A dry sump oil pump will have multi stages, that is more than one pump. A normal pump will scavange your case to the tank but you have no way to get oil from the tank to the system under pressure. A dry sump pump will have a scavange pump (sometimes more than one) to pull oil from the engine and put it in the tank and a pressure pump to suck oil from the tank and pressurize the engine.
A normal case can be used.
Advantages? More HP due to less drag on the crank from oil sloshing around it. More consistant oil supply, the stock oil system can suck air in certain circumstances.
Is a dry sump system necessary? Yes, if you need one, like road racing where cornering can expose the stock oil pickup or drag racing where every possible HP is desired.
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