Graphically, very well done - although as Dadevster pointed out, the blurring could become a bit of a problem. Inlay effect (darker sections) are nice though, although I can't quite make out the pattern, if any. (For some reason I keep seeing a 'palm trees on beach' image. Go figure.)
Logically, an interesting attempt - although you've got at least one problem with it in logical terms. The two 'gaps' in the blade are close enough together, and individually large enough, that you've got a very small cross-section supporting the upper portion of the blade (aka 'the entire cutting surface'). This means a risk that after a few strong blows your blade might snap at that point.
The upper gap appears to be entirely decorative, so it's the one I probably would have gotten rid of (see above) when attempting the design. The lower one, for all its strange position, might make an effective swordbreaker if you could trap your enemy's blade in it - worth noting.
Something I can't quite tell - is that light-purple piece at the bottom a strip of cloth (indicating it's purely decorative) or a handguard?