When a hidden service starts, Tor selects several relay nodes from the Tor network to serve as introduction points. The hidden service establishes persistent Tor circuits to each introduction point. These circuits are maintained throughout the service's operation; if an introduction circuit breaks, Tor establishes a new one to the same or a different relay.
Introduction points do not know the location or identity of the hidden service they are serving. They know only their onion layer circuit key for the circuit connecting to the service. From the introduction point's perspective, it is simply a relay that maintains a circuit with an unknown origin. The introduction point receives encrypted connection requests from clients and forwards them toward the service through the circuit, but cannot read the contents because they are encrypted to the service's public key.
For v3 hidden services, introduction point encryption uses the service's ed25519 public key derived from the hs_ed25519_secret_key file. Each introduction point is given a signed authorization that proves it is a legitimate introduction point for this service, preventing other relays from claiming to be introduction points for a service they do not have a circuit with.