What is information. We can easily understand information as digital bits: 0 or 1. The key to information is state and time. Without time and the ability to retain the state for some duration of time, there is no information. The key is: difference and time.
In the abstract world of mathematics and information science, digital information is well understood. A problem, however, lies in relating the "reality" of the universe and the abstract models of mathematics and information science. One problem with mathematics is that one can easily formulate an mathematical model that is not physically realizable.
Current science, more specificly, physics has a problem that its current widely accepted theory: quantum mechanics is not directly related to the digital domain, that is, information. Quantum mechanics is a statistical theory. We all are frustrated in the problem of not being able to probe below the Planck scale. The problem is all these particles in the particle zoo behave like statistical entities.. That's because their are statistical entities. The only entities in our universe are dynamic structures that form into relatively stable structures are the result of a dynamic collection bits of information at a finer grain. We, unfortunately don't know why or how these dynamic entities (fermions and bosons) form.
This problem is intuitively understandable. To detect a difference, i.e., a bit, we must use organized structures (elementary particles) to "see" it. The problem is these particles are highly dynamic (the bits of information probably propagate at the speed of light) and these particles are very large relative to "one bit" of information. For example, the hypothesized superstrings which make up particles, such as electrons, quarks, photons, and neutrinos, are estimated to be smaller than 10-33cm. Superstrings, if they exist, and lets assume they do in some form, contain a great deal of information. Superstrings are large compared to a single bit. Therefore, it is very understandable why we cannot directly detect that the universe is digital.