Understanding React Server Components

React Server Components (RSCs) are a new feature in React that enhance its capabilities beyond being a pure rendering library by incorporating data-fetching and remote client-server communication within the framework. RSCs fetch data and render entirely on the server, resulting in improved performance and reduced bundle size. They work alongside Server Components for dynamic data fetching and Client Components for rich interactivity. The Next.js App Router offers a feature-complete implementation of RSCs, allowing developers to balance between Server and Client Components effectively.