This is my current(and most probably very incorrect) picture of how electricity comes in my house.
What I think of this picture is that, the transformer produces current in my house circuit (by induction), and that current is Alternate Current since the direction of current is changing through both coils continously. Now, how are Live and Neutral Wires different things? I mean current flows in both directions at 50Hz, so clearly both wires are 'live wires' in practice. But, in household circuits the neutral wire apparently doesnt have that much potentail as the live wire.
How is that possible? Is my picture missing some electrical components? Is my understanding missing some conceptual components?
Edit : I have added another picture, and another question arises, that if neutral is connected to the ground, then does it mean that when current flows through the circuit, ground and neutral wire both 'provide' electrons (as in their electrons get involved) which move/flow through the circuit?
Edit 2: I have added a GIF (very lazily made one). What I want to ask is that, are Earth and Neutral wire both contributing electrons as I have shown in the GIF? i.e Is earth also alternating with our whole cicuit? What should I change/add in the circuit's animation?