Our understanding of the natural universe is far from being comprehensive. The following questions bring to the fore some of the fundamental issues. Is there a reality of information associated with the states of matter based entirely on natural causation? If so, then what constitutes the mechanism of information exchange (processing) at each interaction of physical entities? Let the association of information with a state of matter be referred to as the representation of semantic value expressed by the information. We ask, can the semantic value be quantified, described, and operated upon with symbols, as mathematical symbols describe the material world? In this work, these questions are dealt with substantively to establish the fundamental principles of the mechanisms of representation and propagation of information with every physical interaction. A quantitative method of information processing is derived from the first principles to show how high level structured and abstract semantics may arise via physical interactions alone, without a need for an intelligent interpreter. It is further shown that the natural representation constitutes a basis for the description, and therefore, for comprehension, of all natural phenomena, creating a more holistic view of nature. A brief discussion underscores the natural information processing as the foundation for the genesis of language and mathematics. In addition to the derivation of theoretical basis from established observations, the method of information processing is further demonstrated by a computer simulation.Keywords: physics of representation; reality of information in nature; semantic value of information; equivalence of physical interaction and information processing; emergence of abstract semantics