Chocolate history starts out in Latin America, where cacao trees grow wild. The first people to use chocolate were probably the Olmec of what is today southeast Mexico. They lived in the area around 1000 BC, and their word, "kakawa," gave us our word "cacao." Unfortunately, that's all we know. We don't know how (or even if) the Olmec actually used chocolate. We do know, however, that the Maya, who inhabited the same general area a thousand years later (from about 250-900 AD), did use chocolate. A lot. And not just internally. It is with the Maya that chocolate history really begins.
The cacao beans were used as currency. 10 beans would buy you a rabbit or a chicken. 100 beans would buy you a slave. Some clever person even came up with a way to counterfeit beans - by carving them out of clay. The beans were still used as currency in parts of Latin America until the 19th century!
Ground Chocolateaka Powdered Chocolate
Not to be confused with cocoa powder, this is regular eating chocolate that's been ground to make a powder. It is generally used for making drinks, and should not be used in place of unsweetened cocoa powder in recipes.
Baking Chocolate
What is up with baking chocolate? Does it have sugar added or not? ARRRRG! Well, here's the thing: although the FDA sets the guidelines for what types of chocolate can be labeled "unsweetened, bittersweet, semisweet, milk, and white," they don't specify what can be labeled baking chocolate.
You can find all of the following types of chocolate labeled "baking chocolate":
1) unsweetened chocolate
2) bittersweet baking chocolate (chocolate liquor + sugar, but no cocoa butter added)
3) bittersweet chocolate (chocolate liquor + sugar + cocoa butter) Most chefs wouldn't consider this true baking chocolate because of the added cocoa butter, though you might find it labeled as such.
4) baking-resistant chocolate, i.e. chocolate chips (bittersweet chocolate with less cocoa butter added, so that it won't melt easily)
So how do you know which to use? Hopefully your recipe specifies! In general, recipes will usually specify at least "unsweetened baking chocolate (#1 above)" or "bittersweet baking chocolate (#2 above)." Whether there's cocoa butter added or not probably isn't going to make or break your recipe.
One thing you should avoid, though, is using chocolate chips in place of other types of chocolate when the recipe calls for melting. The low cocoa butter content makes chips bad for melting.
So how do you know which to use? Hopefully your recipe specifies! In general, recipes will usually specify at least "unsweetened baking chocolate (#1 above)" or "bittersweet baking chocolate (#2 above)." Whether there's cocoa butter added or not probably isn't going to make or break your recipe.
One thing you should avoid, though, is using chocolate chips in place of other types of chocolate when the recipe calls for melting. The low cocoa butter content makes chips bad for melting.
Chocolate Coating
These are vegetable fat-based coatings that contain sugar and some amount cocoa powder, chocolate liquor and/or cocoa butter for flavor. They are not true chocolate. The advantage to using them is that they typically do not "bloom" in high heat. They are best used in making chocolate decorations.
Couverture Coating Chocolate
Chocolate coating or coating chocolate? Aaaaaaah! Couverture is the good stuff - usually some type of dark chocolate with extra cocoa butter added to make it melt nicely for enrobing (drizzling onto the outside of a chocolate confection). Because the high cocoa butter content (roughly 35-45%) makes it melt well, it is ideal for chocolate fountains, and usually no oil need be added.
Gianduja
Chocolate made with toasted hazelnuts ground into powder. It still has a smooth, chocolatey texture, but has the wonderful flavor of hazelnuts. An Italian or Swiss invention, depending on whom you believe. Who cares? It's yummy.
Single Bean Chocolate
The point is the manufacturer is carefully selecting the beans to create a unique flavor, but some people argue this is a gimmick. After all, Hershey's selects its beans to create a unique flavor too! In general, however, these types of chocolate are of high quality.
Cocoa Butter
When chocolate liquor is pressed to expel the fat and make cocoa powder, the fat expelled is cocoa butter. Cocoa butter is added to chocolate liquor to make the type of chocolate we enjoy eating; it gives chocolate that smooth, melt-in-your-mouth texture we love.
Cocoa butter is also used in cosmetics and pharmaceuticals. Because it melts at about 97° F, it smoothes into the skin nicely. Also, it has healing properties and is resistant to spoilage.
Chocolates aka Chocolate Candies, Truffles, Creams, Pralines, etc.
When people speak of "chocolates" in the plural, they are typically referring to chocolate candies, like truffles, chocolate creams, chocolate-covered nuts, and that sort of thing. "Chocolates" are candies made from other types of chocolate.
Chocolate Extract
Chocolate extract is a good way to add chocolate flavor to your cooking without adding fat, but the flavor can be a bit strong. It is made like vanilla extract; cacao beans are soaked in alcohol.
Chocolate Oil
Alas, there is no such thing as a chocolate oil. If you see chocolate oil, it's most likely a chocolate perfume oil, entirely manmade, and not for cooking.
