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Where does Hyperledger Sawtooth store its ledger entries within the validator? Is it in a readable format?

What kind of a database does it maintain?

Can the transactions performed on the network be seen?

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The blockchain is stored under /var/lib/sawtooth/   by default unless you have $SAWTOOTH_HOME set, then it uses that directory. The blockchain (transactions) is stored as a sparse file in an LMDB database in file block-00.lmdb . The global state (variables) is stored in file merkle-00.lmdb as a Merkle Trie.
I would recommend reading this for more clarifications https://sawtooth.hyperledger.org/faq/validator/#what-files-does-sawtooth-use

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