Productivity vs. Efficiency: What’s More Important for a Web3 Startup?

Two factors that determine effective employee performance are Productivity vs Efficiency: What’s More Important for Web3 Startup?

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In business, you’ll see the words “productivity” and “efficiency” used a lot. The same goes for Web3 Blockchain startups, these two characteristics are considered essential to the successful operation of a Web3 Blockchain startup. However, many people still do not know what the difference is between the two characteristics and how they work together.

People frequently conflate the term “efficiency vs. productivity”.

But, do these words have the same meaning?

When people say you should be more productive, they say you should be more productive, and vice versa.

Well, not quite.

Although both words have similarities, they have distinctly different meanings.

Just because you’re productive doesn’t mean you’re productive and vice versa.

So if you don’t maximize both, you could end up preventing your business from reaching its full potential.

Today, we’ll discuss everything you need to know about both terms, including definitions, examples, best practices, and ideas for maximizing them.

Let’s start with the basics.

Productivity vs. Efficiency: An overview

Every day, we all have specific tasks for ourselves. Going through a process and at the end of the work will be the time when we look back at our results and make our own judgments and assessments.

In addition to our own self-reflection, we also receive evaluations from those involved. It can be the boss, the manager, or the leadership department, operating the work that we are doing. Two of the many factors that determine effective employee performance are performance and productivity. So what is the performance at work? How is productivity at work understood? Let’s find out below!

What is Productivity?

Productivity measures the amount of output a worker produces in a given time. Generally, we measure it in terms of money (gross domestic product, or GDP) or units of work (things per hour). Let’s see how the yield is calculated using the formula: Productivity Formula= Total Output / Total Input


We can increase productivity through a variety of methods, such as improving technology to make workers more efficient, changes in the organization of work that make workers more productive, or training and development that allow workers to improve their skills.

Increasing productivity is essential for businesses to stay competitive and grow.

What is Efficiency? 

We often describe efficiency as using resources in the most efficient way possible. In other words, it is a measure of how well we can convert something into the desired output with the least amount of waste. This can apply to many sectors, from machines to businesses and to the economy as a whole.

In general, the efficiency divides the desired output by the required input and multiplies the result by 100%. It can measure the productivity of a process or system.

A higher efficiency percentage indicates more productive processes or systems. Take a look at the effective formula:   % Efficiency = (Output/Input) x100


For example, we will consider a Web3 Blockchain technology startup that has many projects with fewer problems that will bring more efficiency.

We will also consider a technology that can release a lot of technology while using few resources to be more efficient than a technology that uses a lot of resources.

And, we often consider increasing efficiency as the primary goal in many areas because it can lead to increased productivity and reduced costs.

These two concepts may look similar at first glance, but there is a slight difference when you compare them.

Productivity vs. Efficiency: The main differences

Now that you understand the basics of productivity and efficiency, let’s dig a little deeper into the key differences between both terms.


Differences in nature and meaning

The first difference that we need to distinguish when referring to these two concepts is the nature and meaning that they bring. Looking at productivity, people can evaluate your work results based on the output and products you make in a certain period of time. In more detail, efficiency measures whether you’re saving the elements needed to make the product, but it’s not based on product-specific metrics like productivity. 

High productivity but not guaranteed performance will cause unnecessary waste in the process of working and operating. On the contrary, if the performance is guaranteed, but the productivity is not satisfactory, it will lead to the finished product not having enough quantity and quality as the target set out from the beginning.

Differences in the method of determination

The second difference between efficiency and productivity is the way it is determined. While efficiency is determined based on the work method to bring the best results in terms of benefits and cost savings, productivity is determined by the specific quantity in a working time (a day, a week, a month, …)

Performance and productivity are two factors that cannot be ignored and must always go together to see if an employee performs a job well or not. In life, to be able to complete work and boost our performance and productivity, we need to have suitable working methods drawn from our own practical daily experiences. Constantly learning, making efforts, setting specific plans, and looking at the very initial goals that we are destined to strive for.

Why should you measure productivity in a web3 blockchain startup?

First, the productivity of the organization determines your competence.

If you haven’t measured your productivity, you don’t really know what your maximum capacity is, and you could end up making a deadly deal that can significantly damage your startup.

As an example of manufacturing, imagine you reach a new client who wants 1,000 projects per year, but you can only create 500 projects.

It won’t end well for you or your client when you find out too late that you won’t be able to achieve your goals. Measuring productivity is important because it tells you how much work you can do.

Second, you can’t develop what you don’t measure.

You see, teams aren’t as effective as you think.

In a recent survey, about 8 out of 10 employees confessed that they were unproductive “during the workday.”

The same study found that, on average, employees are productive for less than three hours a day.

What does this mean for you?

If you don’t measure your startup’s productivity, you won’t be able to pinpoint the problem, and you’ll probably end up solving fewer problems than you’re capable of.

However, by measuring productivity among employees and time, you can identify bottlenecks and other issues that are killing productivity and then find ways to eliminate them.

Why should you measure efficiency in a web3 blockchain startup?

Measuring your performance will help you identify areas of waste and revenue leakage in your blockchain startup web3 project and develop ideas to fix them.

By identifying where you are wasting most of your resources, you can design and implement initiatives to improve that Web3 project.

Measuring performance will reveal opportunity gaps that you can fill, as well as potential threats.

You should adopt a culture of continuous improvement for your business and continuously monitor your least effective processes.

Productivity vs. Efficiency: Which is more important for web3 blockchain startups?


Both productivity and efficiency are critical to maintaining a blockchain web3 startup. By adding productivity and efficiency, you can achieve real productivity in an organization. Some say that productivity is more important than efficiency, but one cannot exist without the other. If you are doing something for a company, you can do it efficiently so that it uses few resources but has good quality. 

However, you also want to create as many Web3 blockchain projects as possible in that time. By combining productivity and efficiency, you can optimize fewer resources while still generating more output for your business. Productivity and efficiency can be different, but together they create an optimal model for a web3 blockchain startup.


Inefficient productivity can increase costs and reduce the quality of your blockchain Web3 project.

On the other hand, efficiency without productivity can affect your ability to scale and grow in scaling your Web3 project, as the tech industry is highly competitive these days.

Hopefully, you now have a better understanding of the difference between these two terms and some ideas for making the best of both worlds. Contact our Satom Venture Studio to learn more skills that can help you and your team become more productive and effective at work.

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