Use this skill to improve your equipment. Each improvement (max 3 per item) increases the stats of that item. These can be very helpful as equipment gets expensive quickly and the small stat improvements can make a big difference when battling enemies.
Items can require a certain amount of Blacksmith points in order to make the improvement. Increase your blacksmith points by wearing equipment with blacksmith stats.
Smithing Items – To improve an item, proceed to the house in the main town where there is a grinding wheel and furnace.

To improve an item, it must be unequipped and in your inventory. Tap on the grinding stone and scroll to the appropriate item you wish to improve. You will see the resources required to make the improvement. If you have the resources in your inventory you can simply upgrade the item then.
If you do not have the resources you can obtain them by battling enemies, mining or by purchasing them from a vendor or at the auction.