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A bug is a coding error in the computer program which causes the software program to behave in an unexpected way. It results because of an error in coding or error in logic which produces some unexpected result or crash down without producing any result.
The process of finding bugs in a program is called debugging which is done with the help of various debugger tools. Generally in software industries most of the bugs are identified and removed before the binaries are released by different rounds of software testing. However still some bugs remain which are further reported by the customers and these are removed by providing software patches to the customers.
A famous example of bug is Y2K bug (also known as millennium bug), which caused many software programs to behave in an unexpected ways (generating divide by 0 error). Generally when the code was being written by programmers they didn’t anticipate that someday they have to deal with the scenario where last 2 digits of a year will be 00 and hence their code may result in generating divide by 0 error. This bug caused many changes in the software industry in terms of coding practices and software designing. However not much harm was caused because of this bug.