Setting Up a Private Ethereum Network: Step-by-Step Developer Guide (Part 2)

Private net allows the creation of an entirely new blockchain.

This is different from testnet or mainnet in the sense that it uses its on-genesis block and network ID.

Step-by-Step Developer Guide (Part 2)

In order to create private net, three components are needed: Network ID.

Even though the data directory is not strictly required to be mentioned, if there is more than one blockchain already active on the system, then the data directory should be specified so that a separate directory is used for the new blockchain.

On the mainnet, the Geth Ethereum client is capable of discovering boot nodes by default as they are hardcoded in the Geth client, and connects automatically, but on a private net, Geth needs to be configured by specifying appropriate flags and configuration in order for it to be discoverable by other peers or to be able to discover other peers.

In addition to the previously mentioned three components, it is desirable that you disable node discovery so that other nodes on the internet cannot discover your private network and it is secure.

If other networks happen to have the same genesis file and network ID, they may connect to your private net.

The chance of having the same network ID and genesis block is very low, but, nevertheless, disabling node discovery is good practice, and is recommended.

Why This Matters for Blockchain Technology

In , all these parameters are discussed in detail with a practical example.

Key Points to Remember

  • Setting up a private net Private net allows the creation of an entirely new blockchain.
  • This is different from testnet or mainnet in the sense that it uses its on-genesis block and network ID.
  • In order to create private net, three components are needed: Network ID.
  • Even though the data directory is not strictly required to be mentioned, if there is more than one blockchain already active on the system, then the data directory should be specified so that a separate directory is used for the new blockchain.

Conclusion

Setting up a private net represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.

Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.