What a fascinating question in the original post (OP).
Gave me an excuse for a 30min coffee break - from work, home office - and a quick experiment.
Sincere thanks to my dear friend @daddycool for higlighting. ( FYI @daddycool - just the sort of question i love to tinker with - maybe you understood that ).
Okay, so some thoughts to share…
We have CD5 XS set up as transport - DC1 - nDAC + 555PS ( as digital source 2, on nDAC )
Also, ND5 XS2 set up as transport - DC1 - nDAC + 555PS ( digital source 1, on nDAC )
Method
Just played three pieces of music, first 60-90 seconds of each track.
First on CD using CD5 XS, as transport only.
Then, second, using local file - from Innous ZENmini mkiii S + LPSU - using it’s SSD archive, (which is ripped copy from the original CD that we also have and use).
Just to note, using Roon as UI, ( and ZM is running as Roon Core ).
Therefore, play back is via network to ND5 XS2, again as transport only.
For other system details, see bio’.
Test tracks
Nora Jones : Come Away With Me ( 2002 ) - Come Away With me
Hania Rani : Ghosts ( 2023 ) - Komeda
David Sylvian : Secrets Of The Beehive (1987) - Orpheus
All tracks very familiar, well known to me.
Played first 60-90 seconds of each track, CD v local file, compared.
In each case, went back and fourth - five times - and made some notes.
Results
My first impression, from playing CD first then listening to local file, was no discernable difference noted.
After repeated playing, started to discern some slight differences. Having noted local file streaming presentented more “tizz” or sparkle - at the high end - to the music. Also, picked up streaming local file had a little more “space” or “air” in the sound stage.
However, I would caution - in my opinion - these small differences are so small as to be not worth spending too much time considering. I had to really strain and concentrate to detect these marginal differences and it is still open to opinion which one might be preferred here.
My personal opinion - this result did not surprise me - as the two machines Naim CDP and Naim Streamer are pretty well balanced as sources. Also, all things being equal, using these two as transport only, the DAC is doing the real work here, for both sources. So, my instinct was this would come out very similar or equal. Any obvious differences heard being due to the source equipment or maybe the nature of media format.
As always, a caveat, my system, my room, my ears. Others may hear differently.
Image notes : A room and system, recently set up for - mostly - listening to digital sources, for CD and streaming. Plus, occasionally working from home.
As an aside, did not compare to streaming from Qobuz platform.
Although, interestingly did look at the Qubox versions available - for these albums - which I found to be as follows.
Nora Jones : Come Away with Me - FLAC 192kHz / 24 bit
Hania Rani : Ghosts - FLAC 48kHz / 24 bit
David Sylvian : Secrets of the Beehive - FLAC 44.1kHz / 16 bit **
** Note : Remastered 2003 version, which is recorded differently, arguable better ?
By coincidence, in each of these three cases, ( just happen to already know, from previously playing and experimentation), streaming the Qobuz version is significantly better, But this is not always the case and depends on the album, original recording, version available, file resolution or format, etc, as others have observed.
Quick reply to this comment
Yes, originally, our nDAC came into our house as a worthwhile “upgrade” for the CDP, to be used as transport with an external DAC.
Over the years - through experimentation - came to understand the nDAC offers a bigger “upgrade” for the CD5 XS CDP than for the ND5 XS2 streamer. Thoughts about this - maybe the internal DAC for the streamer ( in production from 2018 ) is a more successful implementation than the CDP ( in production from 2009 ). It’s all interesting.
Leave it there and resist getting into comments on the nuances and preferences for different media formats and the various ways to enjoy your music, all of which are good, because it is always about a love of music.
So there you go…
Hope that helps the discussion here
Happy listening
R