Imagine you have a toy car that you like to play with. Now, when someone asks you if you have that toy car, you say "Yes, I have it". This is called an identity, meaning that you are identifying something as being yours.
Similarly, a trace identity is like a special kind of identity for things in math. When we do some fancy math called "matrix algebra", we have a formula that says: "The trace of a square matrix is the sum of the numbers on the diagonal". Let's break that down.
A matrix is like a box with some numbers inside it. Imagine you have a box with 4 numbers inside in the shape of a square. You can imagine this box as the toy car we talked about earlier, and the 4 numbers inside are the wheels of the car. The diagonal of the box is like the steering wheel of the car, and it's the line of numbers that goes from the top left to the bottom right.
Now, if we add up all the numbers on the diagonal of the box, we get a special number called the trace. It's like the special name we give to the sum of the numbers on the diagonal.
So, we use the trace identity to help us solve some really cool math problems. It's a way of identifying the sum of the diagonal numbers in our matrix box. And just like with the toy car, we can say "Yes, I have the trace of this matrix" as a way of showing that we understand and can solve a math problem.