>>49480302I wouldn't call it digitization, more like the Pokemon have a unique DNA structure that contains a certain sequence that emits powerful energy, which is how they achieve attacks and Typing. That is scanned and used by the Pokeball to convert the Pokemon from mass into energy which can be moved to and from the Pokeball in the appearance of light beams. The conversion of mass into energy powers the Pokeball, and also explains why they cannot be reused for a different Pokemon even if they don't break after failing a capture.
Pokemon are still conscious in this state, because consciousness exists until death. As the Pokeball holds them, they can still hear and understand what is going on but are in a temporary, "mid teleportation" state that powers the Pokeball.
If the Pokeball were to be destroyed, the Pokemon would pop out as the ball is not longer containing their life energy.
In a later period than Hisui, technology is powerful enough that PCs and Storage Systems have the capability to convert smaller items of mass into energy and data, but it is still rather expensive.
Before the newer age Pokeball and technology, they used the shrinking Pokemon system for Pokeballs but once they discovered the technology to convert mass into energy safely and successfully, they used it in the modern Pokeball.
That's my cope headcanon.