>>30596188>I don't understand encryption but I heard someone on /g/ say "SHA encryption" in a sentence beforeEncryption works because you can encrypt/decrypt messages with a key(s) that only you know. In this case, you'd need a key that your 3ds/SM game knows in order to encrypt/decrypt your messages. So the key(s) will be stored somewhere on your SD card or game cartridge, and can thus be accessed the same way that pokemon data is in the first place and then hackers can encrypt/decrypt pokemon as they please.
Now the other possibility is that the key(s) can be stored in Nintendo's cloud. In this scenario, once the pokemon are loaded into memory, your 3ds can send the data to Nintendo, who then returns the unencrypted pokemon, However you'd then need to reconnect to Nintendo's server's every single time that you encounter a pokemon. With Nintendo's track record for server uptime, it would suck if all games would become unplayable every time they were under maintenance (not even considering Nintendo closing 3ds wifi services like they did with the ds). And all of this being said, it will still be possible for a cracked 3ds to get around this by dumping their memory to an sd card or similar, editing it, then reloading the memory.
The best thing Nintendo can do to prevent hackers is to release a new console for pokemon to be on. That should buy them a couple years, at least.