RE: Ripple's METEORIC Rise To #2 / Poloniex To Require Documentation / USA Tax Bill / Much More!
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.