The wave of the future is drowning out very quickly. All the technology we have created will bit the dust before the systems really are used. At the end of the century all systems that have calendars to monitor systems or use calendars to show dates will shut down all at once. Major electronic systems such as elevators, alarm systems, fax machines, telephones, cars with computer systems will be nothing more than paper weights or wall designs nothing more. For years computers and electronic equipment were programmed to recognize a two digit year such as 98 for 1998. Consequently these systems may not function correctly when a new year appear as to be a lower number than the previous year, such as 00 for 2000. The year 2000 could be interpreted as 1900, causing major errors, stoppages, and unpredictable results that can seriously impact a business. The most electronically based operations would of the banking world were the date change would effect anything from tyme accounts to interest balancing calculations. For example, in a banking application, if the interest is calculated for a given period by subtracting the years in two different dates, the code segment for above calculation will work if the given dates are between 01-Jan-1900 & 31-DEC-1999. whereas, if the code is used to calculate the difference between 01-Jan-1999 and 01-Jan-2000 the results will be interpreted wrongly. "How could the Year2000 Problem happen?" this is the first question asked by everyone who knows and hears of this problem. The Y2K problem has always been there and programmers were aware of this problem for years. Since programmers thought that the problem is to arise only after some decades, it was not given much importance. Now Y2K crisis is on top of us, the issue is critical universally. From the discussion of what is Y2K and how the problem arose,we are aware of the effect the problem will have. From the technical point of view two things could happen because of Y2K bugs. The first is that the system might crash . The programs will not be able to handle further calculation related to dates with zeros stored in them and there will be system failure. The system failure can be identified and can be rectified . The government has know about this problem for some time now And has set up committees to solve the problem before its too late, As a result of those committees, The Year 2000 Information and Readiness Disclosure Act was created. The Year 2000 Information and Readiness Disclosure Act is intended to promote the voluntary sharing of information needed to discover, avoid, or fix problems with year 2000 calculations in our nation?s software, computers, and technology products. In all civil litigation including certain antitrust actions, the Act limits the extent to which year 2000 statements can be the basis for liability and it prevents certain evidentiary uses, against the maker, of a subset of such statements. However, the Act ensures that only responsible, good faith information-sharing gets such protection. It is difficult to locate the Year2000 Problem. So the second eventuality is that the system will continue to perform various operations but the date calculations might be improper while the program is getting executed. The second problem is, in a way, more dangerous than the first because, before identification, the problem errors will creep in the data. The data will be calculated over and over again with erroneous dates and if the data of your system is provided to other systems then the effects of miscalculated dates could be far reaching. The Act encourages the use of the Internet to provide notice of all matters relating to year 2000 processing. In addition, the Act protects against disclosure and use in civil actions year 2000 information voluntarily provided to the government under a "special data gathering request." Finally, the Act creates a temporary exemption to the antitrust laws for sharing of year 2000 information, unless it results in an actual agreement to boycott, allocate markets, or fix prices. Not only will systems of everyday lives be affected, but the systems that save our lives every day will too. the Department of Transportation led by poor management has only upgrade 7 percent of its electronics. The