Turning the potentiometer increases the voltage read by the Arduino's Analog to Digital Converter (ADC). This voltage is converted to an 10 bit value corresponding to a number between 0 and 1023 -> 2^10=1023. The incoming voltage is then converted to a 5V range and output from the decive via serial if that value has changed

The button state is also read using a digital input and debounced to ensure each click is only registered once. A counter associated with the change in button state increments indefinitely and is also output via the serial connection