Here, however, a new problem arises. Because of the ways in which technology mediates individuals, individuals interact with each other in ways defined by technology. That is, new technology allows individuals to interact in an unprecedented manner, while also restricting them to interact within the limits of “the specific way that the technology allows.” This implies that technology can be considered a coercive force that restricts individuals’ activities.
Particularly in our era, the coercive force of technology should not be treated trivially. We are moving to an automated algorithm societyFootnote 9 based on artificial intelligence coupled with big data already. Algorithms are composed of logic and control. An algorithm society is a society wherein the coercive force of algorithms is generalized in society as a whole. The software that implements the algorithm is not merely a collection of strings written in a software language, but an enforcing constraint that specifically limits how individuals behave and how they interact within these technologies. Therefore, Professor Lawrence Lessig formulated the proposition “Code is Law” or “Code as Law” to capture this idea.Footnote 10
Blockchain is also an algorithm implemented by software. In particular, the Smart ContractsFootnote 11 feature, which is regarded as the greatest potential of the blockchain, makes it possible to set rules that define conditions for executing pre-defined contracts automatically.Footnote 12 In other words, because of the nature of the blockchain that prevents it from being hacked or faked, the code of Smart Contracts in blockchain has a coercive force. Blockchain makes it possible to build an “absolute law” that cannot be forged or violated.
Therefore, I distinguished three types of coercion: weak coercion, strong coercion, and absolute coercion. The coercion in the laws of the real world is a “weak coercion.” It is a type of coercion that can be violated if you choose to violate it, such as ignoring the red light when crossing the road. The enforcement that is implemented in the software code is a strong coercion because the law implemented in the software is difficult to violate. For example, in 2007, when the presidential election was held, Korea’s No. 1 internet portal Naver, who was afraid of the conservative party, blocked the comment field of political news articles. Therefore, netizens in Korea were unable to comment at all on political news. They abruptly lost the space where they had expressed their political views or opinions so far. (I think everyone may have experienced similar situations where they could do or could not do something depending on the functions implemented in Internet services.)
Thus, individuals can only engage in activities that are allowed by the Internet services. Internet services are built by software, so we can say that software exerts “a strong coercive force” on individuals’ activities. The law implemented on software is significantly stronger than the law written on paper.
The blockchain goes one step further and is an example of “absolute coercion.” A blockchain cannot be tempered or forged, and therefore, the rules implemented on a blockchain cannot be changed. If we consider the code to be law, the blockchain allows the implementation of “absolute laws” that no one can violate. Blockchain can be the beginning of an entirely different phase in the history of laws. Furthermore, with this feature, the blockchain makes it possible to ensure “absolute trust” in society. We should note that trust has never been guaranteed absolutely before blockchain technology emerged throughout human history.
In terms of social devices that ensure trust in society, we find three kinds of trust machines in history: the reputation system, the state including government and bureaucracy, and the blockchain technology.