It’s quite possible, I’m not sure. I could be totally wrong. But a UTXO model of reality does certainly change everything. Timespace seems fundamental; time is the distance between events in memory.
However, we live at the tip of the chain, always transacting in the present, awaiting the next block until our UTXOs (human energy) become fully spent.
This model does make the vast place we call space much smaller, it’s mostly memory of the past. Yet we know UTXOs of the past in bitcoin can transact with the present; things could get weird. Is Bitcoin the theory of everything?