Part 11/16:
Addressing scalability, Andreas states that while Bitcoin's current capacity is limited (~7 transactions per second), technical solutions exist—like transaction bundling, Merkle roots, and simplified payment verification—that can scale effectively. As storage and bandwidth improve (Moore’s Law), the network can grow to handle a vast number of transactions.
He further discusses the adaptability of algorithms: if SHA-256 were ever compromised, Bitcoin could transition to other hash functions like SHA-512 or alternative proof-of-work schemes. Contractually, protocol upgrades are possible through coordinated hard forks, ensuring continual evolution.