We know that the gradient of a scalar (velocity potential) gives a vector (Direction of the steepest ascent of the velocity).
Also, the divergence of a vector (Velocity vector) gives a scalar (mass flux).
The divergence of gradient of velocity in a finite volume will give the mass flux. The divergence of gradient is called Laplacian.
If the mass flux is conservative then the Laplacian of a velocity is zero, since the mass flow into the finite volume minus the mass flow out of the finite volume must be zero.