| Domain name/identity and key pinning has always been the only useful use of NFTs that I can think of. Today, to encrypt your communications with people, you use something like PGP or Signal which rely on "trust on first use (TOFU) but verify", in practice people don't really verify so it's more like TOFU. This means that if someone compromised the session at the moment where it was created (or re-created), then your communication are being snooped on. Today, to encrypt your communication to websites, you use HTTPS which rely on a vast network of certificate authorities. Any of these actors misbehaving leads to potential attacks. Because of that, the Certificate Transparency project was created to _potentially_ catch bad actors, that is if you check for your own domains regularly. Using a consensus-based registry, you can prevent (better than detect) attacks in both of these scenarios. Let people register their identity or domain name, and associate a public key to it that can be used to encrypt communications with the identity/domain, as long as the number of dishonest actors remain under a threshold no attacks are possible. The only (albeit not small) downside is that by taking middle men out of the picture, the naive approach prevents account recovery from happening. So to be practical, you need to find the right middle ground. |
I think this just shifts the responsibility and point of attack onto the owner (which is true for all decentralized crypto). An attack is still possible and worse yet, it is completely irreversible.
That said, the option of taking personal custody and responsibility is important and I think it should always be an option.