Note that Bitcoin itself is based on the this concept. When you transfer bitcoins you are simply extending a signature chain.
However, the system proposed here has a problem shared with NFTs -- the system transfers only an
abstract notion of ownership. It doesn't have the ability to transfer
full ownership, by which I mean all of the capabilities, rights, and responsibilities commonly inferred by that term.
Specifically this:
The transfer does not include the private key for the address, so how can it be claimed that ownership of the address has been transferred? Furthermore, even if the private key is also transmitted, then ownership is only shared and not transferred because the previous owner still has the private key.