The Provider component makes the Redux store available to every component nested inside it, without passing the store down as props. You render it once near the root of the app.
It works through React's context. Provider puts the store instance into context, and the useSelector, useDispatch and connect APIs read it from there. Context carries only the store, not the current state. So a state change does not re-render everything under Provider. Each component subscribes to the store and re-renders only when its selected data changes.
Rewriting in plainer words…
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