Xbox One - Disc or Digital

Okay, I can't seem to find a good enough answer to my question.

What are the benefits and downsides for buying a physical copy of a game for the Xbox One?

The same thing goes for downloading a game digitally on the Xbox one store?

Also... if I buy the physical copy of a game and install it onto my Xbox, will I still always need to have the disc in the tray?

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