Hops have only one main use - that of making beer. Hops give beer flavor and aroma, act as a preservative, and help in head retention. Leaf hops can also act as a filter bed.
There are basically two types of hops. The aroma hops are typified by low alpha acids, higher levels of beta acids, and an oil profile associated with good aroma. These hops would generally be used as a finishing or conditioning hop. Bitter hops have a much higher level of alpha acids than beta acids. These are generally used in the boiling process to extract bitterness. There are some varieties considered dual-purpose, such as Perle, Cluster and Northern Brewer that can be used in both parts of the process.
There are a number of ways to use hops in the brewing process. Whole hops are the natural hop cones that have been dried and baled. Aa number of the world's brewers use the whole hop claiming they prefer the all natural product.
Hop pellets are basically whole hops that have been ground through a hammer mill and then pressed together through a pellet die. The ground hops are kept together as a compressed pellet by the hops natural resins. No additives have been put into a standard type 90 pellet.