Explanation:
To prove the identity we just manually compute the left hand side of it, simplify it and check that we do get the right hand side of it:
 (that's the definition of squaring a number)
 (we distribute the product)
 (we just use square notation instead for the first and last term)
 (since product is commutative, so that ab=ba)
 (we just grouped the two terms ab into a single term)