Here's my two cents' worth.
The origin of this lies in the Roman destruction of the Temple in Jerusalem in the 1st Century. This led to a contradiction of two rules: (a) sacrifice for your sins, and (b) don't sacrifice anywhere but with a priest in Jerusalem (there actually had already been a problem with this because of the Diaspora-- a Jew in Babylon or Rome couldn't really sacrifice properly). There were two big responses within Judaism. First, there was Rabbinical Judaism--- what became modern Orthodox Judaism. Various rabbis in the tradition of the Pharisees wrote the Talmud, replacing the sacrificial rules with other rules that did not require the Temple. Second, there was Christianity. Christians said that Jesus had made the Temple and the Law obsolete by His sacrifice in the Crucifixion (interestingly, Paul calls himself a Pharisee, and Jesus is certainly closer to the Pharisees than to the Sadducees despite his criticisms of them). Both responses thrived, though Christianity did better. It is an interesting historical question as to which of the two attracted more of the Jews in the world. Christianity, however, was a sort of Judaism for Gentiles, and so had a wider audience generally. Even before Jesus, many Gentiles were attracted to Judaism, but could not become full members because of their ethnicity; Christianity allowed them full membership.
There was a third way possible: to reject Jesus, but also reject the Talmud and just stick with the Old Testament. I think this is what the Karaite Jews did-- an obscure group, but one which apparently survives and which produced the enormously important medieval scholars who put vowel points in the Old Testament and gave us the standard Hebrew versions of it (we have older Greek translations, and the Dead Sea Scrolls in Hebrew, but the standard Hebrew manuscripts before the Dead Sea Scrolls are Karaite ones, if I remember rightly).
Galatians 2:14-16 (1952 Revised Standard Version) But when I saw that they were not straightforward about the truth of the gospel, I said to Cephas before them all, "If you, though a Jew, live like a Gentile and not like a Jew, how can you compel the Gentiles to live like Jews?" We ourselves, who are Jews by birth and not Gentile sinners, yet who know that a man is not justified by works of the law but through faith in Jesus Christ, even we have believed in Christ Jesus, in order to be justified by faith in Christ, and not by works of the law, because by works of the law shall no one be justified.
Romans 2: 29-3:3. He is a Jew who is one inwardly, and real circumcision is a matter of the heart, spiritual and not literal. His praise is not from men but from God. Then what advantage has the Jew? Or what is the value of circumcision? Much in every way. To begin with, the Jews are entrusted with the oracles of God. What if some were unfaithful? Does their faithlessness nullify the faithfulness of God?
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