Interesting question.....
I don't know if space is an illusion, though it certainly isn't NOthing if that's what u mean. But I have been harbouring a suspicion that distance might be. Then recently I learned of a theory that while a photon created and emitted at say, the time of the big bang hasn't aged since then as it is travelling at light speed, neither has it travelled anywhere since its creation.
Weird? Sounds it doesn't it. Yet it resonates somewhere in my limited mind. Its this light speed thing. I was reading "The Elegant Universe" by Brian Greene. He writes, if I get it right, about how objects contract in size the faster they move. If you add space (size) + speed + time you get A total value. If you increase one of those things, a reduction has to occur in one of the other parts that make an object. Therefore, if it moves faster, it gets shorter in size because that total value remains the same. Time, for the object, is also effected. At our sedentary pace, getting in a car and driving we hardly notice the difference but the closer we get to light speed the more drastic the effect. Its why things age more slowly at high speed. The closer to light speed, the slower one ages. I postulated to my brother over Christmas that interstellar travel should be possible if we cd just power a craft to go fast enough (a minor point

) then the enormous distances wouldn't be a problem as we would be aging so much more slowly compared to "normal". It was during this discussion that he related the theory about the photon not going anywhere.
I'm in danger of getting myself in a twist here so I'll try and summarise. The faster you go, the slower you age and the shorter you become in size. Therefore the photon doesn't age at all because it moves at light speed. Perhaps we get where we're going faster at higher velocity because we are shrinking the distance between us and our destination with the extra velocity rather than what we normally perceive. We usually think that we cover the same ground more quickly. But perhaps its actually LESS ground or shorter ground because of the velocity. I hope I'm making some sort of sense

The photon, with a velocity of light speed, doesn't actually go anywhere. Or, could we say, that it is therefore everywhere at once?
In Greene's book he talks about the experiment where they fire a photon through a card with 2 slits cut in to see if its a wave or a particle. They discovered not only that it is both but that single photon travels through BOTH slits. Not only that but that it travels every possible route in the universe to get through the slits! Could the distance shrinking idea partly explain this? I dunno. But can you also see the connection with your question?
I am, by no stretch of the imagination, a physicist. I drive a truck. But being on the road gives you time to ponder. I'm probably WAY off the mark and making an idiot of myself but I thought it was worth throwing into the arena. I just hope my twisted tongue (or typing fingers) are expressing the ideas in some kind of understandable way.
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