An article by Philip Perry at Big Think elaborates on this strange sounding notion:
There are lots of theories on what the basis of the universe is. Some physicists say its subatomic particles. Others believe its energy or even space-time. One of the more radical theories suggests that information is the most basic element of the cosmos. Although this line of thinking emanates from the mid-20th century, it seems to be enjoying a bit of a Renaissance among a sliver of prominent scientists today.Indeed, which is why scientists committed to metaphysical materialism aren't eager to hop on board. The implications of the information hypothesis sound too much like what theists have been saying for centuries.
Consider that if we knew the exact composition of the universe and all of its properties and had enough energy and know-how to draw upon, theoretically, we could break the universe down into ones and zeroes and using that information, reconstruct it from the bottom up. It’s the information, purveyors of this view say, locked inside any singular component that allows us to manipulate matter any way we choose. Of course, it would take deity-level sophistication ....
Following a discussion of the work of Claude Shannon, the creator of classical information theory, Perry notes that most physicists still maintain that matter, material particles, is the fundamental stuff of the universe. But not all scientists agree:
The eminent John Archibald Wheeler in his later years was a strong proponent of information theory. Another unsung paragon of science, Wheeler was a veteran of the Manhattan Project, coined the terms “black hole” and “wormhole,” helped work out the “S-matrix” with Neils Bohr, and collaborated with Einstein on a unified theory of physics.Scientists in Wheeler's camp argue that:
To look at information theory from a quantum viewpoint, the positions of particles, their movement, how they behave, and all of their properties, gives us information about them and the physical forces behind them. Every aspect of a particle can be expressed as information and put into binary code. And so subatomic particles may be the bits that the universe is processing, as [if it were] a giant supercomputer.All of which implies not only a mind on the receiving end but also a mind at the generating end. Information is not just recognized by minds, but is the product of a mind. If the universe really is, at bottom, information then there's very good reason to believe that there is a mind of incomprehensible computing power that has produced it. It's a breathtaking implication.
In the 1980s, [Wheeler] began exploring possible connections between information theory and quantum mechanics. It was during this period he coined the phrase “It from bit.” The idea is that the universe emanates from the information inherent within it. Each it, or particle, is a bit. It from bit.
In 1989, Wheeler produced a paper for the Santa Fe institute, where he announced "every it--every particle, every field of force, even the space-time continuum itself--derives its function, its meaning, its very existence entirely--even if in some contexts indirectly--from the apparatus-elicited answers to yes-or-no questions, binary choices, bits." A team of physicists earlier this year announced research conclusions that would make Wheeler smile. We might be caught inside a giant hologram they state. In this view, the cosmos is a projection, much like a 3D simulation....
If the nature of reality is in fact reducible to information itself, that implies a conscious mind on the receiving end, to interpret and comprehend it. Wheeler himself believed in a participatory universe, where consciousness holds a central role. Some scientists argue that the cosmos seems to have specific properties which allow it to create and sustain life. Perhaps what it desires most is an audience captivated in awe as it whirls in prodigious splendor.
Perry links interested readers to this video for more on information theory as the basis of the universe. If you like slightly zany videos give it a look: