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Application state management
Although useReducer and useContext have many sound use cases by themselves, when they are combined they offer a way to acheive a system of global state management, without utilising third-party libraries like Redux.
Requirements
The Context API combined with a reducer addresses the following needs:
- be able to consume global state from anywhere in the component hierarchy without prop-drilling
 - update global state from within child components from anywhere in the component hierarchy
 - access, maintain and update complex structured data (arrays/objects) not just single values, as global state
 
Implementation
In essence the approach is as follows:
- Create a context provider that houses the global state object
 - Attach this state to a reducer function that operates on the state object through dispatch methods
 
First off, our initial state and overall state object:
const initialState = {
  count: 0,
};
Next, we create our context. This is what we will invoke when we want to consume our state.
export const CounterContext = React.createContext({});
Now we need a reducer that will handle the state updates. We will just use the same setup as we used in the example of useReducer:
function reducer(state, action) {
  switch (action.type) {
    case 'increase':
      return {...state, counter: state.counter + 1};
      break;
    case 'decrease':
      return {...state, counter: state.counter - 1};
      break;
    case 'increase_by_payload':
      return {...state, counter: state.counter + action.payload};
    default:
      throw new Error();
  }
  return newState;
}
Finally, we need to make a provider as a top-level component that receives the reducer's state and dispatch methods as props:
export const CounterProvider = ({children}) => {
    // We pass our reducer function and initial state to useReducer as params
    const [state, dispatch] = React.useReducer(reducer, initialState)
    // We create our provider and pass the reducer state and update method as props. This is the provider to the CounterContext consumer
    <CounterContext.Provider value={{state, dispatch}}>
        {children}
    </CounterContext.Provider>
}
Now whenever we want to consume or update our global state, we can invoke the context within a lower-level component, for example:
const {state, dispatch} = useContext(CounterContext);
dispatch({
    type 'increase_by_payload',
    payload: 4
})
console.log(state.counter) // 4