Blacksmithing is one of the crafting skills. To craft something, you use a Blacksmithing Hammer on an anvil with
the correct items involved. You often use materials gained from Mining and Lumberjacking. All recipes have one thing in common: One base item (goes on top of the anvil) and at least one material (inside the anvil). The higher your blacksmithing level is, the more things you can make. Blacksmith Urgo on Sattnyr Island explains the basics on how to make items.