Well it simple to know. The narrator is Tolkien. 
How do we know?
Here is a a piece of of the firs paragraph of chapter 14, "Fire and Water":
"Now if you wish, like the dwarves, to hear news of Smaug, you must go back again to the evening when he smashed the door and flew off in rage, two days before"

The first sentence of Chapter 15, "The Gathering of the Clouds":
 Now we will return to Bilbo and the dwarves.

That guy is the king of the goblins, Which Thorin kills him and know all the goblins and wargs want to kill the company. They almost kill them but they were rescued by the eagles. 

The company was almost eaten by some mountain trolls but Bilbo and Gandalf saved them by waiting until the sun rise.

The company was kidnapped by giant spiders and woods elves, Bilbo rescue them again. He killed the spiders by putting the ring so the spiders can not see him and the ¡n penetrate the sword. The dwarves were put as prisoners and Bilbo put them in wine wood stocks and that way he release them and brought them to Lake-Town which is down The lonely mountain.

One of the major problems is Smaug after Bilbo wake him up, he flew away and destroyed Lake-Town where Bardo, a soldier kill him.

Then the elves and the men were to reclaim the treasure and for make the thing worse the goblins and wargs come to join them. That create the five armies wars. Dwarves, Men, Elves vs. Goblins and Wargs.

 One of the famous characters of Tolkien stories is Gollum. But in this story Gollum has not a big role like in Lord of the Rings. 
In the book Bilbo finds the ring and played I see with Gollum. If Gollum wins he eat Bilbo and gives the ring to him, if Bilbo wins he can go away. By having the ring Bilbo will be able to disappear every time he puts the ring on. 

The goblins are a big problem for the company. They want to kill the dwarves they are not the antagonist, they are more like a trouble they need to get away.

The mountain trolls - they almost ate all the dwarves and Bilbo, because of Bilbo fault. To defeat them they needed to wait until the sun comes out, and the trolls to be petrified.

Giant Spiders- While the company was sleep in the forest, bilbo was experimenting with the ring. When he returned to see the  the dwarves gigantic spiders where almost killing them, until Bilbo (Who was invisible killed all the spiders). 

Elves- they live in Rivendell, where the hobbits were invited to start  they trip.

Balin- He is the oldest of the dwarves. When he saw Thorin fighting with bravery he say that he will follow him everywhere and will be his leader. After the war he settled in the mines of Moria.

Bifur- He is the one who plays the clarinet when they started singing in bilbo house.  When they were with the trolls, he was almost cooked by the trolls.

Bofur- He is an excellent warrior, he was almost killed by trolls, spiders, smaug, orcs and even elfs.

Bombour- He is fattest of the dwarves. He is the brother of Bofur and cousin of Bifur, he is also the laziest, the one who sleeps more and the one who eats more.

Dori- He play the flute during the reunion in Bilbo`s house. He live with the elfs of Elrond and he become a rich dwarf.

Dwalin- He is the younger brother of Balin. He was the first to arrive in Bilbo house. He play the violin when they started singing in bilbo house. Like his brother balin both of them are cousins of Gimli (Lord of the rings).

Of course the name of the book has a lot to do with the story. The title of the book is The hobbit, the book has to do with a hobbit. But this hobbit has a lo changed through the story. He made adventures, he "fight" against a dragon, he help to reunite the  dwarves and by recapturing the mountain he got his part of the gold. So instead of being a hobbit he become the hobbit.

As a Tolkien story all the actions happens  in the fictional world of the Middle Earth.

Bilbo lives in a fancy Hobbit-hole in The shire. In his hobbit-hole was the first meeting of the company, where they take dinner, discus about how they were take the lonely mountain (dwarves home), sing and sleep.  In that scene they asked if Bilbo wants to be part of the company as he didnt knew that Gandalf choose him, he faint. But after that Bilbo went to his first adventure, taking the lonely mountain and get Smaug out of there.


The lonely Mountain, is a big mountain were the dwarves used to lived before Smaug invade them. The uses of the lonely mountain were as home and as a mine. They were rich they got a lot of gold and diamonds, that was the main reason Smaug felt attract by.

The company went to Rivendell ask the wise elves for advices.

Bilbo Baggins is the main character. He is a hobbit. The hobbits are half tall as the humans, they have big hairy feet, they dont need shoes because they foot create a natural sole. The Hobbits live in hobbit-holes (they are not dirty holes in the ground, there are nice houses in the underground).

Gandalf- He is an old wizard. He have a big beard, and a big pointy hat. He helped the conspiracy of the dwarves to find them a thief, who will go into Smaug. The one he choose for that role is Bilbo, Bilbo didnt knew about what was that dangerous role.

Smaug- He is the antagonist of the story, he destroy the dwarves home (lonely mountain) and steal all their gold.

Thorin- He is the leader of the dwarves, and the prince from the destroyed kingdom of  the dwarves. He created the group to kill smaug and retake their home(lonely mountain).

There are more dwarves and I will talk about them in the future. But this characters are the main ones.

I choose the Hobbit. The first time I saw the Lord of the Rings Trilogy I was surprised how awesome it was. I do some research about the author J.R.R Tolkien, then I saw that wrote a lot of books and one of them was The Hobbit. I though that had something related to Lord of the Rings and yes it has. Now in the hobbit is the history of Bilbo Baggins (Frodo Baggins uncle) and the adventure that he is gone to have. I don't expect it to be like Lord of the Rings, because the book was written before Lord of the Rings