Let $V$ and $W$ be two vector spaces of dimensions $m$ and $n$, respectively. The tensor product of $V$ and $W$ is a space $V\otimes W$ of dimension $mn$ together with a bilinear map $$\varphi: V\times W\longrightarrow V\otimes W;\ \varphi(v,w)=v\otimes w$$ which satisfy the following universal property: For any vector space $X$ and any bilinear map $\psi: V\times W\longrightarrow X$, there exists uniquely a linear map $\gamma : V\otimes W\longrightarrow X$ such that $\psi(v,w)=\gamma(u\otimes w)$ for all $v\in V$ and $w\in W$.

$$\begin{array}[c]{ccc}V\otimes W & & \\\uparrow\scriptstyle{\varphi} & \scriptstyle{\gamma}\searrow& \\V\times W & \stackrel{\psi}\rightarrow & X\end{array}\ \ \ \gamma\circ\varphi=\psi$$

Often, we use more down to earth definition of the tensor product. Let $\{e_1,\cdots,e_m\}$ and $\{f_1,\cdots,f_n\}$ be bases of $V$ and $W$, respectively. The tensor product $V\otimes W$ is a vector space of dimension $mn$ spanned by the basis $\{e_i\otimes f_j: i=1,\cdots,m,\ j=1,\cdots,n\}$. Let $v\in V$ and $w\in W$. Then $$v=\sum_i v_ie_i\ \mbox{and}\ w=\sum_j w_jf_j$$ The tensor product $v$ and $w$ is then given by $$v\otimes w=\sum_{i,j}v_iw_je_i\otimes f_j$$ It can be easily shown that this definition of the tensor product in terms of prescribed bases satisfies the universality property. Although this definition uses a choice of bases of $V$ and $W$, the tensor product $V\otimes W$ must not depend on a particular choice of bases, i.e. regardless of the choice of bases the resulting tensor product must be the same. This also can be shown easily using some basic properties from linear algebra. I will leave them for exercise for readers.

The tensor product can be used to describe the state of a quantum memory register. A quantum memory register consists of many 2-state systems (Hilbert spaces of qubits). Let $|\psi^{(1)}\rangle$ and $|\psi^{(2)}\rangle$ be qubits associated with two different 2-state systems. In terms of the standard orthogonal basis $\begin{pmatrix}1\\0\end{pmatrix}$ and $\begin{pmatrix}0\\1\end{pmatrix}$ for each 2-state system, we have $$\begin{align*}|\psi^{(1)}\rangle&=\begin{pmatrix}\omega_0^{(1)}\\\omega_1^{(1)}\end{pmatrix}=\omega_0^{(1)}\begin{pmatrix}1\\0\end{pmatrix}+\omega_1^{(1)}\begin{pmatrix}0\\1\end{pmatrix}\\|\psi^{(2)}\rangle&=\begin{pmatrix}\omega_0^{(2)}\\\omega_1^{(2)}\end{pmatrix}=\omega_0^{(2)}\begin{pmatrix}1\\0\end{pmatrix}+\omega_1^{(2)}\begin{pmatrix}0\\1\end{pmatrix}\end{align*}$$ Define $\otimes$ on the basis members as follows: $$\begin{align*}|00\rangle&=\begin{pmatrix}1\\0\end{pmatrix}\otimes\begin{pmatrix}1\\0\end{pmatrix}=\begin{pmatrix}1\\0\\0\\0\end{pmatrix},\ |01\rangle=\begin{pmatrix}1\\0\end{pmatrix}\otimes\begin{pmatrix}0\\1\end{pmatrix}=\begin{pmatrix}0\\1\\0\\0\end{pmatrix}\\|10\rangle&=\begin{pmatrix}0\\1\end{pmatrix}\otimes\begin{pmatrix}1\\0\end{pmatrix}=\begin{pmatrix}0\\0\\1\\0\end{pmatrix},\ |11\rangle=\begin{pmatrix}0\\1\end{pmatrix}\otimes\begin{pmatrix}0\\1\end{pmatrix}=\begin{pmatrix}0\\0\\0\\1\end{pmatrix}\end{align*}$$ These four vectors form a basis for a 4-dimensional Hilbert space (a 2-qubit memory register). It follows that $$\begin{align*}|\psi^{(1)}\rangle\otimes|\psi^{(2)}\rangle&=\omega_0^{(1)}\omega_0^{(2)}|00\rangle+\omega_0^{(1)}\omega_1^{(2)}|01\rangle+\omega_1^{(1)}\omega_0^{(2)}|10\rangle+\omega_1^{(1)}\omega_1^{(2)}|11\rangle\\&=\begin{pmatrix}\omega_0^{(1)}\omega_0^{(2)}\\\omega_0^{(1)}\omega_1^{(2)}\\\omega_1^{(1)}\omega_0^{(2)}\\\omega_1^{(1)}\omega_1^{(2)}\end{pmatrix}\end{align*}$$ Similarly, to describe the state of a 3-qubit memory register, one performs the tensor product $|\psi^{(1)}\rangle\otimes|\psi^{(2)}\rangle\otimes|\psi^{(3)}\rangle$.

Quantum memory registers can store an exponential amount of classical information in only a polynomial number of qubits using the quantum property the Principle of Superposition. For example, consider the two classical memory registers storing complimentary sequences of bits $$\begin{array}{|c|c|c|c|c|c|c|}\hline1 & 0 & 1 & 1 & 0 & 0 &1\\\hline 0 & 1 & 0 & 0 & 1 & 1 & 0\\\hline\end{array}$$ A single quantum memory register can store both sequences simultaneously in an equally weighted superposition of the two states representing each 7-bit input $$\frac{1}{\sqrt{2}}(|1011001\rangle+|0100110\rangle)$$

A matrix can be considered as a vector. For example, a $2\times 2$ matrix $\begin{pmatrix}a & b\\c & d\end{pmatrix}$ can be identified with the vector $(a, b, c, d) \in \mathbb{R}^4$. Hence one can define the tensor product of two matrices, called the Kronecker product, in a similar manner to that of two vectors. For example, $$\begin{pmatrix}a_{11} & a_{12}\\a_{21} & a_{22}\end{pmatrix}\otimes\begin{pmatrix}b_{11} & b_{12}\\b_{21} & b_{22}\end{pmatrix}:=\begin{pmatrix}a_{11}\begin{pmatrix}b_{11} & b_{12}\\b_{21} & b_{22}\end{pmatrix} & a_{12}\begin{pmatrix}b_{11} & b_{12}\\b_{21} & b_{22}\end{pmatrix}\\a_{21}\begin{pmatrix}b_{11} & b_{12}\\b_{21} & b_{22}\end{pmatrix} & a_{22}\begin{pmatrix}b_{11} & b_{12}\\b_{21} & b_{22}\end{pmatrix}\end{pmatrix}\\=\begin{pmatrix}a_{11}b_{11} & a_{11}b_{12} & a_{12}b_{11} & a_{12}b_{12}\\a_{11}b_{21} & a_{11}b_{22} & a_{12}b_{21} & a_{12}b_{22}\\a_{21}b_{11} & a_{21}b_{12} & a_{22}b_{11} & a_{22}b_{12}\\a_{21}b_{21} & a_{21}b_{22} & a_{22}b_{21} & a_{22}b_{22}\end{pmatrix}$$

References:

[1] A. Yu. Kitaev, A. H. Shen and M. N. Vyalyi, Classical and Quantum Computation, Graduate Studies in Mathematics Volume 47, American Mathematical Society, 2002

[2] Colin P. Williams and Scott H. Clearwater, Explorations in Quantum Computing, Springer TELOS, 1998