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Orochimaru is one of the Sannins of Konoha ( Three Legendary Ninjas). He, Tsunade and Jiraiya was bestowed this title by Salamander Hanzou during their fight with Hanzou at the Country of Rain. The Sannins of Konoha are also disciples of the Konoha 3rd Hokage - Sarutobi.
Orochimaru was a genius ninja born into Konoha, and was seen by Sarutobi as the next protector of the village. However, Orochimaru was corrupted during his youth as he seeks to explore power and immortality. He murdered a lot of children and people in his sick experiment in cloning the 1st Hokage genetics. These murderous act including the desecration of the 1st Hokage body angered Sarutobi and Orochimaru was banished from Konoha.
Orochimaru created a technique in which he can transfer his soul into another body, thus rendering him ageless. He joined Akatsuki but not for long as he was defeated by Uchiha Itachi, in his attempt to control Itachi.
Orochimaru banded together with the Sand Village and assaulted Konoha. During his fight with Sarutobi, Orochimaru raised the 1st and the 2nd Hokage to fight Sarutobi. In the climatic end of this battle, Sarutobi used the 4th Hokage technique and sealed Orochimaru's hands away, forever rendering him unable to use ninjutsu.
In an attempt to restore his hands, Orochimaru persuaded Tsunade to help him, but to no avail. Tsunade and Jiraiya battled Orochimaru as a punishment for attacking Konoha and murdering the 3rd Hokage. Orochimaru lost heavily and retreated.
Orochimaru persuaded Uchiha Sasuke to be his student, as he know Sasuke also seeks power to murder Itachi. However, Orochimaru's true purpose is to obtain the Sharingan and Sasuke's body. In the end of his training, Sasuke murdered Orochimaru for his sins against Konoha.
A fragment of Orochimaru's soul still lives inside Kabuto as Kabuto seeks to revive Orochimaru.