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So this makes things very similar to how Vue does things. Vue 3 with its encapsulated reactive library also works this way. But immediately I wonder how it works with React innards, do I have to optimize rendering? Does it do wasteful re-renders? How does it affect diffing?

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The optimizations on preventing unnecessary re-renders are well-documented here:

https://simpler-state.js.org/recipe-transforms.html

Thanks for your reply.

I used to see a lot of online sentiment that Vue would "take over" where React is used now. Is this still the case?

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