Matrix multiplication is defined to facilitate the representation of linear transformations and solve systems of linear equations. Each matrix can be viewed as a linear transformation, with the multiplication of matrices corresponding to the composition of these transformations. This means that multiplying two matrices effectively applies one transformation after another, which can be visualized through the movement of points in a coordinate system. The rules for matrix multiplication are designed to maintain the properties of linearity, allowing for consistent results across various dimensions. Understanding this connection is crucial for studying both linear and nonlinear mathematics.