As soon as the character reaches level 90, he gets access to the blacksmith. You can get to it by clicking on the obscure pommel in the weapon shop.
The blacksmith offers the following services:
Dismantling Items for Resource Extraction
In order to use the blacksmith, some items must first be dismantled. Up to five items per day can be dismantled into their components.
You will be credited with metal and arcane resources. Normal items give a lot of metal, while epic items bring a balanced mix of metal and arcane resources.
Improve Attributes of Items
These resources can now be used to upgrade your items. An item can carry up to twenty upgrades, with each additional upgrade becoming more expensive. When an item with upgrades is sold, the player receives back all invested resources.
Provide Items With a Socket
If an item does not have a socket for a gemstone from your mine, it can be added by the blacksmith in exchange for metal and arcane resources. This upgrade is extremely expensive and should be considered carefully!
Remove Gem From the Socket
In some cases, you might want to continue using the current gem in your gear, but the item is now not good enough anymore.
With this function, the item will be destroyed, but you will get the gem back. You can now use the gem as usual and put it in the better item.
Change the Look of Epic Items
Especially if you carry an epic weapon for a longer period of time, the appearance could become boring. With the use of some mushrooms, it is possible to change the look of epic items at will.
Right-clicking on the item > "Change look" takes you to the selection menu for your new look. This means you can always fight with whatever epic weapon you like.
Swap Rune Bonuses of Two Items
It can also happen that you get a bad item with a good rune bonus. Of course you don't want to use that item because of the stats, but the rune bonus would be nice to have.
Some invested mushrooms make it possible for you at the blacksmith to swap the rune bonus of two items. This means the bonus is now on the item you want it on.