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In the Naruto universe, the Sharingan is a bloodline limit or Dōjutsu Kekkei Genkai, which literally means "Copy Wheel Eye" or "Mirror Wheel Eye." Sharingan eyes are the distinctive hereditary Dojutsu of the Uchiha clan. However, they are not exclusive to the clan because they can be transplanted into someone else by an Uchiha.
The Sharingan was never actually created but acquired from Kaguya Ōtsutsuki's Rinne Sharingan, which was later passed down to the Uchiha clan. Along with Byakugan and Rinnegan, Sharingan is classified as one of the Three Great Dōjutsu. It selectively manifests among the members of the clan, enabling them to imitate any technique seen by it.
The two extremely potent abilities that come with the Sharingan activation are the "Eye of Insight" and the "Eye of Hypnotism."
The creation of Sharingan in Naruto explained
Sharingan is the bloodline limit that was acquired from Kaguya Ōtsutsuki's Rinne Sharingan. When the wielder of this kekkei genkai experiences a powerful emotional state, their brain releases a special chakra that affects the optic nerves, transforming the eyes into the Sharingan. For that reason, the Sharingan is described as an eye that reflects the heart in the Naruto universe.
Origin of the Sharingan
The original abilities of a Sharingan are believed to have been acquired from Kaguya Ōtsutsuki's Rinne Sharingan. Originally, Kaguya absorbed the god tree and was able to perform Infinite Tsukuyomi, and the entire process awakened her Sharingan.
According to the anime, Hagoromo Ōtsutsuki was one of the first Shinobi to use it in its independent form. It was given to Hagoromo by his mother, Kaguya, also known as the Mother Of Chakra. However, he was able to awaken his Sharingan when he saw his beloved Haori die to sacrifice herself for the sake of the Divine Tree.
Hagoromo's Sharingan developed over time, becoming Mangekyou Sharingan and then Rinnegan as its power increased. He would teach everyone about chakra and gain recognition as the Sage of Six Paths. Later, Indra Otsutsuki, the son of Hagoromo, received the Sharingan after his death.
Indra was the one who declared war against his brother, Asura Otsutsuki, as vengeance and hatred took over him. He even went so far as to kill two of his followers to obtain Mangekyou Sharingan.
The war continued for centuries, and Indra and Asura were eventually known as Uchiha and Senju, respectively. After years of hatred and fighting, two members of both clans, Madara Uchiha and Hashirama Senju, formed the Hidden Leaf Village as part of their peace agreement.
During the war, Madara Uchiha was the first Uchiha to use the Eternal Mangekyou Sharingan, as he was the first to obtain it. Later, quite a few members of the Uchiha clan were seen activating and using their Sharingan throughout the Naruto series.
Following the attack by the Nine-Tailed Fox on the Hidden Leaf Village, the Uchiha clan nearly went extinct as Itachi Uchiha was told to kill every Uchiha in the village. However, he couldn't kill his brother and left him in the village to join the Akatsuki.
After that, only Itachi, Obito, and Sasuke Uchiha were left as the clan's remaining three members. As a result, the Sharingan was solely held by Itachi, Obito, Sasuke, Kakashi Hatake, and Danzo Shimura during that time period.
In the ongoing Boruto: Naruto Next Generations manga, the only Uchiha members that possess the Sharingan are Sarada Uchiha, who is trying her hardest to learn and grow, and her father, Sasuke Uchiha, as Itachi Uchiha and Obito Uchiha, have already passed away in the storyline of Naruto Shippuden.
