It depends on the brand, since there are several methods. The most popular method (the one used by [this brand](https://images-na.ssl-images-amazon.com/images/I/91kgpsYZI7L.jpg)) uses and ink that changes its chemical structure with heat. It goes from a color to being transparent when heated, then remains that way until cooled well below the original temperature. The “eraser” is just a rubber nib meant to generate friction. If you erase this kind of ink, then put the paper in the freezer, the ink will reappear.
Most use the friction to make heat. They use color-changing ink that changes from black to clear in the presence of heat, so when you generate heat from rubbing the eraser, it changes to a clear color. You can reverse it by freezing the paper you wrote on, and you can also erase it by putting the paper in the oven.
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