SAP BTP: Cloud Transport Management Scenario: Which is recommended?

[VijayRao]

I was going through sap help and there are two scenarios mentioned while setting up Cloud Transport Management service:

Scenario 1: Set Up the Environment to Transport Content Archives directly in an Application

Scenario 2: Set Up the Environment to Transport Content Archives that are available on a Local File System

I would like to find out which one is recommended? Scenario 1 seems to feel more closer to traditional CTS systems that we are used to on the on-premise systems.

Any guidelines on how to choose between these two scenarios? Any pros or cons of choosing one over the other?

Thanks, Vijay