diff --git a/README.md b/README.md
index 91cb008d..1ae783dd 100644
--- a/README.md
+++ b/README.md
@@ -24,6 +24,194 @@ You can also use `run_tests.sh`, which takes care of building the `fuel-block-co
 ./run_tests.sh
 ```
 
+## Configuration
+
+The Fuel Block Committer is configured primarily through environment variables.
+
+### Environment Variables
+
+#### Ethereum (ETH) Configuration
+
+- **`COMMITTER__ETH__L1_KEYS__MAIN`**
+
+  - **Description:** The Ethereum key authorized by the L1 fuel chain state contract to post block commitments.
+  - **Format:** `Kms(<KEY_ARN>)` or `Private(<PRIVATE_KEY>)`
+  - **Example:** `Kms(arn:aws:kms:us-east-1:123456789012:key/abcd-1234)`
+
+- **`COMMITTER__ETH__L1_KEYS__BLOB`**
+
+  - **Description:** (Optional) The Ethereum key for posting L2 state to L1.
+  - **Format:** `Kms(<KEY_ARN>)` or `Private(<PRIVATE_KEY>)`
+  - **Example:** `Kms(arn:aws:kms:us-east-1:123456789012:key/efgh-5678)`
+
+- **`COMMITTER__ETH__RPC`**
+
+  - **Description:** URL to the Ethereum RPC endpoint.
+  - **Example:** `https://mainnet.infura.io/v3/YOUR_INFURA_PROJECT_ID`
+
+- **`COMMITTER__ETH__STATE_CONTRACT_ADDRESS`**
+  - **Description:** Ethereum address of the Fuel chain state contract.
+  - **Example:** `0xYourStateContractAddress`
+
+#### Fuel Configuration
+
+- **`COMMITTER__FUEL__GRAPHQL_ENDPOINT`**
+
+  - **Description:** URL to a Fuel Core GraphQL endpoint.
+  - **Example:** `http://localhost:4000/graphql`
+
+- **`COMMITTER__FUEL__NUM_BUFFERED_REQUESTS`**
+  - **Description:** Number of concurrent http requests towards the fuel node.
+  - **Type:** Positive integer
+  - **Example:** `5`
+
+#### Database (DB) Configuration
+
+- **`COMMITTER__APP__DB__HOST`**
+
+  - **Description:** Hostname or IP address of the PostgreSQL server.
+  - **Example:** `localhost`
+
+- **`COMMITTER__APP__DB__PORT`**
+
+  - **Description:** Port number on which the PostgreSQL server is listening.
+  - **Type:** `u16`
+  - **Example:** `5432`
+
+- **`COMMITTER__APP__DB__USERNAME`**
+
+  - **Description:** Username for authenticating with the PostgreSQL server.
+  - **Example:** `username`
+
+- **`COMMITTER__APP__DB__PASSWORD`**
+
+  - **Description:** Password for authenticating with the PostgreSQL server.
+  - **Example:** `password`
+
+- **`COMMITTER__APP__DB__DATABASE`**
+
+  - **Description:** Name of the database to connect to on the PostgreSQL server.
+  - **Example:** `fuel_db`
+
+- **`COMMITTER__APP__DB__MAX_CONNECTIONS`**
+
+  - **Description:** Maximum number of connections allowed in the connection pool.
+  - **Type:** `u32`
+  - **Example:** `10`
+
+- **`COMMITTER__APP__DB__USE_SSL`**
+  - **Description:** Whether to use SSL when connecting to the PostgreSQL server.
+  - **Type:** `bool`
+  - **Values:** `true` or `false`
+  - **Example:** `false`
+
+#### Application (App) Configuration
+
+- **`COMMITTER__APP__PORT`**
+
+  - **Description:** Port used by the started server.
+  - **Type:** `u16`
+  - **Example:** `8080`
+
+- **`COMMITTER__APP__HOST`**
+
+  - **Description:** IPv4 address on which the server will listen for connections.
+  - **Example:** `127.0.0.1`
+
+- **`COMMITTER__APP__BLOCK_CHECK_INTERVAL`**
+
+  - **Description:** How often to check for new fuel blocks.
+  - **Format:** Human-readable duration (e.g., `5s`, `1m`)
+  - **Example:** `5s`
+
+- **`COMMITTER__APP__TX_FINALIZATION_CHECK_INTERVAL`**
+
+  - **Description:** How often to check for finalized L1 transactions.
+  - **Format:** Human-readable duration
+  - **Example:** `5s`
+
+- **`COMMITTER__APP__NUM_BLOCKS_TO_FINALIZE_TX`**
+
+  - **Description:** Number of L1 blocks that need to pass to accept the transaction as finalized.
+  - **Type:** `u64`
+  - **Example:** `3`
+
+- **`COMMITTER__APP__GAS_BUMP_TIMEOUT`**
+
+  - **Description:** Interval after which to bump a pending transaction.
+  - **Format:** Human-readable duration
+  - **Example:** `300s`
+
+- **`COMMITTER__APP__TX_MAX_FEE`**
+
+  - **Description:** Maximum gas fee permitted for a transaction in wei.
+  - **Type:** `u64`
+  - **Example:** `4000000000000000`
+
+- **`COMMITTER__APP__SEND_TX_REQUEST_TIMEOUT`**
+  - **Description:** Duration for timeout when sending transaction requests.
+  - **Format:** Human-readable duration
+  - **Example:** `10s`
+
+#### Bundle Configuration
+
+- **`COMMITTER__APP__BUNDLE__ACCUMULATION_TIMEOUT`**
+
+  - **Description:** Duration to wait for additional fuel blocks before initiating the bundling process.
+  - **Format:** Human-readable duration
+  - **Example:** `30s`
+
+- **`COMMITTER__APP__BUNDLE__BLOCKS_TO_ACCUMULATE`**
+
+  - **Description:** Number of fuel blocks to accumulate before initiating the bundling process.
+  - **Type:** Positive integer
+  - **Example:** `5`
+
+- **`COMMITTER__APP__BUNDLE__OPTIMIZATION_TIMEOUT`**
+
+  - **Description:** Maximum duration allocated for determining the optimal bundle size.
+  - **Format:** Human-readable duration
+  - **Example:** `60s`
+
+- **`COMMITTER__APP__BUNDLE__COMPRESSION_LEVEL`**
+
+  - **Description:** Compression level used for compressing block data before submission.
+  - **Values:** `"disabled"`, `"min"`, `"level1"`..`"level9"`, `"max"`
+  - **Example:** `"min"`
+
+- **`COMMITTER__APP__BUNDLE__OPTIMIZATION_STEP`**
+
+  - **Description:** Size of the optimization step at the start of the optimization process.
+  - **Type:** Positive integer (`NonZeroUsize`)
+  - **Example:** `100`
+
+- **`COMMITTER__APP__BUNDLE__FRAGMENTS_TO_ACCUMULATE`**
+
+  - **Description:** Number of fragments to accumulate before submitting them in a transaction to L1.
+  - **Type:** Positive integer (`NonZeroUsize`)
+  - **Example:** `6`
+
+- **`COMMITTER__APP__BUNDLE__FRAGMENT_ACCUMULATION_TIMEOUT`**
+
+  - **Description:** Duration to wait for additional fragments before submitting them.
+  - **Format:** Human-readable duration
+  - **Example:** `30s`
+
+- **`COMMITTER__APP__BUNDLE__NEW_BUNDLE_CHECK_INTERVAL`**
+  - **Description:** Duration to wait before checking if a new bundle can be made.
+  - **Format:** Human-readable duration
+  - **Example:** `15s`
+
+### Configuration Validation
+
+The committer performs validation on the provided configuration to ensure consistency and correctness. For example:
+
+- **Wallet Keys:** The main wallet key and blob pool wallet key must be different.
+- **Fragments to Accumulate:** Must be less than or equal to 6.
+- **Block Height Lookback:** Must be greater than or equal to the number of blocks to accumulate.
+
+If any validation fails, the committer will return an error, preventing it from running with invalid settings.
+
 ## Schema Visualization
 
 ![Relationships Diagram](db_preview/pngs/relationships.png)