diff --git a/lib/scaffold/create.js b/lib/scaffold/create.js
index c521602e..49cee1e6 100644
--- a/lib/scaffold/create.js
+++ b/lib/scaffold/create.js
@@ -9,7 +9,7 @@ var path = require('path');
 var packageFile = require('../../package.json');
 var mkdirp = require('mkdirp');
 var fs = require('fs');
-var defaultBaseConfig = require('./default-base-config');
+var defaultConfig = require('./default-config');
 
 var version = '^' + packageFile.version;
 
@@ -55,7 +55,7 @@ function createConfigDirectory(options, configDir, isGlobal, done) {
     if (err) {
       throw err;
     }
-    var configInfo = defaultBaseConfig(options);
+    var configInfo = defaultConfig(options);
     var config = configInfo.config;
 
     var configJSON = JSON.stringify(config, null, 2);
diff --git a/lib/scaffold/default-base-config.js b/lib/scaffold/default-base-config.js
deleted file mode 100644
index 1f584b55..00000000
--- a/lib/scaffold/default-base-config.js
+++ /dev/null
@@ -1,34 +0,0 @@
-'use strict';
-
-var path = require('path');
-
-/**
- * Will return the path and default bitcore-node configuration on environment variables
- * or default locations.
- * @param {Object} options
- * @param {String} options.network - "testnet" or "livenet"
- * @param {String} options.datadir - Absolute path to bitcoin database directory
- */
-function getDefaultBaseConfig(options) {
-  if (!options) {
-    options = {};
-  }
-  return {
-    path: process.cwd(),
-    config: {
-      network: options.network || 'livenet',
-      port: 3001,
-      services: ['bitcoind', 'web'],
-      servicesConfig: {
-        bitcoind: {
-          spawn: {
-            datadir: options.datadir || path.resolve(process.env.HOME, '.bitcoin'),
-            exec: path.resolve(__dirname, '../../bin/bitcoind')
-          }
-        }
-      }
-    }
-  };
-}
-
-module.exports = getDefaultBaseConfig;
diff --git a/lib/scaffold/default-config.js b/lib/scaffold/default-config.js
index 304df232..0621aa06 100644
--- a/lib/scaffold/default-config.js
+++ b/lib/scaffold/default-config.js
@@ -1,8 +1,7 @@
-'use strict';
-
 var path = require('path');
 var mkdirp = require('mkdirp');
 var fs = require('fs');
+var package = require('../../package');
 
 /**
  * Will return the path and default bitcore-node configuration. It will search for the
@@ -24,7 +23,34 @@ function getDefaultConfig(options) {
     mkdirp.sync(defaultPath);
   }
 
-  var defaultServices = [
+  if (fs.existsSync(defaultConfigFile)) {
+    const currentConfig = require(defaultConfigFile);
+    
+    function getMajorVersion(versionString) {
+      return parseInt(versionString.split('.')[0])
+    }
+
+    // config must have a `version` field with major equal to package major version
+    if(currentConfig.version && getMajorVersion(package.version) === getMajorVersion(currentConfig.version)) {
+      return {
+        path: defaultPath,
+        config: config
+      };
+    }
+
+    console.log(`The configuration file at '${defaultConfigFile}' is incompatible with this version of Bitcore.`);
+
+    const now = new Date();
+    // bitcore-node.YYYY-MM-DD.UnixTimestamp.json
+    const backupFileName = `bitcore-node.${now.getUTCFullYear() + '-' + now.getUTCMonth() + '-' + now.getUTCDate() + '.' + now.getTime()}.json`;
+    const backupFile = path.resolve(defaultPath, backupFileName);
+    fs.renameSync(defaultConfigFile, backupFile);
+    console.log(`The previous configuration file has been moved to: ${backupFile}.`);
+  }
+
+  console.log(`Creating a new configuration file at: ${defaultConfigFile}.`);
+
+  const defaultServices = [
     'address',
     'block',
     'db',
@@ -37,33 +63,28 @@ function getDefaultConfig(options) {
     'web'
   ];
 
-  if (options.additionalServices) {
-    defaultServices = defaultServices.concat(options.additionalServices);
-  }
-
   var defaultDataDir = path.resolve(defaultPath, './data');
 
   if (!fs.existsSync(defaultDataDir)) {
     mkdirp.sync(defaultDataDir);
   }
 
-  if (!fs.existsSync(defaultConfigFile)) {
-    var defaultConfig = {
-      network: 'testnet',
-      port: 3001,
-      services: defaultServices,
-      datadir: defaultDataDir,
-      servicesConfig: {
-        'insight-api': {
-          cwdRequirePath: 'node_modules/insight-api'
-        },
-        'insight-ui': {
-          cwdRequirePath: 'node_modules/insight-ui'
-        }
+  var defaultConfig = {
+    version: package.version,
+    network: 'livenet',
+    port: 3001,
+    services: options.additionalServices ? defaultServices.concat(options.additionalServices) : defaultServices,
+    datadir: defaultDataDir,
+    servicesConfig: {
+      'insight-api': {
+        cwdRequirePath: 'node_modules/insight-api'
+      },
+      'insight-ui': {
+        cwdRequirePath: 'node_modules/insight-ui'
       }
-    };
-    fs.writeFileSync(defaultConfigFile, JSON.stringify(defaultConfig, null, 2));
-  }
+    }
+  };
+  fs.writeFileSync(defaultConfigFile, JSON.stringify(defaultConfig, null, 2));
 
   var config = JSON.parse(fs.readFileSync(defaultConfigFile, 'utf-8'));
 
diff --git a/package.json b/package.json
index 099e6902..a2e52efc 100644
--- a/package.json
+++ b/package.json
@@ -5,7 +5,7 @@
     "node": ">=8.2.0"
   },
   "author": "BitPay <dev@bitpay.com>",
-  "version": "4.0.0",
+  "version": "5.0.0",
   "main": "./index.js",
   "repository": "git://github.com/bitpay/bitcore-node.git",
   "homepage": "https://github.com/bitpay/bitcore-node",