History
The exterior algebra was first introduced by Hermann Grassmann in 1844 under the blanket term of Ausdehnungslehre, or Theory of Extension. This referred more generally to an algebraic (or axiomatic) theory of extended quantities and was one of the early precursors to the modern notion of a vector space. Saint-Venant also published similar ideas of exterior calculus for which he claimed priority over Grassmann.
The algebra itself was built from a set of rules, or axioms, capturing the formal aspects of Cayley and Sylvester's theory of multivectors. It was thus a calculus, much like the propositional calculus, except focused exclusively on the task of formal reasoning in geometrical terms. In particular, this new development allowed for an axiomatic characterization of dimension, a property that had previously only been examined from the coordinate point of view.
The import of this new theory of vectors and multivectors was lost to mid 19th century mathematicians, until being thoroughly vetted by Giuseppe Peano in 1888. Peano's work also remained somewhat obscure until the turn of the century, when the subject was unified by members of the French geometry school (notably Henri Poincaré, Élie Cartan, and Gaston Darboux) who applied Grassmann's ideas to the calculus of differential forms.
A short while later, Alfred North Whitehead, borrowing from the ideas of Peano and Grassmann, introduced his universal algebra. This then paved the way for the 20th century developments of abstract algebra by placing the axiomatic notion of an algebraic system on a firm logical footing.
Read more about this topic: Exterior Algebra
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