A reference electrode is an electrode which has a stable and well-known electrode potential. The high stability of the electrode potential is usually reached by employing a redox system with constant (buffered or saturated) concentrations of each participants of the redox reaction.
There are many ways reference electrodes are used. The simplest is when the reference electrode is used as a half cell to build an electrochemical cell. This allows the potential of the other half cell to be determined. An accurate and practical method to measure an electrode's potential in isolation (absolute electrode potential) has yet to be developed.
Read more about Reference Electrode: Aqueous Reference Electrodes, Nonaqueous Reference Electrodes, Pseudo-reference Electrodes
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