Common proof for $(1+x)(1+x^2)(1+x^4)...(1+x^{2^n})=\dfrac{1-x^{2^{n+1}}}{1-x} $ I'm asking for an alternative (more common?) proof of the following equality, more specifically an alternative proof for the inductive step:
$$(1+x)(1+x^2)(1+x^4)...(1+x^{2^n})=\dfrac{1-x^{2^{n+1}}}{1-x} (x\neq 1)$$
This is how I proved it: 
Basecase: substitute $1$ for $n$, everything works out. 
Inductive step: assume that $$\prod _{i=1}^{n}(1+x^i)=\dfrac{1-x^{2^{n+1}}}{1-x}$$
then $$\prod _{i=1}^{n+1}(1+x^i)=\dfrac{1-x^{2^{n+1}}}{1-x} (1+x^{n+1})$$
Let $a$, $b$ and $c$ be positive real numbers, then $\dfrac {c}{a}=b\Leftrightarrow ab=c$, thus 
$$\dfrac {\left( \dfrac{1-x^{2^{n+2}}}{1-x}\right)}{\left( \dfrac{1-x^{2^{n+1}}}{1-x}\right)}=1-x^{2^{n+1}}  \Leftrightarrow \dfrac{1-x^{2^{n+1}}}{1-x} (1+x^{n+1}) = \dfrac{1-x^{2^{n+2}}}{1-x}$$
$$\dfrac {\left( \dfrac{1-x^{2^{n+2}}}{1-x}\right)}{\left( \dfrac{1-x^{2^{n+1}}}{1-x}\right)}=\dfrac {1-x^{2^{n+2}}}{1-x^{2^{n+1}}}$$
Applying polynomial division, we see that indeed $\dfrac {1-x^{2^{n+2}}}{1-x^{2^{n+1}}} = 1+x^{2^{n+1}}$. 
Thus $\dfrac{1-x^{2^{n+1}}}{1-x} (1+x^{n+1}) = \dfrac{1-x^{2^{n+2}}}{1-x}$.
However, the exercise was in a chapter on binomial coefficients and pascal's triangle, furthermore we didn't mention polynomial division in class. Which makes me think that there was another solution that I was "supposed" to see. How was I supposed to prove it?

A Proof with a Bit of Field Theory
Over a field of characteristic $2$, $1+x^{2^r}=(1+x)^{2^r}$ and $1-x=1+x$, so the LHS is $$
\begin{align}
\prod_{i=0}^n\,\left(1+x^{2^i}\right)
&=\prod_{i=0}^n\,(1+x)^{2^i}=(1+x)^{\sum\limits_{i=0}^n\,2^i}=(1+x)^{2^{n+1}-1}
\\
&=\frac{(1+x)^{2^{n+1}}}{1+x}=\frac{1+x^{2^{n+1}}}{1+x}=\frac{1-x^{2^{n+1}}}{1-x}\,.
\end{align}$$
Over a field of characteristic not equal to $2$, we may assume to be algebraically closed, hence every nonconstant polynomial has roots in the field. The polynomial $1-x^{2^{n+1}}$ has the derivative $-2^{n+1}\,x^{2^{n+1}-1}$, which is nonzero at any root of $1-x^{2^{n+1}}$.  Thus, $1-x^{2^{n+1}}$ has only simple roots, one of which is $1$.  Therefore, $\frac{1-x^{2^{n+1}}}{1-x}$ is the product of $x-\omega$, where $\omega\neq 1$ are other roots of $1-x^{2^{n+1}}$.  However, if $r$ is the smallest positive integer such that $\omega^{2^r}=1$, then $\omega^{2^{r-1}}=-1$, or $\omega$ is a root of $1+x^{2^{r-1}}$.  Furthermore, all the roots of $1+x^{2^{r-1}}$, for $r=1,2,\ldots,n+1$, are clearly roots of $1-x^{2^{n+1}}$ and they are not equal to $1$.  Finally, if $r$ and $s$ are distinct positive integers, then we can easily show that $\gcd\left(1+x^{2^{r-1}},1+x^{2^{s-1}}\right)=1$ (well, the roots of $1+x^{2^{r-1}}$ are all elements $\omega$ in the field such that $\omega^k=1$ if and only if $2^{r}$ divides $k$).  Hence, $\prod\limits_{r=1}^{n+1}\,\left(1+x^{2^{r-1}}\right)=\prod\limits_{i=0}^n\,\left(1+x^{2^i}\right)$ is a factor of $\frac{1-x^{2^{n+1}}}{1-x}$.  As both of these polynomials have the same degree and are monic, we conclude that $$\prod\limits_{i=0}^n\,\left(1+x^{2^i}\right)=\frac{1-x^{2^{n+1}}}{1-x}\,.$$
