Quasialgebra structure of the octonions

We show that the octonions are a twisting of the group algebra of Z_2 x Z_2 x Z_2 in the quasitensor category of representations of a quasi-Hopf algebra associated to a group 3-cocycle. We consider general quasi-associative algebras of this type and some general constructions for them, including quasi-linear algebra and representation theory, and an automorphism quasi-Hopf algebra. Other examples include the higher 2^n-onion Cayley algebras and examples associated to Hadamard matrices.