Service Workers & Progressive Web Apps

What is the significance of the 'install' event in a Service Worker?
self.addEventListener('install', event => {
  event.waitUntil(
    caches.open('app-v1').then(cache => {
      return cache.addAll([
        '/',
        '/styles/main.css',
        '/scripts/app.js',
        '/images/logo.png'
      ]);
    })
  );
});
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