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Murakumo Kurama uses the Kekkei Genkai of his family lineage to cast a genjutsu on to his opponents. Unlike the genjutus cast by the Sharingan, Murakumo does not need direct eye contact to cast this jutsu, and because of his Kurama Clan lineage allows the genjutsu to phsysically hurt those under its effects.
The foundation of this jutsu revolves around the creation of silhouettes or illusory beings that resemble that of a hundred samurai, hence the name. The entities are so realistic that they even have their own chakra pathway system, which can fool even the "all-seeing" Byakugan. When one of these entities is attacked, it vanishes like a ghost and then reappears.
