According to Obito Uchiha, the sword is a holy artefact which Hagoromo had used to shape the world, and the blade was powerful enough to just as easily destroy it by his own hands. However, this sword was partially destroyed by Sasuke Uchiha's Susanoo Sword while enhanced by senjutsu and the chakra of Kurama.
The double-helix shape of the sword is most likely a reference to DNA, a molecule existing in all known living organisms.
The sword's name, as well as the legend of it being the tool used by Hagoromo Ōtsutsuki to "shape the world", is likely a reference to the Amenonuhoko (天沼矛, Literally meaning: Heavenly Jeweled Spear). In legend, Amenonuhoko was the spear used to shape the primordial land from the sea. It was later used by Izanami and Izanagi to create the first island, from which they then dwelt.