The Cayley-Dickson doubling
process can be continued past the quaternions and octonions to obtain an infinite
series of algebras of dimension 2n. After n = 3 these algebras are no longer
composition algebras. R. D. Schafer established the surprising result that the
derivation algebras stop growing at n = 3. Schafer’s proof assumed the scalars were a
field of characteristic ≠2,3. In this paper we will give a different proof of his result
which works for arbitrary rings of scalars, making use of the concept of a Cayley
derivation.