If it is clear that the minimum unit of information possible is the bit, why aren't any solid theories based on that simple concept?

>For example, given a 100x100 matrix of ones and zeros, which somehow encode the properties of something, if we apply this transformation T to the matrix then we get, for example, thecurrent velocity of the thing.

There has to be a way to encode the properties of something in a limited set of bits.

Discuss.