What makes SmartCoins unique is that their value is pegged to another asset, such as the US Dollar, gold, or another stable coin.
With this pegging, they might fluctuate when tied to gold or another resource with a limited supply or remain stable when linked to the US dollar. Because SmartCoins are always stable and have at least 100% of the BitShares core currency supporting their value, a central authority is not necessary.
They are an open-source peer-to-peer cryptocurrency that has the fungibility and divisibility properties needed to function as a currency. They make it possible to send fast payments to anyone in the world.
SHA-256 encryption is used by SmartCoins to prioritise security, enabling users to securely store their currencies in hardware wallets or even make their own paper wallets. Payment transfer assurance and transparency are provided by the public database that keeps track of transaction information and account balances.