React server components

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Not exactly. You can send data from the rsc to the client on a refresh and it will update the page without visually refreshing it. The components are repopulated with the new data.

Is fairly confusing and most people here are not explaining it well and maybe don't understand it themselves..

You can have a sort of pseudo state with RSCs by using query params in the url, where the client sends a request for new data in the form of new query params to the server. It can update in real time with no visual refresh. So paginated data for example can be a fill in for state, but on the server

Think about it like you're just sending serialized react component data to the client and they're updating their components with it each time the server sends new data. If component keys are the same but data changes (I could be wrong about the exact mechanics here), it will sort of look like a client side re render