A notable crux in the Old Norse mythology is the distinction of álfar and dvergar. They appear as separate races in extended lists such as the one in Alvíssmál, listing Æsir, álfar, Vanir, goð (gods), męnn (humans), ginregin, jǫtnar, dvergar and denizens of Hęl. Middle High German tradition asgma separates the elbe from getwerc.

On the other hand, there is a close kinship between elves and dwarves, evident already because many dwarves have elvish names, including simple Álfr "elf", and Alberich "king of elves".

Loki is particularly difficult to classify; he is usually called an áss, but is really of jǫtunn origin, and is nevertheless also addressed as álfr. The conclusion of Grimm is that the classification "elf" can be considered to "shrink and stretch by turns". The etymology connecting *albozwith albus "white" suggests an original dichotomy of "white" vs. "black" genii, corresponding to the elves vs. the dwarves which was subsequently confused. Thus the "white" elves proper are named ljósálfar "light elves", contrasting with døckálfar "dark elves".

Snorri in the Prose Edda states that the light elves dwell in Álfheim while the dark elves dwell underground. Confusion arises from the introduction of the additional term svartálfar "black elves", which at first appears synonymous to the "dark elves"; Snorri identifies with the dvergar and has them reside in Svartálfaheim. This prompts Grimm to assume a tripartite division of light elves, dark elves and black elves, of which only the latter are identical with dwarves, while the dark elves are an intermediate class, "not so much downright black, as dim, dingy". In support of such an intermediate class between light elves, or "elves proper", on one hand, and black elves or dwarves on the other, Grimm adduces the evidence of the Scottish brownies and other traditions of dwarves wearing grey or brown clothing.

Given names

While the Scandinavian tradition preserves some evidence of the álfar as skillful supernatural beings with positive connotations, much like theæsir or "gods", the elves of Anglo-Saxon and continental tradition are almost exclusively presented as mischievous or malevolent beings responsible for misfortune or illness. However, throughout Germanic tradition, given names which contain elf as an element are frequently attested, suggesting that the malevolent or evil image of elves in West Germanic tradition was a secondary development, reinforced byChristianization. Alfred is the only name with this element which remains in comparatively widespread use. Historical given names with the elfelement include: Ælfwine (m.; continental Albewin, Alboin, Scandinavian Alfvin) "elf-friend", Ælfric (m.; German Alberich) "elf-ruler", Ælfweard(m.) Ælfwaru (f.) "elf-guardian", Ælfsige "elf-victory", Ælfflæd (f.) "elf-beauty", Ælfwynn (f.) "elf-bliss", among others.

Old Norse

The earliest preserved descriptions of elves comes from Norse mythology. In Old Norse they are calledálfar (nominative singular álfr).

Men could be elevated to the rank of elves after death, such as the petty king Olaf Geirstad-Elf. The smith hero Völundr is identified as 'Ruler of Elves' (vísi álfa) and 'One among the Elven Folk' (álfa ljóði), in the poem Völundarkviða, whose later prose introduction also identifies him as the son of a king of 'Finnar', an Arctic people respected for their shamanic magic (most likely, the sami). In the Thidrek's Saga a human queen is surprised to learn that the lover who has made her pregnant is an elf and not a man. In the saga of Hrolf Kraki a king named Helgi rapes and impregnates an elf-woman clad in silk who is the most beautiful woman he has ever seen.

Crossbreeding was possible between elves and humans in the Old Norse belief. The human queen who had an elvish lover bore the hero Högni, and the elf-woman who was raped by Helgi bore Skuld, who married Hjörvard, Hrólfr Kraki's killer. The saga of Hrolf Kraki adds that since Skuld was half-elven, she was very skilled in witchcraft (seiðr), and this to the point that she was almost invincible in battle. When her warriors fell, she made them rise again to continue fighting. The only way to defeat her was to capture her before she could summon her armies, which included elvish warriors.

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