In Episode 2 of the Serverless series, Sadek from Prismic and Guillermo from Zeit delve into the scalability advantages of serverless architecture, emphasizing its ability to handle varying traffic levels by independently allocating resources for concurrent requests. They discuss the fundamental principle that each serverless function invocation is independent, allowing applications to scale seamlessly without the limitations of a serverful model, where shared resources can lead to performance bottlenecks. Despite the challenge of initial loading times due to the "cold start" problem, the speakers highlight strategies for minimizing these delays, such as bundling code and dependencies at build time. This approach ensures that functions, particularly when deployed using frameworks like Next.js, can boot up quickly and scale both up and down as needed. The conversation underscores how serverless functions optimize resource usage by only activating on demand, allowing each page of an application to scale independently based on its popularity, thereby naturally adapting to fluctuations in traffic across different regions and times.