#surprise...

Shorefolk

Shorefolk AKA 'Lakers' are believed to be the predecessors of Hearthians, and most likely Dragonfolk as well (if they, in fact, ever really existed). They tend to inhabit small towns and villages along the coastlines and islands, spending their lives as sea farmers, fishers, pearl divers, etc. While Lakers' skin is able to absorb small amounts of oxygen from the water and they can hold their breath for an exceptionally long time, they can't actually breathe underwater.

Lakers value industriousness over aesthetic or convenience. They take great pride in their trades and traditions, and as a result, some struggle to adapt to the changes of modern industrialism.

These folk have a few key adaptations for aquatic work:

A.) Backward pointing ears, usually lacking notches

B.) Narrow shoulders

C.) Proportionally long arms with streamlined musculature

D.) Large ribcage (greater lung capacity) and shorter torso

E.) Large Hands

F/L.) Webbing between fingers

G.) Strong nails (aids in sea foraging)

H.) Intact short crested tail used when swimming (resembles a newt's)

I.) Proportionally long legs with defined musculature

J.) Large 'flat' feet

K.) Webbing between toes. All toes roughly the same length

Clothing:

M.) Jewellery and personal effects are usually handmade from materials like driftwood, coral, and whalebone

N.) Clothes are usually loose-fitting and made of light breathable material

O.) They almost never where shoes

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Hearthians

Hearthians are the descendants of Lakers who adapted to life on land. They've taken to living in villages, towns, and cities inland.

Hearthians are known for their ingenuity and resilience, and have in a short time spearheaded inventions that have revolutionised travel.

It would seem that Hearthians in general possess an insatiable thirst for discovery, which is likely the driving force behind their oftentimes reckless endeavours.

Hearthians are noticeably different from their Laker kin:

A.) Outward facing ears with notches

B.) Broader shoulders

C.) Slightly more proportional arms

D.) Smaller ribcage and longer torso

E.) Smaller hands

F.) Softer nails, often kept short

G.) No tail (falls off a few weeks after hatching)

H.) Legs tend to have less defined musculature

I.) No webbing between toes

J.) First toe is bigger than second, which is bigger than the third.

K.) (Apparently they don't know the whole alphabet)

L.) No webbing between fingers

Clothing:

M.) Clothing is designed to cover as much as is practical for work

N.) Shoes have become as much a matter of etiquette as a way for accident-prone Hearthians to protect their feet

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Dragons

Dragonfolk (???), if they truly existed, were believed to have descended from Lakers (speculated to be a sort of hybrid between Shorefolk and Hearthians), who adapted, not just to life in the mountains, but somehow took that adaptation a step further.

Not much is known about their culture, habits, or values outside of hearsay and legend (which don't paint a very pretty picture of the race as a whole). They're believed to be on the brink of extinction, if any remain at all...

If one were to stumble across a dragon, telltale features would be:

A.) Outward pointing ears without notches, slightly upturned at the end

B.) Large wings

C.) Broad shoulders

D.) Defined musculature on the back, chest and torso

E.) Large hands

F.) Tough nails

G.) Long legs with strong bones

H.) Large feet (second toe is longer than the first and third)

I.) Long serpent-like prehensile tail

J.) Rather than scales, the tail is covered by smooth skin like their Laker predecessors

K.) A small amount of hardened cresting remains at the base of the tail

Clothing:

L.) Clothing is believed to be culturally significant. Their love for gold jewellery is what gave them the reputation for being hoarders.

M.) Open shoes are preferred

N.) Combining comfort and beauty is a time-honored skill

(Three bipedal lizards walk into a bar...)

Of course, the above are simply 'templates', as there's plenty of variation in colour, height, and body type for each race.

As for the true nature of Dragons...

...time...

...will...

...tell.