An OCI image is composed of a set of filesystem layers that stack to form the container's rootfs. This design makes it possible to update a container by swapping out the underlying image layers for a newer one.
However, in the current technology preview state of our OCI image support, all layers are squashed into one rootfs upon container creation. Because of this, you currently cannot update a container simply by swapping in a newer image. This functionality is planned as a future feature though.
The /etc/containers/registries.conf.d/shortnames.conf file defines default aliases that map to specific registries. But you can always specify the full registry path explicitly.