Is there any way of making a user only able to see and modificate his home folder? I am currently on arch linux.
Just explaining a little better, the user would not be able to see /etc or any other system directories or folders from others
You cannot usefully restrict interactive access to the system directories such as /etc further than is already provided.
You can prevent a user from accessing anyone else's home folder simply by reducing the permissions on all home folders.
For example, if all users have their home directories under /home then this command will lock the access rights down tightly
chmod go= /home/*
Don't forget that it needs to be run as the root user.
chrooting the user to their home directory and possibly provide some binaries.setfacl -m user:naughty:--- -R /; setfacl -R -x user:naughty:rwx /home/naughty. Additional changes are of course needed or he won't even get his login shell running.