Naty1 said:
Have you any insights into the prior quote
Presumably Susskind gets the number of bits from entropy. Entropy is sort of a measure of how much invisible detail there is to the physical state of an object - details that you can't see and don't know, and which are usually boring details. It's associated with the loss of order because the main boring invisible detail of a physical system is how all the unusable energy is distributed inside it. The unusable energy is the background heat, that e.g. passes from molecule to molecule and doesn't do anything except circulate randomly and which gives the object its average temperature.
An example is a gas in a box. Microscopically it might consist of a large number of molecules flying around and bouncing off the walls, and every molecule always has a specific position and velocity. But we have no way to know those details or to use all that energy in a microscopically coordinated way - it just gets passed unpredictably from one molecule to another as they collide. What we can know are rough macroscopic properties like the pressure and temperature of the gas, and from this we can also estimate how many different detailed microscopic states of the gas would manifest that pressure and temperature. By a microscopic state of the gas, I mean a full inventory of what each molecule is doing - this one is here moving that way, the next one is over there and moving in that direction, and so on through a very large number of molecules. These are the "invisible boring details", and the entropy is proportional to the number of bits it would take to actually specify all those details. So a crystal lattice has low entropy because we roughly know where all the atoms are, and a gas has much higher entropy because the individual atoms are all over the place and could be doing anything.
Ever since the late 19th century, and long before anyone thought of black holes, we had this picture of the world's entropy increasing. Somehow stars, wherever they came from, were a big long-lived source of energy which kept injecting new "usable" energy into the universe, but meanwhile, down on the planets, the energy from the stars would spread out into the material environment, perhaps after first being used by living beings or machines, and then it would be lost into the thermal background. Eventually the stars would burn out, all life would die, everything would subside into a featureless homogeneous state of uniform temperature, and that would be the heat death of the universe.
Since the 1970s, black holes have been regarded as the highest-entropy objects in the universe. But the curious thing is that there was no model of what the "microscopic states" of a black hole are. A black hole was just a point in space surrounded by a zone of no return, and when you considered the energy of the black hole and the temperature of the Hawking radiation using the usual laws of thermodynamics, it suggested an enormous entropy which just happened to match the size of the event horizon. In the 1990s, string theory came up with an answer to where the entropy is: a black hole is a bundle of branes, with a gas of attached strings circulating around the branes, and the high entropy of the black hole comes from the enormous number of possible states of that string-gas. It's a lot like the molecules in the box, except here it's strings moving along the branes, a bit like wandering electric arcs.
So that is the cosmology that Susskind is describing. The early universe (which started with very low entropy for some unknown reason) gave us a universe of stars which warm up the planets and nebulae, and so the nonluminous bodies get to see some action before entropy wins and the long boredom sets in; but the number of boring interchangeable states of the atoms in a dead planet, while enormous by human reckoning, are still minute compared to the number of states in a collapsed star, where a mass equal to millions times that of the Earth is locked up in a shrunken bundle of quivering branes whose energy fluctuations create a gas of attached strings trapped behind the event horizon. And the long term history of the universe consists of these black holes swallowing everything else, merging to make bigger black holes with bigger entropies, and then very slowly shrinking through Hawking radiation, until at the end you just have the Hawking radiation dispersing through space.
OK, what I just recited is a sort of modern-day scientific catechism, most of which would be familiar, even if the details about what entropy really means, and about the microstates of black holes, are not familiar. I'm far from being 100% confident that that is how the universe is and will be. But I just wanted to spell out what that statement about "most information is in black holes" really refers to. It's saying that most of the invisible boring details of the universe's exact microscopic state are to be found in the details of what happens inside the black holes.
What about holography? Well, all of this cosmic evolution ought to have a dual holographic description (on the cosmic horizon, or at the beginning of time, depending on which version you use). I might say something about it later. But I must say that the ideas of holography don't seem to have contributed any insight to this entropic history of the universe. I was able to tell the story without digressing to say, "and here's the holographic description of what I just talked about". It could just be that outside of black holes, holography isn't very interesting. Here you are in three dimensions, you have a doppelganger description smeared onto two dimensions, ho hum. It might be more interesting if the twistorial, semi-nonlocal description of physics played a role, but that didn't happen either. Still, maybe that's something to expect in the future, that we'll have a cosmic historiography in which nonlocality plays more of a role.
In an earlier comment you talked about particle creation in the early universe, I might try to say something about that too, but later, I need to sleep right now. :-)