Infinite Tsukuyomi

The is a technique which is the key to Madara's Eye of the Moon Plan.

Description
By establishing eye contact with only a standard Sharingan, the user can create an empty dimension under their control, which can be then filled with contents of his or her desire, using the power of the Shinju to do so. While physically tethered and connected to the Demonic Statue of the Outer Path, Madara can manipulate the otherwise blank and white world to create anything he wants no matter how detailed, and control it. By doing this he can create a world exactly as he wants.

To trap every human being in this genjutsu, however, the Shinju eye has to reflect onto the moon's surface. In order to do this, (with the exception of Kaguya) one must become its jinchūriki while possessing the power of the Rinnegan and fly closer to moon. Once the Shinju's eye is ready, either by blooming at the top of its original tree form or by the third eye of its jinchūriki's forehead, it finally casts the genjutsu off the surface of the moon. Upon casting, the light from the moon's eye will illuminate the entire planet, turning it bright as day, making it impossible to escape.

As a result every single person and animal is immediately placed under the genjutsu with a Rinnegan pattern reflected on their eyes, but before being enraptured by the God Tree's roots they still have the ability to think normally.

Upon capturing the victims with the genjutsu's light, the user then can use God: Nativity of a World of Trees to capture the physical bodies throughout and assimilating said persons into the Shinju. Once this is done, the person is locked in a permanent genjutsu yet will live endlessly from the Shinju's power.

Defences

 * Sasuke Uchiha was able to use his Susanoo and presumably the power of his own Rinnegan to counter the effect of those shielded by him.
 * Reincarnated shinobi are not affected by this technique, nor are the artificially created minions of Madara.

Limited Tsukuyomi
In Naruto 6: Road to Ninja, Obito casts a trial version of the Infinite Tsukuyomi, the, on Naruto and Sakura, which provides the alternate reality setting of the movie. Instead of casting it off of the moon, he instead used a crystal ball to serve as a medium to cast and host the alternate world.

Trivia

 * In Naruto 6: Road to Ninja, when Obito uses the Limited Tsukuyomi and the reflected eye of the Ten-Tails appears, it has seven tomoe, representing the number of tailed beasts Akatsuki had captured at that time.