It’s like when you order furniture online. It’s far easier to ship it flat packed and have it reassembled once it reaches the destination.
The “preparing” part is it compressing the file down for transfer (shipment). Once it arrives on the other device, it will get uncompressed using Allen wrenches, alcohol, and a lot of profanity.
If you want to understand how dedupe or compression works, search the sub because that question gets asked a lot.
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