It's the same rod that Madara showed Obito before passing away.
It acts the same as a Orochimaru's curse mark, depending on the state of the person he/she gets controlled (limited) by the users will.
^^All depends on the state though
The benefits also works as Orochimaru's curse seal, though unlike turning into curse mark v1-v2 like Sasuke and all others...
This one contains sage chakra, which Madara said use my will in preforming the six path Justus.
So you can use all the Justus pain/Nagato used through the chakra/black rod without the rinnegan.
Yahiko's dead body is a fine example of that, he was able to use shrina tensei despite Nagato's real body having the actual rinnegan.
The eyes on the corpse of pain is a reflection of the users chakra.