Much better, but to add onto what you said:
Genjutsu is a branch of Yin Release which is the ability to user our chakra in order to bring our imagination to life. It is a spiritual ability, honed through study and meditation.
Now genjutsu itself, is using your chakra to disrupt your opponent's chakra system and cause them to experience specific sensations which can affect one or all of his five senses.
Now these things don't happen for real, they are simple illusions that can be easily dispersed through several different means, such as pain, a chakra surge, or an ally to reset your chakra system. Now before you can do that, you have to make sure that you understand the technique is a genjutsu. It might be tricky for some, but that's the key to beating genjutsu. You don't need any special abilities, just plain old common sense really. Say for example, that I cause you to suddenly cause you to go blind. This is highly illogical, people don't just suddenly go blind out of nowhere, it's never happened to you before, and you can feel that your eyes are still open. In addition, I hadn't thrown a flash bomb, or smoke bomb, or whatever. Therefor, you can deduce that I placed you in a genjutsu. There are other ways to deduce you're in a genjutsu, such as by using a dojutsu to see your altered chakra circulatory system.
Speaking of dojutsu, the sharingan allows you to cast genjutsu on your opponents with mere eyesight, so it might be a good idea to avoid eye contact with them. In addition, they are able to break out of certain visual genjutsu (genjutsu that affect our eyesight), passively so it wouldn't be a good idea to use genjutsu on a sharingan user, since they can reverse it onto you, detect they're in a genjutsu, or place you into their own genjutsu. All this from the abilities of their eyes.
To break out of genjutsu with a chakra surge, the chakra surge will have to be at least 1 rank higher than the genjutsu you want to break. For example, if I want to break a B rank genjutsu, I could use Chidori Nagashi (A rank full body surge). Why is Nagashi a chakra surge? Because it releases a high amount of chakra through your chakra system from almost every single tenketsu or chakra point, and sort of flushes and resets your own chakra system to break you out of genjutsu. A better jutsu to use however, would be a simple Kai (you'll learn that here, although later where we'll go into more detail). However, using pain, depends upon the rank of the illusion and if it paralyzes you or not. If it paralyzes you, logically you won't be able to cut your palm with a knife to dispel an illusion. So in that case it's best to use a non handseal requiring chakra surge. Now then, in terms of pain a general benchmark was made by Scorps:
D Rank Genjutsu: Chipping a Finger (like one does as he bites to draw blood for a Summoning Jutsu)
C Rank Genjutsu: Low level Physical Attacks, Bitting a chunk of your Cheek
B Rank Genjutsu: Low ranked Taijutsu/Freestyle
A Rank Genjutsu: High ranked Taijutsu, Stabbing Yourself in minor muscle, Cutting yourself, Breaking Smaller bones, Low level Burning/Voltage, Painful Cold
S Rank Genjutsu: EIG/Sage level Taijutsu, Breaking Bones, Deep Stabs or cuts, Medium Voltage/Burning, Extreme Painful Cold, Bitting your tongue off
In addition to casting genjutsu via the eyes, you can also cast it via other mediums, assuming you have the skills such as sound.
Now genjutsu can also be layered, here's a great explanation of it (courtesy of Scorps):
This stands as the ability that the user and/or allies have of casting more than one non-conflicting genjutsu onto the same target, mixing illusions or deepening them. Any non-conflicting Genjutsu can be layered with another, as long as the highest ranked genjutsu is used first, and the lower ones afterwards, as if filling the gaps of the illusion. If an higher ranked genjutsu is used afterwards, it will overule the initial technique and break it. The user may stack up to 2 illusions together.
Ex: Genjutsu A - Creates Butterflies, A ranked.
Genjutsu B - Creates Squirrels, B ranked.
A + B = Butterflies AND Squirrels
B + A = Butterflies NO Squirrels
When releasing from Layered Genjutsus, the target must perform counter sufficient for the highest rank genjutsu of the "combo", thus countering all at the same time. Likewise, the target can individually break each layered genjutsu by using lower ranked genjutsu methods, but in essence its a less effective method. If 2 genjutsus of the same rank are used in the layering process, one needs only to use a release method capable of releasing either one or the other, and both are released. In combinations of Genjutsu, the rank of the combination is the rank of the highest genjutsu used.
Ex: Genjutsu A - Creates Butterflies, A ranked.
Genjutsu B - Creates Squirrels, B ranked.
Genjutsu C - Creates Birds, B ranked.
B + C or C + B = Squirrels AND Birds, combined B rank Genjutsu
A + B = Butterflies AND Squirrels, combined A-Rank Genjutsu
C + A = Butterflies NO Birds, A-Rank
If the Genjutsu are conflicting, then the highest ranked Genjutsu will always prevail over the other one, disrupting it and assuming it's place. If they're both the same rank, both are neutralized and the ilusions end.
Note: Layering two Genjutsu doesn't mean one escapes the normal rules of Time Frame. Casting 2 Genjutsu on a target takes the time needed to perform two moves of the time frame and cannot be done in a way that the target hasn't time to counter the first illusion if he is capable of doing so.
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