Looking for a bit more info on how videos are handled

I'm just testing out immich now hoping I can make it work for my use case.

For right now I'm just trying to get some info on how the videos are handled. What is purpose of the encoded_videos folder? Is that like a temp folder where videos go before they are transcoded?

Is there anyway to keep an original version of the video in the app as well as a transcoded version for viewing?