What do they mean when they say "has the universal property that..."?
When a
universal object has a
universal property, that means it's the "best" object with that property, and all other objects with that property can be written in terms of the best one.
In this case, we're interested in bilinear maps:
VxW ----------------> R
Well, the tensor product (along with its canonical map)
VxW ---> V (x) W
is the best possible bilinear map from VxW. Because when we have any other bilinear map (such as the one written above), we can uniquely factor it as:
VxW ---> V (x) W ---> R
Lots of useful things can be described in terms of universal objects (or more interesting constructions). In fact, these descriptions are often very important, because they're the way in which you'd actually
use the object.
For example, we are interested in all sorts of bilinear products on VxV. For example:
Any inner product: VxV --->
R
The cross product:
R³x
R³ --->
R³
The outer product:
R^m x
R^n ---> M_(m, n)
(M_(m, n) is the vector space of all m by n matrices)
Each of these can be described as a bilinear map on the tensor product. In fact, because of the universal property of the tensor product, it's often easier to define new products in terms of the tensor product! For example, the
wedge product on V is most easily defined by:
v/\w := v(x)w - w(x)v
and its values live in the appropriate subspace of V(x)V.
(There is an equivalent definition in terms of a quotient space)
Actually, the wedge product is another example of a
universal object: the wedge product is the universal anticommutative product. If I let /\²(V) denote the space in which the wedge product lives, then we have that any anticommutative bilinear map (that is, T(v, w) = -T(w, v))
VxV --------------> R
can be factored uniquely as
VxV ---> /\²(V) ---> R
In fact, we've seen this universal property at work in the other examples: Oxymoron showed how to define the cross product in terms of the wedge product!
Anyways, since one of the whole points of
linear algebra is to study linear, bilinear, trilinear, and general multilinear maps, I would argue that the tensor product is central to the entire subject!