The green screen was created only 10 years before the blue screen even though they were essentially used for the same functions. Larry Butler invented the green screen for his special effects in the 1940 film "The Thief of Bagdad."
Butler won an Academy Award for his special effects in the film. The award was not only given for the green screen effects, but also for his ability to present the effects in technicolor.
Along with his green screen, Butler also developed the process by which effects were created using the screen. This technique was referred to as "Chroma Key."
Based on Butler's success with the green screen, the blue screen was later developed by Arthur Widmer in 1950. The first film to use the blue screen was "The Old Man and the Sea" in 1958.
Butler got it right the first time. Film makers still use the exact same process today (with tweaking for digital effects, of course) to film local special effects. Although Butler originally used the green screen as a background, film makers today often wrap props or buildings with the same material to later add different buildings or objects.