The publicPath configuration option acts as a placeholder, allowing you to dynamically adjust the paths to your static assets.

To illustrate, let's consider the scenario where you've uploaded your static assets, such as commons.js to a CDN. The actual URL for this file might be:

https://s1.cdn.com/my-project/commons.js

However, your HTML page is typically served from your own domain, for example:
https://my-own-domain.com/my-project/index.html

To ensure that the index.html correctly references the CDN-hosted static files, you can utilize the publicPath setting. This configuration will replace the local path of commons.js within index.html from:

https://my-own-domain.com/my-project/commons.js
to the CDN path:

https://s1.cdn.com/my-project/commons.js
By setting the publicPath, you ensure that all references to static assets in your HTML files point to the correct CDN URLs, facilitating efficient content delivery.