SmartCoin (SMC) is based on the original Bitcoin, as made by Satoshi. The basis of security of the coins is in the control of your own keys - each individual that participates in the cryptocurrency market is responsible for storing the keys and having backups in case they are lost. Responsibility is the price that must be paid for financial freedom.

Here you could read more about how wallets work - https://www.reddit.com/r/dogecoin/comments/3b3h5d/eli5_how_wallets_work/
(Dogecoin uses a code base that is quite similar to SMC)