I've a question about this.
I used to think that "Damascus" steel was about the structure of the steel itself, accomplished through hammering and folding it lots of times.
But I read of people etching some wavy lines onto any old steel and calling it Damascus! Is this as fake as a henna temporary tattoo, or is it the real thing?
You've opened up a big ol' can o' worms here armie!
To keep it somewhat brief, when European Crusaders visited Damascus they encountered swords there with a distinctive wavy pattern to it. We now know that this was a (for the time) high quality steel produced by one or more crucible production methods (often known as Wootz steel), fundamentally different from the European method of producing steel from wrought iron, which introduces many inclusions and generally is a somewhat hetrogeneous product. The swords were thus more consistent than European swords of the time and so they could be better heat-treated. Therefore they were typically tougher, springier and maintained a better edge than European swords.
Of course even the most advanced swordmaker in all of Europe probably didn't know this. Over the years many people have attempted to reproduce the steel, either in performance or in appearance or both. One common method is 'pattern welding', where different composition steels can be hammer-welded into a laminated billet and then shaped as required. When polished (and especially when etched after polishing), these layers would show in a similar way to those swords first encountered in Damascus. However we now believe/know that the pattern on Damascus swords is caused by the very high carbon content of the Wootz steel. Hammer-welding steel laminates is an ancient and (then) practical method of homogeonising steel. Pattern-welding (in an effort to produce pretty patterns) has been practised since at least Roman times and possibly before.
So to return to the original point, 'Damascus steel' is a contraversial topic, though there are certain de facto conventions. To some (especially laymen) 'Damascus steel' is 'that pretty stripy one'. To others it is often 'the steel used for the swords first encountered in Damascus'. I try to be as precise and unambigious as possible and refer to 'pattern-welded steel', 'Wootz steel' etc.