WCF is a programming model and API. βWCF serviceβ means an application that is created using this programming model and API.
A "web service" is an application that provides an HTTP interface (REST (XML or JSON), SOAP, or otherwise).
You can create a web service using WCF, but you can also create a web service using other APIs or "stacks". For example, PHP or Java.
With WCF, you can create web services, but you can also create services that are not "Webbish." For example, you can create a service that accepts incoming binary requests only through the local interface. It is still a service, but it is not a "web service" because it does not use web protocols (usually HTTP and XML).
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