diff --git a/packages/hardhat-zksync-node/package.json b/packages/hardhat-zksync-node/package.json
index 1e13aac88..b4aab73a2 100644
--- a/packages/hardhat-zksync-node/package.json
+++ b/packages/hardhat-zksync-node/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@matterlabs/hardhat-zksync-node",
-  "version": "0.0.1-beta.2",
+  "version": "0.0.1-beta.3",
   "description": "Hardhat plugin to run zkSync era-test-node locally",
   "repository": "github:matter-labs/hardhat-zksync",
   "homepage": "https://github.com/matter-labs/hardhat-zksync/tree/main/packages/hardhat-zksync-node",
diff --git a/packages/hardhat-zksync-node/src/constants.ts b/packages/hardhat-zksync-node/src/constants.ts
index df346153c..109786112 100644
--- a/packages/hardhat-zksync-node/src/constants.ts
+++ b/packages/hardhat-zksync-node/src/constants.ts
@@ -32,7 +32,7 @@ export const PORT_CHECK_DELAY = 500;
 export const RPC_ENDPOINT_PATH = 'eth_chainId';
 
 export const ZKSYNC_ERA_TEST_NODE_NETWORK_NAME = 'zkSyncEraTestNode';
-export const BASE_URL = `http://localhost`;
+export const BASE_URL = `http://127.0.0.1`;
 export const NETWORK_ACCOUNTS = {
     REMOTE: 'remote',
 };
diff --git a/packages/hardhat-zksync-node/src/utils.ts b/packages/hardhat-zksync-node/src/utils.ts
index e8258e44c..8e3ffbdea 100644
--- a/packages/hardhat-zksync-node/src/utils.ts
+++ b/packages/hardhat-zksync-node/src/utils.ts
@@ -167,8 +167,7 @@ export async function getLatestRelease(owner: string, repo: string, userAgent: s
         if (error.response) {
             // The request was made and the server responded with a status code outside of the range of 2xx
             throw new ZkSyncNodePluginError(
-                `Failed to get latest release for ${owner}/${repo}. Status: ${
-                    error.response.status
+                `Failed to get latest release for ${owner}/${repo}. Status: ${error.response.status
                 }, Data: ${JSON.stringify(error.response.data)}`
             );
         } else if (error.request) {
@@ -317,16 +316,20 @@ export async function isPortAvailable(port: number): Promise<boolean> {
 }
 
 export async function waitForNodeToBeReady(port: number, maxAttempts: number = 20): Promise<void> {
-    const rpcEndpoint = `http://localhost:${port}`;
+    const rpcEndpoint = `http://127.0.0.1:${port}`;
 
     const payload = {
         jsonrpc: '2.0',
         method: 'eth_chainId',
         params: [],
-        id: new Date().getTime(), // Unique ID for the request
+        id: new Date().getTime(),
     };
 
     let attempts = 0;
+    let waitTime = 1000; // Initial wait time in milliseconds
+    const backoffFactor = 2;
+    const maxWaitTime = 30000; // Maximum wait time (e.g., 30 seconds)
+
     while (attempts < maxAttempts) {
         try {
             const response = await axios.post(rpcEndpoint, payload);
@@ -334,15 +337,21 @@ export async function waitForNodeToBeReady(port: number, maxAttempts: number = 2
             if (response.data && response.data.result) {
                 return; // The node responded with a valid chain ID
             }
-        } catch (e) {
+        } catch (e: any) {
+            // console.error(`Attempt ${attempts + 1} failed with error:`, e.message);
             // If it fails, it will just try again
         }
 
         attempts++;
-        await new Promise((r) => setTimeout(r, 1000)); // Wait for 1000ms before the next attempt.
+
+        // Wait before the next attempt
+        await new Promise((r) => setTimeout(r, waitTime));
+
+        // Update the wait time for the next attempt
+        waitTime = Math.min(waitTime * backoffFactor, maxWaitTime);
     }
 
-    throw new ZkSyncNodePluginError("Server didn't respond after multiple attempts");
+    throw new Error("Server didn't respond after multiple attempts");
 }
 
 export async function getAvailablePort(startPort: number, maxAttempts: number): Promise<number> {