How does multiuser work with versioned ArcGIS?

I am new at versioned editing and am confused a bit and have some questions. For example I have five editor users and versioned dataset or featureclass. So,

1. Should each editor create their own version under DEFUALT version? (named John, Mike, Bob,….)
2. Should we create only one version named Editors and all editor users use it? And in this case is there any possibility of locking each other?