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I just bought a domain, and now I'm setting it up with my free x10 hosting.
In their guide for how to add your own domain, it says you just need to point your domain to their nameservers, and then add it in the parked domains panel.
My question is, how does this work? How does my register provider (GoDaddy) know to send the traffic to my host, just from entering my domain name into the parked domains list and setting the nameservers, without any other type of verification on GoDaddy's side?
A simpler answer:
In the nameserver change process you described, you're telling Godaddy,
"Hey when someone types in my site (yoursite.com) send them to these files (hosting account).
And when you type in (yoursite.com) in the parked domain field on x10host you're saying,
"The traffic coming from here are my visitors."
Look at parked domains more like valet parking.
Nameservers are the keys to your car, and parking a domain is the tag on your car's (color/make/lot# etc.). Without both, valet can't find and drive your car back to you.
How does my register provider (GoDaddy) know to send the traffic to my host, just from entering my domain name into the parked domains list, ...
That isn't the only thing you are doing. As you stated in your previous paragraph:
you just need to point your domain to their nameservers, and then add it in the parked domains panel.
That involves entering the NAMESERVER addresses of your host into the DNS settings at your registrar (GoDaddy).
This then propagates around the internet ("allow upto 48 hours") until all the DNS servers know that your new host is holding the master DNS records for your domain.
