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To study arithmetic structures of natural numbers, we introduce a notion of entropy of arithmetic functions, called anqie entropy. This entropy possesses some crucial properties common to both Shannon's and Kolmogorov's entropies. We show that all arithmetic functions with zero anqie entropy form a C*-algebra. Its maximal ideal space defines our arithmetic compactification of natural numbers, which is totally disconnected but not extremely disconnected. We also compute the $K$-groups of the space of all continuous functions on the arithmetic compactification. As an application, we show that any topological dynamical system with topological entropy $\lambda$, can be approximated by symbolic dynamical systems with entropy less than or equal to $\lambda$.

Kaimanovich (2003) [9] introduced the concept of augmented tree on the symbolic space of a selfsimilar set. It is hyperbolic in the sense of Gromov, and it was shown by Lau and Wang (2009) [12] that under the open set condition, a self-similar set can be identified with the hyperbolic boundary of the tree. In the paper, we investigate in detail a class of simple augmented trees and the Lipschitz equivalence of such trees. The main purpose is to use this to study the Lipschitz equivalence problem of the totally disconnected self-similar sets which has been undergoing some extensive development recently.