The protagonist system is a talent entry system. Talent represents potential rather than strength.
For example, Haruno Sakura clearly possesses purple Chakra control, but at the beginning her potential is only that of a Jōnin, because without heaven-defying to change her fate, also known as the help of a noble person, she cannot realize her full strength and become a Kage-level powerhouse on her own.
At the beginning, the entry levels were divided into six types: white, green, blue, purple, gold, and red.
Purple and below entries have a lower talent limit of Ninja School students and a higher talent limit of Kage-level warriors, representing the Five Kage.
Even the top Five Kage, Bloodline Elimination: Dust Release is still a purple entry, because although Wood Style is two Nature Transformations, it is actually three Nature Transformations.
The lower limit of the gold entry is Kage-level, and the upper limit is Super Shadow.
Note that this is the upper limit Super Shadow, not Senju Hashirama, who has a red entry, Sage Body, and is fully capable of hurting Ten Tails Jinchūriki and sealing Rinnegan Ecto Madara Ultimate Super Shadow.
This entry is represented by Pain Six Paths and Ecto Nagato, as well as Eternal Sasuke and Perfect Jinchūriki Naruto.
The lower limit of the red entry is Super Shadow, and the upper limit is Six Paths.
Similarly, this Six Paths is also divided into many types, representing Six Paths Obito, Rinnegan Resurrection Madara, and Single-Eyed Rinnegan Sasuke.
The reason why Single-Eyed Rinnegan Sasuke is at this level is because he adopted the setting that Uchiha Madara said that two eyes are the strongest.
Moreover, One-Eyed Sasuke needs to absorb eight half-tailed beasts to be on par with Six Paths Naruto.
The author mentioned it twice when Tenseigan had fetal movements that to complete the final evolution of Tenseigan, it must be at a level above red.
For the new level of color, the author set it to start from the lower limit of Six Paths potential, and the upper limit is the Ōtsutsuki clan.
The characteristic must be horns.
The lower limit is represented by Ōtsutsuki Toneri, who has transplanted eyes and has horns in Reincarnated Chakra Mode; Six Paths Naruto, he has horns in Six Paths Sage Mode; Six Paths Madara, has horns...
The reason why Madara's Rinnegan is colorful is because of his talent, which can reach the lower limit of color.
He has two-eyed Rinnegan and seven Chakra Nature Transformations, and can completely learn Six Paths Sage Mode, and become Ten Tails Jinchūriki.