The SMTP protocol does not include any controls over the From and To fields in an e-mail. They can be whatever you like provided you have authority to send e-mails using the SMTP server.
So the short answer is nothing prevents anyone from using your domain in e-mails they send. Even normal users can put whatever e-mail address they like in their e-mail settings.
Spammers routinely use valid domain names as From addresses to avoid being blocked.
While you cannot stop someone from sending e-mails with your domain name, you can help e-mail servers around the world understand if e-mails sent from your domain name actually originated from you and are legitimate e-mails, so that any others can be discarded as spam.
SPF
One way is to use SPF. This is a record that goes into DNS and lets the Internet know what servers are permitted to send e-mails on behalf of your domain. It looks like this:
ourdomain.com.au. IN TXT “v=spf1 mx ip4:123.123.123.123 -all”
This says that the only valid sources of e-mail for ourdomain.com.au are the MX servers – the server defined as the recipient of e-mails for the domain, and another server at 123.123.123.123. E-mail from any other server should be considered spam.
Most e-mail servers will check for the presence of this DNS record and act accordingly.
DKIM
While SPF is easy to set up, DKIM takes a little more effort and should be implemented by your e-mail server administrator. If you send your e-mail via an ISP e-mail server, they will often have methods for quick setup of DKIM.
DKIM works similarly to SSL certificates. A public/private key pair is generated. The private key is known only to the e-mail server, and it will sign any outgoing e-mails.
The public key is published using DNS. So any server receiving e-mails marked as coming from your domain can check that the e-mail was signed by retrieving the public key and checking the signature in the e-mails. If no signature is present, or it is incorrect, the e-mail can be considered spam.
you can also choose to use ONE valid FROM address like: sender@myemailsendingdomain.com and set the reply-address to the address from your customers… so if someone is replying, the email goes to the right recipient.