You can find the full history of Firebird at : http://firebird.sourceforge.net/index.php?op=history&id=beginning
But here is a short history:
Firebird use to be a commercial datasbase called Interbase. It has been around for a few decades.. Interbase was owned by Borland during the 90's. and was made open source in August 2000.
Interbase or now firebird is fully functional Relational Database.
It has all the modern functionality that the current commercial Relational Database has.
It has SQL Language, Data definition Lanaguage, Tables, views, triggers, Indexes, Foreignkey constraints, generators (Identities), Domains, Stored Procs and USer Defined Functions - wow, i hope i did not miss anything.
Firebird and Interbase runs on a multitude of different OS's most commonly used OS platforms for Firebird are Linux and Windows (incl. MS Terminal Servers and Citrix Mainframes). Other supported platforms are Mac OS X, Solaris and HP-UX.
Interbase was mainly used with FAT-Clients in the past - but Firebird now has build-in paging facility that makes it perfect for the web aswell. Actually you can use it anywhere - if my memory is right - i think the U.S. Army uses Interbase.