A rotor system for an aircraft including a driving member; an externally driven rim configured to be rotated by the driving member; a hub having a hub axis, the hub including a rotatable housing and a non-rotatable housing; a plurality of rotor blade assemblies rotatably coupled to the rotatable housing of the hub and the externally driven rim such that rotation of the externally driven rim rotates the plurality of rotor blade assemblies about the hub axis, each rotor blade assembly having a rotor blade rotatable about a respective pitch change axis; and a pitch control mechanism operably associated with the hub and the plurality of rotor blade assemblies, wherein, actuation of the pitch control mechanism rotates each rotor blade assembly about the respective pitch change axis to collectively control the pitch of the rotor blade, thereby generating a variable thrust output. Also, a method of operating the rotor system.