Rewriting the rules of the art market, one fragment at a time

In an industry often seen as exclusive and inaccessible, one company is determined to democratize the art world. 10101.art, led by CEO Alina Krot, is harnessing the power of blockchain technology to make classic art ownership a reality for the masses.

"Our main purpose is to bring the classic art market to the modern digital era and make it more ethical and reachable to people all around the globe," Krot told The Crypto Radio.

Krot's own journey began in the finance and blockchain spheres. "So, when I came to the project and I faced the art market with all its specific processes, it was super interesting," she explained. Recognizing the transformative potential of blockchain, Krot set out to bridge the gap between the traditional art world and the digital landscape.

The key to this transformation lies in 10101.art's innovative approach to ownership – fragmenting masterpieces into digital tokens. By allowing customers to purchase specific fragments of renowned artworks—for example, Mona Lisa's eye, joked Krot—10101.art is making art collecting more accessible, breaking down the exclusivity traditionally associated with the art market.

Krot's enthusiasm for the project is palpable. She fondly described the company's collection, including Picasso's "beautiful portrait of Dora Maar" and the captivating Nature Morte au Verre sous la Lampe, which she claimed as her favorite.

The role of NFTs

At the heart of 10101.art’s platform lies the power of non-fungible tokens (NFTs), which are unique digital assets that represent ownership of specific items or pieces of content on the blockchain. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and can be exchanged for one another, each NFT has distinct characteristics that make it irreplaceable.

By leveraging this blockchain-based technology, the company is able to create unique digital representations of physical artworks, allowing for secure and transparent ownership transfer. "I think that NFT is wonderful technology, and it stays with us and it develops," Krot said.

The number of tokens each artwork is broken down into varies, said Krot, explaining that this model is still being tested and refined. "It is varied because we still test different price ranges and we test different amounts of centimeters that you can own. For example, we have wonderful pieces from Dali that are super rare, and I think that prices per piece will be higher, but the piece that you get will be much bigger than when we split it, for example, into 1000 pieces and you have a very small price."

This flexible approach allows 10101.art to cater to a range of collectors, with higher-priced artworks being divided into fewer, but larger, tokens. Krot emphasized that this model enables a more equitable distribution of ownership, making it accessible to a wider audience.

The burning vote

In addition to ownership, 10101.art gives its community a voice in the fate of each artwork through a voting system, where token holders can influence key decisions, including whether to burn a piece. This process, while dramatic, requires unanimous agreement among all token holders to physically destroy the artwork, effectively removing it from circulation. 

When presented with the idea of burning Nature Morte au Verre sous la Lamp, Krot's expression shifted, and she laughed nervously. "Don't say so, please. It will be my personal tragedy." Krot emphasized that such a drastic measure would need every owner’s consent, ensuring that the community’s voice is not only heard but respected. This structure makes fractional owners stewards of the art but also reflects 10101.art's commitment to empowering its users while preserving cultural heritage.

Currently, all the pieces of art owned by 10101.art hang in Monada Gallery, Dubai, for anyone to see.

Community control

Furthermore, the platform plans to introduce a marketplace "where people can trade these tokens between each other. They can create their art portfolio. They can create their art collection where they have different percentage of different artists, and they can take part in the destiny and the future of different paintings and different authors and the project itself," Krot explained.

The secondary market for tokens will enable art collectors to actively buy, sell, and trade their fractional shares. As this market develops, we may see token values fluctuate, adding an investment dimension to art ownership.

With 10101.art's innovative approach and Krot's unwavering vision, the future of art ownership is poised to undergo a profound shift. By democratizing access and giving power to the people, they are rewriting the rules of the art market, one fragment at a time.

 

Listen to the whole interview on The Crypto Radio's live player or in the Crypto Culture podcast.