Question about "timescale"

How does the timescale exactly work from the event calculating point of view? Does it slow down calculations? I'm asking, because I noticed that after setting timescale to 0.8, after quite a while, collision detection bugs didn't happen yet.

It just changes the value of dt.

At 60 fps with a timescale of 1, dt will be ~0.0166.

If you change the timescale the the fps will stay the same but the frame time ( which is usually dt) will be multiplied by the timescale to give a new dt.

So for example at 60fps

If Timescale=2 then dt will be about 0.0333

Or if timescale = 0.5 dt will be about 0.00833