What are Bitcoin covenants, and how do they work?

2022.06.27 01:02

What are Bitcoin covenants, and how do they work?

In particular, Antonopoulos has voiced concerns over “recursive covenants” that the new update could convey, thereby deteriorating the network. A recursive covenant occurs when a programmer restricts a transaction, but he does it in a way that restricts another transaction after that, starting a domino effect resulting in future limitless recursive covenants.

Blacklisting and risks of censorship and confiscation

Fungibility threats

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