Blazor Server isn't 'magic'. It's built on a highly optimized SignalR Hub that manages the state of every connected user.
When state changes on the server, Blazor recalculates the 'Render Tree'. It then compares it with the previous tree and generates a 'Binary Diff'. This tiny diff is sent over the SignalR WebSocket to the browser, where a small Javascript file applies it to the real DOM. This "Sparse Update" strategy is why Blazor Server feels so snappy despite the network roundtrip.
Every user's state is held in a 'Circuit' on the server. If the connection drops, the circuit stays active for a short period (usually 3 minutes) allowing the client to reconnect and resume exactly where they left off. If the circuit times out, the user's state is lost.
Q: "How does Blazor Server scale?"
Architect Answer: "Scale involves **Sticky Sessions**. Every request from a specific user MUST land on the same server instance because their 'Circuit' is in that server's memory. To scale across multiple servers, you must use **Azure SignalR Service** as a backplane to manage these thousands of persistent connections, offloading the memory and CPU burden from your application servers."