Hagoromo Ōtsutsuki

The was said to be the legendary figure who founded the ninja world and was the creator and first user of modern ninjutsu, essentially making him the first shinobi in the modern context of the term.

Background
According to Jiraiya, the Sage was a priest who appeared long ago in an age of endless war. He was the first to understand the true meaning of chakra, and tried to use his power and wisdom to lead the world to peace instead of war. The Sage travelled throughout the world, spreading his ideas and religion, which eventually became the techniques used by ninja of the modern era.

According to Madara Uchiha, when the Sage was on his deathbed, he entrusted his power and dream to two brothers. The older brother, who inherited the Sage's powerful chakra and spiritual energy ("eyes"), believed that power was the key to peace; and the younger brother, who inherited the Sage's willpower and physical energy ("body"), believed that love was the key to peace. In the end, the Sage chose the younger brother to be his successor. Overcome by bitterness and envy, the older brother attacked the younger one, beginning a war between them. Their struggle would continue on through their descendants: the Senju clan the Uchiha clan.

Centuries later the Rinnegan would resurface in Nagato. Nagato's connection to the Sage has yet to be explained, but Jiraiya believed that the Sage could have somehow been "reborn" as Nagato in the present era. Nagato himself has admitted being inferior to the Sage.

Appearance
Although depicted only as a silhouette, several details can be inferred about the Sage's appearance. He had long, spiky hair flowing backwards, in a style similar to Madara Uchiha's. He wore what appeared to be a cloak with a high open collar or armor similar to that worn by Hashirama Senju, showing his necklace with six magatama. He seemed to have horns on his forehead; this could be a forehead protector similar to the one worn by Jiraiya.

Abilities
He was shown carrying two objects. One was what appeared to be a sword across his back, whilst the other was a shakujō, a Buddhist ringed staff that is used in prayer, but can also be used as a weapon.

Rinnegan
He was said to be the only shinobi to have mastered the Rinnegan, which presumably laid the groundwork for the other two great dojutsu, the Sharingan and the Byakugan. He is revered as one of the most legendary figures in the Naruto universe, and is likely the strongest ninja that ever existed. He was so powerful that he was said to have created the moon using Chibaku Tensei.

Trivia

 * Pain's Deva path wore a necklace very similar to the one worn by the Sage of the Six Paths, although Pain's was black while the Sage's was white. This might be a reference to the fact that they were similar, as they both had the Rinnegan, whilst at the same time very different, as Pain's twisted idea of peace threatened to destroy the world the Sage had devoted his life to create.
 * The necklace of the Sage of the Six Paths might be a reference to the Yasakani Jewel; a legendary magatama necklace that is part of the Japanese Imperial Regalia, together with the Kusanagi Sword and the Yata Mirror. The Yasakani Jewel is the only one of these treasures yet to make an official appearance in the series.

Quotes

 * (As said by Jiraiya) "I am here to provide peace and order."