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What does it actually do when showing this message on the end of a installation?

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up vote 6 down vote accepted

During the "optimizing" stage, the system is "prebinding" executables. As per Wikipedia:

Prebinding is a method for reducing the time it takes to launch executables in the Mach-O file format.

Prebinding looks up memory addresses of symbols in libraries that the program is using before the program is launched, and stores this information ahead-of-time, so that the computer need not look up (bind) addresses on each launch.

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