Alternating layers of hard and soft steel are 'forge-welded' together and folded back on themselves until the layers of steel with complimentary and diverse properties are stretched and spread throughout the blade.
Hard steel can maintain a sharp edge but will shatter when it strikes a hard object.
Soft steel will absorb the blow but cannot be sharpened.
Neither type makes a good blade but both have qualities that are useful in a blade. That is why Damascus or forge-welded or pattern-welded steel makes the best blades possible.
This is the exact steel I make these rings from. It has never been too acceptible to carry your favorite knife or sword to work school or even to the mall every day, so I made myself a ring so that I could carry a peice of damascus steel with me.