What it means to have BitShares SmartCoins

Holding smartcoins physically is equivalent to electronically holding the underlying asset of the smartcoin. For example, owning 10,000 bitJPY is equivalent to holding 10,000 yen in value.

If you possess 10,000 bitJPY, you have the right to exchange it for 10,000 yen worth of BTS (BitShares) at any time. This process of exchanging bitJPY for an equivalent value in BTS is called “settlement.” When you settle, you pay 10,000 bitJPY to the blockchain, and after 24 hours, the blockchain sends 10,000 yen worth of BTS to your BitShares account at the market value on the following day.