>but from my understanding they are a way to extend "ownership" for digital entities like you would do for phisical[sic] ones.
But it doesn't. Unless that NFT includes a legal sales agreement or contract transferring ownership, you don't 'own' anything. If I'm an artist and sell you a NFT for a digital copy of my art I still 'own' that art. I am still the copyright holder. You are not legally entitled to anything and the NFT legally confers nothing to the buyer. You're not 'buying' anything. You're just making a non-deductible donation.
But it doesn't. Unless that NFT includes a legal sales agreement or contract transferring ownership, you don't 'own' anything. If I'm an artist and sell you a NFT for a digital copy of my art I still 'own' that art. I am still the copyright holder. You are not legally entitled to anything and the NFT legally confers nothing to the buyer. You're not 'buying' anything. You're just making a non-deductible donation.