Help understanding the digital signal for audio

You are asking two different questions.  First, the processing of the digital out from the Node is performed by the DAC.   This means the digital signal is converted into an analog form suitable for hearing.  Some DACs perform jitter reduction and other sonic improvements, some do not.   Check with the Venus spec sheet to find out what is does and how much it does.    Second, the Node is a streaming end point, not the source of the digital stream.   That means internet radio is the source and the node is the end point.   Likewise, if you have a ROON music server, the Node is the endpoint, not the source.   Both the source and the end point can have an impact on the sound.  

Hi I think there is confusion.  I have a bluesound Node 2i which is a streamer and also has a dac.  I go coax digital out of the node 2i which bypasses the inboard dac.

So would a more expensive streamer do something different than what the node 2i is doing?  Like less jitter? 

Thanks

Better sound as determined by ears. There is no reason to know why unless you are building one.

You can improve the 2i with a better SPDIF cable depending on what you got.