Placeholder data refers to temporary information used in databases or software applications to fill in gaps until real data can be collected or entered. This type of data helps developers and designers visualize how a system will function and ensures that the layout and design remain intact during the development process. It can also be useful for testing purposes, allowing teams to evaluate performance without relying on actual user data. Common examples of placeholder data include Lorem Ipsum text, which is often used in graphic design, and generic names or numbers in software applications. Using placeholder data helps prevent confusion and allows for a smoother transition to real data when it becomes available.