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.

HBAR trades at $0.05084, gaining 3.85% in the past day for a $1.879 billion market cap.