If the user clicked "Run," the app launched. If the app was unsigned, it was blocked. This was the first iteration of the "Application Blocked" message.
Oracle made a drastic decision: They killed the "Self-Signed" certificate. Previously, a university computer science professor could write a small applet, sign it with a certificate they generated themselves, and send it to students. Java would show a scary warning, but let the students click "Run." application blocked by java security