In contrast to ReactJS, Compose doesn't have a "virtual dom" that works by "diffing" the before and after UI in order to handle performance. I'm curious to know how "smart" Compose's system is. Are there any sources about how Compose handles efficient performance handling? Couldn't really find any articles about it.

Did you have a look at https://medium.com/androiddevelopers/under-the-hood-of-jetpack-compose-part-2-of-2-37b2c20c6cdd ?

you can check those videos by @Leland Richardson [G] https://www.youtube.com/playlist?list=PLcgGtmZOsTwG6LqPut_BxX6w9DRr2unU6