What Are Bitcoin Covenants, And How Do They Work?
Bitcoin Covenants are scripted programs that restrict how users can spend their funds. It is used for placing restrictions on transactions.
A user could hold Bitcoin, but they have limitations on what they can do with it because of covenants.
When you receive a bitcoin at that time, only covenants are applied; in simple terms, restrictions to the coins are applied.
It is achieved by creating a whitelist of addresses where the coins can be transferred. It also creates a blacklist of addresses where transactions of coins are never allowed.
Explore most asked questions and answers related to Bitcoin from here: Best Questions And Answers On Bitcoin