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If you want a good walkthrough of roughly how this process works without the complexity of the full React codebase, I'd suggest going through the "Didact Fiber" tutorial / explanation at https://github.com/pomber/didact , particularly https://pomb.us/build-your-own-react/ .
I strongly recommend reading/watching /u/swyx 's talk and post Getting Closure on React Hooks to see how this actually works under the hood. I've also got some additional links on hooks concepts and implementation here.