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The Blacksmith is a place that sells and/or forges fused weapons, armor, and items. It is run by the characters Scott & Smith.
Power Master 1: A Strange Journey
In Power Master 1: A Strange Journey, the Blacksmiths are located in the towns of Dora and Yora. The Blacksmith in Dora is run by Scott and he deals in magical weapons, whereas the Blacksmith in Yora is run by Smith, who deals in magical shields and fused magic books. Both of which also sell Heal-All Health Vials and Mega Life Vials, and all of their wares cost a thousand Sers each.