To answer your question regarding what an instance is.
Think of e-mail. Imagine you use Gmail.com, your email would probably be a_new_sad_me@gmail.com. You can send emails to everyone, even someone@outlook.com. You send and read emails you receive on gmail.com. You can't log onto outlook.com with your gmail login, but you can still email outlook.com.
I'm not sure I understood your post properly, so I just tried explaining instances. Let me know, if you'd like me to expand my analogy.