Woff is a compressed (zipped) form of the TrueType - OpenType font. It is small and can be delivered over the network like a graphic file. Most importantly, this way the font is preserved completely including rendering rule tables that very few people care about because they use only Latin script.
Take a look at [dead URL removed]. The font you see is an experimental web delivered smartfont (woff) that has thousands of combined characters making complex shapes. The underlying text is simple Latin code of romanized Singhala. (Copy and paste to Notepad and see).
Only woff can do this because nobody has this font and yet it is seen anywhere (Mac, Win, Linux and even on smartphones by all browsers except by IE. IE does not have full support for Open Types).