This review examines the physical reasons why nanoparticles differ in structure from the bulk. Certain simple properties of nanoparticles are explained through these structural differences. A powerful method of measuring the three dimensional structure of nanoparticles, Coherent X-ray diffraction (CXD), is introduced. A key experiment is described that uses CXD to study the redistribution of strains on the surface of a Au nanocrystal. Some future perspectives are discussed in conclusion.