In React, the Virtual DOM (VDOM) is a lightweight copy of the real DOM (Document Object Model). It acts as an intermediary between the code and the browser's actual DOM, which significantly improves app performance.

Here’s how it works:

1. Initial Rendering:
   When a React component renders, a Virtual DOM tree is created based on the component's structure.

2. State or Prop Changes:
   When the app’s state or props change, React doesn't immediately touch the real DOM. Instead, it creates a new Virtual DOM tree reflecting the updated state.

3. Diffing Algorithm:
   React compares the previous Virtual DOM tree with the new one using an efficient "diffing" algorithm. It identifies the exact elements that have changed, without re-rendering the whole UI.

4. Minimal Real DOM Updates:
   After finding the differences, React batches and applies only the necessary changes to the real DOM. Since updating the real DOM is slow compared to in-memory operations, minimizing DOM manipulations leads to faster and smoother performance.

Key Benefits:

• Efficient Updates: Only updated elements are touched, not the entire UI.
• Better User Experience: Faster rendering means smoother UI transitions and interactions.
• Predictable Rendering: Since updates happen systematically via Virtual DOM comparisons, the app becomes more stable and predictable.

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