I am getting the error
touch: cannot touch '1': Read-only file system
when i run the command touch 1 inside /home.
That is because /home is usually owned by root. Directories inside /home (one per user) are owned by corresponding users. Run
and look at description of the `.' directory, which is a current dirrectory, i.e. /home.
You will notice that both Uid and Gid are zero (which means root).