How do KMSpico activators work?

I'm a complete newbie at this, so correct me if I'm wrong.
As far as I know, Windows activators like KMSpico last for 180 days, then connect to a KMS server to verify activation. KMS38 lasts for 38 years(?), binds your license to your motherboard, and can survive a full disk wipe(?)

Microsoft allowed large companies to store their licenses on a server inside the network. But craftsmen found a way to take advantage of this. For example, the windows 11 activator changes your installation to a corporate version, replacing the retail key with a common one, connects to the server that the KMS developers set up, and activates the software.

Yes, such activators can work for quite a long time, and they bind the license to your motherboard, which makes the system stable. This is a convenient solution if you are looking for an alternative to buying keys.