So when an instance is blocked, it means users on the blocked instance will no longer be able to see that instance’s content. For example, beehaw.org has now blocked lemmy.world. However with the way federation works, the content from beehaw is cached on lemmy.world servers. So you can only see what has already been cached; there will be no updated content on any existing cache.
Edit: here's a recent post from kbin.social going into further detail on how federation works.
For Matrix, I'd recommend
conduit
oversynapse
, with the expectation that all of synapse's features haven't yet been added (most notably support for spaces, which may or may not be a dealbreaker).It's incredibly easy to set-up and very lightweight. I never self-hosted synapse due to how resource-heavy it is, and constantly had issues with
dendrite
racking up resources as well.conduit
has honestly been the easiest thing I've self-hosted.