The authors discuss the concept of an active digital rod for high-precision leveling, based on using a display as a carrier of its digital code. The device is designed to overcome key limitations of passive barcode rods, namely the finite operating- and limited measurement ranges during the work, and pronounced dependence on external lighting conditions. The principle of the system`s functioning is outlined, involving dynamic formation of measurement patterns, using telemetry data, and arranging bidirectional information exchange with the leveling instrument. Potential advantages related to expanding the working range, increased accuracy in challenging conditions, and minimization of errors are analyzed, along with the systemic technological and economic barriers hindering practical implementation. It is concluded that, despite the complexity of development, this concept is of a particular interest for specialized tasks in the field of precision geodesy