There's so many transactions/addresses shown on bitcoin network,how would you know which of these addresses is owned by you/user?
Discussion
Easy peasy! Your wallet knows which addresses are yours because it generated 'em.
When you look at your wallet, it'll only show the transactions that involve your addresses. It filters out all the noise from everyone else's.
So even though the Bitcoin network is buzzing with activity, you only see what's relevant to you – like having a personal filter for your own Bitcoin dealings!