Kobolds are small reptilian humanoids, similar to lizardfolk. Their scales come in a variety of colours, both chromatic and metallic, much like Dragons. Kobolds are one of the oldest races on Eberron, and can be found practically anywhere on the planet. According to their own myths, they were created from the drops of blood shed in the battle between the three progenitor dragons; Eberron, Siberys and Khyber.
If the ancient myths of the kobolds are true, then they would predate dragons on Eberron. Regardless of whether or not it is true, most kobolds believe this story, and it is a driving force behind their culture. Most kobolds fall under one of two groups: the Iredar, who believe that they were spawned by the blood of Eberron, and the Irvhir who believe they were spawned by the blood of Khyber. They are physically identical, but they are somehow able to differentiate each other via smell. In addition to this, the only other difference between the two groups is a supernatural one. Kobolds produce a disproportionate amount of sorcerers, more than any other race on Eberron, which they view as proof of their heritage. The nature of these sorcerers seems to change based on which group they belong to, with the Iredar developing powers that are productive or defensive, and the Irvhir developing destructive and negative spells.
Kobolds also believe that there is a third group, the Irsvern, who they believe to be the children of Siberys. The myths tell of these kobolds being granted the gift of flight, that they might be closer to their progenitor. There are no written records of these Irsvern, however, and if they ever existed, nobody has encountered them for some time.
Kobolds are one of the most populous species on Eberron, but they have never come together in sufficient numbers to create cities, nations, or empires. They prefer to live in smaller, close knit communities and rely on an oral tradition of storytelling to remember their history. They have a respect for the natural world, and prefer to live in natural cavern systems rather than building structures, though they will carve tunnels out of the earth. Kobold communities are relatively reclusive, they have each other, and see little reason to get involved in the rest of the world.
Kobold communities revolve around three groupings. The ternmolik ("stonescales") perform the day-to-day running of the community. They are the crafters, the farmers, and the gatherers. The gix ("claws") are hunters and the defenders of the community. The iejirastrix ("blood seers") are priests and sorcerers who believe they hear the voices of the progenitor dragons, and who's powers are seen as proof of the kobolds' divine heritage. A tribe is typically led by an old claw, though it's not unusual for a stonescale to lead. The blood seers act as spiritual leaders to the kobolds as a whole, and while chieftains will manage a single community, the blood seers travel between the tribes and link communities together.
Kobolds have their own faith, based around the progenitor dragon that they believe spawned them. The Iredar revere Eberron as the source of all life, and have a druidic faith that developed independently of the druids in the Eldeen Reaches. The Irvhir are one of the oldest cults of the Dragon Below on Eberron, though again with no connection to the newer cults, especially those worshipping a Daelkyr.
Of course, the kobolds are such a fragmented and widespread people that any individual group can break from this mould. The Kobolds in Droaam are more likely to follow the Cazhaak Creed, and have no cultural connection to the Iredar or Irvhir cultures, feeling a closer connection to the goblins of Droaam than to their own species elsewhere.