The Additive Identity
The identity property of 
addition states that when zero is added to any real number, the number 
does not change.  Thus, the number "0" is called the additive 
identity for real numbers.
There is a matrix which is an additive identity for matrices:
This matrix is also denoted [0].  When [0] is added to any matrix of the 
same dimensions, the matrix does not change.  For example, 
 
The Multiplicative Identity
The identity property of 
multiplication states that when 1 is multiplied by any real number, the 
number does not change; that is, any number times 1 is equal to itself.  
The number "1" is called the multiplicative identity for real 
numbers.
There is a matrix which is a multiplicative identity for matrices—the 
identity matrix:
This matrix, denoted 
I, is a square matrix.  When any 
m×n 
matrix is multiplied 
on the left by an 
m×m identity matrix, or on the right by an 
n×n identity 
matrix, the 
m×n matrix does not change.  For example,
and