Yasha Clan

Hello! AND GREETINGS! I'll be your friendly neighbourhood moderator for the evening, I honestly really like the idea of this clan the YOUR BODY IS A SWORD THING! It's really cool.

First things first, this is just being nit picky, but technically you should call the jutsu a Special technique as a Kekkei Genkai is purely the mixture of elements. So basically, it wouldn't be a "release" it would be classified as a technique... but We're nit picking here.

I am however confused at this part, "form green energy blades that can slice through most substance instead of metal and diamond" I'm just not sure what you mean, do you mean they don'y have to use metal or diamonds, or the blades work better than both of those?

As For you History, you need to actually detail what the clan's history was, how it was formed, how it partook in large events and what not, give us an idea what kinda impact they have left on the world, all in all it's shaping up to be an awesome clan!

On your second point: You are using it incorrectly, as established by the manga. Nature Kekkei Genkai are, by definition, combinations of one type of elemental chakra with another, to create a "new" element. What your clan does, as currently proposed, is simply using nature and shape manipulation to make chakra blades, and then using these blades in swordfighting techniques. As written, this is not a Kekkei Genkai but Secret Traditions kept within the family, similar in practice to the Nara and the Akimichi Keep in mind that the Sharingan and the Uchiha is effectively extinct, so there is no chance of your techniques being copied anyway.

Since you're still working on your clan history, I'm going to move this back to WiP.

Fourth
I'll start off with what I had first then continue.

History: The Yasha Clan (夜叉一族, Yasha Ichizoku) is a powerful clan consisting of ninjas who possesses impressive strength, speed, agility, reflexes, endurance, and dexterity. They simply rely on short range techniques and close-range combatant taijutsu. They lead on more as ninja assassins rather than traditional ninjas. They are affiliated with 風 Wind Release-based techniques and good with Kenjutsu, using their bare hands as weapons imbued with air pressure for annihilating their enemies. Being based off wind, the Yasha clan's fighting style is precise and fluid that focuses on grace and aerial attacks, almost as if they are not wasting no movement in their strikes.

The Yasha clan (夜叉一族, Yasha Ichizoku) had been created since the reign of the first Kazekage, being formed by one of the third nephews of the First Kazekage. Their power was brought out into action by dangerous missions, clan rivalry, and pervious wars. Their power had also been sought out by S-rank missing ninjas for experiments in Otogakure, having the lust for utilizing green energy blades inside of their body without the use of any sword.

The First Kazekage's third nephew was a master of the Wind Release and somehow figured that Kenjutsu would be very suitable in combat. Concentrating chakra in his body and condensing it as wind, he swung his left hand in a blocking motion and a green energy blade was released from his fingertips as whip-like blade that extends its length. He named it Blade Release. He taught it to his family at a medium age and the Kekkai Genkai has been passed down from generation to generation.

After the reign of the First Kazekage ended, The Second Kazekage took control of Sunagakure. He did not care of the Yasha clan and that the new leader was a female descendant of the First Hokage's Third Nephew, the leader of the clan. But when the Second Kazekage researched the jinchuriki and saw the One-Tailed Shukaku on a rampage, the Yasha clan were there at the Second Kazekage's aid. For further study, the one-tailed beast was sealed into different hosts for further study, none of which were part of the Yasha clan.

Soon after the Second Kazekage reign ended, the Third Kazekage took role as Kage of Sunagakure prior to the Third Shinobi War. Being the most powerful Kazekage in Sunagakure, the Yasha clan was then ruled by the second son of the female ruler during the time of the Second Kazekage's reign. The second son had mutual respect for the Third Kazekage as the Third Kazekage viewed the Yasha clan as a special clan, a clan that has a Secret Tradition kept in the family. Third Kazekage put the younger members of the Yasha clan into D-rank missions, having them complete in little time. The mid-age members, age Twenty-One through Twenty-Five, were put to work in A-rank missions. Third Kazekage talked with the Yasha clan ruler and asked him about the history of the clan. The ruler said that it started as the third nephew of the First Kazekage and continued on since. Since the Yasha clan were used more as assassin shinobi than regular ones, the Third Kazekage saw that as ludicrous. He felt that the Yasha clan should use their abilities not for killing, but for providing assistance for those in need.

After the Third Kazekage's time ended, the Fourth Kazekage came into power. Being as kind as he is, he let the Yasha clan see the birth of his son, Gaara of the White Sand. The Fourth Kazekage was kind to the Yasha clan and brought them their own village out in the east, near the village. Seeing Shukaku on a rampage because of Gaara's unstability to control his power, The Fourth Kazekage instructed the assassination of his own son, and used the Yasha clan for that. The Yasha clan were unsuccessful in doing so, six times. Later when Gaara learned to manifest and control his abilities, the Fourth Kazekage forgave him and told the Yasha clan that it was now useless to assassinate him. The leader, first son of the previous ruler during the Third Kazekage reign, Farron's grandather, understood this. He let his son, Farron's father, train with Gaara, Sand Release vs. Blade Release. Seeing the battle, the Fourth Kazekage and Farron's grandfather saw it as a tie as Gaara and Farron's father became good friends over the years.

After Gaara's father, the Fourth Kazekage, time ended in the assassination by Orochimaru, Farron's grandfather saw to it that Orochimaru must be destroyed. Farron's father said it does not concern us but Farron's grandfather did not listen. The Yasha clan stayed in Sunagakure, seeing that going to Otogakure was pointless. The Yasha clan blended in with Sunagakure ninja, younger memebers going to the academy, being genin, chunnin, then jonin, ANBU, but never going to Kage rank. Elder members stayed in the Yasha village as their time was passing.

Gaara's reign, the Fifth Kazekage. That time, Farron was born, being the heir to the Yasha clan. Also the time when Farron's father and grandfather started the fight, ending with annihilation of the Yasha clan and the village destroyed and subdued to a sand-like wasteland. Now, everyone knows little of the Yasha clan, except that Farron's father was the destruction behind the massacre and that Farron now has to carry on as the Yasha ninja in Sunagakure.