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Kakashi is Team 7's sensai.  He is a jounin - high level skilled ninja or "adult ninja".  Kakashi is well-known in the ninja world as the "copy ninja".  The reason for this is that he can copy any or all ninja moves.  Here he is doing Bunshin no jutsu, which is the formation of pretend bodies.  This move is used to intimidate the enemy because it appears that the bodies are real.  There is no way to determine whether the bodies are real (from Kage Bunshin no jutsu) or fake (from Bunshin no jutsu) just by looking at it.


This is the main reason why Kakashi is able to copy everyone's ninja moves.  He has sharingan.  Sharingan is the ability to "see" the basics of the move and perform them just by looking at it once.  There is only one family that is known to carry this special ability in its blood, which is the Uchiha family (Sasuke's family).  However, the Uchiha family were all brutally murdered by Sasuke's older brother, which is the reason for Sasuke's revenge.