// Good: derive during render
function Cart({ items }: { items: CartItem[] }) {
  const total = items.reduce((sum, i) => sum + i.price * i.qty, 0);
  return <span>{formatMoney(total)}</span>;
}

// Bad: derived state stored separately
function Cart({ items }: { items: CartItem[] }) {
  const [total, setTotal] = useState(0);
  useEffect(() => {
    setTotal(items.reduce((sum, i) => sum + i.price * i.qty, 0));
  }, [items]);
  return <span>{formatMoney(total)}</span>;
}

Used by one component?
  -> useState inside it

Used by parent + a few descendants?
  -> lift to nearest common ancestor

Used across distant branches AND low-frequency reads (theme, auth, locale)?
  -> React Context

High-frequency updates shared across the tree?
  -> external store (Zustand, Jotai, Redux Toolkit)

Derived from a server?
  -> server-state library (TanStack Query, SWR, RSC fetch)

// Server Component - default, async, never ships JS for itself
export default async function ProductPage({ params }: { params: { id: string } }) {
  const product = await db.product.findUnique({ where: { id: params.id } });
  if (!product) notFound();
  return <ProductView product={product} />;
}

// Client Component - opt in with "use client"
"use client";
export function AddToCartButton({ productId }: { productId: string }) {
  const [pending, startTransition] = useTransition();
  return (
    <button
      disabled={pending}
      onClick={() => startTransition(() => addToCart(productId))}
    >
      {pending ? "Adding..." : "Add to cart"}
    </button>
  );
}

<ErrorBoundary fallback={<ErrorView />}>
  <Suspense fallback={<UserSkeleton />}>
    <UserDetail id={id} />
  </Suspense>
</ErrorBoundary>

"use client";
import { useActionState } from "react";

const initial = { error: null as string | null };

async function updateUserAction(_prev: typeof initial, formData: FormData) {
  "use server";
  const parsed = UserSchema.safeParse(Object.fromEntries(formData));
  if (!parsed.success) return { error: "Invalid input" };
  await db.user.update({ where: { id: parsed.data.id }, data: parsed.data });
  return { error: null };
}

export function UserForm() {
  const [state, formAction, pending] = useActionState(updateUserAction, initial);
  return (
    <form action={formAction}>
      <input name="name" required />
      <button type="submit" disabled={pending}>Save</button>
      {state.error && <p role="alert">{state.error}</p>}
    </form>
  );
}

<Layout>
  <Header />
  <Main>{content}</Main>
</Layout>

<Page header={<Nav />} sidebar={<Filters />}>
  <Results />
</Page>

<Tabs defaultValue="profile">
  <Tabs.List>
    <Tabs.Trigger value="profile">Profile</Tabs.Trigger>
    <Tabs.Trigger value="settings">Settings</Tabs.Trigger>
  </Tabs.List>
  <Tabs.Panel value="profile"><Profile /></Tabs.Panel>
  <Tabs.Panel value="settings"><Settings /></Tabs.Panel>
</Tabs>

<DataLoader id={id}>
  {({ data, isLoading }) => isLoading ? <Spinner /> : <UserCard user={data} />}
</DataLoader>

function useDebounce<T>(value: T, delay = 300): T {
  const [debounced, setDebounced] = useState(value);
  useEffect(() => {
    const id = setTimeout(() => setDebounced(value), delay);
    return () => clearTimeout(id);
  }, [value, delay]);
  return debounced;
}

function SearchBox() {
  const [query, setQuery] = useState("");
  const debounced = useDebounce(query, 300);
  const { data } = useQuery({
    queryKey: ["search", debounced],
    queryFn: () => searchApi(debounced),
    enabled: debounced.length > 0,
  });
  return (
    <>
      <input value={query} onChange={(e) => setQuery(e.target.value)} />
      <Results items={data ?? []} />
    </>
  );
}

"use client";
import { useOptimistic } from "react";

export function MessageList({ messages }: { messages: Message[] }) {
  const [optimistic, addOptimistic] = useOptimistic(
    messages,
    (state, newMessage: Message) => [...state, newMessage],
  );

  async function send(formData: FormData) {
    const text = String(formData.get("text"));
    addOptimistic({ id: "pending", text, sender: "me" });
    await saveMessage(text);
  }

  return (
    <>
      <ul>{optimistic.map((m) => <li key={m.id}>{m.text}</li>)}</ul>
      <form action={send}>
        <input name="text" />
        <button type="submit">Send</button>
      </form>
    </>
  );
}

// Two contexts: one rarely changes, one frequently
const ThemeContext = createContext<Theme>("light");
const NotificationsContext = createContext<Notification[]>([]);

// A component that only consumes ThemeContext does NOT re-render when notifications change