Bluesound Node2 with outboard DAC

I use my Node 2i with my Denafrips Pontus II and I’m very happy with the results. Another vote for going the separates route.

I'm glad you asked this question because the very same one has been on my mind!

I just really got everything figured out with sub and speaker positioning, crossover settings and the like. It really is sounding fantastic now. I have the Node but I am using the built in DAC on my Parasound Integrated which has 

• ESS Sabre32 Reference DAC (ES9018K2M)

Now. I see the reasoning given for doing separates and it makes sense. I was researching Streamer DAC combos but they always had features that I don't really need like ripping and storage. I just want something I can put in the chain to give me an improvement on DAC capabilities sound wise. Considering the DAC I have what would anyone say is an improvement over what I have as far as chip set? I've read info on DACs until my eyes crossed!

Simple answer, an expensive DAC will improve it but it will hold it back.  The internal DAC is pretty good.  Against my Emotiva XDA DAC and my Rotel RC-1572 preamp's DAC it was better.  Not much, but slightly more open sounding.  When I hooked up it to my McIntosh C47's internal dac there was a major upgrade in sound quality, but it was still compressed sounding on the top end.  

Like mrklas, I got a Moon 280d.  It's a amazing DAC but didn't help the sound much.  Got more detail over my C47's DAC, but the Node 2i was still compressed sounding.  Now streaming with the 280d was no comparison.  More dynamic, more detail, better imaging, bigger sound stage, and just about every aspect was a major upgrade.  The only downside about the 280d is that you need to use the horrible app to stream tidal (no tidal connect) and even Spotify connect is rather buggy.  Roon works perfectly fine on both platforms.  Basically you're trading ease of use for far superior SQ.  

If you're looking to drop 3-3.5k then grab the 280d and don't look back.  The Lumin D2 is a bit cheaper, better app but is a streamer only with a bit warmer, less detailed sound.  Equally as good but you lose the DAC.  

I bypass the dacs in the streamers I own. I have Aurrender n100,BS node and Cambridge Audio Cxn v2. In my main system I use the CA hooked to an Audio GD 7r he mk2. Can't tell any difference between streamers but the dacs are night and day difference.