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The big difference between these two mixtures is the consistency. Sauces such as hot sauces are more liquid than pastes. It is meant to lightly coat food and even enhance the taste of the food instead of covering it up with its taste. Pastes meanwhile are thicker, more viscous, and more concentrated. It’s common to see pastes such as sriracha spread onto food in a light layer instead of being allowed to coat it.  

I use cornflour as a thickening agent in my sauce. The mixture may look watery at first, but after the cornflour slurry (equal parts cornflour and water) is added, it develops a thicker consistency. However, you can also use potato starch or tapioca starch if that’s what you have on hand.