Component versions are designed for teams that need to track component releases that have separate release processes then your classic project releases or needs to be tracked separately.
Octo allows you to create the following hierarchy for your components.
Note that Octo allows sharing components across multiple projects.
Therefore you can link issues from Jira projects where Component is active to your Component versions.
Component releases can be linked to the project release in Jira which gives you the option to track what version of component was used in the project release.
Using Component versions in Octo won’t create any records in your native Jira Releases. This helps you keep unnecessary noise out and allows you to manage Component versions and Project versions separately.