The identity is matrix '1'
Recall the identity matrix I: 1s on the diagonal, 0s elsewhere. It behaves exactly like the number 1, because multiplying by it changes nothing — I*A = A and A*I = A. Just as 1 is the anchor of ordinary multiplication, I is the anchor of matrix multiplication.
The inverse undoes a matrix
The inverse of A, written A^(-1), is the matrix that undoes A. Apply A, then A^(-1), and you are right back where you started: A^(-1)*A = I and A*A^(-1) = I. If A rotates by 30 degrees, A^(-1) rotates back by 30 degrees.
A = [[2,0],[0,4]] A^(-1) = [[0.5,0],[0,0.25]] A * A^(-1) = [[1,0],[0,1]] = I
When does an inverse exist?
Here is the honest catch: not every matrix has an inverse. A square matrix A is invertible exactly when its determinant is not zero. The determinant of a 2x2 matrix [[a,b],[c,d]] is a*d - b*c; if that comes out 0, the matrix squashes space flat and there is no way to undo it.
A = [[2,1],[1,3]] det = 2*3 - 1*1 = 5 (nonzero -> invertible) B = [[2,4],[1,2]] det = 2*2 - 4*1 = 0 (zero -> NO inverse)
But you don't actually invert
Conceptually, the inverse solves A*x = b in one line: multiply both sides by A^(-1) to get **x = A^(-1)*b**. It is a beautiful formula, and it is exactly how to *think* about the solution.