To those with Digital Libraries - Some Questions...

99% of what is in my digital library was ripped from CD's, and I used a $30 external CD drive from Amazon into the Music app on my Mac Studio, and have it backed up in the cloud and in an external drive.

But I don't use it in my main system, which is CD's, LP's, and YouTube vids, only for my desktop system when working in Photoshop, and I just leave it on shuffle; connecting my Mac Studio to my Ruark MR1 V3 powered speakers via USB via PinePlay. Tried Audirvana, which sounded great, but Photoshop is too much of a resource hog and there were constant sound dropouts. 

I'm somewhat confused.  I have what I consider to be a good system that includes Accuphase components - A-48S, C2300, and my newly acquired DC-1000 DAC -  and an Innuos Pulsar Streamer. For 3 days my internet in rural Ontario has been down so I haven't had access to music as streaming is my only source for music.  

I was told by AI that Innuos recommends using WD Red SN700 2TB with a Sabrent EC-SNVE. FWIW, I can get both from Amazon.ca

So basically this is a high-performance solution for external music storage. It's my intention to formulate a local library of curated music. And when the internet is down I'll have music.  So how well does this actually work or should I just buy a CD transport and play cd's and basically start a CD collection.  

Sound quality is critical! I'm hoping someone with experience can jeep direct me.  Thanks

I have a vast collection of CD's and am still buying them, some new, some used, some old artists, some new.  I gave up on vinyl and my son now has my collection of about 400 albums or so.  I do use streaming but more so listen to my CD collection which is ripped to a Raid 1 NAS (2 - 8 TB drives).  I have the music also on my computer HD but only as a backup.  Not really needed as a Raid 1 is a backup system in itself.

I rip using Apple Music and store as Apple Lossless.  Could convert of FLAC but don't find it necessary.  

I have not purchased any digital files directly, so no experience with that option.

I have a Naim Uniti Star which is an all-in-one CD player/streamer/pre amp/power amp and I use the Naim software on my phone or iPad for playing my NAS library, CD directly or streaming.  I also have Sonos systems in other parts of my house and garage and use the Sonos App which can access streaming or my NAS.

I haven't found any difference between playing CD's directly vs from my NAS.  I'm sure others may have different experiences.

@fire_water  -- not sure what's so confusing. I stream from Qobuz and also use my local collection (65k tracks) which is always available even if the internet is down, though that's a rare event for me.  

The big question for you is how to create your local library.  Generally, one either rips CDs or you download files.  You'll need to rip CDs on your computer and copy to the storage drive, or download them and move them to the storage drive. (And don't forget you'll want backups in case something happens to the primary storage device.)  My understanding is the the Pulsar's Sense app works with an external USB drive, however I don't have an Innos product so can't offer any further details.  

@mlsstl thanks for the info. When I said "confused" I was implying if one method is better than the other in terms of sound quality.  Whether it's a purchase of a digital file or an actual CD I'm still purchasing music.  A digital file is quick vs a CD which you have to wait for. At this point in the game I'm just interested in sound quality but which is my understanding that this also depends on the master itself, correct?