diff --git a/docker/with-ipfs.dockerfile b/docker/with-ipfs.dockerfile
index 507ee0ea..29bb83bf 100644
--- a/docker/with-ipfs.dockerfile
+++ b/docker/with-ipfs.dockerfile
@@ -1,40 +1,78 @@
+# Base image for Python 3.10
 FROM python:3.10
 
-# === Install IPFS ===
-RUN apt-get install -y wget
-RUN wget https://ipfs.io/ipns/dist.ipfs.io/kubo/v0.15.0/kubo_v0.15.0_linux-amd64.tar.gz
-RUN tar -xvzf kubo_v0.15.0_linux-amd64.tar.gz -C /opt/
-RUN ln -s /opt/kubo/ipfs /usr/local/bin/
+# Define build argument for the Kubo IPFS version for flexibility and easy updates.
+ARG KUBO_VERSION="v0.26.0"
+ARG KUBO_ARCH="linux-amd64"
 
-# Volume to store IPFS data
-RUN mkdir /var/lib/ipfs
+# --- Install System Dependencies and IPFS Client ---
+# Combined RUN command to reduce layer count and clean up immediately.
+RUN apt-get update && \
+    # Install required dependencies: wget for IPFS, libsecp256k1-dev for Aleph-Client
+    apt-get install -y --no-install-recommends \
+        wget \
+        libsecp256k1-dev \
+        libffi-dev \
+        && \
+    # Download and extract Kubo IPFS
+    wget https://dist.ipfs.tech/kubo/${KUBO_VERSION}/kubo_${KUBO_VERSION}_${KUBO_ARCH}.tar.gz -O /tmp/kubo.tar.gz && \
+    tar -xvzf /tmp/kubo.tar.gz -C /usr/local/bin/ && \
+    # Move the executable directly to a PATH directory and remove the temporary folder/tar file
+    mv /usr/local/bin/kubo/ipfs /usr/local/bin/ipfs && \
+    rm -rf /usr/local/bin/kubo /tmp/kubo.tar.gz && \
+    # Clean up APT caches and lists to minimize the final image size
+    apt-get purge -y wget && \
+    apt-get clean && \
+    rm -rf /var/lib/apt/lists/*
+
+# --- IPFS Configuration ---
+# Set the environment variable for the IPFS repository path
 ENV IPFS_PATH /var/lib/ipfs
-VOLUME /var/lib/ipfs
 
-# IPFS Swarm
+# Create the directory for IPFS data persistence. 
+# Must be created by root before switching users.
+RUN mkdir -p ${IPFS_PATH}
+
+# Expose necessary IPFS ports
+# 4001: Swarm (P2P communication)
 EXPOSE 4001
-# IPFS WebUI
+# 5001: API (WebUI/Remote operations)
 EXPOSE 5001
-# IPFS Gateway
+# 8080: Gateway (HTTP access to files)
 EXPOSE 8080
 
-
-# === Install Aleph-Client ===
-
-RUN apt-get update && apt-get -y upgrade && apt-get install -y \
-     libsecp256k1-dev \
-     && rm -rf /var/lib/apt/lists/*
-
-RUN mkdir /opt/aleph-sdk-python/
+# --- Aleph-Client Installation ---
+# Set up a working directory for the Python project
 WORKDIR /opt/aleph-sdk-python/
+
+# Copy project files
 COPY . .
 
+# Install the package with the 'testing' extra dependencies.
+# Note: Using '-e' (editable mode) is standard for local development 
+# but often omitted for production builds in favor of a clean 'pip install .'
 RUN pip install -e .[testing]
 
+# --- User Setup and Final Configuration ---
+# Create the unprivileged user 'aleph' to run the services for security
+RUN useradd --create-home --no-log-init --shell /bin/bash aleph
+
+# Change the ownership of the IPFS data path to the 'aleph' user
+RUN chown -R aleph:aleph ${IPFS_PATH}
 
-# - User 'aleph' to run the code itself
-RUN useradd --create-home -s /bin/bash aleph
+# Set the primary working directory and switch to the unprivileged user
 WORKDIR /home/aleph
+USER aleph
 
+# Volume for external persistence (should be defined after user setup if possible, 
+# but VOLUME directive is often placed near EXPOSE/ENV)
+VOLUME ${IPFS_PATH}
+
+# Copy the entrypoint script and ensure the 'aleph' user can execute it
 COPY docker/with-ipfs.entrypoint.sh /entrypoint.sh
+RUN chmod +x /entrypoint.sh
+# Note: The entrypoint file is copied by root and ownership needs to be checked 
+# if the script modifies files outside /home/aleph. Using USER aleph handles execution privileges.
+
+# Command to run when the container starts
 CMD ["/entrypoint.sh"]