Hedera News: HIP-850 Empowers NFT Users with Dynamic Functionality for Web3 Use Cases

• The Hedera team has introduced HIP-850, which will be implemented on the mainnet as part of the upcoming v0.53 upgrades.
• The upgrade allows supply keys to update $NFT metadata as long as the token remains in the treasury account for more dynamic $NFT data management.

Hedera has announced HIP-500, the latest upgrade that allows users to enjoy more dynamic management of $NFT data, the latest development in one of the world’s most innovative blockchain networks.

The Hedera revealed that HIP-500 will be implemented as the network welcomes the v0.53 upgrade, saying it will “empower $NFT users and issuers with greater flexibility & control without compromising integrity or immutability.”

🛠️ Dynamic #$NFT functionality is beneficial – in some cases, essential – for certain #web3 use cases.

Extending this, HIP-850 empowers $NFT users and issuers with greater flexibility & control without compromising integrity or immutability.

Learn more ➡️ https://t.co/CvtjwfVHtL pic.twitter.com/3Q9C8WB87U

— Hedera (@hedera) September 11, 2024

HIP-500 will grant supply keys the ability to update $NFT metadata which are held in a treasury account. In Hedera, supply keys are the keys that can change the total supply of a token by minting and burning the token. A treasury account, on the other hand, receives teh initial supply of any token and any additonally-minted tokens.

In an accompanying blog post, the Hedera team revealed that, essentially, HIP-500 gives the supply keys the ability to execute TokenUpdateNftsTransaction, which “updates the metadata property of non-fungible tokens (NFTs) on the Hedera network.”

The new proposal intends to enable more controlled and dynamic management of $NFT data without compromising the token’s trust or integrity.

This proposal offers a solution for stakeholders seeking to evolve $NFT functionality while maintaining the core principles of immutability once the $NFT has been distributed.

HIP-850 Empowers $NFT Users on Hedera

When minting an $NFT on Hedera, a user can specify MetadataKey and/or an AdminKey. The two allow the user to alter the metadata after mining the token and at the $NFT collection level. Additionally, the MetadataKey can also alter metadata at the $NFT serial number level.

However, these keys can pose a challenge when the end owner of the $NFT requires a guarantee that the token’s metadata can’t be altered post-distribution. HIP-500 introduces a SupplyKey that can alter metadata at a more advanced level, empowering the users.

The team notes:

By enabling the Supply Key to modify $NFT metadata within the treasury account, this HIP provides a solution to these limitations. This approach introduces flexibility while maintaining data integrity post-distribution; it ensures that once an $NFT leaves the treasury account, its metadata is immutable, preserving the integrity of the asset once it is distributed to the end-user.

HIP-500 isn’t just a technical achievement—it has practical applications. For instance, think about an $NFT for an event ticket: initially, the NFTs are minted with minimal details as they haven’t been purchased. However, once an attendee purchases the $NFT ticket, they need it to be altered so that their details, such as name and phone number, can be included.

In gaming, an in-game item, such as a gun or sword in an action game, can be minted with basic attributes. However, as the player advances in the game or purchases more attributes, the $NFT can be altered to change its metadata with the SupplyKey.

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