As previously mentioned by jmholloway, the spread of the HDDVD decryption key on Digg forced the site to a crucial decision.

To briefly explain, the key to decrypt the AACS encryption on HDDVDs spread on a myriad of websites, including Digg. The hexadecimal code was posted in news articles and comments throughout Digg, and each posting was “dugg” up, ensuring visibility based on Digg’s popular-voting system. Following cease-and-desist orders from the AACS Licensing Administrator, Digg removed the posts as best it could. The community responded with deluging the site with even more posts and demanding an end to the censorship. Site founder Kevin Rose then made the risky decision to side with his user base against a vastly powerful media industry.

As Ryan Singel of Wired writes, Digg is now the center for the fight over this hexadecimal number – and possibly all of DRM. By siding with his users and not censoring the number on Digg, Rose has invited the wrath of the media industry.

This whole case is an interesting example of user power in a social network and the power of information cascades. The speed with which the code spread both within and outside of Digg is a testament to how fast a cascade can work. This power surely leads to certain network dynamics that can be unfavorable. Although Kevin Rose still maintains the monitoring rights on Digg, it is clear that the users call the shots. The community seized a great amount of control over Digg this week, a move that puts the site in peril but surely adds worries for those trying to stop the flow of sensitive information.

It will be interesting to see if charges against Digg of trafficking in circumvention technology materialize, as they could cost Digg between $200 and $2000 per instance. One thing is for sure: Digg is at a crossroad, either it will die from its user’s posts or grow stronger from its bold stand. Like the Spartans in 300, Digg has taken a stand - could this be its last?