The block size in Bitcoin refers to the maximum limit of data that can be included in each block of transactions on the blockchain. The block size directly impacts the scalability of the Bitcoin network because a larger block size allows more transactions to be processed at once, potentially increasing the network's capacity to handle a higher volume of transactions. However, increasing the block size can also lead to centralization and potential security risks. Therefore, the debate around block size is closely tied to discussions about how to effectively scale the Bitcoin network while maintaining decentralization and security.
