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What does the "Optimize Version" feature actually do?

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Hi,

Curious what this feature is for?

Seen but steered clear of it due to lack of information. I have just added a sync account with Amazon Drive (which isn't working, seems to be a known issue on the Amazon end from other threads I have read). Anyway, I can see that when it tried to upload it first went through an optimisation process which worried me. What is this actually doing? Is it coverting my raw files to something else? I really don't want it to do that. Where are these coversions being stored and how to they benefit me and my Plex setup.

Thanks in advance.

Damien


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