What is Smart Tokens technology?
First of all, it is necessary to mention what exactly is the Bancor protocol. Bancor protocol allows creating networks of Ethereum Smart contracts, which can be exchanged directly on the chain between themselves. So, you can hold any Ethereum token (supported by Bancor) and convert it to any other Ethereum token. This feature is possible thanks to the Smart Tokens technology.
Smart tokens technology are standard Ethereum based smart contract. So simply said, smart tokens is some type of programming code defined in smart contracts based on Ethereum network. Smart tokens allow that you can convert Etherum tokens or DApps between themselves without any third party and directly on the chain.