How does the act of erasing information increase the total entropy of the system? This goes by the name Landauer's principle. Some details are here. Can anyone shed more light on this?
It means that if you lose information from your system, that information must have been transferred to the system's surroundings. This shows up as an increase in the entropy in the surroundings. This is directly related to the 2nd law of thermodynamics which says the entropy of an isolated system is always increasing. See Wikipedia: Entropy in thermodynamics and information theory for more details.