What is Firebase Firestore 'Reference' data type good for?

References are very much like foreign keys.

The currently released SDKs cannot store references to other projects. Within a project, references can point to any other document in any other collection.

You can use references in queries like any other value: for filtering, ordering, and for paging (startAt/startAfter).

Unlike foreign keys in a SQL database, references are not useful for performing joins in a single query. You can use them for dependent lookups (which seem join like), but be careful because each hop will result in another round trip to the server.

Adding below what worked for me using references in Firestore.

As the other answers say, it's like a foreign key. The reference attribute doesn't return the data of the reference doc though. For example, I have a list of products, with a userRef reference as one of the attributes on the product. Getting the list of products, gives me the reference of the user that created that product. But it doesn't give me the details of the user in that reference. I've used other back end as a services with pointers before that have a "populate: true" flag that gives the user details back instead of just the reference id of the user, which would be great to have here (hopefully a future improvement).

Below is some example code that I used to set the reference as well as get the collection of products list then get the user details from the user reference id given.

Set a reference on a collection:

let data = {
  name: 'productName',
  size: 'medium',
  userRef: db.doc('users/' + firebase.auth().currentUser.uid)
};
db.collection('products').add(data);

Get a collection (products) and all references on each document (user details):

db.collection('products').get()
    .then(res => {
      vm.mainListItems = [];
      res.forEach(doc => {
        let newItem = doc.data();
        newItem.id = doc.id;
        if (newItem.userRef) {
          newItem.userRef.get()
          .then(res => { 
            newItem.userData = res.data() 
            vm.mainListItems.push(newItem);
          })
          .catch(err => console.error(err));
        } else {
          vm.mainListItems.push(newItem);  
        }

      });
    })
    .catch(err => { console.error(err) });

Hope this helps