diff --git a/.env.example b/.env.example
index 858636ca..3c899d9d 100644
--- a/.env.example
+++ b/.env.example
@@ -16,6 +16,9 @@ JWT_EXPIRES_IN=15m
 JWT_REFRESH_SECRET=your-super-secret-refresh-key-change-this-in-production
 JWT_REFRESH_EXPIRES_IN=7d
 
+# Security Configuration
+BCRYPT_ROUNDS=10
+
 # Redis Configuration (for Bull Queue)
 REDIS_HOST=localhost
 REDIS_PORT=6379
diff --git a/README.md b/README.md
index f9b541df..1ab3fb1e 100644
--- a/README.md
+++ b/README.md
@@ -161,6 +161,22 @@ curl -H "X-API-Version: 1" http://localhost:3000/users
 
 ## 📊 Architecture
 
+## ⚙️ Tech Stack
+
+| Layer         | Technology                 |
+| ------------- | -------------------------- |
+| Framework     | NestJS                     |
+| Database      | PostgreSQL + TypeORM       |
+| Blockchain    | Starknet + Starknet.js     |
+| Realtime      | WebSockets (Gateway)       |
+| Queues/Async  | BullMQ + Redis (optional)  |
+| File Uploads  | Cloudinary                 |
+| Config Mgmt   | @nestjs/config             |
+| Testing       | Jest + Supertest           |
+| Auth          | JWT + Wallet Sign-In       |
+| Deployment    | Docker, Railway, or Fly.io |
+| File Upload   | Cloudinary                 |
+| Security      | Helmet + bcrypt            | Security headers and password hashing |
 ### System Overview
 
 TeachLink Backend follows a **modular microservices architecture** built on NestJS, designed for scalability and maintainability. The system uses a layered approach with clear separation of concerns:
@@ -233,7 +249,61 @@ TeachLink Backend follows a **modular microservices architecture** built on Nest
 | **Validation**     | class-validator + class-transformer | DTO validation                        |
 | **Security**       | Helmet + bcrypt                     | Security headers and password hashing |
 
-## �️ Database
+## 🔐 Security
+
+### Password Hashing Configuration
+
+The application uses **bcrypt** for password hashing with configurable rounds via the `BCRYPT_ROUNDS` environment variable.
+
+#### Recommended Bcrypt Rounds by Environment
+
+| Environment | Recommended Rounds | Hash Time (ms) | Security Level | Performance Impact |
+| ----------- | ----------------- | -------------- | -------------- | ------------------ |
+| **Development** | 8-10 | 50-100 | Good | Low |
+| **Staging** | 10-12 | 100-300 | High | Medium |
+| **Production** | 12-14 | 300-1000 | Very High | High |
+
+#### Security vs Performance Tradeoffs
+
+**Lower Rounds (4-8):**
+- ✅ Faster authentication
+- ✅ Lower CPU usage
+- ⚠️ Reduced security against brute force attacks
+- ⚠️ May be vulnerable to GPU-based cracking
+
+**Higher Rounds (12-15):**
+- ✅ Strong resistance against brute force attacks
+- ✅ Future-proof against computational advances
+- ❌ Slower authentication (may impact user experience)
+- ❌ Higher CPU usage (may affect scalability)
+
+#### Configuration Example
+
+```env
+# Development (faster, less secure)
+BCRYPT_ROUNDS=8
+
+# Production (slower, more secure)
+BCRYPT_ROUNDS=12
+```
+
+#### Security Best Practices
+
+1. **Minimum 10 rounds** for production environments
+2. **Monitor authentication performance** when increasing rounds
+3. **Consider rate limiting** to prevent brute force attacks
+4. **Use hardware security modules** for high-security applications
+5. **Regular security audits** to assess adequate protection levels
+
+#### Migration Considerations
+
+When changing `BCRYPT_ROUNDS`:
+- Existing passwords remain valid until users change them
+- New passwords will use the configured rounds
+- Consider forcing password reset for sensitive accounts
+- Gradually increase rounds to monitor performance impact
+
+## 🗄️ Database
 
 ### Index Strategy
 
diff --git a/src/config/env.validation.ts b/src/config/env.validation.ts
index 38b141c2..bfd401a6 100644
--- a/src/config/env.validation.ts
+++ b/src/config/env.validation.ts
@@ -29,6 +29,9 @@ export const envValidationSchema = Joi.object({
   // Encryption
   ENCRYPTION_SECRET: Joi.string().min(32).required(),
 
+  // Security Configuration
+  BCRYPT_ROUNDS: Joi.number().integer().min(4).max(15).default(10),
+
   // Stripe Configuration
   STRIPE_SECRET_KEY: Joi.string().required(),
   STRIPE_WEBHOOK_SECRET: Joi.string().required(),
diff --git a/src/users/users.service.ts b/src/users/users.service.ts
index 8f539532..d08258c0 100644
--- a/src/users/users.service.ts
+++ b/src/users/users.service.ts
@@ -13,6 +13,7 @@ import { GetUsersDto } from './dto/get-users.dto';
 import { CachingService } from '../caching/caching.service';
 import { CACHE_TTL, CACHE_PREFIXES, CACHE_EVENTS } from '../caching/caching.constants';
 import { EventEmitter2 } from '@nestjs/event-emitter';
+import { ConfigService } from '@nestjs/config';
 
 @Injectable()
 export class UsersService {
@@ -21,7 +22,8 @@ export class UsersService {
     private readonly userRepository: Repository<User>,
     private readonly cachingService: CachingService,
     private readonly eventEmitter: EventEmitter2,
-  ) {}
+    private readonly configService: ConfigService,
+  ) { }
 
   async create(createUserDto: CreateUserDto): Promise<User> {
     // Check if user already exists
@@ -32,7 +34,8 @@ export class UsersService {
     ensureUserDoesNotExist(existingUser, 'User with this email already exists');
 
     // Hash password
-    const hashedPassword = await bcrypt.hash(createUserDto.password, 10);
+    const bcryptRounds = this.configService.get<number>('BCRYPT_ROUNDS') || 10;
+    const hashedPassword = await bcrypt.hash(createUserDto.password, bcryptRounds);
 
     // Create user
     const user = this.userRepository.create({
@@ -141,7 +144,8 @@ export class UsersService {
       // Append current, maintain last 5 entries
       user.passwordHistory = [...recentPasswords, user.password].slice(-5);
 
-      updateUserDto.password = await bcrypt.hash(plainPassword, 10);
+      const bcryptRounds = this.configService.get<number>('BCRYPT_ROUNDS') || 10;
+      updateUserDto.password = await bcrypt.hash(plainPassword, bcryptRounds);
     }
 
     Object.assign(user, updateUserDto);