IS Damascus steel used in swords?

Answer 1

No, the technique for making Damascus steel has been lost over time.

The steel most commonly referred to as "Damascus" is actually "Pattern Welded", a process where two different grades of steel are folded together, creating a wavy pattern similar to that of Damascus steel. The purpose of this was to achieve a compromise between the flexibility of soft steel with the strength and edge retention of harder steel. Early Viking smiths are well known for having employed this technique, often twisting the center for artistic affect and then forge welding straight steel around the outside for the sharpened portion. The advent of modern alloy steels and heat treating technology has rendered this process obsolete, though it is still employed for aesthetic or historical reasons.