What are Bitcoin covenants, and how do they work?
— Trigger, Useful, Upgrade, Private, Covenant, Restrictions, Restrict, Property, Work, Covenants, Used, Bitcoin — 1 min read
A covenant is used in private property law as a contract to restrict an object’s use. Bitcoin covenant proposals restrict how a coin can be spent after you bought it and where coins can be transferred. These restrictions can be compared to those that banks might place on specific merchants suspected of engaging in illicit activities. Covenants can be useful to upgrade Bitcoin; however, since they are complex to implement and trigger controversy over the cryptocurrency's fungibility and censorship-resistant property, they have not been seriously considered for inclusion in Bitcoin for a long time. Since they trigger controversy, they are not seriously considered. Source