By "extends" here we formally mean "normed division algebra". Basically, we want any 2D slice of our space to be equivalent to the complex numbers. This is analogous to how the reals embed into the complex plane or how slices of vector spaces are still vector spaces. We don't want things to depend on a particular basis (i.e. implementation).
Anyway, it's pretty easy to make up some multiplication on 3D vectors, like multiplying their components. However, in general, it won't play nicely with such arbitrary 2D slices. As it turns out, this slicing property is equivalent to having multiplication play nicely with vector norms:
|ab| = |a| |b|.
that is, multiplication of vectors multiplies their lengths. Getting a multiplication with this property is the hard part, per se, and is only possible in dimensions 1, 2, 4, and 8.
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By "extends" here we formally mean "normed division algebra". Basically, we want any 2D slice of our space to be equivalent to the complex numbers. This is analogous to how the reals embed into the complex plane or how slices of vector spaces are still vector spaces. We don't want things to depend on a particular basis (i.e. implementation).
Anyway, it's pretty easy to make up some multiplication on 3D vectors, like multiplying their components. However, in general, it won't play nicely with such arbitrary 2D slices. As it turns out, this slicing property is equivalent to having multiplication play nicely with vector norms:
that is, multiplication of vectors multiplies their lengths. Getting a multiplication with this property is the hard part, per se, and is only possible in dimensions 1, 2, 4, and 8.