The DAC takes the digital signal output from digital devices and converts that to analogue. It has eight s/pdif inputs (four Coaxial, four TOSLINK) as well as two USB inputs (only for local stick replay or connected Apple iPod device).
You could connect a streamer’s digital output to the DAC, which would then send an analogue signal to your pre-amp.
Some DACs do have a built in volume control which eliminates the need for a separate preamp in some systems. Perhaps that’s what you’re thinking of, but the NDAC does not have this feature.
And that’s a consideration or my perception is that the Nova won’t need such. If you were to assign a percentage (which is so arbitrary) to the diff between the Atom and the Nova what would that be? Would the gap be larger or similar (5-10%) between them?
In another thread someone mentioned streaming to a DAC and directly into an amp. I though so anyway. For myself, I have zero physical copies of anything. (Mentioned before Hurricane Irene in 2011 ate everything.) I don’t see myself buying any now either, with Hi Res streaming what’s the point?
I’d like to think the Nova’s DAC is quality. That’s not an inexpensive toy itself. And I’d also hate to want to buy another and have the Nova operating solely as a source. If I thought that, I would buy separates.
Yes, probably they were referring to a Chord DAC or other model which has a volume control. The Naim NDAC can’t do that so you need a preamp or integrated amp for volume adjustment.
That’s also a bit difficult to describe in percentages yes, but if i would try i’d say it is roughly the same difference as from Nova to Ndx2 + SN3, so up to 20%. The Star would then fall somewhere in between.
And with what do you feed the nDac?
I use a Naim ND5xs2.
Okay but no external power supply I meant…
No worries. To be honest, a Power supply is next up for me. I’d love a 555PS but even 2nd hand they are expensive and hard to find in North America.
I feed my nDAC with an olive XPS, and drive it with flacs from a Synology NAS via an Allo USBridge Signature/DigiOne Signature/Shanti/MoOde Audio/DC-1 combo.
I’m quite content with it 
That’s not a word we hear a lot here “content”. 
Usually, on this forum, one is only content if stuck in an endless cycle of box upgrades or cable and switch fiddling 
welll, I did borrow the olive XPS from my CDX, so I should really get an XPS2 in black to match the nDAC…
oh dear, going back down the rabbit hole!
Yes you should ha - I have CD5XS/nDAC/XPS-2 in the classic black - love it , what a combo
Cheers
Bevo
I had a nova and it was great, but I now have a node2i and bifrost2 and it’s better for streaming. So I would go xs3 and nd5xs2 or go sn3 and node2i and an external dac!
I also had a Nova but recently found a refurbished ND5XS2 and SN3. The difference is astounding!
I fully agree. I don’t understand people who say that the SN3+ND5XS2 is marginally better than the Nova. Even my previous combination of a XS3 + ND5XS2 topped my Nova. The SN3 + ND5XS2 is a big step up and not a marginal step in my opinion.
I’ve got a bit of a dilemma when my SN2/HiCAP becomes spare when a 252/250 goes in. I run a Nova in our lounge and I also have a spare Heed DAC. I’m wondering whether the Heed and SN2 would outperform the Nova - I’d run it using the Apple TV as a transport via Roon. Another option is run the Nova and SN2 in power amp mode as a bi-amp arrangement, as I have two pairs of NACA5 cable. First world problems…