I know that nodes are selected to verify a block of transactions in a deterministic manner based on how many coins they have “staked”, and that the node will lose those staked coins if they don’t correctly verify the transactions.
This is what keeps nodes honest because they don’t want to lose their coins, and also if they do dishonest stuff (like double spending) it damages the network and the value of the network will also drop, in which they hold coins.
But how exactly does the selected node verify those transactions? What is the process of transaction verification?
Can someone ELI5 that part to me please.