Maeda met an influential businessman named Gastão Gracie who helped him get established. In 1917, his son Carlos Gracie, still a 14 year-old boy, watched a demonstration by Maeda at the Teatro da Paz and decided to learn jiu-jitsu. Maeda accepted Carlos as a student, and Carlos went on to become a great exponent of the art and ultimately, with his younger brother Hélio Gracie became the founder of Gracie Jiu-Jitsu, modern Brazilian Jiu-Jitsu.
In 1921, Gastão Gracie and his family moved to Rio de Janeiro. Carlos, then 17 years old, passed Maeda's teachings on to his brothers Osvaldo, Gastão and Jorge. Hélio was too young and sick at that time to learn the art, and due to medical imposition was prohibited to take part in the training sessions. Despite that, Hélio learned jiu-jitsu by watching his brothers. He eventually overcame his health problems and is now considered by many as the founder of Brazilian Jiu-Jitsu (though others, such as Carlson Gracie, have pointed to Carlos as the founder of the art).
Hélio competed in several submission judo competitions which mostly ended in a draw. One defeat (in Brazil in 1951) was by visiting Japanese judoka Masahiko Kimura, whose surname the Gracies gave to the arm lock used to defeat Hélio.
The Gracie family continued to develop the system throughout the 20th century, often fighting vale tudo matches (precursors to modern MMA), during which it increased its focus on ground fighting and refined its techniques.
Today, the main differences between the BJJ styles is between traditional Gracie Jiu-Jitsu's emphasis on self-defense, and Sport Brazilian Jiu-Jitsu's orientation towards point competition. There is a large commonality of techniques between the two. Also, there is a wide variety of ideals in training in different schools in terms of the utilization of technique versus how much to attempt to overpower an opponent.