Most of NFTs can be considered to have a centralized part, the `function tokenURI(uint256 _tokenId) external view returns (string)` function of the ERC721 inter

Most of NFTs can be considered to have a centralized part, the `function tokenURI(uint256 _tokenId) external view returns (string)` function of the ERC721 interface provides a URI to the meta information associated with the NFT, many NFTs also implementing a `function setBaseUri(uint256 _tokenId, string memory _baseUri)` which can change the source where the meta information is pulled from. Yes, DNS is centralized, the domains are kept by a centralized entity that obeys the contracts on top of which the platform runs. The created NFT is identifying the domain and the ownership of the domain, changing the nameservers of the domain must go through DNT and can only be done by the address that owns the NFT. Right now it uses partners like name.com, godaddy etc to register the domain, the plan is for DNT to become a registrar itself and give more options to the user, eventually connecting the centralized DNS with a decentralized dns service. The value added by NFT is the possibility of transferring the domain to another address without waiting the required 3 months that all registrars must obey before transferring the domain ownership. Also the NFT can be auctioned, not being parked on sedo or other aftermarket, but pointing to users nameservers while it is being auctioned. There is no rule that blockchain should be used only by fully decentralized services, centralized businesses can adopt the technology too.