Will caddy's ssl handle 'fake' domains?

I’ve just found out my beloved Hiawatha server is no longer supported and while I’m leaning towards lighttpd the idea of a server that automates lets encrypt certificates is intriguing. The one thing that worries me (and I apologize if this is a stupid question) is will it be an issue if I have a domain pointing to 127.0.0.1 on my local machine which I use for development and the same domain hosted on a public server for actual deployment?
My other concern is that with 1gb of ram and 10gb of storage my VPS is on the low-end of hosting solutions so will that be sufficient to run caddy with adequate performance for a basic site? The only other services I run on it are a dns and email server plus whatever CGI or FastCGI scripts I come up with.

Yep, Caddy can handle that case. Add the local_certs global option to your config during development and Caddy will use its own internal CA to generate the certificates instead of reaching out to Let’s Encrypt. You can then add the root CA cert from Caddy to your machine’s trust store so you stop getting warnings from browsers.

Alternatively, you can add tls internal to each site, instead of doing it globally:

Yeah that won’t be a problem at all.

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