By the end of 1775, during the first year of the American Revolutionary War, the Second Continental Congress operated as a de facto war government, having authorized the creation of the Continental Army, the Continental Navy, and Continental Marines.

A new flag was needed to represent both the Congress and the United Colonies, with a banner distinct from the British Red Ensign flown from civilian and merchant vessels, the White Ensign of the British Royal Navy, and the Flag of Great Britain carried on land by the British army

The flag became obsolete following the passing of the Flag Act of 1777, passed in June of that year, where the ‘Betsy Ross’ flag we are most familiar with was authorized by the Continental Congress.