The two conditions are equivalent. From a global point, define
a function by evaluating the character of any chosen context that
contains the matrix. Agreement on shared matrices makes the value
independent of the choice, and the restriction to each context is
the chosen character. Conversely, the restrictions of such a
function are characters, and they agree on shared matrices.
On an elementary tensor,
\((A\otimes B)(e_j\otimes f_l)=Ae_j\otimes Bf_l\). Extending
that rule by linearity and applying it twice gives
\((A\otimes B)(C\otimes D)=(AC)\otimes (BD)\). The matrix entry of
\(A\otimes B\) from \(e_j\otimes f_l\) to \(e_i\otimes f_k\) is
\(A_{ij}B_{kl}\). The adjoint entry, placed from
\(e_i\otimes f_k\) back to \(e_j\otimes f_l\), is the conjugate
\(\overline {A_{ij}B_{kl}}=A^*_{ji}B^*_{lk}\), which is the
matching entry of \(A^*\otimes B^*\). Thus
\((A\otimes B)^*=A^*\otimes B^*\).
The Pauli matrices are Hermitian and square to \(I\).
Multiplying the matrices gives
\[\begin {aligned}
\sigma _1\sigma _2&=
\begin {pmatrix}0&1\\1&0\end {pmatrix}
\begin {pmatrix}0&-i\\i&0\end {pmatrix}
=\begin {pmatrix}i&0\\0&-i\end {pmatrix}=i\sigma _3,\\
\sigma _2\sigma _3&=
\begin {pmatrix}0&-i\\i&0\end {pmatrix}
\begin {pmatrix}1&0\\0&-1\end {pmatrix}
=\begin {pmatrix}0&i\\i&0\end {pmatrix}=i\sigma _1,\\
\sigma _3\sigma _1&=
\begin {pmatrix}1&0\\0&-1\end {pmatrix}
\begin {pmatrix}0&1\\1&0\end {pmatrix}
=\begin {pmatrix}0&1\\-1&0\end {pmatrix}=i\sigma _2.
\end {aligned}\]
Since the factors are Hermitian,
\((\sigma _1\sigma _2)^*=\sigma _2\sigma _1\) and
\((i\sigma _3)^*=-i\sigma _3\), so \(\sigma _2\sigma _1=-i\sigma _3\).
The same adjoint step reverses the other two products. Distinct
Pauli matrices therefore anticommute.
Each of the 9 Kronecker products is Hermitian, and its
square is \(I\otimes I\). If the left factors commute and the right
factors commute, the two orders of the Kronecker product agree.
The identity commutes with every matrix, and every matrix commutes
with itself, so this covers every pair in the first two rows and
the first two columns. In the third row, and throughout the third
column, each pair is a Kronecker product of two distinct Pauli
matrices on the left and two distinct Pauli matrices on the right.
Both sides anticommute, and the two signs cancel, so those tensors
commute as well.
The row products are
\[\begin {aligned}
(\sigma _1\otimes I)(I\otimes \sigma _1)(\sigma _1\otimes \sigma _1)
&=(\sigma _1\otimes \sigma _1)^2=I\otimes I,\\
(I\otimes \sigma _2)(\sigma _2\otimes I)(\sigma _2\otimes \sigma _2)
&=(\sigma _2\otimes \sigma _2)^2=I\otimes I,\\
(\sigma _1\otimes \sigma _2)(\sigma _2\otimes \sigma _1)
(\sigma _3\otimes \sigma _3)
&=(i\sigma _3\otimes (-i\sigma _3))(\sigma _3\otimes \sigma _3)
=I\otimes I.
\end {aligned}\]
The column products are
\[\begin {aligned}
(\sigma _1\otimes I)(I\otimes \sigma _2)(\sigma _1\otimes \sigma _2)
&=(\sigma _1\otimes \sigma _2)^2=I\otimes I,\\
(I\otimes \sigma _1)(\sigma _2\otimes I)(\sigma _2\otimes \sigma _1)
&=(\sigma _2\otimes \sigma _1)^2=I\otimes I,\\
(\sigma _1\otimes \sigma _1)(\sigma _2\otimes \sigma _2)
(\sigma _3\otimes \sigma _3)
&=(i\sigma _3\otimes i\sigma _3)(\sigma _3\otimes \sigma _3)
=-(I\otimes I).
\end {aligned}\]
Within a row or a column the three matrices commute. If
\((AB)C=I\otimes I\) and \(C^2=I\otimes I\), then
\(AB=(AB)C^2=((AB)C)C=C\). If instead \((AB)C=-(I\otimes I)\),
then \(AB=(AB)C^2=((AB)C)C=(-(I\otimes I))C=-C\). The first case is every row and the first two
columns. The second case is the third column.
A character sends a Hermitian involution to a complex number
\(t\) with \(t^2=1\), hence to \(\pm 1\), and it sends a product of
commuting elements to the product of the values. The three values
on a row therefore multiply to \(+1\). The three column products
force the values \(+1\), \(+1\) and \(-1\). The product of the three
row constraints equals the product of all 9 values and equals
\(+1\). The product of the three column constraints is the same
product of 9 values and equals \(-1\). No choice of signs
satisfies both. A global point would supply such signs, so the
6 contexts have no global point.
Each context separately has a character. The trace multiplies
over a Kronecker product,
\(\operatorname {Tr}(A\otimes B)=\operatorname {Tr}(A)\operatorname {Tr}(B)\),
because the diagonal entries are \(A_{ii}B_{kk}\). Thus
\(\operatorname {Tr}\bigl ((\sigma _a\otimes \sigma _b)(\sigma _c\otimes \sigma _d)\bigr )
=\operatorname {Tr}(\sigma _a\sigma _c)\operatorname {Tr}(\sigma _b\sigma _d)\),
where \(\sigma _0\) means \(I\). The square of each of these 4
matrices is \(I\), so its trace against itself is
\(\operatorname {Tr}(I)=2\). Each displayed product \(i\sigma _k\) has
trace zero, so each \(\sigma _k\) has trace zero. The product of two
distinct matrices among the 4 is either one of them or \(\pm i\)
times one of them, and in every case the trace is zero. Distinct
tensors \(\sigma _a\otimes \sigma _b\)
are therefore orthogonal for \(\operatorname {Tr}(P^*Q)\). The
square of such a tensor is \(I\otimes I\), so
\(\operatorname {Tr}(P^*P)=4\). The 4 matrices of any one row or
column are the identity tensor together with three generators.
They are 4 distinct tensors of this form, each with nonzero
trace against itself, so they are linearly independent.
Write \(A\) and \(B\) for the first two matrices of a context and
\(C\) for the third. They commute. Assign \(\pm 1\) freely to \(A\)
and \(B\). Where \(AB=C\), set the value of \(C\) equal to the
product of the other two values. Then \(AC=A(AB)=B\) and
\(BC=B(AB)=A\), and the values match. Where \(AB=-C\), which is the
third column, set the value of \(C\) equal to the opposite of that
product. Then \(AC=A(-AB)=-B\). Since \(A\) and \(B\) commute,
\(BC=B(-AB)=-A\). Each value carries the same minus sign. Every square equals \(I\otimes I\) and
has value \(+1\). Opposite orders agree because the matrices
commute and the values commute. These 4 matrices therefore span
the algebra they generate, and the linear extension of the
assignment is a unital algebra homomorphism on that basis. Every
basis matrix is Hermitian and every value is real, so the
extension preserves the *-operation.