Founding of Erebor
After the fall of Khazad-dum by the awakening of the balrog Durin’s Bane, Thrain 1st(Thrain 2nd is the father of Thorin Oakenshield) would lead a group of Durin’s Folk to the Lonely Mountains that was north east of the Mirkwoods.
Thrain 1st found the Akrenstone during his reign as king of Erebor where he would make it an heirloom of the Durin’s Folk of the throne of Erebor.
Although Erebor was prosperous, it wasn’t as prosperous as old Khazad-dum and during the Watchful Peace, many dwarves from Erebor would migrate to the Grey Mountains that was northwest of Erebor.
In the novel, Thrain 1st the founder of Erebor found the Arkenstone while in the movie Thror was said to have found the Arkenstone and took it as a symbol of the king of Erebor.
The Grey Mountains and the War of the Dwarves and Dragons and King Thror
The Grey Mountains was prosperous, however the dragons of the north awakened and the dragons would invade the Grey Mountains.
This marked the War of the Dwarves and Dragons where the dwarves resisted the dragons for about twenty years. However, after the death of Dain 1st, the son of Dain 1st king Thror would lead the dwarves back to Erebor and reestablished the dwarf kingdom.
Iron Hills and King Gror
The Iron Hills was established long after the First Age as the dwarves of Khazad-dum colonized the Iron Hills. The Iron Hills was located east of Mirkwood and Erebor and used to be a small trade post for dwarves and humans.
After the War of the Dwarves and Dargons, while king Thror led dwarves to Erebor, Thror’s little brother Gror also led a group of elves and settled at the Iron Hills.
After Smaug destroyed Erebor and took over it, the refugees of Erebor would also migrate to the Iron Hills where the Iron Hills would become a larger country.
Dain Ironfoot or Dain 2nd the grandson of Gror and the son of Nain would participate in the Battle of the Five Armies as he led the dwarves of the Iron Hills.
Dale and Esgaroth, Lake-Town
Dale was the human city located right beneath the Lonely Mountains where the dwarves and humans would trade goods. Dale also prospered from the rich mines of Erebor and Dale and Erebor maintained a good relationship.
Lord Girion was the lord of Dale who was murdered as well by the dragon Smaug when Smaug destroyed Erebor and the adjacent Dale.
The people of Dale would evacuate and settle down in Lake-Town that was a small town situated on the Long Lake south of Erebor and Dale.
Lake-Town was also called Esgaroth where a man named Bard who was a descendant of Giroin took the family heirloom the Black Arrows.
The Sickness of Greed of the dwarves
Later on, this would also be referred to dragon fever in the movie series of The Hobbit. There isn’t a description of such desire of greed in an official form in the novel, however in the movie, there is a description of a curse that caught the dwarfs where dwarves would desire treasure by their greed.
The rings of power were described to amplify the greed and desire of treasures when the dwarves held them.
However, in the novel, there isn’t an official curse of the treasures where the dwarves would become obsessed with treasure.
In the movie, however there is a description of a curse of desire in the royal bloodlines of the Durin’s Folks that Thror, Thrain 2nd and Thorin Oakenshield shall suffer along the movie.
Thorin and Company
After Gandalf and Thorin Oakenshield agreed on their quest for Erebor, Gandalf marked the house of Bilbo Baggins to assemble Thorin and Company while Gandalf also planned to recruit Bilbo Baggins. Thorin and Company consisted of Bifur, Bofur and Bombur, Ori, Nori and Dori, Fili and Kili, Gloin and Oin and Dwalin and Balin.
Sons of Fundin – Balin and Dwalin
Thorin, Balin, Dwalin, Oin, Gloin and Fili and Kili were all the descendants of Nain second the dwarf king of the Grey Mountains.
Balin and Dwalin would survive the quest of Erebor and the Battle of the Five Armies. Balin would later leave on a quest to colonize Moria while Dwalin would remain in Erebor.
Balin was the friendliest dwarf among Thorin and Company with Bilbo Baggins and Balin would even visit the Shire with Bilbo Baggins often.
Balin would survive the quest of Erebor as he would be the best mentor of Thorin Oakenshield, however Balin was murdered by the orcs of Moria shortly after he left Erebor to colonize Moria while he became the lord of Moria.
Cousins of Thorin Oakenshield – Fili and Kili
Thrain second had three children Thorin Oakenshield, Frerin and the only daughter Dis. Frerin was killed in action during the War of the Dwarves and Orcs so Thorin Oakenshield, the only son and the eldest inherited the throne. Fili and Kili were the twin sons of Dis.
As Thorin Oakenshield didn’t have an heir nor was he married, Fili and Kili were the next heir of the thrones of Erebor but they were both killed during the Battle of Five Armies.
The movie hobbit features a female elf Tauriel would have a loveline with Kili, however Tauriel is only in the movie and in the novel, there wasn’t such love stories between Kili and a female elf.
Bifur, Bombur and Bofur
Bombur was the dwarf that was hypnotized and fell into sleep during the crossing of the Mirkwoods. Bombur and Bofur were brothers while Bifur was their cousin. The three dwarves were from a lineage of dwarves from Khazad-dum that migrated to Erebor.
The three dwarves answered the call of Thorin Oakenshield to retake the Lonely Mountains from Smaug. The three of them would remain in Erebor after Thorin Oakenshield reclaims the Lonely Mountains from Smaug.
Dori, Ori and Nori
Ori was the cousin of Dori and Nori while Dori and Nori were brothers. Dori, Ori and Nori were dwarves of the Long Beard family also known as the Durin’s Folks that answered the call of Thorin Oakenshield. Dori and Nori would remain in Erebor while Ori would accompany Balin’s quest to reclaim Moria, the old ruins of Khazad-dum.
Ori would later write the records of Balin’s conquest of Moria. During the Lord of the Rings, Fellowship of the Ring, the Fellowship of the Ring would discover the records of Ori that wrote the death of Balin and dwarf’s expedition.
Sons of Groin - Oin and Gloin
Oin and Gloin were brothers and the cousins of Balin and Dwalin. Oin would later accompany Balin during his conquest of Moria while he would be killed by the goblins of Moria alongside Balin. Gloin was the father of the dwarf Gimli, the dwarf that would later join the Fellowship of the Ring.
During the timepoint of Lord of the Rings Fellowship of the Ring, Golin and Gimli visited Rivendell not for the Fellowship of the Ring but they were sent by Dain Ironfoot, the king of Erebor to search for news of Gloin’s brother Oin and his cousin Balin.
Gloin would survive the War of the Ring and possibly joined Gimli when Gimli would colonize the Glittering Caves nearby Helm’s Deep.