Abstract: We review the origin and historical evolution of the fundamental concepts regarding Maxwell’s demon as well as the latest developments at the frontiers of scientific research derived from the paradox. It is demonstrated from two complementary aspects that information processing is a process that is in essence“entangled”with the concept of Maxwell’s demon: (1)Aphysical system can work more efficiently by acquiring information, and (2) physical laws impose an ultimate limit on the energy dissipation during information processing. Our analysis and clarification of these concepts should promote our understanding of the intrinsic relation between computation processes and the theory of thermodynamics.