You receive an account with prepurchased game, put it on your console and use to start the download. Then you delete that account, switch back to your own profile and play. It will be no diffrent than the retail disk version, you will be able to earn achievement, go online, get updates etc.
You get full ownership of the Xbox account meaning you'll be able to set your own email and password to ensure nobody else can access it and you retain the game indefinitely.

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