What's the difference between Ripple (closed permissioned blockchain) vs. Bitshares (open permissionless blockchain)?

ka82 (43)in #bitcoin • 7 years ago (edited)

Difference between Ripple (XRP) & Bitshares (BTS) (or any DPOS for that matter):

Ripple (XRP):
Only institutions can become a "validator" (processor of transactions in Ripple network). Every server processes every transaction according to the same deterministic, known rules.

Bitshares (BTS):
Anyone can become a validator ("witness"). The stakeholders (i.e. BTS holders) can elect any number of witnesses to generate blocks. A block is a group of transactions which update the state of the database. Each account is allowed one vote per share per witness. The top N witnesses by total approval are selected. The number (N) of witnesses is defined such that at least 50% of voting stakeholders believe there is sufficient decentralization. Each time witnesses produce a block, they are paid for their services. Their pay rate is set by the stakeholders via their elected delegates. If a witness fails to produce a block, then they are not paid, and may be voted out in the future.

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