Hi,
Yes if you enable the Wordfence Security Network the way it works is that you report any hack attempts to us. Then we aggregate, sort and filter that data and compile a list of IP's that need to be blocked. Then if you get a hack attempt, your site checks with us (this happens at the same time as when you report the hack attempt to us) and if it's on the bad list the IP is immediately blocked by your site instead of allowing 3 or 5 or 20 attempts (depending on your settings) before it's blocked.
So that's the benefit of being part of the Wordfence Security Network - you are helping build a database of known hacker IPs and you are immediately blocking them when they try to hack you.
Regards,
Mark.