What are bitcoins ?
Bitcoins are a peer-to-peer digital commodity. Peer-to-peer means that there is no central authority to issue new bitcoins or to keep track of transactions. Instead, these tasks are managed collectively by the nodes of the network (by using cryptographic techniques).
More detailed explanations can be found at bitcoin.org.
The smartBTC project
The main goal of this project is to create a smartcard and accompanying software to be able to use bitcoins very much like we use ordinary bank cards today to do our purchases, whether it be online or at the local supermarket.
Both merchants and end-users will benefit as transactions are 100% standard bitcoin transactions: low (at the moment probably zero) fee, no annual costs for equipment or cards, ...
Details can be found in the About section.