Slide 1

Slide 1 text

CHRIS TSE @christse Smart Contracts for Building a Digital Art Market

Slide 2

Slide 2 text

“This is mine!” “I’m giving this to you.” “Record the transfer.” Bitcoin: Trading Virtual Currencies Wallet Exchange Ledger

Slide 3

Slide 3 text

Monegraph: Trading Digital Art “I made these.” “I’m selling this piece.” “Record this sale.” Art Portfolio Sales Contract Owner History

Slide 4

Slide 4 text

Register the Work as a Public Record Create Digital Art as a File How Digital Artists Use Monegraph List in a Catalog in a Private Gallery

Slide 5

Slide 5 text

Register the Work as a Public Record Create Digital Art as a File How Digital Artists Use Monegraph List in a Catalog in a Private Gallery

Slide 6

Slide 6 text

Register the Work as a Public Record Create Digital Art as a File How Digital Artists Use Monegraph List in a Catalog in a Private Gallery

Slide 7

Slide 7 text

Register the Work as a Public Record Create Digital Art as a File List in a Catalog in a Private Gallery How Digital Artists Use Monegraph TITLE ARTIST(S) M O N E G R A P H R E G I S T R AT I O N aa8009ab182f4d55c45045 2f20b771840f0287d1cd31e a35018e2d52a7a8dd91 OWNERSHIP HISTORY DIGITAL FINGERPRINT PREVIEW

Slide 8

Slide 8 text

Register the Work as a Public Record Create Digital Art as a File List in a Catalog in a Private Gallery How Digital Artists Use Monegraph Excerpt of cars.gif TITLE Jennifer & Kevin McCoy ARTIST(S) M O N E G R A P H R E G I S T R AT I O N aa8009ab182f4d55c45045 2f20b771840f0287d1cd31e a35018e2d52a7a8dd91 OWNERSHIP HISTORY DIGITAL FINGERPRINT Jennifer & Kevin McCoy 1. PREVIEW

Slide 9

Slide 9 text

How Digital Artists Use Monegraph Excerpt of cars.gif Jennifer & Kevin McCoy D I G I TA L G A L L E R Y Register the Work as a Public Record Create Digital Art as a File List in a Catalog For Sale or Licensing (2014) Buy License • Graphics Interchange Format (7.1 MB) • Adobe Photoshop Source File (41 MB) Mesmerising

Slide 10

Slide 10 text

Excerpt of cars.gif Jennifer & Kevin McCoy D I G I TA L G A L L E R Y (2014) Buy License • Graphics Interchange Format (7.1 MB) • Adobe Photoshop Source File (41 MB) Mesmerising How Art Collectors Use Monegraph Make a Payment as a Bitcoin or Regular Transaction Agree to Terms as a Smart Contract Transfer Ownership of the Public Record

Slide 11

Slide 11 text

Excerpt of cars.gif Jennifer & Kevin McCoy D I G I TA L G A L L E R Y (2014) Buy License • Graphics Interchange Format (7.1 MB) • Adobe Photoshop Source File (41 MB) Mesmerising How Art Collectors Use Monegraph Make a Payment as a Bitcoin or Regular Transaction Agree to Terms as a Smart Contract Transfer Ownership of the Public Record Excerpt of cars.gif Anil Dash SELL TO M O N E G R A P H S A L E S CO N T R A CT aa8009ab182f4d55c45045 2f20b771840f0287d1cd31e a35018e2d52a7a8dd91 DIGITAL FINGERPRINT PREVIEW TERMS OF SALE 1 BTC (or USD 375) SALES PRICE • 5% commission to Francis Digital Gallery • Anil Dash will collect all future royalties • Artist will retain a license for personal use Agree & Proceed

Slide 12

Slide 12 text

How Art Collectors Use Monegraph Agree to Terms as a Smart Contract Transfer Ownership of the Public Record Make a Payment as a Bitcoin or Regular Transaction M O N E G R A P H PA Y M E N T 1JnG1aLycFhcFJZSor54yDpCz3s QGHCAiJ BITCOIN ADDRESS 1 BTC Pay $375 Anil Dash FROM Kevin McCoy TO $375.33 USD Digital Art Purchase Order USE BITCOIN WALLET Personal (5.823 BTC)

Slide 13

Slide 13 text

M O N E G R A P H R E G I ST R AT I O N How Art Collectors Use Monegraph Agree to Terms as a Smart Contract Transfer Ownership of the Public Record Make a Payment as a Bitcoin or Regular Transaction Excerpt of cars.gif TITLE Jennifer & Kevin McCoy ARTIST(S) aa8009ab182f4d55c45045 2f20b771840f0287d1cd31e a35018e2d52a7a8dd91 OWNERSHIP HISTORY DIGITAL FINGERPRINT Jennifer & Kevin McCoy 1. PREVIEW Transfer Ownership

Slide 14

Slide 14 text

M O N E G R A P H R E G I ST R AT I O N How Art Collectors Use Monegraph Agree to Terms as a Smart Contract Transfer Ownership of the Public Record Make a Payment as a Bitcoin or Regular Transaction Excerpt of cars.gif TITLE Jennifer & Kevin McCoy ARTIST(S) aa8009ab182f4d55c45045 2f20b771840f0287d1cd31e a35018e2d52a7a8dd91 OWNERSHIP HISTORY DIGITAL FINGERPRINT Jennifer & Kevin McCoy 1. PREVIEW Anil Dash 2. Transfer Ownership

Slide 15

Slide 15 text

A Deeper Look at Smart Contracts

Slide 16

Slide 16 text

Create Art Register Work Offer for Sale Agree to Sell Get Paid Artists:

Slide 17

Slide 17 text

Download Claim Ownership Discover Art Agree to Buy Pay Collectors:

Slide 18

Slide 18 text

Download Claim Ownership Discover Art Agree to Buy Pay Create Art Register Work Offer for Sale Agree to Sell Get Paid Collectors: Artist:

Slide 19

Slide 19 text

SMART CONTRACT TYPES Registration of Digital Work Storage & Delivery of Digital Assets Offer for Sale or Licensing Agreement of Title Transfer Multi-party Payment Settlement ARTIST MONEGRAPH GALLERY COLLECTOR SMART CONTRACT ACTORS

Slide 20

Slide 20 text

SMART CONTRACT TYPES Registration of Digital Work Storage & Delivery of Digital Assets Offer for Sale or Licensing Agreement of Title Transfer Multi-party Payment Settlement ARTIST MONEGRAPH GALLERY COLLECTOR SMART CONTRACT ACTORS

Slide 21

Slide 21 text

SMART CONTRACT TYPES Registration of Digital Work Storage & Delivery of Digital Assets Offer for Sale or Licensing Agreement of Title Transfer Multi-party Payment Settlement ARTIST MONEGRAPH GALLERY COLLECTOR SMART CONTRACT ACTORS

Slide 22

Slide 22 text

SMART CONTRACT TYPES Registration of Digital Work Storage & Delivery of Digital Assets Offer for Sale or Licensing Agreement of Title Transfer Multi-party Payment Settlement ARTIST MONEGRAPH GALLERY COLLECTOR SMART CONTRACT ACTORS

Slide 23

Slide 23 text

SMART CONTRACT TYPES Registration of Digital Work Storage & Delivery of Digital Assets Offer for Sale or Licensing Agreement of Title Transfer Multi-party Payment Settlement ARTIST MONEGRAPH GALLERY COLLECTOR SMART CONTRACT ACTORS

Slide 24

Slide 24 text

SMART CONTRACT TYPES Registration of Digital Work Storage & Delivery of Digital Assets Offer for Sale or Licensing Agreement of Title Transfer Multi-party Payment Settlement ARTIST MONEGRAPH GALLERY COLLECTOR SMART CONTRACT ACTORS

Slide 25

Slide 25 text

SMART CONTRACT TYPES Registration of Digital Work Storage & Delivery of Digital Assets Offer for Sale or Licensing Agreement of Title Transfer Multi-party Payment Settlement ARTIST MONEGRAPH GALLERY COLLECTOR SMART CONTRACT ACTORS

Slide 26

Slide 26 text

SMART CONTRACT TYPES Registration of Digital Work Storage & Delivery of Digital Assets Offer for Sale or Licensing Agreement of Title Transfer Multi-party Payment Settlement ARTIST MONEGRAPH GALLERY COLLECTOR SMART CONTRACT ACTORS

Slide 27

Slide 27 text

SMART CONTRACT TYPES Registration of Digital Work Storage & Delivery of Digital Assets Offer for Sale or Licensing Agreement of Title Transfer Multi-party Payment Settlement ARTIST MONEGRAPH GALLERY COLLECTOR SMART CONTRACT ACTORS

Slide 28

Slide 28 text

Agreement of Title Transfer Excerpt of cars.gif Anil Dash SELL TO M O N E G R A P H S A L E S C O N T R A CT aa8009ab182f4d55c45045 2f20b771840f0287d1cd31e a35018e2d52a7a8dd91 DIGITAL FINGERPRINT PREVIEW TERMS OF SALE 1 BTC (or USD 375) SALES PRICE • 5% commission to Francis Digital Gallery • Anil Dash will collect all future royalties • Artist will retain a license for personal use Agree & Proceed User Interface In HTML5/JavaScript Legal Agreement in English Enforced Contracts in Blockchain Exam ple

Slide 29

Slide 29 text

Agreement of Title Transfer User Interface In HTML5/JavaScript Legal Agreement in English Enforced Contracts in Blockchain Text: Seth Siegelaub and Bob Projansky AGREEMENT OF ORIGINAL TRANSFER OF WORK OF ART ! … WHEREAS Artist is willing to sell the Work to Collector and Collector is willing to purchase the Work from Artist, subject t WHEREAS Collector and Artist recognize that the value of the Work, unlike that of an ordinary chattel, is and will be affe and WHEREAS the parties expect the value of the Work to increase hereafter; and WHEREAS Collector and Artist recognize that it is fitting and proper that Artist participate in any appreciated value whic WHEREAS the parties wish the integrity and clarity of the Artist's idea and statements in the Work to be maintained and NOW THEREFORE, in consideration of the foregoing premises and the mutual convenants hereinafter set forth and othe ! ARTICLE 01 - PURCHASE AND SALE The Artist hereby sells to Collector and Collector hereby purchases the Work from Artist, subject to all covenants herein receipt of which is hereby acknowledged) (at the agreed valuation for the purposes of this agreement of ____________ ! ARTICLE 02 - FUTURE TRANSFERS Collector covenants that in the event Collector shall hereafter sell, give, grant, barter, exchange, assign, transfer, convey or bequest or by operation of law, or if the Work shall be destroyed and insurance proceeds paid therefor, Collector or C (a) file a current TRANSFER AGREEMENT AND RECORD in the form and containing the information set forth and called fo and subscribed by Collector or Collector's personal representative and Collector's transferee, with the (Artist at the add ___________________________________________ at ____________________ ) within thirty days of such transfer, d (b) pay a sum equal to fifteen percent (15%) of the appreciated value (as hereinafter defined), if any occasioned by such forth above) (Artist's agent for the purpose: ___________________________________________ at _______________ proceeds. ! ARTICLE 03 - PRICE / VALUE The 'price or value' to be entered on a TRANSFER AGREEMENT AND RECORD shall be:

Slide 30

Slide 30 text

Agreement of Title Transfer User Interface In HTML5/JavaScript Legal Agreement in English Enforced Contracts in Blockchain if tx.value < tx.basefee * 200: stop if contract.storage[tx.sender] == 0: stop k = sha3(32,tx.data[1]) if tx.data[0] == 0: if contract.storage[k + tx.sender] == 0: contract.storage[k + tx.sender] = 1 contract.storage[k] += 1 else if tx.data[0] == 1: if tx.value <= tx.datan * block.basefee * 200 or contract.storage[k]: stop i = 2 while i < tx.datan: contract.storage[k + i] = tx.data[i] i = i + 1 contract.storage[k] = 1 contract.storage[k+1] = tx.datan else if tx.data[0] == 2: if contract.storage[k] >= contract.storage[2 ^ 255] * 2 / 3: if tx.value <= tx.datan * block.basefee * 200: stop i = 3 L = contract.storage[k+1] loc = contract.storage[k+2] Code: ethereum.org

Slide 31

Slide 31 text

User Interface In HTML5/JavaScript Legal Agreement in English Enforced Contracts in Blockchain Anatomy of a Smart Contract

Slide 32

Slide 32 text

User Interface In HTML5/JavaScript Legal Agreement in English Enforced Contracts in Blockchain Anatomy of a Smart Contract Designed for Humans

Slide 33

Slide 33 text

User Interface In HTML5/JavaScript Legal Agreement in English Enforced Contracts in Blockchain Anatomy of a Smart Contract Designed for Humans Crafted by Lawyers

Slide 34

Slide 34 text

User Interface In HTML5/JavaScript Legal Agreement in English Enforced Contracts in Blockchain Anatomy of a Smart Contract Designed for Humans Crafted by Lawyers Processed by Machines

Slide 35

Slide 35 text

User Interface In HTML5/JavaScript Legal Agreement in English Enforced Contracts in Blockchain

Slide 36

Slide 36 text

Smart Contract Redefined

Slide 37

Slide 37 text

Smart Contract Clickwrap Word Doc x I Agree vs. vs.

Slide 38

Slide 38 text

Smart Contract Clickwrap Word Doc CUSTOMIZED STANDARDIZED x I Agree

Slide 39

Slide 39 text

Smart Contract Clickwrap Word Doc CUSTOMIZED STANDARDIZED x I Agree SWEET SPOT

Slide 40

Slide 40 text

User Interface In HTML5/JavaScript Legal Agreement in English Enforced Contracts in Blockchain 3-in-1 Smart Contract

Slide 41

Slide 41 text

User Interface In HTML5/JavaScript Legal Agreement in English Enforced Contracts in Blockchain 3-in-1 Ownership Title

Slide 42

Slide 42 text

User Interface In HTML5/JavaScript Legal Agreement in English Enforced Contracts in Blockchain 3-in-1 Sales Offer

Slide 43

Slide 43 text

User Interface In HTML5/JavaScript Legal Agreement in English Enforced Contracts in Blockchain 3-in-1 Purchase Agreement

Slide 44

Slide 44 text

Download Claim Ownership Discover Art Agree to Buy Pay Create Art Register Work Offer for Sale Agree to Sell Get Paid

Slide 45

Slide 45 text

CardStack Open Source Embeddable Card Runtime

Slide 46

Slide 46 text

MoneGraph Digital Art Market CardStack JavaScript APIs

Slide 47

Slide 47 text

MoneGraph Digital Art Market CardStack JavaScript APIs Ethereum Cloud APIS Other Blockchains Apple iOS Apps Android Apps Ziniki Market Data

Slide 48

Slide 48 text

Key Takeaways 1. Most markets can be modeled as a graph of Smart Contracts 2. Smart Contracts are 3-in-1: For humans, lawyers, and machines. 3. Align to real-world legal code to handle the edges cases. 4. Monegraph Digital Art Market will launch with Ethereum in Q1 2015. 5. Underlying architecture can be the foundation for other markets. Sum m ary

Slide 49

Slide 49 text

Find out more… MoneGraph monegraph.com cardstack.io CardStack Ethereum ethereum.org Ziniki Network zinikinetwork.com

Slide 50

Slide 50 text

@christse Follow me

Slide 51

Slide 51 text

Ethereum D.C. Meetup Cryto Currency 2.0 D.C. Washington D.C. Bitcoin User Group Hack D.C. LOCATION WeWork D.C. Chinatown PRESENTATION DATE October 30, 2014