diff --git a/tests/e2e-bash/tests/test_rotate_key.sh b/tests/e2e-bash/tests/test_rotate_key.sh
index 69b157e1f..31d5fe3c7 100644
--- a/tests/e2e-bash/tests/test_rotate_key.sh
+++ b/tests/e2e-bash/tests/test_rotate_key.sh
@@ -35,17 +35,12 @@ RESULT=$(cheqd-noded tx cheqd create-did "${MSG_CREATE_DID}" "${KEY_ID}" "${OLD_
 
 assert_tx_successful "$RESULT"
 
-# Query DID to find out version id
-# shellcheck disable=SC2086
-RESULT=$(cheqd-noded query cheqd did "${DID}" ${QUERY_PARAMS})
-VERSION_ID=$(echo "${RESULT}" | jq -r ".metadata.version_id")
-
-
 # Updating DID
 NEW_VER_KEY="$(cheqd-noded debug ed25519 random)"
 NEW_VER_PUB_BASE_64=$(echo "${NEW_VER_KEY}" | jq -r ".pub_key_base_64")
 NEW_VER_PRIV_BASE_64=$(echo "${NEW_VER_KEY}" | jq -r ".priv_key_base_64")
 NEW_VER_PUB_MULTIBASE_58=$(cheqd-noded debug encoding base64-multibase58 "${NEW_VER_PUB_BASE_64}")
+VERSION_ID=$(echo "${RESULT}" | jq -r ".txhash")
 
 MSG_UPDATE_DID='{
   "id": "'${DID}'",
diff --git a/x/cheqd/keeper/msg_server_update_did.go b/x/cheqd/keeper/msg_server_update_did.go
index bcf29c677..76e56c15c 100644
--- a/x/cheqd/keeper/msg_server_update_did.go
+++ b/x/cheqd/keeper/msg_server_update_did.go
@@ -2,6 +2,7 @@ package keeper
 
 import (
 	"context"
+
 	"github.com/cheqd/cheqd-node/x/cheqd/types"
 	"github.com/cheqd/cheqd-node/x/cheqd/utils"
 	sdk "github.com/cosmos/cosmos-sdk/types"
@@ -48,9 +49,8 @@ func (k msgServer) UpdateDid(goCtx context.Context, msg *types.MsgUpdateDid) (*t
 	updatedDid := msg.Payload.ToDid()
 	updatedDid.ReplaceIds(updatedDid.Id, updatedDid.Id+UpdatedPostfix)
 
-	updatedMetadata := types.NewMetadataFromContext(ctx)
-	updatedMetadata.Created = existingStateValue.Metadata.Created
-	updatedMetadata.Updated = ctx.BlockTime().String()
+	updatedMetadata := *existingStateValue.Metadata
+	updatedMetadata.Update(ctx)
 
 	updatedStateValue, err := types.NewStateValue(&updatedDid, &updatedMetadata)
 	if err != nil {
diff --git a/x/cheqd/types/stateValue.go b/x/cheqd/types/stateValue.go
index 7fab95501..48cbea855 100644
--- a/x/cheqd/types/stateValue.go
+++ b/x/cheqd/types/stateValue.go
@@ -1,12 +1,13 @@
 package types
 
 import (
-	"encoding/base64"
+	"reflect"
+	"time"
+
+	"github.com/cheqd/cheqd-node/x/cheqd/utils"
 	"github.com/cosmos/cosmos-sdk/codec/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/gogo/protobuf/proto"
-	"github.com/tendermint/tendermint/crypto/tmhash"
-	"reflect"
 )
 
 // StateValueData is interface uniting possible types to be used for stateValue.data field
@@ -31,10 +32,14 @@ func NewStateValue(data StateValueData, metadata *Metadata) (StateValue, error)
 }
 
 func NewMetadataFromContext(ctx sdk.Context) Metadata {
-	created := ctx.BlockTime().String()
-	txHash := base64.StdEncoding.EncodeToString(tmhash.Sum(ctx.TxBytes()))
+	created := ctx.BlockTime().Format(time.RFC3339)
+	txHash := utils.GetTxHash(ctx.TxBytes())
+
+	return Metadata{Created: created, Deactivated: false, VersionId: txHash}
+}
 
-	return Metadata{Created: created, Updated: created, Deactivated: false, VersionId: txHash}
+func (m *Metadata) Update(ctx sdk.Context) {
+	m.Updated = ctx.BlockTime().Format(time.RFC3339)
 }
 
 func (m StateValue) UnpackData() (StateValueData, error) {
diff --git a/x/cheqd/types/stateValue_test.go b/x/cheqd/types/stateValue_test.go
index f37b55e1f..b79648f32 100644
--- a/x/cheqd/types/stateValue_test.go
+++ b/x/cheqd/types/stateValue_test.go
@@ -1,17 +1,21 @@
 package types
 
 import (
+	"testing"
+	"time"
+
 	"github.com/cheqd/cheqd-node/x/cheqd/utils"
 	"github.com/cosmos/cosmos-sdk/codec"
 	"github.com/cosmos/cosmos-sdk/codec/types"
+	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
-	"testing"
+	tmproto "github.com/tendermint/tendermint/proto/tendermint/types"
 )
 
 func Test_PackUnpackAny(t *testing.T) {
 	original := &Did{
-		Id:                   "test",
+		Id: "test",
 	}
 
 	// Construct codec
@@ -36,3 +40,47 @@ func Test_PackUnpackAny(t *testing.T) {
 	require.IsType(t, &Did{}, decoded)
 	require.Equal(t, original, decoded)
 }
+
+func Test_NewMetadataFromContext(t *testing.T) {
+	createdTime := time.Now()
+	ctx := sdk.NewContext(nil, tmproto.Header{ChainID: "test_chain_id", Time: createdTime}, true, nil)
+	ctx.WithTxBytes([]byte("test_tx"))
+	expectedMetadata := Metadata{
+		Created:     createdTime.UTC().Format(time.RFC3339),
+		Updated:     "",
+		Deactivated: false,
+		VersionId:   utils.GetTxHash(ctx.TxBytes()),
+	}
+
+	metadata := NewMetadataFromContext(ctx)
+
+	require.Equal(t, expectedMetadata, metadata)
+
+}
+
+func Test_UpdateMetadata(t *testing.T) {
+	createdTime := time.Now()
+	updatedTime := createdTime.Add(time.Hour)
+
+	ctx1 := NewContext(createdTime, []byte("test1_tx"))
+	ctx2 := NewContext(updatedTime, []byte("test1_tx"))
+
+	expectedMetadata := Metadata{
+		Created:     createdTime.UTC().Format(time.RFC3339),
+		Updated:     updatedTime.UTC().Format(time.RFC3339),
+		Deactivated: false,
+		VersionId:   utils.GetTxHash(ctx2.TxBytes()),
+	}
+
+	metadata := NewMetadataFromContext(ctx1)
+	metadata.Update(ctx2)
+
+	require.Equal(t, expectedMetadata, metadata)
+
+}
+
+func NewContext(time time.Time, txBytes []byte) sdk.Context {
+	ctx := sdk.NewContext(nil, tmproto.Header{ChainID: "test_chain_id", Time: time}, true, nil)
+	ctx.WithTxBytes(txBytes)
+	return ctx
+}
diff --git a/x/cheqd/utils/encoding.go b/x/cheqd/utils/encoding.go
index 10de42937..a75df898c 100644
--- a/x/cheqd/utils/encoding.go
+++ b/x/cheqd/utils/encoding.go
@@ -2,7 +2,7 @@ package utils
 
 import (
 	"fmt"
-	multibase "github.com/multiformats/go-multibase"
+	"github.com/multiformats/go-multibase"
 )
 
 func ValidateMultibase(data string) error {
@@ -25,5 +25,5 @@ func ValidateMultibaseEncoding(data string, expectedEncoding multibase.Encoding)
 }
 
 func ValidateBase58(data string) error {
-	return ValidateMultibaseEncoding(string(multibase.Base58BTC) + data, multibase.Base58BTC)
+	return ValidateMultibaseEncoding(string(multibase.Base58BTC)+data, multibase.Base58BTC)
 }
diff --git a/x/cheqd/utils/tx.go b/x/cheqd/utils/tx.go
new file mode 100644
index 000000000..89e9daf13
--- /dev/null
+++ b/x/cheqd/utils/tx.go
@@ -0,0 +1,11 @@
+package utils
+
+import (
+	"fmt"
+	"github.com/tendermint/tendermint/types"
+)
+
+func GetTxHash(txBytes []byte) string {
+	//return base64.StdEncoding.EncodeToString(tmhash.Sum(txBytes))
+	return fmt.Sprintf("%X", types.Tx(txBytes).Hash())
+}