diff --git a/docker-compose/.env b/docker-compose/.env
index 802a547..0d686b4 100644
--- a/docker-compose/.env
+++ b/docker-compose/.env
@@ -4,9 +4,16 @@ MEMCACHED_HOST_MAPPING_PORT=11211
 
 POSTGRES_CONTAINER_TAG=16.1-bullseye
 POSTGRES_HOST_MAPPING_PORT=5432
+POSTGRES_USER=postgres
 POSTGRES_PASSWORD=mysecretpassword
 
+SQL_USER=datomic
+SQL_PASSWORD=datomic
+SQL_JDBC_URL=jdbc:postgresql://postgres:5432/datomic
+SQL_DRIVER_CLASS=org.postgresql.Driver
+
 DATOMIC_VERSION=1.0.7075
+PROTOCOL=SQL
 DATOMIC_DB_NAME=test-database
 DATOMIC_DB_CREATION_RETRIES=5
 
@@ -18,11 +25,3 @@ CONSOLE_HOST_MAPPING_PORT=8888
 IPV4_SUBNET_CIDR=192.168.29.0/24
 IP_RANGE=192.168.29.64/26
 GATEWAY_IP=192.168.29.1
-
-MEMCACHED_IP=192.168.29.101
-PG_IP=192.168.29.102
-PG_MIGRATOR_IP=192.168.29.103
-DATOMIC_TRANSACTOR_IP=192.168.29.104
-DATOMIC_DB_INIT_IP=192.168.29.105
-DATOMIC_PEER_IP=192.168.29.106
-DATOMIC_CONSOLE_IP=192.168.29.107
diff --git a/docker-compose/README.md b/docker-compose/README.md
index f5216f2..1ac1760 100644
--- a/docker-compose/README.md
+++ b/docker-compose/README.md
@@ -28,7 +28,8 @@ docker compose up --build transactor peer datomic-db-initialization console -d
 (require '[datomic.api :as d])
 ;; nil
 
-(def db-uri (format "datomic:sql://%s?jdbc:postgresql://localhost:5432/datomic?user=datomic&password=datomic" DATOMIC_DB_NAME))
+;; assuming DATOMIC DB name is stored in environment variable `DATOMIC_DB_NAME`
+(def db-uri (format "datomic:sql://%s?jdbc:postgresql://localhost:5432/datomic?user=datomic&password=datomic" (System/getenv "DATOMIC_DB_NAME")))
 ;; #'user/db-uri
 
 user=> (d/connect db-uri)
diff --git a/docker-compose/datomic-database-initialization/initialize_database.clj b/docker-compose/datomic-database-initialization/initialize_database.clj
index 1174cc0..ef0d2d5 100644
--- a/docker-compose/datomic-database-initialization/initialize_database.clj
+++ b/docker-compose/datomic-database-initialization/initialize_database.clj
@@ -1,20 +1,11 @@
 (require '[datomic.api :as d])
 (import '[clojure.lang ExceptionInfo])
 
-(def DATOMIC_DB_NAME (System/getenv "DATOMIC_DB_NAME"))
-
-(def PG_HOST (System/getenv "PG_HOST"))
-
-(def PG_PORT (System/getenv "PG_PORT"))
-
-(def PG_DATABASE (System/getenv "PG_DATABASE"))
-
-(def PG_USER (System/getenv "PG_USER"))
-
-(def PG_PASSWORD (System/getenv "PG_PASSWORD"))
-
-(def uri (format "datomic:sql://%s?jdbc:postgresql://%s:%s/%s?user=%s&password=%s"
-           DATOMIC_DB_NAME PG_HOST PG_PORT PG_DATABASE PG_USER PG_PASSWORD))
+(def uri (format "datomic:sql://%s?%s?user=%s&password=%s"
+                 (System/getenv "DATOMIC_DB_NAME")
+                 (System/getenv "SQL_JDBC_URL")
+                 (System/getenv "SQL_USER")
+                 (System/getenv "SQL_PASSWORD")))
 
 (defn database-migrator
   [uri]
diff --git a/docker-compose/docker-compose.yml b/docker-compose/docker-compose.yml
index 8b2849b..8af008c 100644
--- a/docker-compose/docker-compose.yml
+++ b/docker-compose/docker-compose.yml
@@ -20,7 +20,7 @@ services:
   postgres:
     container_name: postgres
     environment:
-      - POSTGRES_USER=postgres
+      - POSTGRES_USER=${POSTGRES_USER}
       - POSTGRES_PASSWORD=${POSTGRES_PASSWORD}
     image: postgres:${POSTGRES_CONTAINER_TAG}
     command: postgres -c 'max_connections=1024'
@@ -41,7 +41,7 @@ services:
   postgres-migrator:
     container_name: postgres-migrator
     environment:
-      - PGUSER=postgres
+      - PGUSER=${POSTGRES_USER}
       - PGPASSWORD=${POSTGRES_PASSWORD}
     image: postgres:16.1-bullseye
     volumes:
@@ -70,13 +70,13 @@ services:
       - "9999:9999"
     environment:
       - RUN_MODE=TRANSACTOR
+      - PROTOCOL=${PROTOCOL}
+      - SQL_USER=${SQL_USER}
+      - SQL_PASSWORD=${SQL_PASSWORD}
       - TRANSACTOR_HOST=192.168.200.4
       - TRANSACTOR_ALT_HOST=127.0.0.1
-      - PG_HOST=postgres
-      - PG_PORT=5432
-      - PG_PASSWORD=datomic
-      - PG_USER=datomic
-      - PG_DATABASE=datomic
+      - SQL_JDBC_URL=${SQL_JDBC_URL}
+      - SQL_DRIVER_CLASS=${SQL_DRIVER_CLASS}
       - MEMCACHED_HOST=192.168.200.2
     volumes:
       - datomic-transactor-log:/datomic-pro/log
@@ -101,14 +101,14 @@ services:
     build:
       context: ../
       args:
-        DATOMIC_VERSION: 1.0.7075
+        DATOMIC_VERSION: ${DATOMIC_VERSION}
       dockerfile: Dockerfile
     environment:
-      - PG_HOST=postgres
-      - PG_PORT=5432
-      - PG_PASSWORD=datomic
-      - PG_USER=datomic
-      - PG_DATABASE=datomic
+      - RUN_MODE=TRANSACTOR
+      - PROTOCOL=${PROTOCOL}
+      - SQL_USER=${SQL_USER}
+      - SQL_PASSWORD=${SQL_PASSWORD}
+      - SQL_JDBC_URL=${SQL_JDBC_URL}
       - DATOMIC_DB_NAME=${DATOMIC_DB_NAME}
       - RETRIES=${DATOMIC_DB_CREATION_RETRIES}
     volumes:
@@ -132,18 +132,17 @@ services:
     build:
       context: ../
       args:
-        DATOMIC_VERSION: 1.0.7075
+        DATOMIC_VERSION: ${DATOMIC_VERSION}
       dockerfile: Dockerfile
     ports:
       - "8998:8998"
     environment:
       - RUN_MODE=PEER
+      - PROTOCOL=${PROTOCOL}
       - PEER_HOST=192.168.200.5
-      - PG_HOST=postgres
-      - PG_PORT=5432
-      - PG_PASSWORD=datomic
-      - PG_USER=datomic
-      - PG_DATABASE=datomic
+      - SQL_USER=${SQL_USER}
+      - SQL_PASSWORD=${SQL_PASSWORD}
+      - SQL_JDBC_URL=${SQL_JDBC_URL}
       - DATOMIC_DB_NAME=${DATOMIC_DB_NAME}
       - PEER_ACCESSKEY=${PEER_ACCESSKEY}
       - PEER_SECRET=${PEER_SECRET}
@@ -166,17 +165,17 @@ services:
     build:
       context: ../
       args:
-        DATOMIC_VERSION: 1.0.7075
+        DATOMIC_VERSION: ${DATOMIC_VERSION}
       dockerfile: Dockerfile
     ports:
       - ${CONSOLE_HOST_MAPPING_PORT}:8888
     environment:
       - RUN_MODE=CONSOLE
-      - PG_HOST=postgres
-      - PG_PORT=5432
-      - PG_PASSWORD=datomic
-      - PG_USER=datomic
-      - PG_DATABASE=datomic
+      - PROTOCOL=${PROTOCOL}
+      - SQL_JDBC_URL=${SQL_JDBC_URL}
+      - SQL_USER=${SQL_USER}
+      - SQL_PASSWORD=${SQL_PASSWORD}
+      - TRANSACTOR_ALIAS=home-txn
     networks:
       datomic-network:
         ipv4_address: 192.168.200.6