Prototype
Category: Terminology
Prototype is an early step in the Product creation. It make the interaction clear and qualify the process/flow.
Prototype meant to validate Business needs and processes. It is basically made of very low fidelity (could also be made of a paper sheet to represent the application UI). It usually does not have all the functionality of the final product as the main objective is to test the concept or processes.
Yes Prototype can be made of paper... or whaetever you have in front of you. The goal is to go as fast as possible and validate chanegs. So it means you can improve and iterate on your prototype. This type of Prototype is also called Wizard of Oz prototyping when it require some manual (human) intervention to simulate interactions (like changing screen).