They provide a digital representation of ownership and are non fungible (means they are unique/not interchangeable) this creates a non-falsifiable, existing-by-default paper trail that removes the administrative need to show ownership of certain documents for digital transfer. So for something like a power of attorney, a NFT based legal document system could massively cut down on fraud in terms of issuing fake or multiple copies of the poa. This is why docusign was so successful in the early days of the pandemic, but their system is quite opaque and non externally verifiable (from what I understand, you just get the docusign seal of approval that this is legit) with NFT you get a paper trail which you can verify yourself quite easily.

The Henan bank fraud - which is ongoing, where the same company leveraged their relationships with the regional banks to borrow a max amount from all the banks (I believe using the same collateral)- an NFT-based legal document system would definitely have caught that earlier. (If it comes out the way I imagine it could). It actually could put a pretty big stick in the spokes for a lot of the financial engineering that is happening in the West.

I think non-insiders massively overestimate the sophistication of the financial world. They essentially introduced computers in 1980 and the private institutions have leveraged computers in an extremely lopsided way - their algos to exploit the market is sophisticated but the record keeping system is actually extremely archaic, and they like it that way.

To be clear I am not in the archival/record keeping business and I have done only a little research into it but that is what I understand and I think that is more than most people who express strong opinions on the topicunderstand. The tech is still in development so that is part of why I am withholding judgment. I just know how easy it is to direct the internet hive mind and that there are some interesting non-scammy ideas within blockchain and NFTs.