Where is the smart contract being used in this situation?
There's no smart contracts yet. Those will come out in 6 to 12 months and is part of the 2nd phase towards decentralization. I haven't decided on a code base yet.
I'm considering:
IBM HyperLedger
Eris Tendermint
Ethereum 2.0 PoS
Synereo
But of course another platform may come out that's better then all those.
At first the bitcoin blockchain and counterparty will secure the only digital asset. I'll begin a new blockchain and that digital asset will be moved over into the genesis block.
Last I checked the definition of a DApp was an App that utilizes smart contracts so... no smart contracts means.. :^)