Most scholars believe that prior to the introduction of Kanji from China, there was no formal written language. No one is certain when the script first came to the islands but some believe that it could have been around the first century AD. In the early third century, artifacts have been recovered that depict some form of writing.Kanji was first used as a system of writing sometime in the late 5th century or early 6th century. It is difficult to set an exact date because of the writings being based on the Chinese calendar which is difficult to interpret. More than likely, Chinese or Koreans who came to the islands to live began using the characters.
In the beginning kanji was more than likely used to represent sounds (phonetics) for loan words from other cultures. Also, the introduction of Buddhism into China and eventually Japan prompted translations of the scripts using the script. Buddhism probably had the greatest influence on the development of the language due to the huge influx of people from the mainland to build temples, translate documents, make statues, tiles, copy sutras, etc.
Around the seventh century it seems that the Japanese people began mastering the language themselves and started to do some work of their own. The language began to make some changes as it took on more than just a phonetic reproduction of foreign words (KUN reading). Eventually it began to be used to represent ideas and concepts. Chinese and Japanese are completely different. In terms of structure, Chinese is actually closer to English than it is to Japanese. And yet, the Japanese, in their amazing ability to adapt things to their own ideas, were able to take the Chinese and add marks so that it would conform to the Japanese word order. Then the kanji began to take on a second reading, known as the ON reading, as mentioned above. It may be that the Korean language had influenced the development of the Japanese language as both have similar word orders and also use honorific auxiliaries.
In the Nara period (710-784) there was an explosion of Japanese literature. It seems that much of the oral tradition of passing on history was translated into script for the future generations. The language began to become more and more complex.
Hiragana began to be developed around the Nara period as well. It has its roots in the simplification of a cursive-style of writing kanji. This cursive style was mainly used privately among individuals to make notes, letters and other personal documents. For about 1400 years the hiragana had a very large set of letters. In 1900 it was standardized in brushwritten and woodblock-printed forms, mainly for artistic purposes. Because of this, hiragana tends to have a roundish, flowing style and shape.
Officials and scholars continued to use classical Chinese for their work for many hundred years. As the language developed, it became necessary to add notes next to the text to aid in the reading of the texts. This began in the Heian period (794-1192). Because space was limited, scholars began using a shorthand version of the kanji used for pronunciation. This was the beginning of Katakana. In the beginning it was not entirely different from hiragana but over time developed a more square appearance, more scholarly. Eventually the katakana script evolved such that it began to be used solely for writing foreign loan words, or concepts that did not exist in the native Japanese language.
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