What Are Bitcoin Covenants, And How Do They Work?

What Are Bitcoin Covenants, And How Do They Work

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.

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