A prototype is a sample, limited in function and scope that demonstrates how the end-product or service will perform. The prototype aims at showcasing a select number of use-cases that illustrate how users would use the web site or application.
The prototype is used to conceptualize all the various iterations of the application before full design and coding can begin. Early attention to detail can save on budget and clarify the scope and direction of the project. Prototyping is also useful for ironing out usability concerns.
Each prototype simulates how a finished product will work. Sketches, wireframes and mockups serve other purposes in the design and prototyping process.
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