Hagoromo Ōtsutsuki

The was the legendary figure who founded the arts of ninjutsu and created the ninja world. He defeated the Ten-Tails and sealed it within his own body, thus becoming the first jinchūriki.

Background
According to Jiraiya, the Sage was a priest who appeared long ago in an age of endless war. He was the first to explain the truth about chakra, as he 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, the, which eventually came to be known as ninjutsu. His great deeds and true desire to bring peace to the war-torn world made him widely known as the.

Centuries before the beginning of the main storyline, the Sage defeated the most powerful demon in the ninja world, the Ten-Tails, being praised as a god by virtue of his victory. In order to protect the world from the Ten-Tails, the Sage developed a technique to seal the beast within himself, allowing him to harness and control its terrifying power, and making himself the first jinchūriki. Although he had successfully sealed the Ten-Tails, its power was so great that the seal would break after the Sage's death.

Aware of this, the Sage used his ability known as to divide the Ten-Tails' chakra into nine parts, which would become known as the tailed beasts. He then used Chibaku Tensei to seal the Ten-Tails' body inside a gigantic stone prison in the sky, thus creating the moon. It is later revealed that the Sage gave names to these beasts. The Sage would leave behind a tablet for his descendants, detailing his own history with the Ten-Tails. Only those who possess the Rinnegan can fully decipher what is written on the tablet, while a reader with a lesser dōjutsu can still partially interpret the information. Some time after he created the tailed beasts, the Sage told them that they would always be together even when separated, and that one day they would become one entity again with different names as well as forms than they did then when the time came for them to understand what true power was.

The Sage's ultimate wish to establish peace throughout the world was a goal that could never be achieved within his lifetime alone. Knowing that his end was approaching, the Sage entrusted his strength, dream, and legacy to his two sons. The older son, who inherited the Sage's "eyes" (his powerful chakra and spiritual energy), believed that power was the true key to peace. The younger son, who inherited the Sage's "body" (his powerful will and physical energy), believed that love was the true key to peace. On his deathbed, the Sage chose his younger son to be his successor. Overcome by bitterness and envy, the older son attacked the younger, beginning a war between them. Their feud would continue on through their descendants: the Senju clan and the Uchiha clan.

Personality
The Sage of the Six Paths was a man who desired peace for the world, and spread his wisdom throughout the world wishing for that dream to come true, having done several deeds and good actions throughout his life. He was exceptionally wise, having explained the principles of chakra and techniques to others and spread his religion towards others. With the tailed beasts, he seemed to care for them a great deal, such as giving all nine of them a name as a sign of who they are. He told them that no matter how far apart they are, they will always be together and someday be led down the right path. All the tailed beasts show they deeply care for the Sage, such as Son Gokū showing respect towards him and a young Kurama shedding a tear over his imminent passing, suggesting that the beasts viewed the Sage as a father-figure.

Appearance
Although depicted initially as a silhouette, several details can be inferred about the Sage's appearance. He had short hair that spiked up in the front with two distinctive pieces of hair that resembled horns. He wore what appeared to be a cloak with a high collar showing his necklace with six red magatama. These magatama designs were later mimicked by Nagato's Deva Path and the seal around the neck of Naruto's Nine-Tails Chakra Mode. On the back of his cloak was a stylised Rinnegan eye with nine magatama underneath it in three rows. In one of his appearances where part of his face could be seen, he was in an elderly state.

Abilities
Though not much is known about all the skills the Sage possessed, it's safe to assume that he was an immensely powerful individual. Even among today's standards, Kurama still considers him the world's most powerful individual, having been the only person to defeat the Ten-Tails, a being that was revered as a god, causing the Sage himself to be seen as a god. The Sage was also revered as the man to first understand the very nature of chakra itself. This wisdom, combined with his kekkei genkai, the Rinnegan, allowed the Sage to create the first modern ninjutsu. With such powers at his disposal, the Sage obtained a great following, as men and women from across the world strove to learn from his teachings. As the Sage's disciples grew continuously greater in number, it led to the creation of ninja clans, and later, ninja villages. It is impossible to overestimate the Sage's effect on the course of the ninja world's development. As the first true ninja, he created the ninja world, revolutionised it, and left it forever changed.

The Sage was shown carrying two objects. One was what appeared to be a large katana in his hand, whilst the other was a shakujō, a Buddhist ringed staff which is meant to be used in prayer, but can also be effectively employed as a weapon.

Rinnegan
The Sage was said to have been the only shinobi to have fully mastered the Rinnegan, allowing him to manipulate all five types of nature chakra. He is revered as one of the most legendary figures in the Naruto universe, and is most likely the strongest ninja that ever existed. He was so powerful, that he created the moon using Chibaku Tensei on his deathbed. Even Nagato stated that his power paled in comparison to that of the Sage's. The Sage was also said to have possessed all the abilities of the Six Paths of Pain.

Jinchūriki
The Sage developed the first technique capable of sealing a tailed beast inside a human body, making himself the very first jinchūriki in history. Having the Ten-Tails' great power contained within him, the Sage developed immeasurable power and chakra that far surpassed all others. Even on his deathbed, the Sage was able to employ his Chibaku Tensei technique on a massive scale and use that chakra to create the moon and seal the body of the Ten-Tails within it, a clear testament to his incredible power.

Yin and Yang Chakra
By using the Yin chakra, that comes from the spiritual energy, and the Yang chakra, that comes from the physical energy, he had the ability to create form from nothingness with a mere thought and then bring it to life. The Sage created the nine tailed beasts from the Ten-Tails' chakra by using this ability.

Treasured Tools
The Sage wielded unique tools which became known as the Treasured Tools of the Sage of the Six Paths, each of which possess a unique and powerful ability, but all of which require a vast reservoir of chakra, which would quickly kill any normal human, in order to be used. Being the jinchūriki of the Ten-Tails, this posed no problem at all for the Sage. The five treasures are: the Bashōsen, Benihisago, Kōkinjō, Shichiseiken, and the Kohaku no Jōhei. By combining the Benihisago, Kōkinjō, and Shichiseiken, the Sage (or any user) can capture the word soul of his victims, and then draw them into the gourd and seal them away. The Bashōsen can generate any of the five basic elements. The Kohaku no Jōhei can seal anyone without the elaborate procedures used for the Benihisago. The five treasures eventually fell into the possession of Kumogakure, and then into the hands of the Gold and Silver Brothers, who made use of the treasures in their criminal activities. Kumo however, managed to retrieve the Kohaku no Jōhei which was kept in the Raikage's office.

Legacy
As the many centuries passed the Sage ultimately faded into legend, his bloodline divided into the descendants of his two children: which would eventually form the Senju Clan, and through distant relationships the Uzumaki Clan, and the Uchiha Clan. The Rinnegan would later resurface, as the result of Madara Uchiha acquiring and integrating Senju DNA into his body. Though he noted nothing happened at first, when he was nearing the end of his natural lifespan, the dōjutsu awakened. With that, Madara managed to undo the Sage's seal on the vessel of the Ten-Tails by summoning it from the moon and formulated the Eye of the Moon Plan to become the Ten-Tails' new jinchūriki.

Because his pupil manifested the Rinnegan Jiraiya believed Nagato was the reincarnation of the Sage himself, though in reality, Madara secretly transplanted his Rinnegan into Nagato in the latter's youth, without him realising it — due to him being a descendant of the Uzumaki clan and the only one who could properly wield its powers at the time. Nagato however admitted that his own power paled in comparison to that of the Sage. Still others, such as Kakashi Hatake, saw the Rinnegan as merely a mutation. However, Kurama and Son Gokū's recognition of the Sage (and the tailed beasts' apparent status as the only survivors from the Sage's lifetime), lends credibility to his existence.

According to Kurama's flashback, the Sage told the young tailed beasts that someone would come and lead them on the right path. The tailed beasts would all later come to agree that this person was Naruto Uzumaki.

Trivia

 * The necklace that the Sage wore 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 Sage shares the same nickname with the Third Hokage, Hiruzen Sarutobi. They were both known as the.
 * Due to the Gold and Silver Brothers' ability to assimilate Kurama's chakra by eating some of its flesh, the Fourth Raikage suspected them to be distantly related to the Sage.

Quotes

 * (As quoted by Jiraiya)
 * (To the tailed beasts)