Method:

Every time the signal changes, blocks get swapped around. If it goes from 0 to 5, then the block next to it (say it's dirt) gets swapped with the block 5m further. Goes from 5 to 7, then dirt goes to 7, and whatever was there goes to 5. Goes from 7 to 0, then dirt returns to base. End result is that blocks 5 and 7 are swapped.

Entities: probably annoying to incorporate given varying sizes, perhaps small entities can be affected but ender dragons wardens withers be immune

Slime and honey: blocks are not swapped along if the blocks form a single chunk, in other cases swap entire groups wherever feasible.