What's the difference between a project in a workspace and a framework in xCode?

I'm creating a modular iOS app and I'm seeing people do this 2 different ways. The first is by creating a new project for every module and adding it to the workspace as an 'Embedded Binary' like they are explaining here The second way is by adding a new target to the project like this

Is there a difference by the 2 methods? And should I be using dynamic libraries instead of static libraries?