Since the beginning of the television series, the Naruto power structure has remained largely unchanged. Shinobi shaped the chakra energy that exists within them and used hand gestures to channel it into ninjutsu and genjutsu attacks. Senjutsu added environmental natural energy to the mix, but Sage Mode's effects weren't all that dissimilar from what chakra could accomplish.
Scientific ninja tools introduced by Boruto have broken the mold and allowed common citizens to keep up with traditional shinobi to some extent, but its most recent innovation, Shinjutsu, threatens to completely overtake them.
In Boruto, Otsutsuki Shibai and the Development of Shinjutsu
Shinjutsu, according to Amado Sanzu, was an ancient ninja art practiced solely by the now-deceased Otsutsuki Shibai. Shibai excelled at the Otsutsuki commission during his lifetime. He subjugated many planets, compelling all life forms to feed a Divine Tree. Shibai would move on to another planet after consuming the fruit it bore, continuing his never-ending intergalactic genocide. Shibai's power from eating all those Divine Fruits approached godhood after millennia of repeating this cycle.
Shinjutsu is the term used to describe Shibai's extraordinary skills. Shinjutsu, in contrast to conventional ninjutsu, which is constrained by a shinobi's chakra pool and experience, allowed Shibai to perform divine deeds. He could easily outperform even the most skilled ninjutsu without using hand signals. With a wave of his hand, he could control the wind's forces, and he could use Shinjutsu to give himself the most ridiculous powers—some that were utterly unrelated to the abilities that Naruto fans typically associate with chakra. According to Amado's theory, Shibai was seeking deification and sacrificed his mortal body to exist in a higher realm.
Shibai's "death" made it possible for Shinjutsu to be distributed among the Kara members. Shinjutsu, unlike ninjutsu, cannot be learned; it can only be manifested in someone who has had some form of Shibai's DNA transplanted onto them. Naturally, this is limited to Kara inner circle members and potential Otsutsuki resurrection vessels. Shinjutsu is demonstrated by Boruto's and Kawaki's karma and derived jutsus, as well as Code's black bands, Daemon's psychic damage reflection abilities, and Isshiki's disruption cubes. Each of these abilities was originally Shibai's and has now been co-opted by the Kara institution to serve their own purposes.
How Shinjutsu Differs from the Classical Ninjutsu of the Naruto Franchise
Boruto's Shinjutsu cannot be described as simply unlimited ninjutsu. Members of Kara and the Otsutsuki have already demonstrated how Shinjutsu demolishes even the two most powerful practitioners of traditional ninjutsu, Naruto and Sasuke. Attacks aimed at disrupting the chakra network, such as genjutsu and the Hyuga's Gentle Fist, are ineffective against Shinjutsu users because they do not require users to mold or control chakra at all.
If using a computer with a guest account were the equivalent of ninjutsu, Shinjutsu would be equivalent to using a computer with full administrator rights. Amado said the practice of weaving signs and concentrating one's chakra to use ninjutsu was just a pale imitation of what Shinjutsu is capable of, and that Shibai Otsutsuki's level of power was unprecedented. This development is consistent with what Naruto has already said regarding the ninjutsu and chakra's historical roots.
The abilities shinobi use were always passed down from the Otsutsuki. Amado’s surprise revelation of Shinjutsu merely adds insight on how watered down the Sage of Six Paths’ ninshu was, and sends the villains of Boruto a whole new level of danger.