Let $R$ be a ring.
Let $M=\mathcal M_{2\times 2}(R)$ be the ring of $2\times 2$ matrices over $R$.
Let $A,B$ be in $M$. Then we can associate and write both follwing matrices. (The person writing the matrices has to give the one or the other sense.)
The matrix $$\begin{bmatrix}A & B \\ B & A\end{bmatrix}\in\mathcal M_{2\times 2}(M)\ .$$
The block matrix $$\left[\begin{array}{c|c}A & B \\\hline B & A\end{array}\right]\in\mathcal M_{4\times 4}(R)\ .$$
(There are obvious ring homomorphisms between the two spaces of matrices. Using this, the "multiplication of block matrices" is possible.)
Later edit:
I decided to insert some explicit examples after the discussion in the comments. In my oppinion, the usage of block matrix multiplication is underestimated, it should be a standard tool in the school. Here, to have an easy game of inserting examples, i will use sage. Here is my dialog with sage.
sage: A = matrix( ZZ, 2, 2, [1,5,4,7] )
sage: B = matrix( ZZ, 2, 2, [1,8,4,9] )
sage: C = matrix( ZZ, 2, 2, [0,1,8,2] )
sage: D = matrix( ZZ, 2, 2, [0,7,7,2] )
sage: M = block_matrix( 2, 2, [A,B,C,D] )
sage: M
[1 5|1 8]
[4 7|4 9]
[---+---]
[0 1|0 7]
[8 2|7 2]
sage: A, B, C, D
(
[1 5] [1 8] [0 1] [0 7]
[4 7], [4 9], [8 2], [7 2]
)
Now to the above $2\times 2$ block matrix named $M$ we associate a plain matrix named $X$.
sage: X = M.matrix_from_rows_and_columns( [0,1,2,3], [0,1,2,3] )
sage: X
[1 5 1 8]
[4 7 4 9]
[0 1 0 7]
[8 2 7 2]
The question in the comment has now the following answer.
The $(1,1)$ entry in $M$ is the $2\times 2$ matrix $A$.
The $(1,2)$ entry in $M$ is the $2\times 2$ matrix $B$.
The $(1,1)$ entry in $X$ is the number $1$.
The $(1,2)$ entry in $X$ is the number $5$.
We want now to see the utility of block matrices. For this note that we can multiply the blocks "as if" they were numbers. (Well, here, they are indeed "numbers" in a ring, the ring of $2\times 2$ matrices over $\Bbb Z$. But also more general patterns of block matrices are allowed / make sense. Let us understand but the present situation.)
We have formally
$$M =
\left[\begin{array}{c|c}A & B \\\hline C & D\end{array}\right]\in\mathcal M_{2\times 2}\ .$$
Then we can for instance compute
$$
M^2 =
\left[\begin{array}{c|c}A & B \\\hline C & D\end{array}\right]
\left[\begin{array}{c|c}A & B \\\hline C & D\end{array}\right]
=
\left[\begin{array}{c|c}AA+BC & AC+BD \\\hline CA+DC & CB+DD\end{array}\right]
\ .
$$
In our example:
sage: M
[1 5|1 8]
[4 7|4 9]
[---+---]
[0 1|0 7]
[8 2|7 2]
sage: M^2
[ 85 57 77 76]
[104 91 95 141]
[ 60 21 53 23]
[ 32 65 30 135]
sage: A*A + B*C, A*C + B*D
(
[ 85 57] [ 96 34]
[104 91], [119 64]
)
sage: C*A + D*C, C*B + D*D
(
[60 21] [ 53 23]
[32 65], [ 30 135]
)
sage:
Sage has a rather mathematically oriented thinking, so i hope the above can be easily digested.
\begin{pmatrix}a & b \\ b & a\end{pmatrix}. – md2perpe Aug 02 '18 at 15:10