Honest nodes reject dishonest nodes EMU creation.
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EMU's HAVE to be distrubuted according to set of rules, which can be checked against the ledger by ANY node in the system.
So what are those rules exactly? It's easy to imagine a network of two nodes, one honest and another pretending to be a 999 nodes network. Whatever the rules are, from the point of view of the honest node it would seem okay that it gets 0.1% of the EMUs issued, because it thinks that it's one of 1000 nodes network. While in fact it should get 50%.
Distribution is not done evenly between nodes. It is dependent on amount of EMU held at each node and amount of verified transactions done by each hatcher. When a hatcher verifies a transaction, he also signs it, so it can be easily known by whole network who did the work in verifying it.... what I still don't understand is how the network knows he did the work in verifying it. That is what I'm waiting for an explanation on...
To keep the explanation simple, the hatcher generates 2 merkle trees for the transaction, which are the result of the forward and backwards traversal of the transaction chains for that spend. These should be identical and are then stored with the transaction which the co-verifier can also check upon by doing the same task.
Ok. So a hatcher signs transactions and by this his trust value increases. Next questions:
1) Can the transaction author perform the role of the hatcher itself? If so, it can spam transactions and accumulate trust (=money) from nothing. If not, how is this enforced?
2) If the transactions are broadcasted, how to choose the hatcher who will sign it? If they're sent initially only to a specific hatcher, how is double spending prevented?
1) No, it has to be an external hatcher even if that node is running as a hatcher also. Of course you could run an external hatcher somewhere and fire transactions back and forth "ping pong" style, but honest hatchers use Stochastic & Markov models to look for this activity so it's quite trivial to detect it.
2) You cant choose the hatcher, it chooses you. You can request some parameters, such as trust level, min fee, but your broadcast goes system wide.
EDIT: Your next transaction is sent to a different hatcher, you can not send a transaction to the same hatcher twice in a row, and the network can see this as the hatcher signs the transaction.