Presumably you still need server code to prevent blocked users from interacting with each other, no?
There's nothing at the protocol level that prevents you from seeing my records, even when blocked, because all records are public. Anyone (even without an account) can see everyone else's records.
Well behaved clients are guided not to show posts to a blocked user, but this is a developer norm to enhance user experience all around -- seeing posts from someone who blocked you generally doesn't do anyone any good. But the protocol fully lets you build a client that shows you exactly who has blocked you and what they're posting.