The system allows for storing years or decades worth of versions while facilitating a smooth transition from the old to the new version. Users can live in the past version or opt for the latest one by specifying in the header or through other methods. The platform maintains a single version of business logic and schemas, ensuring that developers are not overburdened with multiple versions. By writing converters for new versions, developers can easily manage the transition without affecting clients who do not need to switch versions.