It's only visible on the PC you change it on, and it changes the .dat for every single iteration of it on your screen. So it wouldn't just change your own Shiva, it would change everyone's Shiva. The only time that isn't the case is when you use something like Wardrobe, which only changes
your character (though it's still only visible to you).
See, how the game works is on the server-side, it has all of the various positions for all of the .dats on your screen at any given time, as well as all of the monster AI and pretty much everything that happens in the game. All the .dats do is read those positions and show what they do on your screen. You can, for example, change all Spiders in the game to look like Dragoon Wyverns, but it won't change their damage or defenses or even their attacks. Worst-case-scenario it might read a file that isn't in a specific .dat you've changed, and the character might react in an odd way (think Wacky Waving Inflatable Arm Flailing Tube-Man).