Dear Student,
When we pass an electric current through a potato connected to the terminals of a battery with copper wires, electrolysis happens because of the electrolytes Potassium Iodide solution and the starch present inside the potato produces more electrons.
When these electrons travel from the negative terminal to the positive terminal, they start reacting with the copper wire that is inside the potato and produce a bluish-green complex at the positive terminal.
This is why the area near the positive terminal turns blue.
Regards