So recently, Chaz outright lied to a monster that it had to kill Torg in order to become his [Chaz's] master. This got me thinking. Most of what we "know" about Chaz's powers came from Chaz himself. And he has not always been entirely accurate.

As such, I decided to sort out what we have seen (facts), what we have heard (lore), and what I merely speculate (theory)

Facts:

• Chaz is a sentient sword, currently owned by Torg. His blade is usually yellow
• Sometimes when he comes in contact with blood, his blade turns black and starts glowing red ref
• This was usually human blood, but once it was the blood of a mutagenic squid ref
• When entering this mode, Chaz usually announces his presence
• When in this mode, the merest scratch from Chaz is enought to kill most entities. The only entity known to have survived it is the Demon King. ref - ref
• When in this mode, Chaz is also able to speak.
• Chaz has a soul, manifesting as a dagger in the spirit world. He is also able to talk freely there.ref
• Chaz's tip was bent when Torg used him as a piton.ref
• He straightened up the next time he was powered up. ref
  
• A blade with the same design and appearing to have the same powers was brought along with "Satin" to Mohakdun from Never by Kozoaku.ref
• Interestingly, this blade never spoke, and came already powered. It depowered sometime between "Satin" bringing it and Farahn returning with it. Correction by GUIGUI: The blade did speak in an unknown language.

Lore

• Chaz says he was forged by a blacksmith whose name was similar to "Bob". He also self-identifies as "Unholy Evil Deathbringer", "Weeping God" or "Chaz" ref
• He also claims that it is innocent blood that activates him.ref
• In the same comic, he also claims that he: Enhanced Torg's abilities in the war of the Bug Squishers
• is neither good, nor evil
• innocent is an inexact term, but one Torg would understand
• Chaz says that in order to slay a Demon Lord with him, you need to strike the center of his black soul. A Demon King, however, would be slain with a single slash. ref This has been proven false.
• Chaz says his body is nigh unbreakable. ref
• Chaz says he does not eat souls ref
• Chaz explains the squid powering him up by the squid being sentient. ref
• Chaz says he can only survive decades in a place with no ambient magic field, such as in space. He also mentions that he does masticate his victims' souls, which brings to question his previous comment about not eating souls. ref
• Chaz says that a Halloween monster will not become his master unless it kills Torg or he gives Chaz to it. ref This has been proven false. Probably on some contingency Chaz did not expect, such as the Demon King sword being hardened.

Theories

• The "Innocent blood" thing would be quite vague even if Chaz didn't say afterward that it is not the exact term. I don't thing Torg should judge if someone is innocent by his metric solely by whether or not Chaz is powered by their blood. It is a good indicator, but probably not perfect.
  To me, innocent means "Has never attempted (successfuly or no) to slay or purposefully torture another sapient being. Intentional assists (such as giving blood to empower Chaz) count as an attempt. Accidents in action or knowledge (not knowing of the victim's sapience) do not count."
  But I have no idea what Chazes definition of innocence is, or even if he spoke the truth about it being innocence that is needed.
• "Satin's" blade was probably Chaz. As to why he did not speak, perhaps he did not want to reveal this ability to Kozoaku, the Destroyer. Or he did not have it yet.
• Would Chaz be able to kill K'Z'K the Vowelless One (or Poopypants the Bug)? I do not know, Chaz did not actually answer the question when Torg asked. Which makes me think that no, he would not. Or perhaps worse, he would kill his demon form, freeing his soul to retake it's place as a pillar of reality.
• Is it just me, or has Chaz's empowered mode lasted increasingly longer time? The first time he was powered up on screen (Alt-Bert's self-impalement), it only lasted about 10 minutes. The charge from Fred lasted all the way to the fake Demon King abode. The charge from double-Kusari lasted a decent amount of time, I'd guess a few hours.
  And now Edda's blood powered it for a day or so.
  So this is my main speculation: Every time Chaz drinks blood of the "innocent", he not only gets empowered, but also his charge lasts longer than last time. Eventually, his charge would be permanent, at least until he changes masters. (As per "Satin" to Farahn)
  As to why he was not permanently active when Torgamus had he, perhaps Torgamus did not have a habit of killing people Chaz would consider innocent. It is entirely possible he used Chaz his whole life and never found out.

But Chaz actually spoke. It was just that he hadn't picked on the local language yet. He can be seen expressing himself through symbol.
Also, yes, it's definitely the same blade.

It could be argued that Chaz does not say he is the one eating them, only that him killing them will cause their soul to be masticated. Also, it was little of a bit between Torg and Chaz to make the guards talk.

My, my, now this something I hadn't noticed before, though in insight, it's not that surprising. But Chaz's soul form bear quite a resemblance with an other singinficant dagger, there:

It kind of seems like Chaz was unable to speak UNTIL he killed Kron...

I never noticed the symbol.

As for being the same blade, I do think so. But since Chaz never spoke of his memories from that time (at least that I know of), it is not 100% certain. Bob could be mass-producing such blades.

True enough. When I looked what "mastication" means, I found it means chewing. Perhaps he chews them then spits them out.
And yes, they were intimidating the guards, but judging from what Torg said next, at least the part about Chaz dying was real.

That proof seems rather dubious. Chaz didn't slash the Demon King. The Demon King (or his sword, but the sword seemed to be a part of him) scraped crosswise over Chaz. With a normal blade and a normal human, scraping across the edge is harmless, but even that was enough to seriously wound the Demon King. An actual cut would probably have killed him right away.

The Demon King slashed at the Goddess of Goodness with a sword made out of his essence.
This sword was, edge on edge, intercepted by Torg wielding Chaz. With normal swords, such impact would likely dent one or both of the swords.
As such, it should count as a slash against the Demon King.

Maybe its hardened aspect make it be similar to Horribus's biology and provide some level of protection?

Maybe. The Demon king had to harden it to make it effective as a sword.
Or perhaps Chaz's death effect spreads contact-wise at limited speed, and the sword not being an itegral part of his body, the Demon king was able to drop it in time.

And while so long as it was a part of him at all, Chaz's statement was not literaly truthful, I can't expect even a talking sword to think of every contingency.

I also doubt Chaz thought of the contingency that Kusari was just a clone body controlled by a computer mind. Despite Chaz's assurances, I doubt very much he could have killed anything more than the one clone body.