diff --git a/src/cryptonote_config.h b/src/cryptonote_config.h
index 25fd1caa..6035288c 100644
--- a/src/cryptonote_config.h
+++ b/src/cryptonote_config.h
@@ -8,7 +8,7 @@
 #define CRYPTONOTE_MAX_BLOCK_SIZE                       500000000  // block header blob limit, never used!
 #define CRYPTONOTE_MAX_TX_SIZE                          1000000000
 #define CRYPTONOTE_PUBLIC_ADDRESS_TEXTBLOB_VER          0
-//TODO Define the first letter of your currency address
+//TODO Currency-specific address prefix
 #define CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX        
 //TODO Choose maturity period for your currency
 #define CRYPTONOTE_MINED_MONEY_UNLOCK_WINDOW            
diff --git a/src/cryptonote_core/blockchain_storage.cpp b/src/cryptonote_core/blockchain_storage.cpp
index fb0663f7..87d53c02 100755
--- a/src/cryptonote_core/blockchain_storage.cpp
+++ b/src/cryptonote_core/blockchain_storage.cpp
@@ -80,7 +80,7 @@ uint64_t blockchain_storage::get_current_blockchain_height() {
   return m_blocks.size();
 }
 
-bool blockchain_storage::init(const std::string& config_folder, bool load_existing) {
+bool blockchain_storage::init(const std::string& config_folder, bool load_existing, bool testnet) {
   CRITICAL_REGION_LOCAL(m_blockchain_lock);
   if (!config_folder.empty() && !tools::create_directories_if_necessary(config_folder)) {
     LOG_ERROR("Failed to create data directory: " << m_config_folder);
@@ -149,11 +149,24 @@ bool blockchain_storage::init(const std::string& config_folder, bool load_existi
 
   if (m_blocks.empty()) {
     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 (!storeGenesisBlock(testnet)) {
+      return false;
+    }
+  } else {
+    cryptonote::block b;
+    if (testnet) {
+      generateTestnetGenesisBlock(b);
+    } else {
+      generateGenesisBlock(b);
+    }
+
+    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;
@@ -163,6 +176,21 @@ bool blockchain_storage::init(const std::string& config_folder, bool load_existi
   return true;
 }
 
+bool blockchain_storage::storeGenesisBlock(bool testnet) {
+  block bl = ::boost::value_initialized<block>();
+  block_verification_context bvc = boost::value_initialized<block_verification_context>();
+
+  if (testnet) {
+    generateTestnetGenesisBlock(bl);
+  } else {
+    generateGenesisBlock(bl);
+  }
+
+  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() {
   try {
     std::ofstream file(appendPath(m_config_folder, CRYPTONOTE_BLOCKSCACHE_FILENAME), std::ios::binary);
diff --git a/src/cryptonote_core/blockchain_storage.h b/src/cryptonote_core/blockchain_storage.h
index a67cf520..e8946865 100755
--- a/src/cryptonote_core/blockchain_storage.h
+++ b/src/cryptonote_core/blockchain_storage.h
@@ -18,7 +18,7 @@ namespace cryptonote {
     {};
 
     bool init() { return init(tools::get_default_data_dir(), true); }
-    bool init(const std::string& config_folder, bool load_existing);
+    bool init(const std::string& config_folder, bool load_existing, bool testnet = false);
     bool deinit();
 
     void set_checkpoints(checkpoints&& chk_pts) { m_checkpoints = chk_pts; }
@@ -182,6 +182,7 @@ namespace cryptonote {
     bool pushTransaction(Block& block, const crypto::hash& transactionHash, TransactionIndex transactionIndex);
     void popTransaction(const transaction& transaction, const crypto::hash& transactionHash);
     void popTransactions(const Block& block, const crypto::hash& minerTransactionHash);
+    bool storeGenesisBlock(bool testnet);
   };
 
 
diff --git a/src/cryptonote_core/cryptonote_core.cpp b/src/cryptonote_core/cryptonote_core.cpp
index 5c456d41..6065eafd 100644
--- a/src/cryptonote_core/cryptonote_core.cpp
+++ b/src/cryptonote_core/cryptonote_core.cpp
@@ -90,14 +90,14 @@ namespace cryptonote
     return m_blockchain_storage.get_alternative_blocks_count();
   }
   //-----------------------------------------------------------------------------------------------
-  bool core::init(const boost::program_options::variables_map& vm, bool load_existing)
+  bool core::init(const boost::program_options::variables_map& vm, bool load_existing, bool testnet)
   {
     bool r = handle_command_line(vm);
 
     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, load_existing);
+    r = m_blockchain_storage.init(m_config_folder, load_existing, testnet);
     CHECK_AND_ASSERT_MES(r, false, "Failed to initialize blockchain storage");
 
     r = m_miner.init(vm);
diff --git a/src/cryptonote_core/cryptonote_core.h b/src/cryptonote_core/cryptonote_core.h
index b573438d..921f83f2 100644
--- a/src/cryptonote_core/cryptonote_core.h
+++ b/src/cryptonote_core/cryptonote_core.h
@@ -43,7 +43,7 @@ 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 load_existing);
+     bool init(const boost::program_options::variables_map& vm, bool load_existing, bool testnet);
      bool set_genesis_block(const block& b);
      bool deinit();
      uint64_t get_current_blockchain_height();
diff --git a/src/cryptonote_core/cryptonote_format_utils.cpp b/src/cryptonote_core/cryptonote_format_utils.cpp
index afd5b9fd..a44b060d 100644
--- a/src/cryptonote_core/cryptonote_format_utils.cpp
+++ b/src/cryptonote_core/cryptonote_format_utils.cpp
@@ -617,7 +617,7 @@ namespace cryptonote
     return p;
   }
   //---------------------------------------------------------------
-  bool generate_genesis_block(block& bl)
+  bool generateGenesisBlock(block& bl)
   {
     //genesis block
     bl = boost::value_initialized<block>();
@@ -630,7 +630,7 @@ namespace cryptonote
     construct_miner_tx(0, 0, 0, 0, 0, ac, bl.miner_tx); // zero fee in genesis
     blobdata txb = tx_to_blob(bl.miner_tx);
     std::string hex_tx_represent = string_tools::buff_to_hex_nodelimer(txb);
-    std::cout << "Genesis coinbase tx hex: " << hex_to_represent << std::endl;
+    std::cout << "Genesis coinbase tx hex: " << hex_tx_represent << std::endl;
     */
 
     //hard code coinbase tx in genesis block, because "true" generating tx use random, but genesis should be always the same
@@ -648,6 +648,16 @@ namespace cryptonote
     //miner::find_nonce_for_given_block(bl, 1, 0);
     return true;
   }
+
+  bool generateTestnetGenesisBlock(cryptonote::block& b) {
+    if (!generateGenesisBlock(b)) {
+      return false;
+    }
+
+    b.nonce += 1;
+    return true;
+  }
+
   //---------------------------------------------------------------
   bool get_block_longhash(crypto::cn_context &context, const block& b, crypto::hash& res, uint64_t height)
   {
diff --git a/src/cryptonote_core/cryptonote_format_utils.h b/src/cryptonote_core/cryptonote_format_utils.h
index d3c08980..9477e1a6 100644
--- a/src/cryptonote_core/cryptonote_format_utils.h
+++ b/src/cryptonote_core/cryptonote_format_utils.h
@@ -79,7 +79,8 @@ namespace cryptonote
   crypto::hash get_block_hash(const block& b);
   bool get_block_longhash(crypto::cn_context &context, const block& b, crypto::hash& res, uint64_t height);
   crypto::hash get_block_longhash(crypto::cn_context &context, const block& b, uint64_t height);
-  bool generate_genesis_block(block& bl);
+  bool generateGenesisBlock(block& bl);
+  bool generateTestnetGenesisBlock(block& bl);
   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/daemon/daemon.cpp b/src/daemon/daemon.cpp
index b86edd1b..660cb784 100644
--- a/src/daemon/daemon.cpp
+++ b/src/daemon/daemon.cpp
@@ -36,6 +36,8 @@ 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", "Used to deploy test nets. Checkpoints and hardcoded seeds are ignored, "
+    "network id is changed. Use it with --data-dir flag. The wallet must be launched with --testnet flag.", false};
 }
 
 bool command_line_preprocessor(const boost::program_options::variables_map& vm);
@@ -66,7 +68,7 @@ int main(int argc, char* argv[])
   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);
@@ -134,7 +136,14 @@ int main(int argc, char* argv[])
 
   //create objects and link them
   cryptonote::core ccore(NULL);
-  ccore.set_checkpoints(std::move(checkpoints));  
+
+  bool testnet_mode = command_line::get_arg(vm, arg_testnet_on);
+  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);
@@ -144,7 +153,7 @@ int main(int argc, char* argv[])
 
   //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");
 
@@ -160,7 +169,7 @@ int main(int argc, char* argv[])
 
   //initialize core here
   LOG_PRINT_L0("Initializing core...");
-  res = ccore.init(vm, true);
+  res = ccore.init(vm, true, testnet_mode);
   CHECK_AND_ASSERT_MES(res, 1, "Failed to initialize core");
   LOG_PRINT_L0("Core initialized OK");
   
diff --git a/src/p2p/net_node.h b/src/p2p/net_node.h
index 74b9490f..05fe1b04 100644
--- a/src/p2p/net_node.h
+++ b/src/p2p/net_node.h
@@ -53,13 +53,13 @@ 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):m_payload_handler(payload_handler), m_allow_local_ip(false), m_hide_my_port(false), m_network_id(CRYPTONOTE_NETWORK)
     {}
 
     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;}
@@ -203,6 +203,7 @@ 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 89ae6ddd..00f98524 100644
--- a/src/p2p/net_node.inl
+++ b/src/p2p/net_node.inl
@@ -50,7 +50,8 @@ namespace nodetool
     command_line::add_arg(desc, arg_p2p_add_priority_node);
     command_line::add_arg(desc, arg_p2p_add_exclusive_node);
     command_line::add_arg(desc, arg_p2p_seed_node);    
-    command_line::add_arg(desc, arg_p2p_hide_my_port);   }
+    command_line::add_arg(desc, arg_p2p_hide_my_port);
+  }
   //-----------------------------------------------------------------------------------
   template<class t_payload_net_handler>
   bool node_server<t_payload_net_handler>::init_config()
@@ -191,10 +192,14 @@ namespace nodetool
   #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)
   {
-    //TODO add seed for your network
-    //ADD_HARDCODED_SEED_NODE("your_seed_ip.com:8080");
+    if (!testnet) {
+      //TODO add seed for your network
+      //ADD_HARDCODED_SEED_NODE("your_seed_ip.com:8080");
+    } else {
+      m_network_id.data[0] += 1;
+    }
 
     bool res = handle_command_line(vm);
     CHECK_AND_ASSERT_MES(res, false, "Failed to handle command line");
@@ -368,7 +373,7 @@ namespace nodetool
         return;
       }
 
-      if(rsp.node_data.network_id != CRYPTONOTE_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;
@@ -776,7 +781,7 @@ 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 = CRYPTONOTE_NETWORK;
+    node_data.network_id = m_network_id;
     return true;
   }
   //-----------------------------------------------------------------------------------
@@ -996,9 +1001,8 @@ 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 != CRYPTONOTE_NETWORK)
+    if(arg.node_data.network_id != m_network_id)
     {
-
       LOG_PRINT_CCONTEXT_L0("WRONG NETWORK AGENT CONNECTED! id=" << epee::string_tools::get_str_from_guid_a(arg.node_data.network_id));
       drop_connection(context);
       return 1;
diff --git a/src/simplewallet/simplewallet.cpp b/src/simplewallet/simplewallet.cpp
index b01c8d2d..f9c59851 100644
--- a/src/simplewallet/simplewallet.cpp
+++ b/src/simplewallet/simplewallet.cpp
@@ -40,6 +40,7 @@ namespace
   const command_line::arg_descriptor<std::string> arg_password = {"password", "Wallet password", "", true};
   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", ""};
 
@@ -266,6 +267,8 @@ bool simple_wallet::init(const boost::program_options::variables_map& vm)
   if (m_daemon_address.empty())
     m_daemon_address = std::string("http://") + m_daemon_host + ":" + std::to_string(m_daemon_port);
 
+  bool testnet = command_line::get_arg(vm, arg_testnet);
+
   tools::password_container pwd_container;
   if (command_line::has_arg(vm, arg_password))
   {
@@ -283,12 +286,12 @@ bool simple_wallet::init(const boost::program_options::variables_map& vm)
 
   if (!m_generate_new.empty())
   {
-    bool r = new_wallet(m_generate_new, pwd_container.password());
+    bool r = new_wallet(m_generate_new, pwd_container.password(), 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");
   }
 
@@ -324,11 +327,11 @@ bool simple_wallet::try_connect_to_daemon()
   return true;
 }
 //----------------------------------------------------------------------------------------------------
-bool simple_wallet::new_wallet(const string &wallet_file, const std::string& password)
+bool simple_wallet::new_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
   {
@@ -355,10 +358,10 @@ 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
@@ -899,6 +902,7 @@ int main(int argc, char* argv[])
   command_line::add_arg(desc_params, arg_daemon_port);
   command_line::add_arg(desc_params, arg_command);
   command_line::add_arg(desc_params, arg_log_level);
+  command_line::add_arg(desc_params, arg_testnet);
   tools::wallet_rpc_server::init_options(desc_params);
 
   po::positional_options_description positional_options;
@@ -914,7 +918,7 @@ int main(int argc, char* argv[])
 
     if (command_line::get_arg(vm, command_line::arg_help))
     {
-      success_msg_writer() << "bytecoin wallet v" << PROJECT_VERSION_LONG;
+      success_msg_writer() << CRYPTONOTE_NAME " wallet v" << PROJECT_VERSION_LONG;
       success_msg_writer() << "Usage: simplewallet [--wallet-file=<file>|--generate-new-wallet=<file>] [--daemon-address=<host>:<port>] [<COMMAND>]";
       success_msg_writer() << desc_all << '\n' << w.get_commands_str();
       return false;
@@ -968,6 +972,7 @@ 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);
@@ -980,7 +985,7 @@ int main(int argc, char* argv[])
     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 0d2b4d5c..95fdecfa 100644
--- a/src/simplewallet/simplewallet.h
+++ b/src/simplewallet/simplewallet.h
@@ -39,8 +39,8 @@ namespace cryptonote
 
     bool run_console_handler();
 
-    bool new_wallet(const std::string &wallet_file, const std::string& password);
-    bool open_wallet(const std::string &wallet_file, const std::string& password);
+    bool new_wallet(const std::string &wallet_file, const std::string& password, bool testnet);
+    bool open_wallet(const std::string &wallet_file, const std::string& password, bool testnet);
     bool close_wallet();
 
     bool help(const std::vector<std::string> &args = std::vector<std::string>());
diff --git a/src/version.h.in b/src/version.h.in
index 62316da3..7812a19d 100644
--- a/src/version.h.in
+++ b/src/version.h.in
@@ -1,4 +1,4 @@
 #define BUILD_COMMIT_ID "@VERSION@"
-#define PROJECT_VERSION "0.8.11"
-#define PROJECT_VERSION_BUILD_NO "65"
+#define PROJECT_VERSION "1.0.0"
+#define PROJECT_VERSION_BUILD_NO "1"
 #define PROJECT_VERSION_LONG PROJECT_VERSION "." PROJECT_VERSION_BUILD_NO "(" BUILD_COMMIT_ID ")"
diff --git a/src/wallet/Wallet.cpp b/src/wallet/Wallet.cpp
index a327e1a2..15e790cd 100644
--- a/src/wallet/Wallet.cpp
+++ b/src/wallet/Wallet.cpp
@@ -106,7 +106,7 @@ void Wallet::initAndGenerate(const std::string& password) {
 
 void Wallet::storeGenesisBlock() {
   cryptonote::block b;
-  cryptonote::generate_genesis_block(b);
+  cryptonote::generateGenesisBlock(b);
   m_blockchain.push_back(get_block_hash(b));
 }
 
diff --git a/src/wallet/wallet2.cpp b/src/wallet/wallet2.cpp
index 5cfe5d72..4f323eb8 100644
--- a/src/wallet/wallet2.cpp
+++ b/src/wallet/wallet2.cpp
@@ -373,9 +373,6 @@ 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;
 }
@@ -455,6 +452,10 @@ void wallet2::generate(const std::string& wallet_, const std::string& password)
   r = file_io_utils::save_string_to_file(m_wallet_file + ".address.txt", m_account.get_public_address_str());
   if(!r) LOG_PRINT_RED_L0("String with address text not saved");
 
+  cryptonote::block b;
+  generateGenesis(b);
+  m_blockchain.push_back(get_block_hash(b));
+
   store();
 }
 //----------------------------------------------------------------------------------------------------
@@ -527,15 +528,25 @@ 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 b;
-    cryptonote::generate_genesis_block(b);
-    m_blockchain.push_back(get_block_hash(b));
+  cryptonote::block genesis;
+  generateGenesis(genesis);
+  crypto::hash genesisHash = get_block_hash(genesis);
+
+  if (m_blockchain.empty()) {
+    m_blockchain.push_back(genesisHash);
+  } else {
+    checkGenesis(genesisHash);
   }
+
   m_local_bc_height = m_blockchain.size();
 }
 //----------------------------------------------------------------------------------------------------
+void wallet2::checkGenesis(const crypto::hash& genesisHash) {
+  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(genesisHash != m_blockchain[0], error::wallet_internal_error, what);
+}
+//----------------------------------------------------------------------------------------------------
 void wallet2::store()
 {
   bool r = tools::serialize_obj_to_file(*this, m_wallet_file);
@@ -690,4 +701,12 @@ void wallet2::transfer(const std::vector<cryptonote::tx_destination_entry>& dsts
   transfer(dsts, fake_outputs_count, unlock_time, fee, extra, tx);
 }
 //----------------------------------------------------------------------------------------------------
+void wallet2::generateGenesis(cryptonote::block& b) {
+  if (m_testnet) {
+    cryptonote::generateTestnetGenesisBlock(b);
+  } else {
+    cryptonote::generateGenesisBlock(b);
+  }
+}
+//----------------------------------------------------------------------------------------------------
 }
diff --git a/src/wallet/wallet2.h b/src/wallet/wallet2.h
index 778e1766..e1d4dd10 100644
--- a/src/wallet/wallet2.h
+++ b/src/wallet/wallet2.h
@@ -53,9 +53,9 @@ 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;
@@ -162,6 +162,8 @@ 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 generateGenesis(cryptonote::block& b);
+    void checkGenesis(const crypto::hash& genesis_hash); //throws
 
     cryptonote::account_base m_account;
     std::string m_daemon_address;
@@ -181,6 +183,7 @@ namespace tools
     std::atomic<bool> m_run;
 
     i_wallet2_callback* m_callback;
+    bool m_testnet;
   };
 }
 BOOST_CLASS_VERSION(tools::wallet2, 7)
diff --git a/tests/core_proxy/core_proxy.cpp b/tests/core_proxy/core_proxy.cpp
index d3ff7444..25b66486 100644
--- a/tests/core_proxy/core_proxy.cpp
+++ b/tests/core_proxy/core_proxy.cpp
@@ -86,7 +86,7 @@ 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");
 
@@ -198,7 +198,7 @@ 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);
+    generateGenesisBlock(m_genesis);
     crypto::hash h = get_block_hash(m_genesis);
     add_block(h, get_block_longhash(m_cn_context, 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 2350c931..773b11c0 100644
--- a/tests/core_tests/chaingen.h
+++ b/tests/core_tests/chaingen.h
@@ -461,7 +461,7 @@ 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, false))
+  if (!c.init(vm, false, false))
   {
     std::cout << concolor::magenta << "Failed to init core" << concolor::normal << std::endl;
     return false;