qsa, thanks for reading the essay. I look forward to seeing your essay. Let's take your points one by one
"1.How does the necklace Lie algebra relate to information theory"
The Lie algebras are pure symmetry. They are not embedded in any space or time and are not particles, The symmetry represents redundant information and the invariants are real information. space, time and matter should emerge from these structures and this is demonstrated by the mapping using interated integration which shows they have an equivalence to string states. Alternativeley these could be particle trajectories if you dont like strings, but I prefer strings. Some of the necklace Lie algebras I have defined in the past take the form of strings of qubits making the information element more explicit.
"2.What does this mathematical structure represent (why this math and not others), since you say it is the origin of matter and space. Do you believe in MUH?"
The structures are just infinite dimensional Lie algebras. While finite dimensional algebras can be classified as Lie groups the infinite dimensional versions are largely unexplored territory and have a rich and complex range of possibilities. I can build higher dimensional structures by a iterative process that I identify with quantisation, but I have not described that in detail here. In a more advanced version I expect these to be q-deformed (another part of quantisation) and it may require higher dimensional algebras like n-categories to get the full workings, I am not sure.
I do go along with the MUH (Mathematical Universe Hypothesis) as postulated by Tegmark and have been writing about similar ideas myself for at least 20 years under the title "Theory of Theories". One element that I add myself is that the mathematics that describe our universe could emerge from the MUH through some principle of universality that applies to the grand ensemble of mathematical possibilities. It could be an algebraic principle of universality rather than a purely statistical process (whatever that means) I don't think anyone else has taken up that idea. The details are of course far beyond what we currently understand.
to be continued...