OpenLaw：自动化法律协议

DAO Tools

2 years ago • 26 min read

OpenLaw：自动化法律协议

DAO Tools

2 years ago • 26 min read • Loading Views

DAOrayaki DAO研究奖金池：

资助地址: DAOrayaki.eth

投票进展：DAO Committee /7 通过

赏金总量：200 USDC

研究种类：OpenLaw, Legal Markup Languages, smart contracts, smart legal agreements, Smart Token Purchase Agreements, frictionless contracting

贡献者：Jones, 黑白BQ, DAOctor @Daorayaki

启动时间: OpenLaw于2017年首次发布。于2018年8月2日推出并托管在Eventbrite平台。

OpenLaw简要概述

OpenLaw 通过重新设想法律协议的创建、执行和存储，解决合约协议中存在的不同问题。使用OpenLaw，律师和组织可以自动创建和管理法律文件的执行，并在需要时将基于Ethereum的智能合约嵌入到法律协议中，减少与某些法律文件相关的歧义。

I.背景:

最早的书面协议出现在数千年前的美索不达米亚，用楔形笔写在泥板上。从这些最初的书面协议起，世界通过法律文件稳定地构建了起来。合约协议记录了基本的人际关系，帮助人们承担风险，构建产业，并成为塑造我们日常生活的组织的支柱。

然而，尽管法律协议无处不在，尽管它是价值4,370亿美元的美国法律行业的基石，但合约的创建和生成方式并没有发生重大变化。虽然协议不再用粘土来记录，但律师们未能利用计算机技术的进步来精简和简化他们的工作。对于大多数律师来说，标准合约的制定遵循的是一条老路。律师与客户会面，评估他们的需求，然后根据以前的工作，费力地用书面模板起草协议。这些协议是根据手头的事实定制的，但从一笔交易到另一笔交易的大部分文本都是不变的，以法律文体的形式书写，这有时会造成歧义和诉讼风险。简单的起草错误，比如没有添加一个无辜的牛津逗号，就会导致灾难性的后果。

一旦协议被修改、审查和定稿，签字页就会在双方之间笨拙地交换，通常使用墨水签字。对于大型事务，获取这些签名通常需要高资格律师的帮助，这会减慢复杂事务的完成速度，浪费了宝贵的时间。另一方面，法律协议的存储是支离破碎和不安全的。协议以附件形式存在于电子邮件中，存储在不安全的文档管理系统中，或者更糟的是，存储在发霉的文件柜中，成为被遗忘的遗物，只有在发生争议时才会被找出。法律文件充当了恶意黑客的蜜罐，这些黑客试图从律师创造和维护的宝贵机密信息中获利。

最令人担忧的问题之一是签署协议，这些协议停留在签署的那一刻，不受外界影响。改变合约的工作方式需要改变合约的条件，而合约本身需要正式的修改、放弃或重新谈判。因此，协议无法响应现实世界的事件或根据新的情况进行更新。换句话说，它们是不可编程的。

二、OpenLaw核心团队

OpenLaw有一个出色的团队，由Aaron Wright和Davin Roon领导，并得到了区块链风投机构ConsenSys的支持。

Aaron Wright是卡多佐法学院的副教授和学院区块链项目主任。他是企业以太坊联盟(Enterprise Ethereum Alliance)法律工作组的负责人、CoinCenter的学者、Ledger的编辑，与Primavaera DeFilippi合著了一本即将出版的书(Blockchain Technology and the Law: the Rule of Code)，并与哈佛大学出版社(Harvard University Press)签约。

Twitter: https://twitter.com/awrigh01

Roon是基于JVM的工具的创造者，用于集成以太坊开发; Cubefriendly（一个开放的数据数据库引擎）的创建者。同时，他也是Technion 2009届毕业生。

Twitter: https://twitter.com/bmalaus

Mikolaj Szabo，高级工程师。曾是Gawker Media的Scala平台工程师，还为出版平台Kinja撰稿。此外，Mikolaj还拥有在Tesco和Shop Group等大型零售商项目中担任电子商务顾问的经验。

Priyanka Desai在加入OpenLaw之前做过运营和业务发展副总裁，Priyanka就读于班加明卡多佐法学院。在学校期间，她获得了区块链联盟R3和NYSDFS的虚拟货币执行经验。在上法学院之前，Priyanka Desai曾在众议院外交事务委员会和一家纽约律师事务所工作。

III、OpenLaw工作工具和实用程序

1. OpenLaw法律标记语言

OpenLaw 提供使用 OpenLaw“法律标记”语言增强的“法律模板”，它类似于维基百科的“维基文本”，具有更强大的功能，使任何人都可以围绕传统法律文体包装逻辑和其他上下文信息。OpenLaw 法律标记语言使曾经痛苦的准备法律协议的过程变得轻而易举，并大大减少了生成和执行一系列合约所需的时间，而不仅仅是简单的协议。用户通常可以在几分钟内创建一个法律模板，并快速识别协议的关键变量可选条款。创建法律模板后，OpenLaw 界面会引导用户浏览该协议中通常自定义的区域，并根据用户输入实时自动重新生成文档。

例如，使用OpenLaw的法律标记语言，就有可能将《未来股权简单协议》（SAFE）的四个不同版本合并成一个法律模板，通过几次点击就可以在不同的标准变化之间实时转换。此外，通过OpenLaw语言提供了各种工具，这是创建真正可编程的法律协议所必需的。目前，它支持if-then、aliasing、多变量表达式、隐藏变量，甚至可以执行基本的计算。

OpenLaw 是第一个真正能够创建“智能”法律协议的项目，它为所有人提供了一种简单的方法来引用和触发基于以太坊的智能合约来管理合约承诺。使用 OpenLaw，任何以太坊智能合约都可以通过几行代码嵌入到法律协议中，并在协议经过各方数字签名后自动触发。因此，使用 OpenLaw，用户可以创建以前不可能实现的协议和商业关系。例如，用户可以建立一个简单的雇员聘书，并能够实时（每分钟）向雇员支付工资。在协议的创建和执行过程中，没有工资处理器或其他中介机构的密切参与，雇员可以看着他或她的账户随着时间的推移而增值。

将 OpenLaw 视为新兴区块链股票的粘合剂。资产和其他数字代币由以太坊等区块链生成和保护，OpenLaw 提供无缝的用户体验，以当今世界熟悉的方式构建和管理涉及这些资产的交易。

2.协议

OpenLaw上的所有协议都可以轻松地以数字方式签署。一旦协议被确定下来，就可以通过电子邮件发送签名。签署只需要点击一个按钮，而且签名会被存储在以太坊区块链上，为它们提供一定程度的永久性，以供将来参考。一旦被所有相关方签署，每一方和发件人都会收到一份执行的副本，作为记录。

由于它们存储在 IPFS 和以太坊区块链上，因此通过OpenLaw生成的法律协议更加私密和安全。法律模板或生成的协议均未存储在我们的中央服务器或Amazon、IBM、Google的中央服务器上，因此信息不易受到网络安全威胁。目前，我们要求您使用OpenLaw 创建一个用户帐户，我们的目标是尽量减少我们存储和管理的信息。随着时间的推移，律师将能够以一种真正类似于纸质世界的方式生成和管理文件，而无需让这些协议通过不了解合约的第三方。

3. 智能代币购买协议

OpenLaw是一个基于区块链的协议，使各方能够创建与以太坊智能合约互动的传统法律协议，这意味着用户可以快速将任何法律协议转化为在区块链上纳入和管理资产的协议，使用OpenLaw，人们可以生成一个基本的代币购买协议，只需点击几下，即可管理任何基于以太坊的代币的销售和转让。OpenLaw已经标记了一个代币购买协议，这个协议已经被广泛用作代币销售的一部分，当双方签署后，会触发一个管理付款和购买代币转让的交易合约。

后续基于区块链的方法为出售代币的一方提供了确定性，即销售受传统法律协议的约束，从而降低了与交易有关的风险。当事人可以签订一个熟悉的法律协议，并知道销售将依靠智能合约来进行。换句话说，智能合约可以管理代币的支付和转让，但各方的安排可以得到熟悉的书面协议的支持，以防在接下来的某个时刻发生争议。如果这种情况发生，法院或其他行政机构将能够理解任何安排的背景并管理其解决方案。

更重要的是，智能合约可以防止未经授权的各方在销售期间试图购买代币。智能合约被编程为只向根据我们的模板签署协议的各方分发代币，买方不能购买超过已签署协议规定的数量，从而为代币卖方提供了更多的代币销售控制权。

4.复杂交易

商业安排往往笼罩在复杂之中。保密协议、租赁、服务协议和短期融资文件等基本安排占了大量商业交易。然而，它们只是美国现有交易法律市场的一小部分。正如所有律师所说，许多交易是一捆文件，一个 "交易"，它们携手合作，管理风险和分配特定交易的相关权利。

律师们辛苦地管理这些交易的复杂性，花时间确保这些文件中与当事人有关的定义、条款和基本信息保持一致。目前管理交易的过程非常耗时、繁琐、乏味，并且会产生额外的成本；这些成本最终会伤害到客户，增加了律师事务所的腰包，并减少了大部分人获得基本法律服务的机会。

OpenLaw开始通过使用区块链技术简化复杂的法律文件集的创建来解决这些问题，该团队旨在推动降低执行复杂法律工作的成本（和乏味），同时增加世界各地获得法律服务的机会。以法律标记语言作为OpenLaw的核心组成部分，律师可以在几分钟内构建他们的协议或整个交易。下面提到了该标记语言的几个关键功能。

帮助律师识别和纳入可选的法律条款，即我们所说的 "条件"。

处理逻辑表达式（if-thens；如果（条件A&&条件B）->[行动]，等等）。

结构化法律协议的关键部分（如日期、数字和签署人）。

组变量。

执行基本计算，帮助签约方传递变量，并对运行在以太坊网络上的智能合约进行调用。

通过这种方法，OpenLaw将法律协议从静态文件转化为管理复杂商业任务的动态系统。简单地说，OpenLaw上的每个法律协议都变成了一个对象。这些法律协议又各自包含自己的对象集，可以由用户随意操作。因此，法律协议变得越来越可计算：人们可以定义和设置变量，即时修改协议（或协议集）的文本，并自动计算支付金额、分配和其他义务。

基于对象的方法允许对一组文件进行简单的捆绑，并创建一个具有相互依赖关系的 "交易"。这些文件之间的共同变量可以同时设置，而且多个协议的语言可以通过简单的点击按钮自动改变。此外，"交易 "架构帮助OpenLaw的用户在几分钟内建立和执行复杂的交易。使用OpenLaw，一个人可以让员工以数字方式签署一份聘书、一份仲裁协议、一份保密和发明转让协议，按照直接归属时间表授予员工限制性股票，还可以在几分钟内通过几次点击生成一份董事会的一致行动。不仅如此，这些协议在执行时可以调用和执行多个智能合约程序，转移付款并按归属时间表向员工转移代币化股票。原本需要律师花费数小时，并涉及多个中介机构的任务，现在只需几分钟，而且全部通过区块链进行管理。

5.不动产数字化

通过使用OpenLaw来创建一个标准化的法律协议，规范双方之间的财产买卖，"土地买卖合约 "就这样产生了。这份《土地买卖合约》包含了人们在这种交易中所期望的标准条款，包括财产的描述、购买价格条款和融资条件。

由于OpenLaw标记语言实现了无摩擦签约（ frictionless contracting ），该协议被转化为一个动态对象，与以太坊智能合约互动，使买方和卖方能够有效地谈判、管理和执行协议。作为该互动的一部分，从土地买卖合约中对智能合约的调用包括由各方输入的关键参数。

-卖方和买方的以太坊地址（以促进代币化财产和托管资金的分配）；

-购买价格、押金金额和贷款金额（如有）；以及

-基于物理地址的房产唯一的字符串标识符（实现代币化）。

对智能合约的调用是在使用OpenLaw协议执行土地销售合约（双方签署）后进行的。然后，买方可以将定金金额转移到该智能合约中托管。反过来，在结算之前，贷款人可以将贷款金额发送到智能合约托管处。在总的购买价格被发送到智能合约后，卖方可以最终完成转让，并触发智能合约将资金支付到其账户，并将代币化的财产转让给买方。转让被记录到以太坊区块链上，产权所有权的状态被更新。

一个重要的实际考虑是，以太坊区块链如何解释没有使用ERC721代币记录的其他类型的财产权益（到目前为止，它只代表对基础财产的单纯所有权）。例如，我们仍在研究如何记录和处理地役权、附言、担保权益和其他契约。如果这些东西可以与所有权一起登记和记录，例如使用新提出的ERC994授权的非伪造代币标准，这个问题就可以解决。为了简单起见，我们没有对这些类型的权益进行建模。

IV.联系方式:

官网: https://www.openlaw.io/

Twitter: https://twitter.com/openlawofficial

Github: https://github.com/openlawteam

Slack: https://openlaw-community.slack.com/

Openlaw：Automate Legal Agreements

DAOrayaki DAO Research Grant：

Fund Address: 0xCd7da526f5C943126fa9E6f63b7774fA89E88d71

Voting Result：DAO Committee /7 Yes

Grant Amount：200 USDC

Category: OpenLaw, Legal Markup Languages, smart contracts, smart legal agreements, Smart Token Purchase Agreements, frictionless contracting

Contributor：Jones, 黑白BQ, DAOctor @Daorayaki

Launch date: OpenLaw has been launched in 2nd August from 2018 hosted for the first time in Eventbrite and firstly announced in 2017.

OpenLaw Brief Overview:

OpenLaw aims to fix different problems existed in contracts agreements, by reimagining the creation, execution, and storage of legal agreements from the ground up. Using OpenLaw, lawyers and organizations can automatically create and manage the execution of legal documents, and, if desired, embed Ethereum-based smart contracts into legal agreements, which can decrease ambiguity related to certain legal prose.

I.Background:

The first written agreements appeared in Mesopotamia thousands of years ago, pressed into clay tablets with cuneiform pens. Since these first written arrangements, the world has steadily been structured through legal prose. Contractual agreements memorialize fundamental human relationships, help people take risks and build industries, and serve as the spine for organizations that shape our everyday lives.

Yet, despite the pervasiveness of legal agreements, and despite serving as the cornerstone of the $437 billion U.S legal industry, the way contracts are created and generated has not undergone significant changes. While agreements are no longer memorialized in clay, lawyers have failed to take advantage of advances in computing to streamline and simplify their work. For most lawyers, the creation of a standard contract follows a well-trodden path. Lawyers meet with clients, assess their needs, and laboriously draft agreements using written templates derived from previous work. These agreements are customized based on the facts at hand, but much of the text from deal to deal (transaction to transaction) remains constant, they are written in legal prose, which sometimes creates ambiguities and litigation risk. Simple draftmen’s errors like failing to include an innocent Oxford comma can lead to disastrous results.

Once an agreement is revised, reviewed, and finalized, signature pages are clumsily swapped between parties and generally signed using ink. For large transactions, getting these signatures usually requires the assistance of an overqualified associate, which slows down the closing of complex transactions and wastes valuable time. From the other hand, the storage of legal agreements is fractured and insecure. Agreements sit as attachments in emails, are stored in insecure document management systems, or worse, in musty cabinets becoming forgotten relics only unearthed when a dispute arises. Legal documents act as a honeypot for ill-intentioned hackers who seek to profit from the valuable confidential information created and maintained by lawyers.

One of the greatest concerns is signing agreements which remains frozen in time, impervious to the outside world. Changing the way it works require changing the conditions of a contract which itself requires formal amendments, waivers, or renegotiation. Thus, Agreements cannot respond to real world events or update based on new circumstances. In other words, they aren't programmable.

II.OpenLaw Core Team:

OpenLaw has an amazing team, led by Aaron Wright and Davin Roon, and the support of ConsenSys a blockchain venture production studio.

Wright – is an Associate Clinical Professor at Cardozo Law School and Director of the school’s Blockchain Project. He is char of the Enterprise Ethereum Alliance’s legal Working Group, an academic fellow at CoinCenter, an editor at Ledger, and has a forthcoming book with Primavaera DeFilippi (Blockchain Technology and the Law: The Rule of Code) under contract with Harvard University Press.

Twitter Account: https://twitter.com/awrigh01

Roon – is the creator of JVM based tools to integrate Ethereum development; creator of Cubefriendly, an open data database engine. He is a 2009 graduate of Technion.

Twitter Account: https://twitter.com/bmalaus

Mikolaj Szabo – Senior Engineer Mikolaj was previously a Scala platform engineer for Gawker Media. He also spent time as a contributor to the publishing platform, Kinja. In addition, Mikolaj has experience as an e-commerce consultant on projects at large retailers like Tesco and Shop Group.

Priyanka Desai – VP Operation and Business Development Before joining OpenLaw, Priyanka attended the Banjamin N.Cardozo School of Law. While in school, she gained experience at blockchain consortium R3 and with the NYSDFS on their virtual currency enforcement. Prior to law school, Priyanka worked for the House Committee on Foreign Affairs and a New York law firm.

III.OpenLaw working tools and utilities:

1. OpenLaw Legal Markup language:

OpenLaw offers “legal templates” enhanced using the OpenLaw “Legal Markup” language, which is akin to Wikipedia’s “wiki text” with greater functionality and enables anyone to wrap logic and other contextual information around traditional legal prose. The OpenLaw legal markup language makes the once painful process of preparing legal agreements a snap and drastically reduces the time necessary to generate and execute a range of contracts and not just simple agreements. Users can create a legal template, often in a matter of minutes and rapidly identify an agreement’s key variables optional terms. Once a legal template is created, OpenLaw interface walks a user through areas that are generally customized in that agreement and automatically regenerates documents in real time depending on the user input.

For example, using OpenLaw’s Legal Markup language it becomes possible to collapse the four different versions of the Simple Agreement for Future Equity (SAFE), a common financing document into one legal template, flipping between the different standard variations in real time with several clicks. Furthermore, various tools are provided through the OpenLaw language which are necessary to create truly programmable legal agreements. Currently, it supports if-then, aliasing, multi-variable expressions, hidden variables, and can even perform basic calculations.

OpenLaw is the first project to actually enable the creation of “smart” legal agreements, by providing an easy way for anyone to reference and trigger an Ethereum-based smart contract to manage contractual promises. Using OpenLaw, any Ethereum smart contract can be embedded into a legal agreement in a few lines and automatically triggered once the agreement is digitally signed by all parties. As a result, using OpenLaw, a user can create agreements and commercial relationships that simply were not possible before. For example, a user can build a simple employee offer letter, with the ability to pay the employee either in real time (every minute). There is no payroll processor or other intermediary intimately involved in the creation and execution of the agreement, and the employee can watch his or her account increase in value as the day goes on.

One way to view OpenLaw is as the glue for the emerging blockchain-based stock. Assets and other digital tokens are generated and secured by blockchains like Ethereum, and OpenLaw provides a seamless user experience to structure and govern transactions involving those assets in a way that is familiar to today’s world.

2. Agreements:

All agreements on OpenLaw can be digitally signed with ease. Once an agreement is finalized, it can be sent for signature via email. Signing simply requires a click of a button, and signatures are stored on the Ethereum blockchain, providing them with a degree of permanence for future reference. Once signed by all relevant parties, each party and the sender receives an executed copy for their records.

Because they are stored on IPFS and the Ethereum blockchain, legal agreements generated via OpenLaw are more private and secure. None of the legal templates or generated agreements are stored on our centralized servers or the centralized servers of Amazon, IBM, or Google, so the information is less susceptible to cyber security threats. Right now, we require that you create a user account with OpenLaw, we aim to minimize the information we store and manage. as time goes on, lawyers will be able to generate and manage documents in a way that truly resembles the paper-based world, without the need for these agreements to pass through third-parties who are not privy to a contract.

3. Smart Token Purchase Agreements:

OpenLaw is a blockchain-based protocol that enables parties to create traditional legal agreements that interact with Ethereum smart contracts, which means that a user can quickly transform any legal agreement into one that incorporates and manages assets on a blockchain, using OpenLaw one can generate a basic token purchase agreement to manage the sale and transfer of any Ethereum-based token with a few clicks. OpenLaw has markedup a Token Purchase Agreement, one that has been widely used as part of token sales, which, when signed by both parties, triggers a mart contract that manages payment and the transfer of tokens for the purchase.

The followed blockchain-based approach provides certainty to the party selling the token that the sale is governed by a traditional legal agreement, reducing risks related to the transaction. Parties can enter into a familiar legal agreement and know that the sale will occur by relying on a smart contract. In other words, a smart contract can govern payment for and transfer of a token, but the parties’ arrangement can be backed by a familiar written agreement in case of a dispute at some point down the line. If such an eventuality comes to pass, a court or other administrative body will be able to understand the context of any arrangement and administer its resolution.

What’s more, the smart contract can prevent unauthorized parties from attempting to purchase tokens during the sale. The smart contract is programmed to only transfer tokens to parties that have signed an agreement based on our template Purchasers cannot purchase more than what is provided for in a signed agreement, providing sellers of tokens with more control over a token sale.

4. Complex Transactions:

Commercial arrangements are often shrouded in complexity. Basic arrangements like NDAs, leases, services agreements, and short financing documents account for a large volume of commercial transactions. However, they are a mere silver of the existing transactional legal market in the United States. As any lawyer says, many transitions are a bundle of documents a “deal”, that work hand-in-hand to manage the risks and allocate relevant rights for a given transaction.

Lawyers toil away managing the complexity of these deals, spending time ensuring that definitions, clauses, and basic information related to the parties remain consistent within these documents. The process for managing a deal currently is time consuming, cumbersome, tedious, and created additional costs; costs that ultimately hurt clients, pad the pockets of law firms, and decrease access to basic legal services for large swaths of the population.

OpenLaw begun to solve thse problems by streamlining the creation of complex sets of legal documents using blockchain technology, where the team aims to drive down the cost (and tedium) of performing complex legal work, while increasing access to legal services across the world. With the legal markup language as the core component of OpenLaw, lawyers can structure their agreements, or entire deals in a matter of minutes. Below, several key functionalities of the markup language are mentioned:

-Helps lawyers identify and incorporate optional legal provisions, what we call “conditionals”.

-Handles logical expressions (if-thens; if (Conditional A && Conditional B) -> [actions], etc);

-Structures key parts of legal agreements (like dates, numbers, and signatories);

-Groups variables;

-Performs basic calculations; and

- Helps contracting parties pass variables and make calls to smart contracts running on the Ethereum network.

Through this approach, OpenLaw transform legal agreements from static documents to dynamic systems that manage complex commercial tasks. Simply put, each legal agreement on OpenLaw is turned into an object. These legal agreements, in turn, each contain their own set of objects, which can be manipulated by users at will. As a result, legal agreements become increasingly computable: people can define and set variables, modify the text of an agreement (or sets of agreements) on the fly, and calculate payment amounts, distributions, and other obligations automatically.

The object-based approach allows an easy bundling for a set of documents and create a “deal” with interdependent relationship. Common variables between these documents can be set at the same time, and the language of multiple agreements can be changed automatically through a simple click of a button. Furthermore, the “deal” architecture helps users of OpenLaw build and execute complex transactions in a matter of minutes. Using OpenLaw a person can have an employee digitally sign an offer letter, an arbitration agreement, a confidentiality and invention assignment agreement, grant the employee restricted stock on a straight vesting schedule, and also generate a unanimous action of a board of directors in a matter of minutes and with few clicks. More than that, these agreements can call and execute multiple smart contract programs on execution, transferring payment and transferring tokenized stock on a vesting schedule to employees. Tasks that would take lawyers hours, and would involve multiple intermediaries, now take minutes and are all managed via a blockchain.

5. Real Property digitalizing:

By using OpenLaw to create a standardized legal agreement that governs the sale of property between two parties, “a Sale of Land Contract” is created. This Sale of Land Contract contains standard terms that a person would come to expect in such a transaction, including a description of the property, purchase price terms, and financing conditions.

Thanks to the OpenLaw markup language a frictionless contracting has been enabled, this agreement is transformed into a dynamic object that interacts with an Ethereum smart contract, enabling a buyer and seller to efficiently negotiate, manage, and execute the agreement. As part of that interaction, the call to the smart contract from the Sale of Land Contract includes key parameters that were entered by the parties:

-The Ethereum addresses of the seller and buyer (to facilitate distribution of the tokenized property and the escrow funds);

-The purchase price, deposit amount, and loan amount (if any); and

-The string identifier that is unique to the property based on its physical address (which enables tokenization).

The call to the smart contract is made after the Sale of Land Contract is executed (signed by both parties) using the OpenLaw protocol. The buyer may then transfer the deposit amount to be held in escrow by that smart contract. In turn, and immediately prior to settlement, the lender can send the loan amount to the smart contract escrow. After the total purchase price is sent to the smart contract, the seller may finalize the transfer and trigger the smart contract to disburse the funds to its account and transfer the tokenized property to the buyer. The transfer is recorded to the Ethereum blockchain and the state of title ownership is updated.

One important practical consideration is how the Ethereum blockchain might account for other kinds of property interests not recorded using the ERC721 token (which, so far, only represents mere title to the underlying property). For example, we are still working through how to record and deal with easements, caveats, security interests, and other covenants. This issue could be addressed if those things could be registered and recorded with the title, using for example, the newly proposed ERC994 delegated non-fungible token standard. For simplicity’s sake, we have not modeled these kinds of interests.