Chain of trust is a security architecture where each component of hardware and software is validated from the bottom up. It is intended to insure that only trusted software and hardware can be used while still remaining flexible.
Only requiring the boot program to be signed is preferable for several reasons. First, boot programs stored on disk can be larger and more complicated than embedded software stored directly in hardware. Also, software is much easier to update than hardware, since it is easier to distribute.
This process results in a chain of trust. The hardware determines that the first (bootstrap) program is trusted, and runs it. The first program determines that the second is trusted, and runs it.
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"Chain of trust".
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