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There is a Welsh expression that translates as "The best Welshmen live outside of Wales," and it is noticeable that most advocates of Welsh nationhood in the late 18th century lived in London. It was there that the visionary Edward Williams, better known to posterity by his bardic title Iolo Morganwg, in a stirring speech to the London Welsh Society, gave his spellbound listeners a sense of what it meant to belong to the ancient Celtic race and what they could do to ensure that the ancient Welsh traditions became better known and handed down to posterity. In 1792, a dramatic address by another London Welshman, Sir William Jones had announced the discovery of North America three hundred years before Columbus by Prince Madoc. Jones spoke of the so-called Welsh Indians, descendants of Madoc's explorers, whom he praised as "a free and distinct people, who have preserved their liberty, language, and some trace of their religion to this very day." Though Jones' discoveries were later discounted, the myth of the founding of America by Madoc and a group of fellow Welsh explorers has persisted; it plays a great part in much Welsh literature written subsequent to the late 18th century. It was Jones, too, working in India, who discovered the link between the Celtic languages and Sanskrit, in which the sacred writings of India were written, and this connection gave to the Welsh language a long and proud ancestry of which the nation could be rightly proud.

In the winning of their independence by the Americans, the writings of Welshman Richard Price had been most influential. When the French Revolution helped spread ideas of liberty throughout Europe, the London Welsh, in a state we can only now describe as euphoria, saw hopes of a revival of Welsh nationhood, if not that of independence from the British Crown. Their first gesture was reestablish the moribund Eisteddfod. The centuries old festival of poetry was to be given a national affirmation, but first it needed a sense of dignity and a clothing of pageantry. Both were provided by the vivid imagination of Iolo Morgannwg. As there was a sad lack of a coherent body of Welsh cultural traditions, Iolo invented them, along with an elaborate and fancy ceremony. Most of these were entirely unknown to the Welsh people, but have since been expanded and elaborated to become a much-loved part of the Eisteddfod ever since. It was Iolo, a stonemason from the Vale of Glamorgan, who invented the Gorsedd (circle), the guild of bards that today plays such a prominent role in Welsh cultural affairs today and which, in their colorful "druids" robes, provides much of the pageantry and excitement attending the events of the Eisteddfod once a year.

In the 1860's the National Eisteddfod Society was founded, and the modern era of the competitions began. The chief contest is still that of poetry, being separated into two categories: for the Chair, and for the Crown. It is still a marvel that thousands of people gather together to hear the adjudications of the entries in the poetry competition and give their applause and admiration to the winning bard.