It's basically saying the cap table is held 'offline', that is off of the blockchain, in a legally compliant digital place. There is then a copy of that cap tab

It's basically saying the cap table is held 'offline', that is off of the blockchain, in a legally compliant digital place. There is then a copy of that cap table on the blockchain with a smart contract - an API if you will - to modify the cap table on the blockchain, which will then update the legally compliant one or vice versa. Not sure what the perks are here, but that's what it is.