10101.art, a ground-breaking art technology platform, celebrated its official launch this week at Monada Art Gallery in Dubai.
Bringing the power of distributed ledgers to the global art market, 10101.art leverages blockchain technology to enable collective ownership of iconic works by Banksy, Warhol, Picasso, Dali, and more.
Alina Krot, CEO of 10101.art, discussed the launch of the platform with Philip Hoey, Director of CoinJournal.
Philip Hoey: Thank you so much for taking the time to speak with CoinJournal, Alina. Let’s start with a quick overview of your platform – can you walk us through the journey you and your team took to launch? 10101.Art?
Alina Clot: My journey into the art world has been very long. Art has always been my passion, but my first career choice was finance. Before joining the startup scene, I worked at a bank working on high-risk assets and large-scale investment financing projects. After 5 years, I realized that the corporate world was not for me. In 2019, I joined WEB 3. This choice allowed me to dive into the blockchain field and work on several projects, gaining valuable experience.
Eventually, I grew into a product management role. All these experiences made me realize that basically every traditional area can be made more accessible using blockchain.
When I met Irina, the founder of 10101.art, the puzzle of financial expertise and art appreciation came together. We realized that the art market could actually become more inclusive with the power of blockchain. Moreover, I was confident that I could really contribute to it.
PH: What first sparked your interest in combining physical art and blockchain technology?
AK: I think I realized the absolute benefits that blockchain can bring to the art industry. And that means collective ownership and democratization of the art market itself. For a long time, owning art was the privilege of the wealthy. Blockchain and collective ownership will make this market accessible to everyone.
With more and more industries each year already realizing the benefits of blockchain implementation, such as real estate, healthcare, and finance, we are confident that broader adoption will bring new disruptive innovations in many fields.
PH:While NFT enthusiasts will be very familiar with investing in digital assets, 10101.art is pioneering the use of NFTs in physical artwork. This is given that many of these works of art are considered masterpieces and will almost certainly increase in value. A low-risk approach to engaging with art for collectors. Do you agree with that too?
AK: Indeed, owning a piece of art at 10101.art is definitely less risky, especially for those familiar with the NFT space.
First, there is the issue of liquidity. Traditionally, it can be difficult to sell art quickly, especially for collectors with little experience. Collective ownership through NFTs allows individuals to trade NFTs on the secondary market.
Another big advantage is affordability. At 10101.art you can purchase small pieces of rare works of art. This makes owning a masterpiece much easier than if you had to buy everything at auction.
There is also an element of transparency. Blockchain technology can provide a clear record of ownership and the history of a work of art, providing peace of mind.
PH: In the past, other platforms have used special purpose vehicles to enable fractional ownership of famous works of art, but harnessing the power of blockchain means that new works of art can be sold Seems like a more efficient process than forming a new SPV every time. Do you think physical NFTs are the future of fractional ownership in the art world?
AK: There is no doubt that traditional collective ownership models that rely on special purpose vehicles (SPVs) can be inefficient. The need to establish a new SPV for each artwork increases the administrative burden. In this regard, physical NFTs, leveraging the power of blockchain technology, offer an attractive alternative.
The efficiency gains associated with NFTs are undeniable. Eliminating the requirement for a bespoke SPV streamlines co-ownership. Additionally, blockchain’s inherent transparency and security facilitate seamless transactions and clear ownership tracking.
Furthermore, physical NFTs democratize access to the art world. By tokenizing high-value works of art, individuals who do not have the resources to acquire masterpieces outright can participate in the art market.
PH: What blockchain does 10101.art use?
AK: Currently, our platform runs on the Ethereum blockchain. However, we also plan to launch some collections using other new EVM-compatible blockchains in the near future.
PH: Can you explain the tokenization process?
AK: of course. The 10101.art tokenization process is divided into four main stages.
The process begins with a dedicated team scouring rare collections, auction houses and galleries. Authenticity is of paramount importance, so each piece undergoes careful inspection before being considered.
Once the artwork is selected, our development team scans it, uploads it, and stores it on a secure, decentralized system. This ensures that digital records cannot be tampered with and are easily accessible. This is where the magic of blockchain comes into play. Split ownership of artwork into tokens using smart contracts. These contracts clearly define the total number of available tokens and their initial value, providing full transparency. All ownership rights to a particular painting are specified in the shared ownership document published on our website.
Ultimately, individuals become co-owners of famous works of art. By purchasing tokens, you don’t just get a digital image. They acquire verifiable rights to the physical works themselves, which are housed at our partner gallery, Monada Art.
PH: How many fragments is an individual artwork divided into? Is there a limit to the number of tokens for an individual artwork? collector Can I buy the work?
AK: The amount of fragments depends on the artwork itself. For example, so far 1500 pieces of Banksy’s “Turf War” and 1200 pieces of Warhol’s “Campbell’s Soup Can” are available for a total of 10101.art. However, there is actually no limit.
PH: Do 10101.art users use cryptocurrencies? buy Can these artworks also be used as fiat currency?
AK: Our team is currently working on that issue. So the only thing I can say is, stay tuned for our updates. social media! We will soon announce the start of fiat payments.
PH: if enthusiast I would like to purchase the entire artwork from 10101.art. Is that possible?
AK: It will be a separate procedure, but it is possible. If you are interested in purchasing the entire artwork, please feel free to contact us. We will be happy to assist you.
PH: What happens if not all tokens for a particular artwork are sold?
AK: If the painting is not completely sold within the allotted time, all issued NFTs will be burned and users will have a refund option.
PH: do art collector when they receive proof of ownership buy art work At 10101.art?
AK: of course. NFTs act as digital proof of ownership for a piece of purchased artwork. They exist on a blockchain that tracks ownership and verifies their authenticity. In addition, owners of new works of art will also receive a physical ownership certificate at the time of purchase.
PH: How do you decide which works to publish on 10101.art?
AK: Our goal is to provide people with the most promising works possible, and to achieve that we rely on a team of highly regarded art professionals and dealers from around the world . They meticulously evaluate each artwork based on several key factors.
One of the top priorities is artistic significance. We want to feature the work of some of the most influential artists in history, artists who have truly shaped the art world. These can be from any country or period, as long as the artistic influence cannot be denied.
Another important factor is recognizability. There’s power in iconic style. Our experts look for pieces that have a clear artistic identity, that is, the artist’s signature style is instantly recognizable.
Finally, reliability is extremely important. Our team carefully examines all documentation related to the work, including expert reports, certificates of authenticity, and clear ownership history. This process ensures that the artwork we provide is authentic and has a verifiable past.
PH: When new artwork is posted on 10101.art, how do we rate it?
AK: We obtain this information from our network of curators and art dealers and adapt it to our business model, with the principle of making works accessible to collectors while maintaining margins that allow our business to grow. I will stick to it.
PH: How do you handle the physical storage and display of those works? Are they publicly displayed?
AK: All artwork featured on 10101.art is housed at Monada Art Gallery in Dubai, DIFC. The gallery opened in 2023 and is now an official partner on exclusive terms who share our vision and mission to make art accessible.
PH: can art collector Visit their works Bought How can I actually see it?
AK: yes. Monada Art is open to anyone who wants to see our collection first-hand and get acquainted with art. We welcome all visitors, so if you would like to visit our gallery, we can arrange a tour with our gallery manager. Dayana.
PH: If it’s art collector I would like to sell my NFTs at a later date, will 10101.art eventually provide a secondary market for that?
AK: Yes, we are working on a secondary platform. We will announce the release on social media soon. Please keep posting!
PH: How has your background in finance influenced your approach to operating 10101.art?
AK: My background in finance has been extremely helpful in building 10101.art. Finance and art may seem like two different worlds, but financial literacy is extremely important in the art market as well.
For example, risk management is a core skill in both fields. As an art platform, we must carefully evaluate artists, sources of work, and market trends. This economic perspective helps guide 10101.art towards works with great potential for users.
Strategic thinking is also an important factor. Finance is about long-term planning. That’s exactly what we do at 10101.art. We’re not just chasing the next hot artist or trend. We are building a platform that will reshape the art market for years to come. Our goal is to make valuable art available to more people, while creating new ways to own it. By the way, let’s connect linkedin If this idea resonates with you.
PH: Can you give our readers a glimpse of any famous works of art you would like to see featured on 10101.art in the future?
AK: We intend to make each new arrival special because every new artwork in our collection is a priceless masterpiece. We are ready to surprise you, so stay tuned for the latest information.
PH: What are the most exciting trends you’re seeing in the art market today?
AK: Real-world assets are a big trend in today’s art market. More and more art tokenization platforms are emerging, such as 10101.art. Besides art, many other industries have started tokenizing valuable physical objects in real life.
At 10101.art, we’re not only witnessing this exciting trend, we’re leading it with a mission to make fine art more accessible.
