How would I prove the above identity - I don't want to write out each component and do the multiplication. Is there any other way?
Prove $X = (\vec{x_1},...,\vec{x_n})^T$, then $X^T X = \sum \vec{x_i} \vec{x_i}^T$
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$
\def\bbR#1{{\mathbb R}^{#1}}
\def\e{\varepsilon}
\def\L{\left}\def\R{\right}\def\LR#1{\L(#1\R)}
\def\m#1{\left[\begin{array}{c}#1\end{array}\right]}
$Given the standard basis vectors $\e_k\in\bbR n$
and a matrix whose column vectors are $\,a_k\in\bbR m$
we can expand the matrix as a sum of vector pairs
$$\eqalign{
A \;=\; \m{a_1&a_2&\ldots&a_n}
\;=\; \LR{\sum_{i=1}^n a_i\,\e_i^T}
\in\, \bbR{m\times n} \\
}$$
This expansion can be used to calculate the Gram matrix of $A$
$$\eqalign{
A^TA
&= \sum_{i=1}^n \sum_{j=1}^n (\e_i a_i^T)\,(a_j\e_j^T)
\;=\; \sum_{i=1}^n \sum_{j=1}^n (a_i^Ta_j)\,(\e_i\e_j^T) \\
&= \m{
a_1^Ta_1&a_1^Ta_2&\ldots&a_1^Ta_n \\
a_2^Ta_1&a_2^Ta_2&\ldots&a_2^Ta_n \\
\vdots&\vdots&\ddots&\vdots \\
a_n^Ta_1&a_n^Ta_2&\ldots&a_n^Ta_n \\
} \\
}$$
and the Gram matrix of $A^T$ as
$$\eqalign{
AA^T
&= \sum_{i=1}^n \sum_{j=1}^n (a_i\e_i^T)\,(\e_ja_j^T) \\
&= \sum_{i=1}^n \sum_{j=1}^n a_i \,\delta_{ij}\, a_j^T \\
&= \sum_{i=1}^n a_i a_i^T \\
}$$
where $\delta_{ij}$ is the Kronecker delta symbol.
$X^TX = (\vec x_1,\ldots,\vec x_n)\cdot \left(\begin{array}{c} \vec x_1^T\\\ldots \\ \vec x_n^T\end{array}\right) = \vec x_1\vec x_1^T +\ldots + \vec x_n \vec x_n^T$.