In an unbiased p-n junction, the n-side exhibits a higher potential than the p-side due to the diffusion of charge carriers, which creates a net positive charge in the n-type material and a net negative charge in the p-type material. This charge separation results in a potential barrier that prevents further diffusion of carriers, establishing a voltage across the junction. When no external battery is connected, there is no current flow, and the potential difference is primarily due to the built-up charges rather than an applied voltage. The potential difference typically requires a forward bias (around 0.7V for silicon) to allow current to flow. Thus, the higher potential on the n-side indicates it is more positively charged compared to the p-side.