diff --git a/.dockerignore b/.dockerignore
new file mode 100644
index 0000000..ebec90d
--- /dev/null
+++ b/.dockerignore
@@ -0,0 +1,44 @@
+# compiled output
+/dist
+/node_modules
+
+# Logs
+logs
+*.log
+npm-debug.log*
+pnpm-debug.log*
+yarn-debug.log*
+yarn-error.log*
+lerna-debug.log*
+
+# OS
+.DS_Store
+
+# Tests
+/coverage
+/.nyc_output
+
+# IDEs and editors
+/.idea
+.project
+.classpath
+.c9/
+*.launch
+.settings/
+*.sublime-workspace
+
+# IDE - VSCode
+.vscode/*
+!.vscode/tasks.json
+!.vscode/launch.json
+!.vscode/extensions.json
+
+# misc
+/.silent-pay-indexer
+
+#e2e 
+/e2e/.logs
+
+#dev
+/config/dev.config.yaml
+/config/e2e.config.yaml
\ No newline at end of file
diff --git a/.gitignore b/.gitignore
index 0a59533..b861c87 100644
--- a/.gitignore
+++ b/.gitignore
@@ -38,3 +38,6 @@ lerna-debug.log*
 
 #e2e 
 /e2e/.logs
+
+#dev
+/config/dev.config.yaml
diff --git a/Dockerfile b/Dockerfile
new file mode 100644
index 0000000..dc357a1
--- /dev/null
+++ b/Dockerfile
@@ -0,0 +1,40 @@
+# Stage 1: Build the NestJS application
+FROM node:22-alpine AS builder
+
+WORKDIR /app
+
+# Copy package.json and package-lock.json for efficient layer caching
+COPY package*.json ./
+
+# Install dependencies
+RUN npm install
+
+# Copy the rest of the application code
+COPY . .
+
+# Build the application
+RUN npm run build
+
+# Stage 2: Production image
+FROM node:22-alpine AS production
+
+WORKDIR /app
+
+#Copy the compiled application from the build stage
+COPY --from=builder /app/dist ./dist
+COPY --from=builder /app/migrations ./migrations
+
+#Copy package.json and install only production dependencies
+COPY package*.json ./
+RUN npm install --omit=dev
+
+# Set environment variables for SQLite path and app port
+ENV DB_PATH="/app/data/database.sqlite"
+ENV APP_PORT="80"
+
+VOLUME /app/data
+
+EXPOSE $APP_PORT
+
+# Set up entrypoint to handle database migration and config generation
+ENTRYPOINT ["sh", "-c", "npm run migration:run && mv dist/config/example.config.yaml dist/config/config.yaml && node dist/main.js"]
diff --git a/config/config.yaml b/config/config.yaml
deleted file mode 100644
index 01850cd..0000000
--- a/config/config.yaml
+++ /dev/null
@@ -1,22 +0,0 @@
-db:
-  path: ~/.silent-pay-indexer/db/database.sqlite
-  synchronize: false
-app:
-  port: <port>
-  verbose: <boolean>
-  debug: <boolean>
-  network: <network>
-  requestRetry:
-    delay: <number> # delay in Milliseconds
-    count: <number> 
-providerType: <providerType>
-esplora:
-  url: <host>
-  batchSize: <batchSize>
-bitcoinCore:
-  protocol: <http | https>
-  rpcHost: <host>
-  rpcPass: <password>
-  rpcUser: <username>
-  rpcPort: <port>
-    
diff --git a/config/dev.config.yaml b/config/dev.config.yaml
deleted file mode 100644
index b304d4a..0000000
--- a/config/dev.config.yaml
+++ /dev/null
@@ -1,21 +0,0 @@
-db:
-  path: ./.silent-pay-indexer/db/database.sqlite
-  synchronize: true
-app:
-  port: 3000
-  verbose: false
-  debug: true
-  network: regtest
-  requestRetry:
-    delay: 3000
-    count: 3
-providerType: BITCOIN_CORE_RPC
-esplora:
-  url: https://blockstream.info
-  batchSize: 5
-bitcoinCore:
-  protocol: http
-  rpcHost: 127.0.0.1
-  rpcPass: password
-  rpcUser: admin
-  rpcPort: 18443
diff --git a/config/example.config.yaml b/config/example.config.yaml
new file mode 100644
index 0000000..e09e393
--- /dev/null
+++ b/config/example.config.yaml
@@ -0,0 +1,18 @@
+db:
+  path: '~/.silent-pay-indexer/db/database.sqlite'
+  synchronize: false
+app:
+  port: 3000
+  verbose: false
+  debug: true
+  network: regtest
+  requestRetry:
+    delay: 500       # delay in Milliseconds
+    count: 3
+providerType: BITCOIN_CORE_RPC
+bitcoinCore:
+  protocol: http    # http | https
+  rpcHost: localhost
+  rpcPass: password
+  rpcUser: polaruser
+  rpcPort: 18443
diff --git a/src/configuration.ts b/src/configuration.ts
index 80119a8..89aa3b0 100644
--- a/src/configuration.ts
+++ b/src/configuration.ts
@@ -25,7 +25,7 @@ export function mergeEnvVariablesRecursive(
     for (const key of Object.keys(config)) {
         const currentEnvVarName = envVarName
             ? `${envVarName}_${camelToSnakeCase(key)}`
-            : key.toUpperCase();
+            : camelToSnakeCase(key);
         const currentEnvVarValue = process.env[currentEnvVarName];
         if (config[key] && typeof config[key] === 'object') {
             mergeEnvVariablesRecursive(config[key], currentEnvVarName);