This identity, $(x-1)(x+1) = x^2 - 1$, or more generally, $(x-a)(x+a)=x^2 - a^2$, occurs a lot in algebra. For example
\begin{align}
199 \times 201 = (200-1)(200+1) = 200^2 - 1^2 = 40000 - 1 &= 39999 \\
(\sqrt 7 - \sqrt 2)(\sqrt 7 + \sqrt 2) = 7 - 4 &= 3
\end{align}
You can also use it to solve the "sum-product problem". For example, to solve the system of equations: $$\text{$xy = -55 \quad$ and $\quad x+y = 6$.}$$
If $x+y = 6$, then $\frac 12(x+y) = 3$ is half-way between $x$ and $y$. That means there is some number, say $z$, such that $x = 3-z$ and $y = 3 + z$. We can now reason
\begin{align}
xy &= -55 \\
(3-z)(3+z) &= -55 \\
9 - z^2 &= -55 \\
-z^2 &= -64 \\
z^2 &= 64 \\
z &= 8 &\{\text{You could also have said $z = -8$.}\} \\
x = 3-8 &=-5 \\
y = 3+8 &= 11
\end{align}