Did you know - What Is 'Y2K' ?

The abbreviation "the year 2000" is Y2K. When the year shifted from 1999 to 2000, a popular computer programming shortcut known as Y2K was predicted to create significant chaos. Many computer applications only permitted two digits for the year, as opposed to permitting four (e.g., 99 instead of 1999). As a consequence, when the year changed from "99" to "00," there was a great deal of anxiety that computers wouldn't be able to function.

KEY LESSONS

When the year shifted from 1999 to 2000, a popular computer programming shortcut known as Y2K was predicted to create significant chaos.

Infrastructures for computer systems, including those used in banks and power plants, were predicted to go down due to the shift.

Despite the tremendous uproar over the possible consequences of this shift, nothing changed.

Knowing about Y2K

Computer experts and financial analysts worried that the change from the two-digit year '99 to '00 would cause mayhem on computer systems ranging from airline bookings to financial databases to government systems in the years and months before the new century. Prior to Y2K, millions of dollars were invested on software and IT development to provide fixes and workarounds for the fault.

After Jan. 1, 2000, there were a few small problems, but nothing major went wrong. Some individuals credit the significant efforts made by companies and government agencies to fix the Y2K issue in advance for the seamless changeover. Others contend that the issue was exaggerated and wouldn't have created serious issues.

Particular Considerations

The Y2K fear, also known as the Millennium bug at the time, had many valid causes for worry since it occurred during the early days of the internet. For instance, financial institutions haven't exactly been on the bleeding edge of technology for a lot of financial history.

It wasn't illogical for depositors to fear that the Y2K problem would crash the financial system, stopping customers from withdrawing money or conducting crucial transactions since most large banks still used antiquated systems and technology. As these concerns of an epidemic-like fear spread to a worldwide level, markets throughout the world were on edge as the new century began.

The research company Gartner projected that fixing the problem will cost anywhere from $300 billion to $600 billion worldwide. Additionally, several businesses provided their projections of the bug's financial effects on their top-line revenue. For instance, General Motors estimated that fixing the bug's effects would cost $565 million. MCI believed it would cost $400 million, while Citicorp put the price at $600 million.

1

The US government responded by passing the Year 2000 Information and Readiness Disclosure Act to prepare for the event and creating a President's Council made up of top administration officials and representatives from organisations like the Federal Emergency Management Agency (FEMA). The council kept track of how private businesses were getting their systems ready for the occasion.

2

In reality, there wasn't much of a commotion after the show ended.

What Caused Y2K?

Y2K was mostly a result of economics. The programmes being built during the start of the computer era needed a sort of data storage that was very expensive. Since nobody predicted this new technology's popularity or how quickly it would take over, businesses were careful with their spending. Programmers were obliged to use a 2-digit code instead of a 4-digit code to denote the year due to this lack of forethought, particularly considering that the millennium was only around 40 years away.

Why Was Y2K So Scary?

The experts worried that the change from the two-digit year '99 to '00 would have a disastrous impact on government and banking databases, airline bookings, and other computer systems. For instance, the banking system depended on antiquated technology and technologies, so depositors' concerns about being unable to withdraw money or conduct crucial operations weren't unjustified. Bankers were concerned that rather than one day, interest may be computed for a thousand years (from 1000 to 1999).

How Did Y2K Get Prevented?

In order to prepare for the event, the U.S. government passed the Year 2000 Information and Readiness Disclosure Act. Additionally, a President's Council was established, made up of senior administration officials and representatives from organisations like the Federal Emergency Management Agency (FEMA), to oversee efforts made by private companies to prepare their systems for the occasion.

According to the research company Gartner, avoiding Y2K might have cost up to $600 billion globally.