I assumed that we were getting the blocks to solve from a central authority and when I computer solves that block it turns into money. I am probably wrong.
No, block is (as the
FAQ says) just a sequence of transactions that happened since the last block was created plus a transaction that gives you the newly created bitcoins. It is just made so that creating this block is quite difficult. There is no central authority in the whole system (apart from an IRC feed used only to get other people's addresses).