diff --git a/libs/db/badgerdb/db.go b/libs/db/badgerdb/db.go
index 94a727dc46..122ec117e8 100644
--- a/libs/db/badgerdb/db.go
+++ b/libs/db/badgerdb/db.go
@@ -6,6 +6,7 @@ import (
 	"path/filepath"
 
 	"github.com/dgraph-io/badger/v3"
+	"github.com/dgraph-io/badger/v3/options"
 
 	"github.com/lazyledger/lazyledger-core/libs/db"
 )
@@ -22,7 +23,8 @@ func NewDB(dbName, dir string) (*BadgerDB, error) {
 	}
 	opts := badger.DefaultOptions(path)
 	opts.SyncWrites = false // note that we have Sync methods
-	opts.Logger = nil       // badger is too chatty by default
+	// TODO(ismail): investigate if we don't want a logger here at least for errors though:
+	opts.Logger = nil // badger is too chatty by default
 	return NewDBWithOptions(opts)
 }
 
@@ -37,6 +39,22 @@ func NewDBWithOptions(opts badger.Options) (*BadgerDB, error) {
 	return &BadgerDB{db: db}, nil
 }
 
+// NewInMemoryDB creates a light weight in-memory BadgerDB.
+// Mainly useful for unit-tests.
+func NewInMemoryDB() (*BadgerDB, error) {
+	opts := badger.DefaultOptions("")
+	opts.InMemory = true
+	opts.NumCompactors = 2          // minimize number of go-routines
+	opts.Compression = options.None // this is supposed to be short-lived
+	opts.ZSTDCompressionLevel = 0   // this is supposed to be short-lived
+	opts.Logger = nil               // there is not much that can go wrong in-memory
+	db, err := badger.Open(opts)
+	if err != nil {
+		return nil, err
+	}
+	return &BadgerDB{db: db}, nil
+}
+
 type BadgerDB struct {
 	db *badger.DB
 }
diff --git a/node/node.go b/node/node.go
index f3391f92e9..1235c65b2d 100644
--- a/node/node.go
+++ b/node/node.go
@@ -67,6 +67,11 @@ func DefaultDBProvider(ctx *DBContext) (dbm.DB, error) {
 	return badgerdb.NewDB(ctx.ID, ctx.Config.DBDir())
 }
 
+// InMemDBProvider provides an in-memory DB.
+func InMemDBProvider(ctx *DBContext) (dbm.DB, error) {
+	return badgerdb.NewInMemoryDB()
+}
+
 // GenesisDocProvider returns a GenesisDoc.
 // It allows the GenesisDoc to be pulled from sources other than the
 // filesystem, for instance from a distributed key-value store cluster.
diff --git a/node/node_test.go b/node/node_test.go
index b8b448871c..cb5a351814 100644
--- a/node/node_test.go
+++ b/node/node_test.go
@@ -35,12 +35,35 @@ import (
 	tmtime "github.com/lazyledger/lazyledger-core/types/time"
 )
 
+func defaultNewTestNode(config *cfg.Config, logger log.Logger) (*Node, error) {
+	nodeKey, err := p2p.LoadOrGenNodeKey(config.NodeKeyFile())
+	if err != nil {
+		return nil, fmt.Errorf("failed to load or gen node key %s: %w", config.NodeKeyFile(), err)
+	}
+
+	pval, err := privval.LoadOrGenFilePV(config.PrivValidatorKeyFile(), config.PrivValidatorStateFile())
+	if err != nil {
+		return nil, err
+	}
+
+	return NewNode(config,
+		pval,
+		nodeKey,
+		proxy.DefaultClientCreator(config.ProxyApp, config.ABCI, config.DBDir()),
+		DefaultGenesisDocProviderFunc(config),
+		InMemDBProvider,
+		ipfs.Mock(),
+		DefaultMetricsProvider(config.Instrumentation),
+		logger,
+	)
+}
+
 func TestNodeStartStop(t *testing.T) {
 	config := cfg.ResetTestRoot("node_node_test")
 	defer os.RemoveAll(config.RootDir)
 
 	// create & start node
-	n, err := DefaultNewNode(config, ipfs.Mock(), log.TestingLogger())
+	n, err := defaultNewTestNode(config, log.TestingLogger())
 	require.NoError(t, err)
 	err = n.Start()
 	require.NoError(t, err)
@@ -103,7 +126,7 @@ func TestNodeDelayedStart(t *testing.T) {
 	now := tmtime.Now()
 
 	// create & start node
-	n, err := DefaultNewNode(config, ipfs.Mock(), log.TestingLogger())
+	n, err := defaultNewTestNode(config, log.TestingLogger())
 	n.GenesisDoc().GenesisTime = now.Add(2 * time.Second)
 	require.NoError(t, err)
 
@@ -120,7 +143,7 @@ func TestNodeSetAppVersion(t *testing.T) {
 	defer os.RemoveAll(config.RootDir)
 
 	// create & start node
-	n, err := DefaultNewNode(config, ipfs.Mock(), log.TestingLogger())
+	n, err := defaultNewTestNode(config, log.TestingLogger())
 	require.NoError(t, err)
 
 	// default config uses the kvstore app
@@ -136,6 +159,7 @@ func TestNodeSetAppVersion(t *testing.T) {
 }
 
 func TestNodeSetPrivValTCP(t *testing.T) {
+	t.Skip("TODO(ismail): Mock these conns using net.Pipe instead")
 	addr := "tcp://" + testFreeAddr(t)
 
 	config := cfg.ResetTestRoot("node_priv_val_tcp_test")
@@ -164,7 +188,7 @@ func TestNodeSetPrivValTCP(t *testing.T) {
 	defer signerServer.Stop() //nolint:errcheck // ignore for tests
 
 	logger := log.TestingLogger()
-	n, err := DefaultNewNode(config, ipfs.Mock(), logger)
+	n, err := defaultNewTestNode(config, logger)
 	require.NoError(t, err)
 	assert.IsType(t, &privval.RetrySignerClient{}, n.PrivValidator())
 }
@@ -177,7 +201,7 @@ func TestPrivValidatorListenAddrNoProtocol(t *testing.T) {
 	defer os.RemoveAll(config.RootDir)
 	config.BaseConfig.PrivValidatorListenAddr = addrNoPrefix
 
-	_, err := DefaultNewNode(config, ipfs.Mock(), log.TestingLogger())
+	_, err := defaultNewTestNode(config, log.TestingLogger())
 	assert.Error(t, err)
 }
 
@@ -209,7 +233,7 @@ func TestNodeSetPrivValIPC(t *testing.T) {
 	defer pvsc.Stop() //nolint:errcheck // ignore for tests
 
 	logger := log.TestingLogger()
-	n, err := DefaultNewNode(config, ipfs.Mock(), logger)
+	n, err := defaultNewTestNode(config, logger)
 	require.NoError(t, err)
 	assert.IsType(t, &privval.RetrySignerClient{}, n.PrivValidator())
 }
@@ -514,7 +538,7 @@ func TestNodeNewNodeCustomReactors(t *testing.T) {
 		nodeKey,
 		proxy.DefaultClientCreator(config.ProxyApp, config.ABCI, config.DBDir()),
 		DefaultGenesisDocProviderFunc(config),
-		DefaultDBProvider,
+		InMemDBProvider,
 		ipfs.Mock(),
 		DefaultMetricsProvider(config.Instrumentation),
 		log.TestingLogger(),
diff --git a/p2p/transport_test.go b/p2p/transport_test.go
index e13c81534c..2e01462e16 100644
--- a/p2p/transport_test.go
+++ b/p2p/transport_test.go
@@ -615,7 +615,7 @@ func TestTransportHandshake(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	ni, err := handshake(c, 20*time.Millisecond, emptyNodeInfo())
+	ni, err := handshake(c, 100*time.Millisecond, emptyNodeInfo())
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -651,7 +651,7 @@ func testSetupMultiplexTransport(t *testing.T) *MultiplexTransport {
 	}
 
 	// give the listener some time to get ready
-	time.Sleep(20 * time.Millisecond)
+	time.Sleep(100 * time.Millisecond)
 
 	return mt
 }
diff --git a/rpc/test/helpers.go b/rpc/test/helpers.go
index de6d79825d..5a8b8e747a 100644
--- a/rpc/test/helpers.go
+++ b/rpc/test/helpers.go
@@ -175,7 +175,7 @@ func NewTendermint(app abci.Application, opts *Options) *nm.Node {
 
 	node, err := nm.NewNode(config, pv, nodeKey, papp,
 		nm.DefaultGenesisDocProviderFunc(config),
-		nm.DefaultDBProvider,
+		nm.InMemDBProvider,
 		ipfs.Mock(),
 		nm.DefaultMetricsProvider(config.Instrumentation),
 		logger,