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I know Shopify founder is a big fan of Rails and RoR framework from a documentary [1]

So does not surprise if he is doing this as an acqui-hire to get more quality RoR Devs to join Shopify!

[1] https://www.youtube.com/watch?v=HDKUEXBF3B4

are they not all-in on remix/js now? or is the backend side all still rails?

Does Remix come close to Rails in terms of dealing with things like auth and databases and such?

well it depends.. remix is just the compiler, your backend is just whatever node/cloudflare/whatever framework/libraries you want. so no, it's nothing like rails in the batteries-included sense, but if someone built their server using node previously, it's the exact same using remix

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