The Virasoro algebra is spanned by elements
- for
and c with
and c being real elements. Here the central element c is the central charge. The algebra satisfies
and
The factor of 1/12 is merely a matter of convention.
The Virasoro algebra is a central extension of the (complex) Witt algebra of complex polynomial vector fields on the circle. The Lie algebra of real polynomial vector fields on the circle is a dense subalgebra of the Lie algebra of diffeomorphisms of the circle.
The Virasoro algebra is obeyed by the stress tensor in string theory, since it comprises the generators of the conformal group of the worldsheet, obeys the commutation relations of (two copies of) the Virasoro algebra. This is because the conformal group decomposes into separate diffeomorphisms of the forward and back lightcones. Diffeomorphism invariance of the worldsheet implies additionally that the stress tensor vanishes. This is known as the Virasoro constraint, and in the quantum theory, cannot be applied to all the states in the theory, but rather only on the physical states (compare Gupta-Bleuler quantization).
Read more about Virasoro Algebra: Representation Theory, Generalizations, History
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