My goal is to create an interoperable NFT collection in the Polkadot native ecosystem and allow its holders to interact with it on a parachain's smart contract. In that smart contract, the holder can burn their NFT and mint another NFT in return.
Is this possible in the future from a technical point of view?
We can create non-fungible assets with Statemint/Statemine
pallet-uniques. I think that those NFTs will be able to be transferred to smart contract parachains via XCM reserve-backed transfer.
However, my understanding is that this is not a trusted teleport, so only transfers are allowed on the smart contract parachain. Similarly, I guess the asset instance's metadata/attributes must be immutable.
Hence, my goal "when burnt then mint" is not feasible? Any ideas to realize this?
It can be achieved by maintaining external servers with an admin account that monitors chains and submit transactions, but that cannot be decentralized.