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RE: Is the universe a finite state machine?
What is time?
A dimension of the fabric of the universe.
Is time merely the current configuration of the universe or is it something else?
The configuration of the universe is dependent on time, time is not dependent on the configuration of the universe.
Is time an illusion?
No.
What role does entropy play?
In an open system entropy increases over time. (At least for now. If inflation ever disappears and the universe begins to contract for some reason e.g. unaccounted for dark matter/energy, then this will no longer necessarily hold true.) Time doesn't care what entropy does.
Can all possible future states of the universe be predicted from previous states assuming everything is casual?
No. You would never be able to:
- Measure all previous states, or even just the current one.
- Store all of the the position and movement data for everything in the universe within the same universe.
- Carry out the necessary calculations without affecting the result.