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A smith machine is also a great machine to prevent injuries, as it is much safer to do most exercises when training by yourself.
There are different variations of the smith machine, but all of them essentially function in much the same manner. There is a fixed barbell that is between 2 upright steel rails - which allows the barbell to travel vertically or at a slight angle. In higher end smith machines there is a counter balance to allow for a smooth workout.
One big advantage when using smith machines is that they are much more easier and convenient to use than a barbell on a power cage or squat rack when doing a squat, deadlift, chest press, shrug or glute drive. It is also much safer.