The aim of this deliverable is to present the PHYSICS Design and Development Environment, the entry point to the PHYSICS platform that aims to overcome existing limitations of FaaS platforms, especially in relation to application creation in a functional programming style. The PHYSICS Design environment is based on the popular Node-RED function and workflow editor, coupled with an internally developed backend system to adapt the described application to the FaaS platform. It offers an extensive list of features such as the ability to use built-in and extended Node-RED packaged nodes from external repositories, packaging all the necessary artefacts aiming at the creation of the deployable function artefact to the FaaS platform. Diverse execution modes are implemented, including the description to a native Openwhisk sequence, utilizing the native Openwhisk abilities for workflow description and according runtimes. However, given that the latter are rather limiting, forcing to use only simple chains of functions, another runtime has been added, based on the Node-RED runtime, which means that the developer can create any Node-RED flow to be deployed as a function. This can be used as the core of the development logic or it can be used to orchestrate functions that have been deployed on the target platform. In this manner, the abundance of existing logic in Node-RED can be reused by the developer in a user-friendly manner. Three different runtimes and three different execution modes have been developed in order to give developers the option as to how they want to develop and deploy their application, as well as two ways of including annotations (semantic nodes and in-code annotations). A relevant annotations list has been compiled, following interaction with the affected patterns (applications, technical components and infrastructure).