History
The oldest preserved texts in Icelandic were written around 1100 AD. Much of the texts are based on poetry and laws traditionally preserved orally. The most famous of the texts, which were written in Iceland from the 12th century onward, are the Icelandic Sagas. They comprise the historical works and the eddaic poems.
The language of the sagas is Old Icelandic, a western dialect of Old Norse. The Danish rule of Iceland from 1380 to 1918 had little effect on the evolution of Icelandic, which remained in daily use among the general population except for a period between about 1700 and 1900 where the use of Danish by common Icelanders became popular. The same applied to the Allied occupation of Iceland during World War II.
Though more archaic than the other living Germanic languages, Icelandic changed markedly in pronunciation from the 12th to the 16th century, especially in vowels (in particular, á, æ, au, and y/ý).
The modern Icelandic alphabet has developed from a standard established in the 19th century primarily by the Danish linguist Rasmus Rask. It is ultimately based heavily on an orthography laid out in the early 12th century by a mysterious document referred to as The First Grammatical Treatise by an anonymous author who has later been referred to as the First Grammarian. The later Rasmus Rask standard was a re-creation of the old treatise, with some changes to fit concurrent Germanic conventions, such as the exclusive use of k rather than c. Various archaic features, as the letter ð, had not been used much in later centuries. Rask's standard constituted a major change in practice. Later 20th century changes include the use of é instead of je and the removal of z from the alphabet in 1973.
Written Icelandic has changed little since the 13th century. Modern speakers can understand the original sagas and Eddas which were written about eight hundred years ago, though this ability is sometimes overstated. The Sagas are usually read with updated modern spelling and footnotes but otherwise intact (as with modern English readers of Shakespeare). With some effort, many Icelanders can also understand the original manuscripts.
Read more about this topic: Icelandic Language
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