Growing up within this isolated reality between all dimensions, known as simply 'Reality,' Maze and Khrona harnessed their powers on the opposite ends of this plane. Whilst Khrona's powers started off with simple psychic capabilities and the growth of his soul, Maze learned all sorts of magic, as he seemed to be capable of using all forms of it. Thus, their lives were primarily learning to completely master their abilities within themselves as they grew up, though once they reached their teen years, they met up with each other.
Khrona, in his life, had encountered two fair maidens who were just as alone as he was for their own separate reasons, and because of their great similarities, their souls linked and the three of them became Soulmates. Thus, when Khrona met up with Maze, he was already completely lost to the Insanity, only allowing his two Soulmates to speak for him. Though most were terrified of Khrona, Maze felt strangely akin to him, and welcomed him to help him create a Shinobi Village from the ground up. In the place they decided to build, they met with the Head Witch of a realm for Witches, Zita, and the head of a School for teaching Instruments, which Shinigami ruled. Even in the future, this truce held strong, and the creation of the village was based around the alliance between the four powers. With the powers of Magic and Insanity, the two were able to create Reality, and thus, the village was named the Village Hidden in the Reality, and those two sat as the Kages. Maze, with his command over Magic, naturally got more in tune with the Witches, whilst Khrona, with his command over his Soul, naturally got more in tune with Shinigami. It was Maze and Khrona that kept the weapons and the Witches from killing each other whilst they were in rule.
Eventually, Maze met Sadako, who went through all types of fantastic things with he and Khrona within the Reality. Because this realm was connected to all other dimensions, they were able to freely travel to other dimensions through the 'Portals' system that they established. At the same time, when Maze was of age, Evangeline figured it was time to pass on a new power of magic onto Maze, which awakened the darkness in the kind boy's heart. Khrona, his weapons, and Sado all helped to purify Maze and defeat Evangeline, but afterward, Maze's power had been awakened, and he was now in tune with his darkness, even if it was dormant. He spent much time learning to control it, and Evangeline once again fell silent. Eventually, Maze and Sado got married.
MEANWHILE, BACK IN THE NIGHTMARE, envoys from the realm of Dimensia snuck their way into the Centerpoint, giving themselves physical bodies since they could not interact with others here as only pure Free Wills as of yet. The first was Kaerei, the embodiment of Shinrei, who worked as an assassin for Mahk-X and learned Sage Chakra from him. Next was Cleff, the being that Grimnyzmal created, which acted sort of like a child that interacted heavily with Aeon, Alyss and Sig due to them being top scientists in the Nightmare at the time. He absorbed much information from them. Tigen, who had suffered amnesia from his travel due to his weakness of Will, became good friends with many, many people in the Nightmare, especially the person he considered his best friend, Zero Venkage, or ZK. Kay-no was his rival, but he was pretty cool with that girl, and Sadira was his other best friend, since they both used dimensions. Tigen had fun. But Pumpkinhead, on the other hand, knew of the grave situation that was going on, and was sworn not to tell Tigen, and was thus, always angry at him for never progressing fast enough.
Whilst Tigen frolicked and moved up the ranks, Pumpkinhead sent his Nightmare Energy of himself into the Cauldron, letting it fester into a being known as the 'Lost One' or the 'Fallen One.' This being came to be known as Nebulon, which was sought after by a being known as Luminon, which was a piece of his sister, Pumki, in correspondence. Though Luminon did not know the reason why he was on The Lost World, he knew that there was something amiss. This was because Pumpkinhead had created the 'Fallen One' and also that Grimnyzmal roamed the planet, until he was taken care of by Vash, even though he was not truly dead. Luminon threatened to rid the planet of all that was impure, yet still could not pinpoint where the impurities were. He found solace in Kai Ishidate and Shiro Kazuma, whom he understood as kin due to Kai's relation to the stars and Shiro's with purity. Thus, he came to respect them more than any other being on The Lost World, and did not initiate destroying the planet. Not like it really mattered when Chase Young got there and split the planet in half.
During that time, Tigen started to be consumed by the Nightmare Energy that flowed within him, letting Pumpkinhead know that the time was near for Tigen to finally mature and learn to control this 'Nightmare Energy.' And so, after that, Tigen learned how to control it and the other parts of himself, which were the different colors of his flames, and he grew more powerful. His memory started to return, and Tigen and ZK went to get a glimpse of his home world of Dimensia to fully jump a majority of Tigen's memories. Afterward, Tigen became a bit more serious about training, and started working toward saving Dimensia.
Some time later, Maze, venturing through the Portals, found a realm called The Lost World, which coincidentally had a Shinobi village known as the 'Nightmare,' though there were terrible things going on in that place at the time. From it, a Shinobi Kingdom known as the 'Chaos' was spawned, and also, another village known as the 'Twilight' came to be, and the Nightmare was no more.
Thus, the three Villages lived in separation; the Reality in its alternate reality, the Twilight on one side of the planet, and the Chaos on another side. Though the people mingled, there was no real connection to these three places until a treaty between the Kages, known as the 'Tri-Village Alliance' came to be, and the Reality moved its isolated space to inhabit the space of the planet of The Lost World.
Unknown to the other villages, there was another place that only the Reality mingled with, known as the Village Hidden Within the Depths, which was in a remote area of The Lost World (I think). Sooner or later, this village joined in with the Alliance as well, and the four villages were at peace for a while.