The intent was to transmit the message "LOGIN" but the transfer crashed after the first two letters.
Which was still kind of okay, because it sounds kind of like "Hello!"
For more information, see http://www.cs.ucla.edu/~lk/LK/Inet/1stmesg.html
It is used for internal communication and testing on the computer. For example, to test pages on a local web server, one could point their browser at localhost.
Lo (?), interj. [OE. lo, low; perh. akin to E. look, v.]
Look; see; behold; observe.
© Webster 1913.
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