This Arduino and Board are set up to measure voltage at pin A0. Pins A0 to A5 are analog input pins. The red and black wires deliver 5 V from the board across a 12 K variable resistor that is grounded by the black wire going back to GND pin. The blue wire taps the variable resistor that acts like a voltage divider and carries a voltage to pin A0. As the variable resistor is twisted clockwise, the blue wire change voltage from 0 to 5 V.