It is my understanding that the belt holster is designed to be held onto the pants/body by threading the belt through loops in the holster (by pants I am referring to slacks, jeans, et cetera), and both gun and holster ride outside of the pants, whereas a paddle holster is not physically attached to the belt, but rather held onto the body by means of a "paddle" being placed between the body and pants. (inside of the pants). The holster and gun ride outside of the pants, being held in place by the pressure exerted upon the paddle (which is attached to the holster, then slipped inside of the pants) between the body and pants.
Hope that made sense.
Hope that made sense.