Background
Madara in his youth.
Before the era of ninja villages, Madara and his younger brother, Izuna, were considered the most gifted members of the Uchiha clan. Even by his clan's standards, Madara's chakra was especially strong.[3] He grew up constantly competing and training with Izuna and in their efforts to surpass each other, each awakened their Mangekyo. With the power of the Mangekyō, the two brothers took control of the clan, with Madara becoming its leader. Under his leadership, the clan conquered all they came across. Because of the never-ending series of battles at the time, Madara eventually began to suffer from overuse of the Mangekyō Sharingan, leaving him blind. In order to regain his sight he took Izuna's eyes for himself, granting him an "eternal" Mangekyō Sharingan with which he led the Uchiha clan to prosperity.While Itachi claimed that Madara took Izuna's eyes without his consent,Tobi, while retelling this event to Sasuke, stated that Izuna willingly gave up his eyes to Madara for the good of his brother and clan. It is unknown which is true.
konohagakure is formed
Over the years, the Uchiha had constantly fought with the equally powerful Senju clan and as such, Madara had an undying rivalry with Hashirama Senju, the leader of the Senju clan. To bring an end to the constant fighting, Hashirama approached the Uchiha with an offer of peace. Although Madara never wanted peace with the Senju, the rest of the Uchiha wished to end the fighting, and Madara had no choice but to accept. The Senju, the Uchiha, and all the clans they had conquered came together to form the village of Konohagakure. Some time later, the villagers of Konoha selected Hashirama as the village's first Hokage, prompting Madara to contest him for the position. During the time he was a shinobi of Konohagakure, Madara approached Mū and Ōnoki where he informed them that despite the alliance that Iwagakure had made with Konoha, his village was to remain the dominant power and that from that point on, they would obey Konoha. Afterwards, Madara fought and defeated them when they engaged him in battle.
The battle that formed the valley
After realising that he would not be able to replace Hashirama as Hokage, Madara began to fear that Hashirama would begin to oppress the Uchiha and tried to rally support for challenging his leadership. Rather than help him, however, the Uchiha turned their backs on Madara, believing he only desired to rekindle the flames of war. Abandoned by his clan, Madara left the village, sought out Kurama, and subdued it using his Sharingan. He later returned in order to challenge Hashirama in battle. They fought at the site that would someday be called the Valley of the End, where Madara was beaten, despite controlling Kurama and having it at his side. Possession of Kurama was ultimately taken from him by Hashirama's wife, Mito, and Madara was believed to have died.
Madara survived the battle, and used Hashirama's DNA, which he had acquired on the battlefield, and transplanted it into his wounds. Though he noted that nothing happened at first, when he was nearing the end of his natural lifespan, he awakened the Rinnegan. He also acquired the Wood Release kekkei genkai, and with both Senju and Uchiha DNA — the ability to summon the Demonic Statue of the Outer Path. He later transplanted his Rinnegan eyes into Nagato without the young man knowing, and replaced his left eye with a spare Sharingan. When he met Obito years later, Madara had been reduced to using the Demonic Statue of the Outer Path as a life support system, constantly being supplied chakra by it or else he would die immediately. Also from the stolen cells of Hashirama, Madara used the statue to cultivate a living clone of Hashirama.
Madara survived the battle, and used Hashirama's DNA, which he had acquired on the battlefield, and transplanted it into his wounds. Though he noted that nothing happened at first, when he was nearing the end of his natural lifespan, he awakened the Rinnegan. He also acquired the Wood Release kekkei genkai, and with both Senju and Uchiha DNA — the ability to summon the Demonic Statue of the Outer Path. He later transplanted his Rinnegan eyes into Nagato without the young man knowing, and replaced his left eye with a spare Sharingan. When he met Obito years later, Madara had been reduced to using the Demonic Statue of the Outer Path as a life support system, constantly being supplied chakra by it or else he would die immediately. Also from the stolen cells of Hashirama, Madara used the statue to cultivate a living clone of Hashirama.
Final valley, Madara (left) and Hashirama (right)
In memory of their battle, two giant statues were built on opposite sides of the waterfall, Madara on the Land of Sound side and Hashirama on the Land of Fire's side.[2] The statues are making the Traditional Shinobi Sparring's Seal of Confrontation (対立の印, Tairitsu no In), which is protocol before a duel.
Years later, at the end of Part I, Sasuke Uchiha and Naruto Uzumaki fought at the valley. Naruto fought to bring Sasuke back to Konoha, while Sasuke fought in an effort to kill Naruto in order to gain the Mangekyō Sharingan. The battle was a draw, neither proving successful in their goals, but only Sasuke walked away under his own power. The statues of Madara and Hashirama received moderate damage during the fight.
In Part II, Tobi goes to the valley and sits atop Madara's statue as he muses over what path Sasuke will take.
Years later, at the end of Part I, Sasuke Uchiha and Naruto Uzumaki fought at the valley. Naruto fought to bring Sasuke back to Konoha, while Sasuke fought in an effort to kill Naruto in order to gain the Mangekyō Sharingan. The battle was a draw, neither proving successful in their goals, but only Sasuke walked away under his own power. The statues of Madara and Hashirama received moderate damage during the fight.
In Part II, Tobi goes to the valley and sits atop Madara's statue as he muses over what path Sasuke will take.
Madara's Sharingan/s
Madara's Original Mongekyo Sharingan.
Madara's Enternal Mongekyo Sharingan. (Claimed after extracting his younger brother's Mongekyo Sharingan(Izuna Uchiha.))