote
     account_base();
     crypto::secret_key generate(const crypto::secret_key& recovery_key = crypto::secret_key(), bool recover = false, bool two_random = false);
     const account_keys& get_keys() const;
-    std::string get_public_address_str();
+    std::string get_public_address_str(bool testnet);
 
     uint64_t get_createtime() const { return m_creation_timestamp; }
     void set_createtime(uint64_t val) { m_creation_timestamp = val; }
diff --git a/src/cryptonote_core/blockchain_storage.cpp b/src/cryptonote_core/blockchain_storage.cpp
index c80cec92c..e664a39c5 100644
--- a/src/cryptonote_core/blockchain_storage.cpp
+++ b/src/cryptonote_core/blockchain_storage.cpp
@@ -82,7 +82,7 @@ uint64_t blockchain_storage::get_current_blockchain_height()
   return m_blocks.size();
 }
 //------------------------------------------------------------------
-bool blockchain_storage::init(const std::string& config_folder)
+bool blockchain_storage::init(const std::string& config_folder, bool testnet)
 {
   CRITICAL_REGION_LOCAL(m_blockchain_lock);
   m_config_folder = config_folder;
@@ -114,18 +114,42 @@ bool blockchain_storage::init(const std::string& config_folder)
       LOG_PRINT_L0("Can't load blockchain storage from file, generating genesis block.");
       block bl = boost::value_initialized<block>();
       block_verification_context bvc = boost::value_initialized<block_verification_context>();
-      generate_genesis_block(bl);
+      if (testnet)
+      {
+        generate_genesis_block(bl, config::testnet::GENESIS_TX, config::testnet::GENESIS_NONCE);
+      }
+      else
+      {
+        generate_genesis_block(bl, config::GENESIS_TX, config::GENESIS_NONCE);
+      }
       add_new_block(bl, bvc);
       CHECK_AND_ASSERT_MES(!bvc.m_verifivation_failed && bvc.m_added_to_main_chain, false, "Failed to add genesis block to blockchain");
   }
   if(!m_blocks.size())
   {
     LOG_PRINT_L0("Blockchain not loaded, generating genesis block.");
-    block bl = boost::value_initialized<block>();
-    block_verification_context bvc = boost::value_initialized<block_verification_context>();
-    generate_genesis_block(bl);
-    add_new_block(bl, bvc);
-    CHECK_AND_ASSERT_MES(!bvc.m_verifivation_failed, false, "Failed to add genesis block to blockchain");
+
+    if (!store_genesis_block(testnet)) {
+      return false;
+    }
+  } else {
+    cryptonote::block b;
+
+    if (testnet)
+    {
+      generate_genesis_block(b, config::testnet::GENESIS_TX, config::testnet::GENESIS_NONCE);
+    }
+    else
+    {
+      generate_genesis_block(b, config::GENESIS_TX, config::GENESIS_NONCE);
+    }
+
+    crypto::hash genesis_hash = get_block_hash(m_blocks[0].bl);
+    crypto::hash testnet_genesis_hash = get_block_hash(b);
+    if (genesis_hash != testnet_genesis_hash) {
+      LOG_ERROR("Failed to init: genesis block mismatch. Probably you set --testnet flag with data dir with non-test blockchain or another network.");
+      return false;
+    }
   }
   uint64_t timestamp_diff = time(NULL) - m_blocks.back().bl.timestamp;
   if(!m_blocks.back().bl.timestamp)
@@ -134,6 +158,24 @@ bool blockchain_storage::init(const std::string& config_folder)
   return true;
 }
 //------------------------------------------------------------------
+bool blockchain_storage::store_genesis_block(bool testnet) {
+  block bl = ::boost::value_initialized<block>();
+  block_verification_context bvc = boost::value_initialized<block_verification_context>();
+
+  if (testnet)
+  {
+    generate_genesis_block(bl, config::testnet::GENESIS_TX, config::testnet::GENESIS_NONCE);
+  }
+  else
+  {
+    generate_genesis_block(bl, config::GENESIS_TX, config::GENESIS_NONCE);
+  }
+
+  add_new_block(bl, bvc);
+  CHECK_AND_ASSERT_MES(!bvc.m_verifivation_failed, false, "Failed to add genesis block to blockchain");
+  return true;
+}
+//------------------------------------------------------------------
 bool blockchain_storage::store_blockchain()
 {
   m_is_blockchain_storing = true;
diff --git a/src/cryptonote_core/blockchain_storage.h b/src/cryptonote_core/blockchain_storage.h
index 55c0cb77e..0f7295516 100644
--- a/src/cryptonote_core/blockchain_storage.h
+++ b/src/cryptonote_core/blockchain_storage.h
@@ -81,8 +81,8 @@ namespace cryptonote
     blockchain_storage(tx_memory_pool& tx_pool):m_tx_pool(tx_pool), m_current_block_cumul_sz_limit(0), m_is_in_checkpoint_zone(false), m_is_blockchain_storing(false)
     {};
 
-    bool init() { return init(tools::get_default_data_dir()); }
-    bool init(const std::string& config_folder);
+    bool init() { return init(tools::get_default_data_dir(), true); }
+    bool init(const std::string& config_folder, bool testnet = false);
     bool deinit();
 
     void set_checkpoints(checkpoints&& chk_pts) { m_checkpoints = chk_pts; }
@@ -242,6 +242,7 @@ namespace cryptonote
     uint64_t get_adjusted_time();
     bool complete_timestamps_vector(uint64_t start_height, std::vector<uint64_t>& timestamps);
     bool update_next_comulative_size_limit();
+    bool store_genesis_block(bool testnet);
   };
 
 
diff --git a/src/cryptonote_core/cryptonote_basic_impl.cpp b/src/cryptonote_core/cryptonote_basic_impl.cpp
index 17e3063b4..9cec666f2 100644
--- a/src/cryptonote_core/cryptonote_basic_impl.cpp
+++ b/src/cryptonote_core/cryptonote_basic_impl.cpp
@@ -103,9 +103,15 @@ namespace cryptonote {
     return summ;
   }
   //-----------------------------------------------------------------------
-  std::string get_account_address_as_str(const account_public_address& adr)
+  std::string get_account_address_as_str(
+      bool testnet
+    , account_public_address const & adr
+    )
   {
-    return tools::base58::encode_addr(CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX, t_serializable_object_to_blob(adr));
+    uint64_t address_prefix = testnet ?
+      config::testnet::CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX : config::CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX;
+
+    return tools::base58::encode_addr(address_prefix, t_serializable_object_to_blob(adr));
   }
   //-----------------------------------------------------------------------
   bool is_coinbase(const transaction& tx)
@@ -119,8 +125,15 @@ namespace cryptonote {
     return true;
   }
   //-----------------------------------------------------------------------
-  bool get_account_address_from_str(account_public_address& adr, const std::string& str)
+  bool get_account_address_from_str(
+      account_public_address& adr
+    , bool testnet
+    , std::string const & str
+    )
   {
+    uint64_t address_prefix = testnet ?
+      config::testnet::CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX : config::CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX;
+
     if (2 * sizeof(public_address_outer_blob) != str.size())
     {
       blobdata data;
@@ -131,9 +144,9 @@ namespace cryptonote {
         return false;
       }
 
-      if (CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX != prefix)
+      if (address_prefix != prefix)
       {
-        LOG_PRINT_L1("Wrong address prefix: " << prefix << ", expected " << CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX);
+        LOG_PRINT_L1("Wrong address prefix: " << prefix << ", expected " << address_prefix);
         return false;
       }
 
diff --git a/src/cryptonote_core/cryptonote_basic_impl.h b/src/cryptonote_core/cryptonote_basic_impl.h
index a3184378e..ddef677cb 100644
--- a/src/cryptonote_core/cryptonote_basic_impl.h
+++ b/src/cryptonote_core/cryptonote_basic_impl.h
@@ -66,8 +66,18 @@ namespace cryptonote {
   size_t get_max_tx_size();
   bool get_block_reward(size_t median_size, size_t current_block_size, uint64_t already_generated_coins, uint64_t &reward);
   uint8_t get_account_address_checksum(const public_address_outer_blob& bl);
-  std::string get_account_address_as_str(const account_public_address& adr);
-  bool get_account_address_from_str(account_public_address& adr, const std::string& str);
+
+  std::string get_account_address_as_str(
+      bool testnet
+    , const account_public_address& adr
+    );
+
+  bool get_account_address_from_str(
+      account_public_address& adr
+    , bool testnet
+    , const std::string& str
+    );
+
   bool is_coinbase(const transaction& tx);
 
   bool operator ==(const cryptonote::transaction& a, const cryptonote::transaction& b);
diff --git a/src/cryptonote_core/cryptonote_core.cpp b/src/cryptonote_core/cryptonote_core.cpp
index 637b8fea6..964d61e2f 100644
--- a/src/cryptonote_core/cryptonote_core.cpp
+++ b/src/cryptonote_core/cryptonote_core.cpp
@@ -75,9 +75,10 @@ namespace cryptonote
   {
   }
   //-----------------------------------------------------------------------------------------------
-  bool core::handle_command_line(const boost::program_options::variables_map& vm)
+  bool core::handle_command_line(const boost::program_options::variables_map& vm, bool testnet)
   {
-    m_config_folder = command_line::get_arg(vm, command_line::arg_data_dir);
+    auto data_dir_arg = testnet ? command_line::arg_testnet_data_dir : command_line::arg_data_dir;
+    m_config_folder = command_line::get_arg(vm, data_dir_arg);
     return true;
   }
   //-----------------------------------------------------------------------------------------------
@@ -116,17 +117,17 @@ namespace cryptonote
     return m_blockchain_storage.get_alternative_blocks_count();
   }
   //-----------------------------------------------------------------------------------------------
-  bool core::init(const boost::program_options::variables_map& vm)
+  bool core::init(const boost::program_options::variables_map& vm, bool testnet)
   {
-    bool r = handle_command_line(vm);
+    bool r = handle_command_line(vm, testnet);
 
     r = m_mempool.init(m_config_folder);
     CHECK_AND_ASSERT_MES(r, false, "Failed to initialize memory pool");
 
-    r = m_blockchain_storage.init(m_config_folder);
+    r = m_blockchain_storage.init(m_config_folder, testnet);
     CHECK_AND_ASSERT_MES(r, false, "Failed to initialize blockchain storage");
 
-    r = m_miner.init(vm);
+    r = m_miner.init(vm, testnet);
     CHECK_AND_ASSERT_MES(r, false, "Failed to initialize blockchain storage");
 
     return load_state_data();
diff --git a/src/cryptonote_core/cryptonote_core.h b/src/cryptonote_core/cryptonote_core.h
index 704a65cf1..ba2aed015 100644
--- a/src/cryptonote_core/cryptonote_core.h
+++ b/src/cryptonote_core/cryptonote_core.h
@@ -70,7 +70,7 @@ namespace cryptonote
 
      miner& get_miner(){return m_miner;}
      static void init_options(boost::program_options::options_description& desc);
-     bool init(const boost::program_options::variables_map& vm);
+     bool init(const boost::program_options::variables_map& vm, bool testnet);
      bool set_genesis_block(const block& b);
      bool deinit();
      uint64_t get_current_blockchain_height();
@@ -136,7 +136,7 @@ namespace cryptonote
      bool check_tx_ring_signature(const txin_to_key& tx, const crypto::hash& tx_prefix_hash, const std::vector<crypto::signature>& sig);
      bool is_tx_spendtime_unlocked(uint64_t unlock_time);
      bool update_miner_block_template();
-     bool handle_command_line(const boost::program_options::variables_map& vm);
+     bool handle_command_line(const boost::program_options::variables_map& vm, bool testnet);
      bool on_update_blocktemplate_interval();
      bool check_tx_inputs_keyimages_diff(const transaction& tx);
 
diff --git a/src/cryptonote_core/cryptonote_format_utils.cpp b/src/cryptonote_core/cryptonote_format_utils.cpp
index d023561c3..33cad30c4 100644
--- a/src/cryptonote_core/cryptonote_format_utils.cpp
+++ b/src/cryptonote_core/cryptonote_format_utils.cpp
@@ -660,7 +660,11 @@ namespace cryptonote
     return p;
   }
   //---------------------------------------------------------------
-  bool generate_genesis_block(block& bl)
+  bool generate_genesis_block(
+      block& bl
+    , std::string const & genesis_tx
+    , uint32_t nonce
+    )
   {
     //genesis block
     bl = boost::value_initialized<block>();
@@ -672,8 +676,7 @@ namespace cryptonote
     blobdata txb = tx_to_blob(bl.miner_tx);
     std::string hex_tx_represent = string_tools::buff_to_hex_nodelimer(txb);
 
-    //hard code coinbase tx in genesis block, because "tru" generating tx use random, but genesis should be always the same
-    std::string genesis_coinbase_tx_hex = "013c01ff0001ffffffffffff03029b2e4c0281c0b02e7c53291a94d1d0cbff8883f8024f5142ee494ffbbd08807121017767aafcde9be00dcfd098715ebcf7f410daebc582fda69d24a28e9d0bc890d1";
+    std::string genesis_coinbase_tx_hex = config::GENESIS_TX;
 
     blobdata tx_bl;
     string_tools::parse_hexstr_to_binbuff(genesis_coinbase_tx_hex, tx_bl);
@@ -682,7 +685,7 @@ namespace cryptonote
     bl.major_version = CURRENT_BLOCK_MAJOR_VERSION;
     bl.minor_version = CURRENT_BLOCK_MINOR_VERSION;
     bl.timestamp = 0;
-    bl.nonce = 10000;
+    bl.nonce = nonce;
     miner::find_nonce_for_given_block(bl, 1, 0);
     return true;
   }
diff --git a/src/cryptonote_core/cryptonote_format_utils.h b/src/cryptonote_core/cryptonote_format_utils.h
index 9ed6c10a4..9fa7f0545 100644
--- a/src/cryptonote_core/cryptonote_format_utils.h
+++ b/src/cryptonote_core/cryptonote_format_utils.h
@@ -105,7 +105,11 @@ namespace cryptonote
   crypto::hash get_block_hash(const block& b);
   bool get_block_longhash(const block& b, crypto::hash& res, uint64_t height);
   crypto::hash get_block_longhash(const block& b, uint64_t height);
-  bool generate_genesis_block(block& bl);
+  bool generate_genesis_block(
+      block& bl
+    , std::string const & genesis_tx
+    , uint32_t nonce
+    );
   bool parse_and_validate_block_from_blob(const blobdata& b_blob, block& b);
   bool get_inputs_money_amount(const transaction& tx, uint64_t& money);
   uint64_t get_outs_money_amount(const transaction& tx);
diff --git a/src/cryptonote_core/miner.cpp b/src/cryptonote_core/miner.cpp
index 81dc4a692..b2adfe39c 100644
--- a/src/cryptonote_core/miner.cpp
+++ b/src/cryptonote_core/miner.cpp
@@ -171,7 +171,7 @@ namespace cryptonote
     command_line::add_arg(desc, arg_mining_threads);
   }
   //-----------------------------------------------------------------------------------------------------
-  bool miner::init(const boost::program_options::variables_map& vm)
+  bool miner::init(const boost::program_options::variables_map& vm, bool testnet)
   {
     if(command_line::has_arg(vm, arg_extra_messages))
     {
@@ -198,7 +198,7 @@ namespace cryptonote
 
     if(command_line::has_arg(vm, arg_start_mining))
     {
-      if(!cryptonote::get_account_address_from_str(m_mine_address, command_line::get_arg(vm, arg_start_mining)))
+      if(!cryptonote::get_account_address_from_str(m_mine_address, testnet, command_line::get_arg(vm, arg_start_mining)))
       {
         LOG_ERROR("Target account address " << command_line::get_arg(vm, arg_start_mining) << " has wrong format, starting daemon canceled");
         return false;
diff --git a/src/cryptonote_core/miner.h b/src/cryptonote_core/miner.h
index a96d42d75..44844428c 100644
--- a/src/cryptonote_core/miner.h
+++ b/src/cryptonote_core/miner.h
@@ -56,7 +56,7 @@ namespace cryptonote
   public: 
     miner(i_miner_handler* phandler);
     ~miner();
-    bool init(const boost::program_options::variables_map& vm);
+    bool init(const boost::program_options::variables_map& vm, bool testnet);
     static void init_options(boost::program_options::options_description& desc);
     bool set_block_template(const block& bl, const difficulty_type& diffic, uint64_t height);
     bool on_block_chain_update();
diff --git a/src/daemon/daemon.cpp b/src/daemon/daemon.cpp
index 187970359..5eda6cb69 100644
--- a/src/daemon/daemon.cpp
+++ b/src/daemon/daemon.cpp
@@ -42,6 +42,7 @@ using namespace epee;
 #include "crypto/hash.h"
 #include "console_handler.h"
 #include "p2p/net_node.h"
+#include "cryptonote_config.h"
 #include "cryptonote_core/checkpoints_create.h"
 #include "cryptonote_core/cryptonote_core.h"
 #include "rpc/core_rpc_server.h"
@@ -62,6 +63,11 @@ namespace
   const command_line::arg_descriptor<std::string> arg_log_file    = {"log-file", "", ""};
   const command_line::arg_descriptor<int>         arg_log_level   = {"log-level", "", LOG_LEVEL_0};
   const command_line::arg_descriptor<bool>        arg_console     = {"no-console", "Disable daemon console commands"};
+  const command_line::arg_descriptor<bool>        arg_testnet_on  = {
+      "testnet"
+    , "Run on testnet. The wallet must be launched with --testnet flag."
+    , false
+    };
 }
 
 bool command_line_preprocessor(const boost::program_options::variables_map& vm)
@@ -110,6 +116,9 @@ int main(int argc, char* argv[])
 
   TRY_ENTRY();  
 
+  boost::filesystem::path default_data_path {tools::get_default_data_dir()};
+  boost::filesystem::path default_testnet_data_path {default_data_path / "testnet"};
+
   po::options_description desc_cmd_only("Command line options");
   po::options_description desc_cmd_sett("Command line options and settings options");
 
@@ -117,13 +126,14 @@ int main(int argc, char* argv[])
   command_line::add_arg(desc_cmd_only, command_line::arg_version);
   command_line::add_arg(desc_cmd_only, arg_os_version);
   // tools::get_default_data_dir() can't be called during static initialization
-  command_line::add_arg(desc_cmd_only, command_line::arg_data_dir, tools::get_default_data_dir());
+  command_line::add_arg(desc_cmd_only, command_line::arg_data_dir, default_data_path.string());
+  command_line::add_arg(desc_cmd_only, command_line::arg_testnet_data_dir, default_testnet_data_path.string());
   command_line::add_arg(desc_cmd_only, arg_config_file);
 
   command_line::add_arg(desc_cmd_sett, arg_log_file);
   command_line::add_arg(desc_cmd_sett, arg_log_level);
   command_line::add_arg(desc_cmd_sett, arg_console);
-  
+  command_line::add_arg(desc_cmd_sett, arg_testnet_on);
 
   cryptonote::core::init_options(desc_cmd_sett);
   cryptonote::core_rpc_server::init_options(desc_cmd_sett);
@@ -137,29 +147,6 @@ int main(int argc, char* argv[])
   bool r = command_line::handle_error_helper(desc_options, [&]()
   {
     po::store(po::parse_command_line(argc, argv, desc_options), vm);
-
-    if (command_line::get_arg(vm, command_line::arg_help))
-    {
-      std::cout << CRYPTONOTE_NAME << " v" << MONERO_VERSION_FULL << ENDL << ENDL;
-      std::cout << desc_options << std::endl;
-      return false;
-    }
-
-    std::string data_dir = command_line::get_arg(vm, command_line::arg_data_dir);
-    std::string config = command_line::get_arg(vm, arg_config_file);
-
-    boost::filesystem::path data_dir_path(data_dir);
-    boost::filesystem::path config_path(config);
-    if (!config_path.has_parent_path())
-    {
-      config_path = data_dir_path / config_path;
-    }
-
-    boost::system::error_code ec;
-    if (boost::filesystem::exists(config_path, ec))
-    {
-      po::store(po::parse_config_file<char>(config_path.string<std::string>().c_str(), desc_cmd_sett), vm);
-    }
     po::notify(vm);
 
     return true;
@@ -167,6 +154,34 @@ int main(int argc, char* argv[])
   if (!r)
     return 1;
 
+  if (command_line::get_arg(vm, command_line::arg_help))
+  {
+    std::cout << CRYPTONOTE_NAME << " v" << MONERO_VERSION_FULL << ENDL << ENDL;
+    std::cout << desc_options << std::endl;
+    return false;
+  }
+
+  bool testnet_mode = command_line::get_arg(vm, arg_testnet_on);
+
+  auto data_dir_arg = testnet_mode ? command_line::arg_testnet_data_dir : command_line::arg_data_dir;
+
+  std::string data_dir = command_line::get_arg(vm, data_dir_arg);
+  tools::create_directories_if_necessary(data_dir);
+  std::string config = command_line::get_arg(vm, arg_config_file);
+
+  boost::filesystem::path data_dir_path(data_dir);
+  boost::filesystem::path config_path(config);
+  if (!config_path.has_parent_path())
+  {
+    config_path = data_dir_path / config_path;
+  }
+
+  boost::system::error_code ec;
+  if (boost::filesystem::exists(config_path, ec))
+  {
+    po::store(po::parse_config_file<char>(config_path.string<std::string>().c_str(), desc_cmd_sett), vm);
+  }
+
   //set up logging options
   boost::filesystem::path log_file_path(command_line::get_arg(vm, arg_log_file));
   if (log_file_path.empty())
@@ -191,17 +206,26 @@ int main(int argc, char* argv[])
 
   //create objects and link them
   cryptonote::core ccore(NULL);
-  ccore.set_checkpoints(std::move(checkpoints));  
+
+  if (testnet_mode) {
+    LOG_PRINT_L0("Starting in testnet mode!");
+  } else {
+    ccore.set_checkpoints(std::move(checkpoints));
+  }
+
   cryptonote::t_cryptonote_protocol_handler<cryptonote::core> cprotocol(ccore, NULL);
-  nodetool::node_server<cryptonote::t_cryptonote_protocol_handler<cryptonote::core> > p2psrv(cprotocol);
-  cryptonote::core_rpc_server rpc_server(ccore, p2psrv);
+  nodetool::node_server<cryptonote::t_cryptonote_protocol_handler<cryptonote::core> > p2psrv {
+      cprotocol
+    , testnet_mode ? std::move(config::testnet::NETWORK_ID) : std::move(config::NETWORK_ID)
+    };
+  cryptonote::core_rpc_server rpc_server {ccore, p2psrv, testnet_mode};
   cprotocol.set_p2p_endpoint(&p2psrv);
   ccore.set_cryptonote_protocol(&cprotocol);
-  daemon_cmmands_handler dch(p2psrv);
+  daemon_cmmands_handler dch(p2psrv, testnet_mode);
 
   //initialize objects
   LOG_PRINT_L0("Initializing P2P server...");
-  res = p2psrv.init(vm);
+  res = p2psrv.init(vm, testnet_mode);
   CHECK_AND_ASSERT_MES(res, 1, "Failed to initialize P2P server.");
   LOG_PRINT_L0("P2P server initialized OK");
 
@@ -217,7 +241,7 @@ int main(int argc, char* argv[])
 
   //initialize core here
   LOG_PRINT_L0("Initializing core...");
-  res = ccore.init(vm);
+  res = ccore.init(vm, testnet_mode);
   CHECK_AND_ASSERT_MES(res, 1, "Failed to initialize core");
   LOG_PRINT_L0("Core initialized OK");
   
diff --git a/src/daemon/daemon_commands_handler.h b/src/daemon/daemon_commands_handler.h
index 5dc0be7dd..58112e166 100644
--- a/src/daemon/daemon_commands_handler.h
+++ b/src/daemon/daemon_commands_handler.h
@@ -50,7 +50,12 @@ class daemon_cmmands_handler
 {
   nodetool::node_server<cryptonote::t_cryptonote_protocol_handler<cryptonote::core> >& m_srv;
 public:
-  daemon_cmmands_handler(nodetool::node_server<cryptonote::t_cryptonote_protocol_handler<cryptonote::core> >& srv):m_srv(srv)
+  daemon_cmmands_handler(
+      nodetool::node_server<cryptonote::t_cryptonote_protocol_handler<cryptonote::core> >& srv
+    , bool testnet
+    )
+    : m_srv(srv)
+    , m_testnet {testnet}
   {
     m_cmd_binder.set_handler("help", boost::bind(&daemon_cmmands_handler::help, this, _1), "Show this help");
     m_cmd_binder.set_handler("print_pl", boost::bind(&daemon_cmmands_handler::print_pl, this, _1), "Print peer list");
@@ -84,6 +89,7 @@ public:
 
 private:
   epee::srv_console_handlers_binder<nodetool::node_server<cryptonote::t_cryptonote_protocol_handler<cryptonote::core> > > m_cmd_binder;
+  bool m_testnet;
 
   //--------------------------------------------------------------------------------
   std::string get_commands_str()
@@ -368,7 +374,7 @@ private:
     }
 
     cryptonote::account_public_address adr;
-    if(!cryptonote::get_account_address_from_str(adr, args.front()))
+    if(!cryptonote::get_account_address_from_str(adr, m_testnet, args.front()))
     {
       std::cout << "target account address has wrong format" << std::endl;
       return true;
diff --git a/src/p2p/net_node.h b/src/p2p/net_node.h
index d7576d5dd..759b21fcf 100644
--- a/src/p2p/net_node.h
+++ b/src/p2p/net_node.h
@@ -41,13 +41,14 @@
 #include <boost/program_options/options_description.hpp>
 #include <boost/program_options/variables_map.hpp>
 #include <boost/serialization/version.hpp>
+#include <boost/uuid/uuid.hpp>
 
+#include "cryptonote_config.h"
 #include "warnings.h"
 #include "net/levin_server_cp2.h"
 #include "p2p_protocol_defs.h"
 #include "storages/levin_abstract_invoke2.h"
 #include "net_peerlist.h"
-#include "p2p_networks.h"
 #include "math_helper.h"
 #include "net_node_common.h"
 #include "common/command_line.h"
@@ -78,14 +79,21 @@ namespace nodetool
 
   public:
     typedef t_payload_net_handler payload_net_handler;
-    // Some code
-    node_server(t_payload_net_handler& payload_handler):m_payload_handler(payload_handler), m_allow_local_ip(false), m_hide_my_port(false)
+
+    node_server(
+        t_payload_net_handler& payload_handler
+      , boost::uuids::uuid network_id
+      )
+      : m_payload_handler(payload_handler)
+      , m_allow_local_ip(false)
+      , m_hide_my_port(false)
+      , m_network_id(std::move(network_id))
     {}
 
     static void init_options(boost::program_options::options_description& desc);
 
     bool run();
-    bool init(const boost::program_options::variables_map& vm);
+    bool init(const boost::program_options::variables_map& vm, bool testnet);
     bool deinit();
     bool send_stop_signal();
     uint32_t get_this_peer_port(){return m_listenning_port;}
@@ -149,7 +157,10 @@ namespace nodetool
     virtual void for_each_connection(std::function<bool(typename t_payload_net_handler::connection_context&, peerid_type)> f);
     //-----------------------------------------------------------------------------------------------
     bool parse_peer_from_string(nodetool::net_address& pe, const std::string& node_addr);
-    bool handle_command_line(const boost::program_options::variables_map& vm);
+    bool handle_command_line(
+        const boost::program_options::variables_map& vm
+      , bool testnet
+      );
     bool idle_worker();
     bool handle_remote_peerlist(const std::list<peerlist_entry>& peerlist, time_t local_time, const epee::net_utils::connection_context_base& context);
     bool get_local_node_data(basic_node_data& node_data);
@@ -229,6 +240,7 @@ namespace nodetool
     uint64_t m_peer_livetime;
     //keep connections to initiate some interactions
     net_server m_net_server;
+    boost::uuids::uuid m_network_id;
   };
 }
 
diff --git a/src/p2p/net_node.inl b/src/p2p/net_node.inl
index ee401ce42..870e7572e 100644
--- a/src/p2p/net_node.inl
+++ b/src/p2p/net_node.inl
@@ -60,7 +60,16 @@ namespace nodetool
   namespace
   {
     const command_line::arg_descriptor<std::string> arg_p2p_bind_ip        = {"p2p-bind-ip", "Interface for p2p network protocol", "0.0.0.0"};
-    const command_line::arg_descriptor<std::string> arg_p2p_bind_port      = {"p2p-bind-port", "Port for p2p network protocol", boost::to_string(P2P_DEFAULT_PORT)};
+    const command_line::arg_descriptor<std::string> arg_p2p_bind_port = {
+        "p2p-bind-port"
+      , "Port for p2p network protocol"
+      , std::to_string(config::P2P_DEFAULT_PORT)
+      };
+    const command_line::arg_descriptor<std::string> arg_testnet_p2p_bind_port = {
+        "testnet-p2p-bind-port"
+      , "Port for testnet p2p network protocol"
+      , std::to_string(config::testnet::P2P_DEFAULT_PORT)
+      };
     const command_line::arg_descriptor<uint32_t>    arg_p2p_external_port  = {"p2p-external-port", "External port for p2p network protocol (if port forwarding used with NAT)", 0};
     const command_line::arg_descriptor<bool>        arg_p2p_allow_local_ip = {"allow-local-ip", "Allow local ip add to peer list, mostly in debug purposes"};
     const command_line::arg_descriptor<std::vector<std::string> > arg_p2p_add_peer   = {"add-peer", "Manually add peer to local peerlist"};
@@ -77,6 +86,7 @@ namespace nodetool
   {
     command_line::add_arg(desc, arg_p2p_bind_ip);
     command_line::add_arg(desc, arg_p2p_bind_port);
+    command_line::add_arg(desc, arg_testnet_p2p_bind_port);
     command_line::add_arg(desc, arg_p2p_external_port);
     command_line::add_arg(desc, arg_p2p_allow_local_ip);
     command_line::add_arg(desc, arg_p2p_add_peer);
@@ -138,10 +148,15 @@ namespace nodetool
   }
   //-----------------------------------------------------------------------------------
   template<class t_payload_net_handler>
-  bool node_server<t_payload_net_handler>::handle_command_line(const boost::program_options::variables_map& vm)
+  bool node_server<t_payload_net_handler>::handle_command_line(
+      const boost::program_options::variables_map& vm
+    , bool testnet
+    )
   {
+    auto p2p_bind_arg = testnet ? arg_testnet_p2p_bind_port : arg_p2p_bind_port;
+
     m_bind_ip = command_line::get_arg(vm, arg_p2p_bind_ip);
-    m_port = command_line::get_arg(vm, arg_p2p_bind_port);
+    m_port = command_line::get_arg(vm, p2p_bind_arg);
     m_external_port = command_line::get_arg(vm, arg_p2p_external_port);
     m_allow_local_ip = command_line::get_arg(vm, arg_p2p_allow_local_ip);
 
@@ -180,67 +195,74 @@ namespace nodetool
     return true;
   }
   //-----------------------------------------------------------------------------------
-  namespace
+  inline void add_hardcoded_seed_node(
+      std::vector<net_address> & seed_nodes
+    , std::string const & addr
+    )
   {
-    template<typename T>
-    bool append_net_address(T& nodes, const std::string& addr)
+    using namespace boost::asio;
+
+    size_t pos = addr.find_last_of(':');
+    CHECK_AND_ASSERT_MES_NO_RET(std::string::npos != pos && addr.length() - 1 != pos && 0 != pos, "Failed to parse seed address from string: '" << addr << '\'');
+    std::string host = addr.substr(0, pos);
+    std::string port = addr.substr(pos + 1);
+
+    io_service io_srv;
+    ip::tcp::resolver resolver(io_srv);
+    ip::tcp::resolver::query query(host, port);
+    boost::system::error_code ec;
+    ip::tcp::resolver::iterator i = resolver.resolve(query, ec);
+    CHECK_AND_ASSERT_MES_NO_RET(!ec, "Failed to resolve host name '" << host << "': " << ec.message() << ':' << ec.value());
+
+    ip::tcp::resolver::iterator iend;
+    for (; i != iend; ++i)
     {
-      using namespace boost::asio;
-
-      size_t pos = addr.find_last_of(':');
-      CHECK_AND_ASSERT_MES(std::string::npos != pos && addr.length() - 1 != pos && 0 != pos, false, "Failed to parse seed address from string: '" << addr << '\'');
-      std::string host = addr.substr(0, pos);
-      std::string port = addr.substr(pos + 1);
-
-      io_service io_srv;
-      ip::tcp::resolver resolver(io_srv);
-      ip::tcp::resolver::query query(host, port);
-      boost::system::error_code ec;
-      ip::tcp::resolver::iterator i = resolver.resolve(query, ec);
-      CHECK_AND_NO_ASSERT_MES(!ec, false, "Failed to resolve host name '" << host << "': " << ec.message() << ':' << ec.value());
-
-      ip::tcp::resolver::iterator iend;
-      for (; i != iend; ++i)
+      ip::tcp::endpoint endpoint = *i;
+      if (endpoint.address().is_v4())
       {
-        ip::tcp::endpoint endpoint = *i;
-        if (endpoint.address().is_v4())
-        {
-          nodetool::net_address na;
-          na.ip = boost::asio::detail::socket_ops::host_to_network_long(endpoint.address().to_v4().to_ulong());
-          na.port = endpoint.port();
-          nodes.push_back(na);
-          LOG_PRINT_L4("Added seed node: " << endpoint.address().to_v4().to_string(ec) << ':' << na.port);
-        }
-        else
-        {
-          LOG_PRINT_L2("IPv6 doesn't supported, skip '" << host << "' -> " << endpoint.address().to_v6().to_string(ec));
-        }
+        nodetool::net_address na;
+        na.ip = boost::asio::detail::socket_ops::host_to_network_long(endpoint.address().to_v4().to_ulong());
+        na.port = endpoint.port();
+        seed_nodes.push_back(na);
+        LOG_PRINT_L4("Added seed node: " << endpoint.address().to_v4().to_string(ec) << ':' << na.port);
+      }
+      else
+      {
+        LOG_PRINT_L2("IPv6 doesn't supported, skip '" << host << "' -> " << endpoint.address().to_v6().to_string(ec));
       }
-
-      return true;
     }
   }
 
-  #define ADD_HARDCODED_SEED_NODE(addr) append_net_address(m_seed_nodes, addr);
   //-----------------------------------------------------------------------------------
   template<class t_payload_net_handler>
-  bool node_server<t_payload_net_handler>::init(const boost::program_options::variables_map& vm)
+  bool node_server<t_payload_net_handler>::init(const boost::program_options::variables_map& vm, bool testnet)
   {
-    ADD_HARDCODED_SEED_NODE("62.210.78.186:18080");
-    ADD_HARDCODED_SEED_NODE("195.12.60.154:18080");
-    ADD_HARDCODED_SEED_NODE("54.241.246.125:18080");
-    ADD_HARDCODED_SEED_NODE("107.170.157.169:18080");
-    ADD_HARDCODED_SEED_NODE("54.207.112.216:18080");
-    ADD_HARDCODED_SEED_NODE("78.27.112.54:18080");
-    ADD_HARDCODED_SEED_NODE("209.222.30.57:18080");
-    ADD_HARDCODED_SEED_NODE("80.71.13.55:18080");
-    ADD_HARDCODED_SEED_NODE("107.178.112.126:18080");
-    ADD_HARDCODED_SEED_NODE("107.158.233.98:18080");
-    ADD_HARDCODED_SEED_NODE("64.22.111.2:18080");
+    if (testnet)
+    {
+      add_hardcoded_seed_node(m_seed_nodes, "107.152.187.202:28080");
+      add_hardcoded_seed_node(m_seed_nodes, "197.242.158.240:28080");
+      add_hardcoded_seed_node(m_seed_nodes, "107.152.130.98:28080");
+    }
+    else
+    {
+      add_hardcoded_seed_node(m_seed_nodes, "62.210.78.186:18080");
+      add_hardcoded_seed_node(m_seed_nodes, "195.12.60.154:18080");
+      add_hardcoded_seed_node(m_seed_nodes, "54.241.246.125:18080");
+      add_hardcoded_seed_node(m_seed_nodes, "107.170.157.169:18080");
+      add_hardcoded_seed_node(m_seed_nodes, "54.207.112.216:18080");
+      add_hardcoded_seed_node(m_seed_nodes, "78.27.112.54:18080");
+      add_hardcoded_seed_node(m_seed_nodes, "209.222.30.57:18080");
+      add_hardcoded_seed_node(m_seed_nodes, "80.71.13.55:18080");
+      add_hardcoded_seed_node(m_seed_nodes, "107.178.112.126:18080");
+      add_hardcoded_seed_node(m_seed_nodes, "107.158.233.98:18080");
+      add_hardcoded_seed_node(m_seed_nodes, "64.22.111.2:18080");
+    }
 
-    bool res = handle_command_line(vm);
+    bool res = handle_command_line(vm, testnet);
     CHECK_AND_ASSERT_MES(res, false, "Failed to handle command line");
-    m_config_folder = command_line::get_arg(vm, command_line::arg_data_dir);
+
+    auto config_arg = testnet ? command_line::arg_testnet_data_dir : command_line::arg_data_dir;
+    m_config_folder = command_line::get_arg(vm, config_arg);
 
     res = init_config();
     CHECK_AND_ASSERT_MES(res, false, "Failed to init config.");
@@ -410,7 +432,7 @@ namespace nodetool
         return;
       }
 
-      if(rsp.node_data.network_id != MONERO_NETWORK)
+      if(rsp.node_data.network_id != m_network_id)
       {
         LOG_ERROR_CCONTEXT("COMMAND_HANDSHAKE Failed, wrong network!  (" << epee::string_tools::get_str_from_guid_a(rsp.node_data.network_id) << "), closing connection.");
         return;
@@ -818,7 +840,7 @@ namespace nodetool
       node_data.my_port = m_external_port ? m_external_port : m_listenning_port;
     else 
       node_data.my_port = 0;
-    node_data.network_id = MONERO_NETWORK;
+    node_data.network_id = m_network_id;
     return true;
   }
   //-----------------------------------------------------------------------------------
@@ -844,7 +866,7 @@ namespace nodetool
       return false;
     }
     crypto::public_key pk = AUTO_VAL_INIT(pk);
-    epee::string_tools::hex_to_pod(P2P_STAT_TRUSTED_PUB_KEY, pk);
+    epee::string_tools::hex_to_pod(::config::P2P_REMOTE_DEBUG_TRUSTED_PUB_KEY, pk);
     crypto::hash h = tools::get_proof_of_trust_hash(tr);
     if(!crypto::check_signature(h, pk, tr.sign))
     {
@@ -1038,7 +1060,7 @@ namespace nodetool
   template<class t_payload_net_handler>
   int node_server<t_payload_net_handler>::handle_handshake(int command, typename COMMAND_HANDSHAKE::request& arg, typename COMMAND_HANDSHAKE::response& rsp, p2p_connection_context& context)
   {
-    if(arg.node_data.network_id != MONERO_NETWORK)
+    if(arg.node_data.network_id != m_network_id)
     {
 
       LOG_PRINT_CCONTEXT_L1("WRONG NETWORK AGENT CONNECTED! id=" << epee::string_tools::get_str_from_guid_a(arg.node_data.network_id));
diff --git a/src/p2p/p2p_networks.h b/src/p2p/p2p_networks.h
deleted file mode 100644
index b3193ee6a..000000000
--- a/src/p2p/p2p_networks.h
+++ /dev/null
@@ -1,36 +0,0 @@
-// Copyright (c) 2014, The Monero Project
-// 
-// All rights reserved.
-// 
-// Redistribution and use in source and binary forms, with or without modification, are
-// permitted provided that the following conditions are met:
-// 
-// 1. Redistributions of source code must retain the above copyright notice, this list of
-//    conditions and the following disclaimer.
-// 
-// 2. Redistributions in binary form must reproduce the above copyright notice, this list
-//    of conditions and the following disclaimer in the documentation and/or other
-//    materials provided with the distribution.
-// 
-// 3. Neither the name of the copyright holder nor the names of its contributors may be
-//    used to endorse or promote products derived from this software without specific
-//    prior written permission.
-// 
-// THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS" AND ANY
-// EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF
-// MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL
-// THE COPYRIGHT HOLDER OR CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,
-// SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO,
-// PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS; OR BUSINESS
-// INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT,
-// STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF
-// THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
-// 
-// Parts of this file are originally copyright (c) 2012-2013 The Cryptonote developers
-
-#pragma once
-
-namespace nodetool
-{
-  const static boost::uuids::uuid MONERO_NETWORK = { { 0x12 ,0x30, 0xF1, 0x71 , 0x61, 0x04 , 0x41, 0x61, 0x17, 0x31, 0x00, 0x82, 0x16, 0xA1, 0xA1, 0x10} }; //Bender's nightmare
-}
diff --git a/src/rpc/core_rpc_server.cpp b/src/rpc/core_rpc_server.cpp
index c74203cc3..22e95a1fc 100644
--- a/src/rpc/core_rpc_server.cpp
+++ b/src/rpc/core_rpc_server.cpp
@@ -45,8 +45,23 @@ namespace cryptonote
 {
   namespace
   {
-    const command_line::arg_descriptor<std::string> arg_rpc_bind_ip   = {"rpc-bind-ip", "", "127.0.0.1"};
-    const command_line::arg_descriptor<std::string> arg_rpc_bind_port = {"rpc-bind-port", "", std::to_string(RPC_DEFAULT_PORT)};
+    const command_line::arg_descriptor<std::string> arg_rpc_bind_ip   = {
+        "rpc-bind-ip"
+      , "IP for RPC server"
+      , "127.0.0.1"
+      };
+
+    const command_line::arg_descriptor<std::string> arg_rpc_bind_port = {
+        "rpc-bind-port"
+      , "Port for RPC server"
+      , std::to_string(config::RPC_DEFAULT_PORT)
+      };
+
+    const command_line::arg_descriptor<std::string> arg_testnet_rpc_bind_port = {
+        "testnet-rpc-bind-port"
+      , "Port for testnet RPC server"
+      , std::to_string(config::testnet::RPC_DEFAULT_PORT)
+      };
   }
 
   //-----------------------------------------------------------------------------------
@@ -54,19 +69,33 @@ namespace cryptonote
   {
     command_line::add_arg(desc, arg_rpc_bind_ip);
     command_line::add_arg(desc, arg_rpc_bind_port);
+    command_line::add_arg(desc, arg_testnet_rpc_bind_port);
   }
   //------------------------------------------------------------------------------------------------------------------------------
-  core_rpc_server::core_rpc_server(core& cr, nodetool::node_server<cryptonote::t_cryptonote_protocol_handler<cryptonote::core> >& p2p):m_core(cr), m_p2p(p2p)
+  core_rpc_server::core_rpc_server(
+      core& cr
+    , nodetool::node_server<cryptonote::t_cryptonote_protocol_handler<cryptonote::core> >& p2p
+    , bool testnet
+    )
+    : m_core(cr)
+    , m_p2p(p2p)
+    , m_testnet {testnet}
   {}
   //------------------------------------------------------------------------------------------------------------------------------
-  bool core_rpc_server::handle_command_line(const boost::program_options::variables_map& vm)
+  bool core_rpc_server::handle_command_line(
+      const boost::program_options::variables_map& vm
+    )
   {
+    auto p2p_bind_arg = m_testnet ? arg_testnet_rpc_bind_port : arg_rpc_bind_port;
+
     m_bind_ip = command_line::get_arg(vm, arg_rpc_bind_ip);
-    m_port = command_line::get_arg(vm, arg_rpc_bind_port);
+    m_port = command_line::get_arg(vm, p2p_bind_arg);
     return true;
   }
   //------------------------------------------------------------------------------------------------------------------------------
-  bool core_rpc_server::init(const boost::program_options::variables_map& vm)
+  bool core_rpc_server::init(
+      const boost::program_options::variables_map& vm
+    )
   {
     m_net_server.set_threads_prefix("RPC");
     bool r = handle_command_line(vm);
@@ -278,7 +307,7 @@ namespace cryptonote
   {
     CHECK_CORE_READY();
     account_public_address adr;
-    if(!get_account_address_from_str(adr, req.miner_address))
+    if(!get_account_address_from_str(adr, m_testnet, req.miner_address))
     {
       res.status = "Failed, wrong address";
       return true;
@@ -318,7 +347,7 @@ namespace cryptonote
       res.speed = lMiner.get_speed();
       res.threads_count = lMiner.get_threads_count();
       const account_public_address& lMiningAdr = lMiner.get_mining_address();
-      res.address = get_account_address_as_str(lMiningAdr);
+      res.address = get_account_address_as_str(m_testnet, lMiningAdr);
     }
 
     res.status = CORE_RPC_STATUS_OK;
@@ -402,7 +431,7 @@ namespace cryptonote
 
     cryptonote::account_public_address acc = AUTO_VAL_INIT(acc);
 
-    if(!req.wallet_address.size() || !cryptonote::get_account_address_from_str(acc, req.wallet_address))
+    if(!req.wallet_address.size() || !cryptonote::get_account_address_from_str(acc, m_testnet, req.wallet_address))
     {
       error_resp.code = CORE_RPC_ERROR_CODE_WRONG_WALLET_ADDRESS;
       error_resp.message = "Failed to parse wallet address";
diff --git a/src/rpc/core_rpc_server.h b/src/rpc/core_rpc_server.h
index 2e3f553ce..02bc533c9 100644
--- a/src/rpc/core_rpc_server.h
+++ b/src/rpc/core_rpc_server.h
@@ -49,10 +49,16 @@ namespace cryptonote
   public:
     typedef epee::net_utils::connection_context_base connection_context;
 
-    core_rpc_server(core& cr, nodetool::node_server<cryptonote::t_cryptonote_protocol_handler<cryptonote::core> >& p2p);
+    core_rpc_server(
+        core& cr
+      , nodetool::node_server<cryptonote::t_cryptonote_protocol_handler<cryptonote::core> >& p2p
+      , bool testnet
+      );
 
     static void init_options(boost::program_options::options_description& desc);
-    bool init(const boost::program_options::variables_map& vm);
+    bool init(
+        const boost::program_options::variables_map& vm
+      );
   private:
 
     CHAIN_HTTP_TO_MAP2(connection_context); //forward http requests to uri map
@@ -105,7 +111,9 @@ namespace cryptonote
     bool on_get_connections(const COMMAND_RPC_GET_CONNECTIONS::request& req, COMMAND_RPC_GET_CONNECTIONS::response& res, epee::json_rpc::error& error_resp, connection_context& cntx);
     bool on_get_info_json(const COMMAND_RPC_GET_INFO::request& req, COMMAND_RPC_GET_INFO::response& res, epee::json_rpc::error& error_resp, connection_context& cntx);
     //-----------------------
-    bool handle_command_line(const boost::program_options::variables_map& vm);
+    bool handle_command_line(
+        const boost::program_options::variables_map& vm
+      );
     bool check_core_busy();
     bool check_core_ready();
     
@@ -117,5 +125,6 @@ namespace cryptonote
     nodetool::node_server<cryptonote::t_cryptonote_protocol_handler<cryptonote::core> >& m_p2p;
     std::string m_port;
     std::string m_bind_ip;
+    bool m_testnet;
   };
 }
diff --git a/src/simplewallet/simplewallet.cpp b/src/simplewallet/simplewallet.cpp
index e822e6636..fbe7c4730 100644
--- a/src/simplewallet/simplewallet.cpp
+++ b/src/simplewallet/simplewallet.cpp
@@ -72,6 +72,7 @@ namespace
   const command_line::arg_descriptor<bool> arg_non_deterministic = {"non-deterministic", "creates non-deterministic view and spend keys", false};
   const command_line::arg_descriptor<int> arg_daemon_port = {"daemon-port", "Use daemon instance at port <arg> instead of 8081", 0};
   const command_line::arg_descriptor<uint32_t> arg_log_level = {"set_log", "", 0, true};
+  const command_line::arg_descriptor<bool> arg_testnet = {"testnet", "Used to deploy test nets. The daemon must be launched with --testnet flag", false};
 
   const command_line::arg_descriptor< std::vector<std::string> > arg_command = {"command", ""};
 
@@ -327,10 +328,16 @@ bool simple_wallet::init(const boost::program_options::variables_map& vm)
     if(!ask_wallet_create_if_needed()) return false;
   }
 
+  bool testnet = command_line::get_arg(vm, arg_testnet);
+
   if (m_daemon_host.empty())
     m_daemon_host = "localhost";
+
   if (!m_daemon_port)
-    m_daemon_port = RPC_DEFAULT_PORT;
+  {
+    m_daemon_port = testnet ? config::testnet::RPC_DEFAULT_PORT : config::RPC_DEFAULT_PORT;
+  }
+
   if (m_daemon_address.empty())
     m_daemon_address = std::string("http://") + m_daemon_host + ":" + std::to_string(m_daemon_port);
 
@@ -378,12 +385,12 @@ bool simple_wallet::init(const boost::program_options::variables_map& vm)
           return false;
       }
     }
-    bool r = new_wallet(m_wallet_file, pwd_container.password(), m_recovery_key, m_restore_deterministic_wallet, m_non_deterministic);
+    bool r = new_wallet(m_wallet_file, pwd_container.password(), m_recovery_key, m_restore_deterministic_wallet, m_non_deterministic, testnet);
     CHECK_AND_ASSERT_MES(r, false, "account creation failed");
   }
   else
   {
-    bool r = open_wallet(m_wallet_file, pwd_container.password());
+    bool r = open_wallet(m_wallet_file, pwd_container.password(), testnet);
     CHECK_AND_ASSERT_MES(r, false, "could not open account");
   }
 
@@ -423,18 +430,20 @@ bool simple_wallet::try_connect_to_daemon()
 }
 
 //----------------------------------------------------------------------------------------------------
-bool simple_wallet::new_wallet(const string &wallet_file, const std::string& password, const crypto::secret_key& recovery_key, bool recover, bool two_random)
+bool simple_wallet::new_wallet(const string &wallet_file, const std::string& password, const crypto::secret_key& recovery_key, bool recover, bool two_random, bool testnet)
 {
   m_wallet_file = wallet_file;
 
-  m_wallet.reset(new tools::wallet2());
+  m_wallet.reset(new tools::wallet2(testnet));
   m_wallet->callback(this);
 
   crypto::secret_key recovery_val;
   try
   {
     recovery_val = m_wallet->generate(wallet_file, password, recovery_key, recover, two_random);
-    message_writer(epee::log_space::console_color_white, true) << "Generated new wallet: " << m_wallet->get_account().get_public_address_str() << std::endl << "view key: " << string_tools::pod_to_hex(m_wallet->get_account().get_keys().m_view_secret_key);
+    message_writer(epee::log_space::console_color_white, true) << "Generated new wallet: "
+      << m_wallet->get_account().get_public_address_str(m_wallet->testnet()) << std::endl << "view key: "
+      << string_tools::pod_to_hex(m_wallet->get_account().get_keys().m_view_secret_key);
   }
   catch (const std::exception& e)
   {
@@ -471,16 +480,17 @@ bool simple_wallet::new_wallet(const string &wallet_file, const std::string& pas
   return true;
 }
 //----------------------------------------------------------------------------------------------------
-bool simple_wallet::open_wallet(const string &wallet_file, const std::string& password)
+bool simple_wallet::open_wallet(const string &wallet_file, const std::string& password, bool testnet)
 {
   m_wallet_file = wallet_file;
-  m_wallet.reset(new tools::wallet2());
+  m_wallet.reset(new tools::wallet2(testnet));
   m_wallet->callback(this);
 
   try
   {
     m_wallet->load(m_wallet_file, password);
-    message_writer(epee::log_space::console_color_white, true) << "Opened wallet: " << m_wallet->get_account().get_public_address_str();
+    message_writer(epee::log_space::console_color_white, true) << "Opened wallet: "
+      << m_wallet->get_account().get_public_address_str(m_wallet->testnet());
   }
   catch (const std::exception& e)
   {
@@ -541,7 +551,7 @@ bool simple_wallet::start_mining(const std::vector<std::string>& args)
     return true;
 
   COMMAND_RPC_START_MINING::request req;
-  req.miner_address = m_wallet->get_account().get_public_address_str();
+  req.miner_address = m_wallet->get_account().get_public_address_str(m_wallet->testnet());
 
   bool ok = true;
   size_t max_mining_threads_count = (std::max)(std::thread::hardware_concurrency(), static_cast<unsigned>(2));
@@ -898,7 +908,7 @@ bool simple_wallet::transfer(const std::vector<std::string> &args_)
   for (size_t i = 0; i < local_args.size(); i += 2)
   {
     cryptonote::tx_destination_entry de;
-    if(!get_account_address_from_str(de.addr, local_args[i]))
+    if(!get_account_address_from_str(de.addr, m_wallet->testnet(), local_args[i]))
     {
       fail_msg_writer() << "wrong address: " << local_args[i];
       return true;
@@ -1028,7 +1038,7 @@ bool simple_wallet::transfer(const std::vector<std::string> &args_)
 //----------------------------------------------------------------------------------------------------
 bool simple_wallet::run()
 {
-  std::string addr_start = m_wallet->get_account().get_public_address_str().substr(0, 6);
+  std::string addr_start = m_wallet->get_account().get_public_address_str(m_wallet->testnet()).substr(0, 6);
   return m_cmd_binder.run_handling("[wallet " + addr_start + "]: ", "");
 }
 //----------------------------------------------------------------------------------------------------
@@ -1040,7 +1050,7 @@ void simple_wallet::stop()
 //----------------------------------------------------------------------------------------------------
 bool simple_wallet::print_address(const std::vector<std::string> &args/* = std::vector<std::string>()*/)
 {
-  success_msg_writer() << m_wallet->get_account().get_public_address_str();
+  success_msg_writer() << m_wallet->get_account().get_public_address_str(m_wallet->testnet());
   return true;
 }
 //----------------------------------------------------------------------------------------------------
@@ -1075,6 +1085,7 @@ int main(int argc, char* argv[])
   command_line::add_arg(desc_params, arg_restore_deterministic_wallet );
   command_line::add_arg(desc_params, arg_non_deterministic );
   command_line::add_arg(desc_params, arg_electrum_seed );
+  command_line::add_arg(desc_params, arg_testnet);
   tools::wallet_rpc_server::init_options(desc_params);
 
   po::positional_options_description positional_options;
@@ -1144,6 +1155,7 @@ int main(int argc, char* argv[])
       return 1;
     }
 
+    bool testnet = command_line::get_arg(vm, arg_testnet);
     std::string wallet_file     = command_line::get_arg(vm, arg_wallet_file);
     std::string wallet_password = command_line::get_arg(vm, arg_password);
     std::string daemon_address  = command_line::get_arg(vm, arg_daemon_address);
@@ -1152,11 +1164,11 @@ int main(int argc, char* argv[])
     if (daemon_host.empty())
       daemon_host = "localhost";
     if (!daemon_port)
-      daemon_port = RPC_DEFAULT_PORT;
+      daemon_port = config::RPC_DEFAULT_PORT;
     if (daemon_address.empty())
       daemon_address = std::string("http://") + daemon_host + ":" + std::to_string(daemon_port);
 
-    tools::wallet2 wal;
+    tools::wallet2 wal(testnet);
     try
     {
       LOG_PRINT_L0("Loading wallet...");
diff --git a/src/simplewallet/simplewallet.h b/src/simplewallet/simplewallet.h
index 41197b4bb..17affd564 100644
--- a/src/simplewallet/simplewallet.h
+++ b/src/simplewallet/simplewallet.h
@@ -66,8 +66,8 @@ namespace cryptonote
 
     bool run_console_handler();
 
-    bool new_wallet(const std::string &wallet_file, const std::string& password, const crypto::secret_key& recovery_key = crypto::secret_key(), bool recover = false, bool two_random = false);
-    bool open_wallet(const std::string &wallet_file, const std::string& password);
+    bool new_wallet(const std::string &wallet_file, const std::string& password, const crypto::secret_key& recovery_key = crypto::secret_key(), bool recover = false, bool two_random = false, bool testnet = false);
+    bool open_wallet(const std::string &wallet_file, const std::string& password, bool testnet);
     bool close_wallet();
 
     bool viewkey(const std::vector<std::string> &args = std::vector<std::string>());
diff --git a/src/wallet/wallet2.cpp b/src/wallet/wallet2.cpp
index 48aa164ab..9ba6f245a 100644
--- a/src/wallet/wallet2.cpp
+++ b/src/wallet/wallet2.cpp
@@ -35,6 +35,7 @@
 #include "include_base_utils.h"
 using namespace epee;
 
+#include "cryptonote_config.h"
 #include "wallet2.h"
 #include "cryptonote_core/cryptonote_format_utils.h"
 #include "rpc/core_rpc_server_commands_defs.h"
@@ -420,9 +421,6 @@ bool wallet2::clear()
 {
   m_blockchain.clear();
   m_transfers.clear();
-  cryptonote::block b;
-  cryptonote::generate_genesis_block(b);
-  m_blockchain.push_back(get_block_hash(b));
   m_local_bc_height = 1;
   return true;
 }
@@ -498,9 +496,13 @@ crypto::secret_key wallet2::generate(const std::string& wallet_, const std::stri
   bool r = store_keys(m_keys_file, password);
   THROW_WALLET_EXCEPTION_IF(!r, error::file_save_error, m_keys_file);
 
-  r = file_io_utils::save_string_to_file(m_wallet_file + ".address.txt", m_account.get_public_address_str());
+  r = file_io_utils::save_string_to_file(m_wallet_file + ".address.txt", m_account.get_public_address_str(m_testnet));
   if(!r) LOG_PRINT_RED_L0("String with address text not saved");
 
+  cryptonote::block b;
+  generate_genesis(b);
+  m_blockchain.push_back(get_block_hash(b));
+
   store();
   return retval;
 }
@@ -541,8 +543,12 @@ bool wallet2::check_connection()
 
   net_utils::http::url_content u;
   net_utils::parse_url(m_daemon_address, u);
+
   if(!u.port)
-    u.port = RPC_DEFAULT_PORT;
+  {
+    u.port = m_testnet ? config::testnet::RPC_DEFAULT_PORT : config::RPC_DEFAULT_PORT;
+  }
+
   return m_http_client.connect(u.host, std::to_string(u.port), WALLET_RCP_CONNECTION_TIMEOUT);
 }
 //----------------------------------------------------------------------------------------------------
@@ -556,7 +562,7 @@ void wallet2::load(const std::string& wallet_, const std::string& password)
   THROW_WALLET_EXCEPTION_IF(e || !exists, error::file_not_found, m_keys_file);
 
   load_keys(m_keys_file, password);
-  LOG_PRINT_L0("Loaded wallet keys file, with public address: " << m_account.get_public_address_str());
+  LOG_PRINT_L0("Loaded wallet keys file, with public address: " << m_account.get_public_address_str(m_testnet));
 
   //keys loaded ok!
   //try to load wallet file. but even if we failed, it is not big problem
@@ -573,15 +579,28 @@ void wallet2::load(const std::string& wallet_, const std::string& password)
     m_account_public_address.m_view_public_key  != m_account.get_keys().m_account_address.m_view_public_key,
     error::wallet_files_doesnt_correspond, m_keys_file, m_wallet_file);
 
-  if(m_blockchain.empty())
+  cryptonote::block genesis;
+  generate_genesis(genesis);
+  crypto::hash genesis_hash = get_block_hash(genesis);
+
+  if (m_blockchain.empty())
   {
-    cryptonote::block b;
-    cryptonote::generate_genesis_block(b);
-    m_blockchain.push_back(get_block_hash(b));
+    m_blockchain.push_back(genesis_hash);
   }
+  else
+  {
+    check_genesis(genesis_hash);
+  }
+
   m_local_bc_height = m_blockchain.size();
 }
 //----------------------------------------------------------------------------------------------------
+void wallet2::check_genesis(const crypto::hash& genesis_hash) {
+  std::string what("Genesis block missmatch. You probably use wallet without testnet flag with blockchain from test network or vice versa");
+
+  THROW_WALLET_EXCEPTION_IF(genesis_hash != m_blockchain[0], error::wallet_internal_error, what);
+}
+//----------------------------------------------------------------------------------------------------
 void wallet2::store()
 {
   bool r = tools::serialize_obj_to_file(*this, m_wallet_file);
@@ -918,4 +937,16 @@ std::vector<wallet2::pending_tx> wallet2::create_transactions(std::vector<crypto
     }
   }
 }
+
+//----------------------------------------------------------------------------------------------------
+void wallet2::generate_genesis(cryptonote::block& b) {
+  if (m_testnet)
+  {
+    cryptonote::generate_genesis_block(b, config::testnet::GENESIS_TX, config::testnet::GENESIS_NONCE);
+  }
+  else
+  {
+    cryptonote::generate_genesis_block(b, config::GENESIS_TX, config::GENESIS_NONCE);
+  }
+}
 }
diff --git a/src/wallet/wallet2.h b/src/wallet/wallet2.h
index a6f4c5c17..3311e3438 100644
--- a/src/wallet/wallet2.h
+++ b/src/wallet/wallet2.h
@@ -80,9 +80,9 @@ namespace tools
 
   class wallet2
   {
-    wallet2(const wallet2&) : m_run(true), m_callback(0) {};
+    wallet2(const wallet2&) : m_run(true), m_callback(0), m_testnet(false) {};
   public:
-    wallet2() : m_run(true), m_callback(0) {};
+    wallet2(bool testnet = false) : m_run(true), m_callback(0), m_testnet(testnet) {};
     struct transfer_details
     {
       uint64_t m_block_height;
@@ -158,6 +158,8 @@ namespace tools
     void refresh(uint64_t start_height, size_t & blocks_fetched, bool& received_money);
     bool refresh(size_t & blocks_fetched, bool& received_money, bool& ok);
 
+    bool testnet() { return m_testnet; }
+
     uint64_t balance();
     uint64_t unlocked_balance();
     template<typename T>
@@ -209,6 +211,8 @@ namespace tools
     bool prepare_file_names(const std::string& file_path);
     void process_unconfirmed(const cryptonote::transaction& tx);
     void add_unconfirmed_tx(const cryptonote::transaction& tx, uint64_t change_amount);
+    void generate_genesis(cryptonote::block& b);
+    void check_genesis(const crypto::hash& genesis_hash); //throws
 
     cryptonote::account_base m_account;
     std::string m_daemon_address;
@@ -228,6 +232,7 @@ namespace tools
     std::atomic<bool> m_run;
 
     i_wallet2_callback* m_callback;
+    bool m_testnet;
   };
 }
 BOOST_CLASS_VERSION(tools::wallet2, 7)
@@ -357,7 +362,7 @@ namespace tools
     {
       THROW_WALLET_EXCEPTION_IF(0 == dt.amount, error::zero_destination);
       needed_money += dt.amount;
-      THROW_WALLET_EXCEPTION_IF(needed_money < dt.amount, error::tx_sum_overflow, dsts, fee);
+      THROW_WALLET_EXCEPTION_IF(needed_money < dt.amount, error::tx_sum_overflow, dsts, fee, m_testnet);
     }
 
     // randomly select inputs for transaction
@@ -462,7 +467,7 @@ namespace tools
     }
 
     bool r = cryptonote::construct_tx(m_account.get_keys(), sources, splitted_dsts, extra, tx, unlock_time);
-    THROW_WALLET_EXCEPTION_IF(!r, error::tx_not_constructed, sources, splitted_dsts, unlock_time);
+    THROW_WALLET_EXCEPTION_IF(!r, error::tx_not_constructed, sources, splitted_dsts, unlock_time, m_testnet);
     THROW_WALLET_EXCEPTION_IF(m_upper_transaction_size_limit <= get_object_blobsize(tx), error::tx_too_big, tx, m_upper_transaction_size_limit);
 
     std::string key_images;
diff --git a/src/wallet/wallet_errors.h b/src/wallet/wallet_errors.h
index aa29f281a..7914ff8e1 100644
--- a/src/wallet/wallet_errors.h
+++ b/src/wallet/wallet_errors.h
@@ -376,11 +376,18 @@ namespace tools
       typedef std::vector<cryptonote::tx_source_entry> sources_t;
       typedef std::vector<cryptonote::tx_destination_entry> destinations_t;
 
-      explicit tx_not_constructed(std::string&& loc, const sources_t& sources, const destinations_t& destinations, uint64_t unlock_time)
-        : transfer_error(std::move(loc), "transaction was not constructed")
-        , m_sources(sources)
-        , m_destinations(destinations)
-        , m_unlock_time(unlock_time)
+      explicit tx_not_constructed(
+          std::string && loc
+        , sources_t const & sources
+        , destinations_t const & destinations
+        , uint64_t unlock_time
+        , bool testnet
+        )
+        : transfer_error {std::move(loc), "transaction was not constructed"}
+        , m_sources {sources}
+        , m_destinations {destinations}
+        , m_unlock_time {unlock_time}
+        , m_testnet {testnet}
       {
       }
 
@@ -414,7 +421,7 @@ namespace tools
         for (size_t i = 0; i < m_destinations.size(); ++i)
         {
           const cryptonote::tx_destination_entry& dst = m_destinations[i];
-          ss << "\n  " << i << ": " << cryptonote::get_account_address_as_str(dst.addr) << " " <<
+          ss << "\n  " << i << ": " << cryptonote::get_account_address_as_str(m_testnet, dst.addr) << " " <<
             cryptonote::print_money(dst.amount);
         }
 
@@ -427,6 +434,7 @@ namespace tools
       sources_t m_sources;
       destinations_t m_destinations;
       uint64_t m_unlock_time;
+      bool m_testnet;
     };
     //----------------------------------------------------------------------------------------------------
     struct tx_rejected : public transfer_error
@@ -457,10 +465,16 @@ namespace tools
     //----------------------------------------------------------------------------------------------------
     struct tx_sum_overflow : public transfer_error
     {
-      explicit tx_sum_overflow(std::string&& loc, const std::vector<cryptonote::tx_destination_entry>& destinations, uint64_t fee)
-        : transfer_error(std::move(loc), "transaction sum + fee exceeds " + cryptonote::print_money(std::numeric_limits<uint64_t>::max()))
-        , m_destinations(destinations)
-        , m_fee(fee)
+      explicit tx_sum_overflow(
+          std::string && loc
+        , const std::vector<cryptonote::tx_destination_entry>& destinations
+        , uint64_t fee
+        , bool testnet
+        )
+        : transfer_error {std::move(loc), "transaction sum + fee exceeds " + cryptonote::print_money(std::numeric_limits<uint64_t>::max())}
+        , m_destinations {destinations}
+        , m_fee {fee}
+        , m_testnet {testnet}
       {
       }
 
@@ -475,7 +489,7 @@ namespace tools
           ", destinations:";
         for (const auto& dst : m_destinations)
         {
-          ss << '\n' << cryptonote::print_money(dst.amount) << " -> " << cryptonote::get_account_address_as_str(dst.addr);
+          ss << '\n' << cryptonote::print_money(dst.amount) << " -> " << cryptonote::get_account_address_as_str(m_testnet, dst.addr);
         }
         return ss.str();
       }
@@ -483,6 +497,7 @@ namespace tools
     private:
       std::vector<cryptonote::tx_destination_entry> m_destinations;
       uint64_t m_fee;
+      bool m_testnet;
     };
     //----------------------------------------------------------------------------------------------------
     struct tx_too_big : public transfer_error
diff --git a/src/wallet/wallet_rpc_server.cpp b/src/wallet/wallet_rpc_server.cpp
index fa0a5445e..995e97ede 100644
--- a/src/wallet/wallet_rpc_server.cpp
+++ b/src/wallet/wallet_rpc_server.cpp
@@ -101,7 +101,7 @@ namespace tools
   {
     try
     {
-      res.address = m_wallet.get_account().get_public_address_str();
+      res.address = m_wallet.get_account().get_public_address_str(m_wallet.testnet());
     }
     catch (std::exception& e)
     {
@@ -118,7 +118,7 @@ namespace tools
     for (auto it = destinations.begin(); it != destinations.end(); it++)
     {
       cryptonote::tx_destination_entry de;
-      if(!get_account_address_from_str(de.addr, it->address))
+      if(!get_account_address_from_str(de.addr, m_wallet.testnet(), it->address))
       {
         er.code = WALLET_RPC_ERROR_CODE_WRONG_ADDRESS;
         er.message = std::string("WALLET_RPC_ERROR_CODE_WRONG_ADDRESS: ") + it->address;
diff --git a/tests/core_proxy/core_proxy.cpp b/tests/core_proxy/core_proxy.cpp
index 5f7bbc095..3a44e91eb 100644
--- a/tests/core_proxy/core_proxy.cpp
+++ b/tests/core_proxy/core_proxy.cpp
@@ -104,7 +104,10 @@ int main(int argc, char* argv[])
   //create objects and link them
   tests::proxy_core pr_core;
   cryptonote::t_cryptonote_protocol_handler<tests::proxy_core> cprotocol(pr_core, NULL);
-  nodetool::node_server<cryptonote::t_cryptonote_protocol_handler<tests::proxy_core> > p2psrv(cprotocol);
+  nodetool::node_server<cryptonote::t_cryptonote_protocol_handler<tests::proxy_core> > p2psrv {
+      cprotocol
+    , std::move(config::NETWORK_ID)
+    };
   cprotocol.set_p2p_endpoint(&p2psrv);
   //pr_core.set_cryptonote_protocol(&cprotocol);
   //daemon_cmmands_handler dch(p2psrv);
@@ -112,7 +115,7 @@ int main(int argc, char* argv[])
   //initialize objects
 
   LOG_PRINT_L0("Initializing p2p server...");
-  bool res = p2psrv.init(vm);
+  bool res = p2psrv.init(vm, false);
   CHECK_AND_ASSERT_MES(res, 1, "Failed to initialize p2p server.");
   LOG_PRINT_L0("P2p server initialized OK");
 
@@ -224,7 +227,7 @@ bool tests::proxy_core::get_blockchain_top(uint64_t& height, crypto::hash& top_i
 }
 
 bool tests::proxy_core::init(const boost::program_options::variables_map& /*vm*/) {
-    generate_genesis_block(m_genesis);
+    generate_genesis_block(m_genesis, config::GENESIS_TX, config::GENESIS_NONCE);
     crypto::hash h = get_block_hash(m_genesis);
     add_block(h, get_block_longhash(m_genesis, 0), m_genesis, block_to_blob(m_genesis));
     return true;
diff --git a/tests/core_tests/chaingen.h b/tests/core_tests/chaingen.h
index 685323127..d2990e009 100644
--- a/tests/core_tests/chaingen.h
+++ b/tests/core_tests/chaingen.h
@@ -487,7 +487,7 @@ inline bool do_replay_events(std::vector<test_event_entry>& events)
 
   cryptonote::cryptonote_protocol_stub pr; //TODO: stub only for this kind of test, make real validation of relayed objects
   cryptonote::core c(&pr);
-  if (!c.init(vm))
+  if (!c.init(vm, false))
   {
     std::cout << concolor::magenta << "Failed to init core" << concolor::normal << std::endl;
     return false;
diff --git a/tests/core_tests/transaction_tests.cpp b/tests/core_tests/transaction_tests.cpp
index 6f0dcee43..d46d48b07 100644
--- a/tests/core_tests/transaction_tests.cpp
+++ b/tests/core_tests/transaction_tests.cpp
@@ -54,7 +54,7 @@ bool test_transaction_generation_and_ring_signature()
   account_base miner_acc6;
   miner_acc6.generate();
 
-  std::string add_str = miner_acc3.get_public_address_str();
+  std::string add_str = miner_acc3.get_public_address_str(false);
 
 
   account_base rv_acc;
@@ -150,7 +150,7 @@ bool test_block_creation()
   uint64_t vszs[] = {80,476,476,475,475,474,475,474,474,475,472,476,476,475,475,474,475,474,474,475,472,476,476,475,475,474,475,474,474,475,9391,476,476,475,475,474,475,8819,8301,475,472,4302,5316,14347,16620,19583,19403,19728,19442,19852,19015,19000,19016,19795,19749,18087,19787,19704,19750,19267,19006,19050,19445,19407,19522,19546,19788,19369,19486,19329,19370,18853,19600,19110,19320,19746,19474,19474,19743,19494,19755,19715,19769,19620,19368,19839,19532,23424,28287,30707};
   std::vector<uint64_t> szs(&vszs[0], &vszs[90]);
   account_public_address adr;
-  bool r = get_account_address_from_str(adr, "0099be99c70ef10fd534c43c88e9d13d1c8853213df7e362afbec0e4ee6fec4948d0c190b58f4b356cd7feaf8d9d0a76e7c7e5a9a0a497a6b1faf7a765882dd08ac2");
+  bool r = get_account_address_from_str(adr, false, "0099be99c70ef10fd534c43c88e9d13d1c8853213df7e362afbec0e4ee6fec4948d0c190b58f4b356cd7feaf8d9d0a76e7c7e5a9a0a497a6b1faf7a765882dd08ac2");
   CHECK_AND_ASSERT_MES(r, false, "failed to import");
   block b;
   r = construct_miner_tx(90, epee::misc_utils::median(szs), 3553616528562147, 33094, 10000000, adr, b.miner_tx, blobdata(), 11);
diff --git a/tests/daemon_tests/transfers.cpp b/tests/daemon_tests/transfers.cpp
index 8b4addf62..ff73e1931 100644
--- a/tests/daemon_tests/transfers.cpp
+++ b/tests/daemon_tests/transfers.cpp
@@ -54,7 +54,7 @@ TEST(Transfers, Transfers)
   miner.generate();
   ASSERT_TRUE(miner.init());
   ASSERT_TRUE(miner.store("miner.b2wallet"));
-  cout << "miner: " << miner.get_account().get_public_address_str() << endl;
+  cout << "miner: " << miner.get_account().get_public_address_str(false) << endl;
 
   for (int i = 0; i < ACCS; i++) {
     ostringstream s;
@@ -69,7 +69,7 @@ TEST(Transfers, Transfers)
 
   {
     COMMAND_RPC_START_MINE::request req;
-    req.miner_address = miner.get_account().get_public_address_str();
+    req.miner_address = miner.get_account().get_public_address_str(false);
     req.threads_count = 1;
     COMMAND_RPC_START_MINE::response res;
     bool r = net_utils::http::invoke_http_json_remote_command(daemon_address + "/start_mine", req, res, http_client);
diff --git a/tests/functional_tests/transactions_flow_test.cpp b/tests/functional_tests/transactions_flow_test.cpp
index 68c9f7ac7..806433ab6 100644
--- a/tests/functional_tests/transactions_flow_test.cpp
+++ b/tests/functional_tests/transactions_flow_test.cpp
@@ -37,6 +37,12 @@ using namespace epee;
 #include "wallet/wallet2.h"
 using namespace cryptonote;
 
+namespace
+{
+  uint64_t const TEST_FEE = 5000000000; // 5 * 10^9
+  uint64_t const TEST_DUST_THRESHOLD = 5000000000; // 5 * 10^9
+}
+
 std::string generate_random_wallet_name()
 {
   std::stringstream ss;
@@ -79,7 +85,7 @@ bool do_send_money(tools::wallet2& w1, tools::wallet2& w2, size_t mix_in_factor,
   try
   {
     tools::wallet2::pending_tx ptx;
-    w1.transfer(dsts, mix_in_factor, 0, DEFAULT_FEE, std::vector<uint8_t>(), tools::detail::null_split_strategy, tools::tx_dust_policy(DEFAULT_FEE), tx, ptx);
+    w1.transfer(dsts, mix_in_factor, 0, TEST_FEE, std::vector<uint8_t>(), tools::detail::null_split_strategy, tools::tx_dust_policy(TEST_DUST_THRESHOLD), tx, ptx);
     w1.commit_tx(ptx);
     return true;
   }
@@ -145,8 +151,8 @@ bool transactions_flow_test(std::string& working_folder,
   w2.init(daemon_addr_b);
 
   LOG_PRINT_GREEN("Using wallets: " << ENDL
-    << "Source:  " << w1.get_account().get_public_address_str() << ENDL << "Path: " << working_folder + "/" + path_source_wallet << ENDL
-    << "Target:  " << w2.get_account().get_public_address_str() << ENDL << "Path: " << working_folder + "/" + path_terget_wallet, LOG_LEVEL_1);
+    << "Source:  " << w1.get_account().get_public_address_str(false) << ENDL << "Path: " << working_folder + "/" + path_source_wallet << ENDL
+    << "Target:  " << w2.get_account().get_public_address_str(false) << ENDL << "Path: " << working_folder + "/" + path_terget_wallet, LOG_LEVEL_1);
 
   //lets do some money
   epee::net_utils::http::http_simple_client http_client;
@@ -157,7 +163,7 @@ bool transactions_flow_test(std::string& working_folder,
 
   COMMAND_RPC_START_MINING::request daemon_req = AUTO_VAL_INIT(daemon_req);
   COMMAND_RPC_START_MINING::response daemon_rsp = AUTO_VAL_INIT(daemon_rsp);
-  daemon_req.miner_address = w1.get_account().get_public_address_str();
+  daemon_req.miner_address = w1.get_account().get_public_address_str(false);
   daemon_req.threads_count = 9;
   r = net_utils::invoke_http_json_remote_command2(daemon_addr_a + "/start_mining", daemon_req, daemon_rsp, http_client, 10000);
   CHECK_AND_ASSERT_MES(r, false, "failed to get getrandom_outs");
@@ -185,7 +191,7 @@ bool transactions_flow_test(std::string& working_folder,
       BOOST_FOREACH(tools::wallet2::transfer_details& td, incoming_transfers)
       {
         cryptonote::transaction tx_s;
-        bool r = do_send_money(w1, w1, 0, td.m_tx.vout[td.m_internal_output_index].amount - DEFAULT_FEE, tx_s, 50);
+        bool r = do_send_money(w1, w1, 0, td.m_tx.vout[td.m_internal_output_index].amount - TEST_FEE, tx_s, 50);
         CHECK_AND_ASSERT_MES(r, false, "Failed to send starter tx " << get_transaction_hash(tx_s));
         LOG_PRINT_GREEN("Starter transaction sent " << get_transaction_hash(tx_s), LOG_LEVEL_0);
         if(++count >= FIRST_N_TRANSFERS)
@@ -213,7 +219,7 @@ bool transactions_flow_test(std::string& working_folder,
   for(i = 0; i != transactions_count; i++)
   {
     uint64_t amount_to_tx = (amount_to_transfer - transfered_money) > transfer_size ? transfer_size: (amount_to_transfer - transfered_money);
-    while(w1.unlocked_balance() < amount_to_tx + DEFAULT_FEE)
+    while(w1.unlocked_balance() < amount_to_tx + TEST_FEE)
     {
       misc_utils::sleep_no_w(1000);
       LOG_PRINT_L0("not enough money, waiting for cashback or mining");
diff --git a/tests/unit_tests/base58.cpp b/tests/unit_tests/base58.cpp
index 5b82fb987..28fb27f25 100644
--- a/tests/unit_tests/base58.cpp
+++ b/tests/unit_tests/base58.cpp
@@ -473,14 +473,14 @@ TEST(get_account_address_as_str, works_correctly)
 {
   cryptonote::account_public_address addr;
   ASSERT_TRUE(serialization::parse_binary(test_serialized_keys, addr));
-  std::string addr_str = cryptonote::get_account_address_as_str(addr);
+  std::string addr_str = cryptonote::get_account_address_as_str(false, addr);
   ASSERT_EQ(addr_str, test_keys_addr_str);
 }
 
 TEST(get_account_address_from_str, handles_valid_address)
 {
   cryptonote::account_public_address addr;
-  ASSERT_TRUE(cryptonote::get_account_address_from_str(addr, test_keys_addr_str));
+  ASSERT_TRUE(cryptonote::get_account_address_from_str(addr, false, test_keys_addr_str));
 
   std::string blob;
   ASSERT_TRUE(serialization::dump_binary(addr, blob));
@@ -493,7 +493,7 @@ TEST(get_account_address_from_str, fails_on_invalid_address_format)
   std::string addr_str = test_keys_addr_str;
   addr_str[0] = '0';
 
-  ASSERT_FALSE(cryptonote::get_account_address_from_str(addr, addr_str));
+  ASSERT_FALSE(cryptonote::get_account_address_from_str(addr, false, addr_str));
 }
 
 TEST(get_account_address_from_str, fails_on_invalid_address_prefix)
@@ -501,39 +501,39 @@ TEST(get_account_address_from_str, fails_on_invalid_address_prefix)
   std::string addr_str = base58::encode_addr(0, test_serialized_keys);
 
   cryptonote::account_public_address addr;
-  ASSERT_FALSE(cryptonote::get_account_address_from_str(addr, addr_str));
+  ASSERT_FALSE(cryptonote::get_account_address_from_str(addr, false, addr_str));
 }
 
 TEST(get_account_address_from_str, fails_on_invalid_address_content)
 {
-  std::string addr_str = base58::encode_addr(CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX, test_serialized_keys.substr(1));
+  std::string addr_str = base58::encode_addr(config::CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX, test_serialized_keys.substr(1));
 
   cryptonote::account_public_address addr;
-  ASSERT_FALSE(cryptonote::get_account_address_from_str(addr, addr_str));
+  ASSERT_FALSE(cryptonote::get_account_address_from_str(addr, false, addr_str));
 }
 
 TEST(get_account_address_from_str, fails_on_invalid_address_spend_key)
 {
   std::string serialized_keys_copy = test_serialized_keys;
   serialized_keys_copy[0] = '\0';
-  std::string addr_str = base58::encode_addr(CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX, serialized_keys_copy);
+  std::string addr_str = base58::encode_addr(config::CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX, serialized_keys_copy);
 
   cryptonote::account_public_address addr;
-  ASSERT_FALSE(cryptonote::get_account_address_from_str(addr, addr_str));
+  ASSERT_FALSE(cryptonote::get_account_address_from_str(addr, false, addr_str));
 }
 
 TEST(get_account_address_from_str, fails_on_invalid_address_view_key)
 {
   std::string serialized_keys_copy = test_serialized_keys;
   serialized_keys_copy.back() = '\x01';
-  std::string addr_str = base58::encode_addr(CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX, serialized_keys_copy);
+  std::string addr_str = base58::encode_addr(config::CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX, serialized_keys_copy);
 
   cryptonote::account_public_address addr;
-  ASSERT_FALSE(cryptonote::get_account_address_from_str(addr, addr_str));
+  ASSERT_FALSE(cryptonote::get_account_address_from_str(addr, false, addr_str));
 }
 
 TEST(get_account_address_from_str, parses_old_address_format)
 {
   cryptonote::account_public_address addr;
-  ASSERT_TRUE(cryptonote::get_account_address_from_str(addr, "002391bbbb24dea6fd95232e97594a27769d0153d053d2102b789c498f57a2b00b69cd6f2f5c529c1660f2f4a2b50178d6640c20ce71fe26373041af97c5b10236fc"));
+  ASSERT_TRUE(cryptonote::get_account_address_from_str(addr, false, "002391bbbb24dea6fd95232e97594a27769d0153d053d2102b789c498f57a2b00b69cd6f2f5c529c1660f2f4a2b50178d6640c20ce71fe26373041af97c5b10236fc"));
 }
diff --git a/tests/unit_tests/test_format_utils.cpp b/tests/unit_tests/test_format_utils.cpp
index bed19c315..857b5b09f 100644
--- a/tests/unit_tests/test_format_utils.cpp
+++ b/tests/unit_tests/test_format_utils.cpp
@@ -35,6 +35,10 @@
 #include "common/util.h"
 #include "cryptonote_core/cryptonote_format_utils.h"
 
+namespace
+{
+  uint64_t const TEST_FEE = 5000000000; // 5 * 10^9
+}
 
 TEST(parse_tx_extra, handles_empty_extra)
 {
@@ -135,7 +139,7 @@ TEST(parse_and_validate_tx_extra, is_valid_tx_extra_parsed)
   cryptonote::account_base acc;
   acc.generate();
   cryptonote::blobdata b = "dsdsdfsdfsf";
-  ASSERT_TRUE(cryptonote::construct_miner_tx(0, 0, 10000000000000, 1000, DEFAULT_FEE, acc.get_keys().m_account_address, tx, b, 1));
+  ASSERT_TRUE(cryptonote::construct_miner_tx(0, 0, 10000000000000, 1000, TEST_FEE, acc.get_keys().m_account_address, tx, b, 1));
   crypto::public_key tx_pub_key = cryptonote::get_tx_pub_key_from_extra(tx);
   ASSERT_NE(tx_pub_key, cryptonote::null_pkey);
 }
@@ -145,7 +149,7 @@ TEST(parse_and_validate_tx_extra, fails_on_big_extra_nonce)
   cryptonote::account_base acc;
   acc.generate();
   cryptonote::blobdata b(TX_EXTRA_NONCE_MAX_COUNT + 1, 0);
-  ASSERT_FALSE(cryptonote::construct_miner_tx(0, 0, 10000000000000, 1000, DEFAULT_FEE, acc.get_keys().m_account_address, tx, b, 1));
+  ASSERT_FALSE(cryptonote::construct_miner_tx(0, 0, 10000000000000, 1000, TEST_FEE, acc.get_keys().m_account_address, tx, b, 1));
 }
 TEST(parse_and_validate_tx_extra, fails_on_wrong_size_in_extra_nonce)
 {