"Hand-off" describes a paradigm of designer/developer collaboration where a designer creates a mock-up or prototype, then "hands off" that picture to a developer who then creates the "real thing."
Hand-offs are wildly inefficient, and the fidelity of creativity & artistic expression gets largely butchered on its way into the final medium.
Contrast with a design tool like Webflow, Flash, HyperCard, or Visual Basic, where the product of the design process is production software. Figma could have gone down this route — a harder route, admittedly, but ripe for innovation — and they chose not to.[1]
Good for them: $20B. Bad for the world.
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[1] Sho's vision is that design _should_ live in a separate world, and that hand-offs are the ideal form of collaboration — because they enable design to be unfettered by the constraints of production software. I would call this a failure of imagination: it is quite possible to explore free-form design ideas within and around production software: c.f. Macromedia Flash.