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Understanding Bitcoin Covenants: Enhancing Scalability and Flexibility
Bitcoin covenants, a concept revived for protocol development, could enable new layer 2 solutions, non-custodial vaults, and efficient payment channels. However, most implementations require a soft fork, a contentious process given the diversification of consensus clients and advocacy for protocol ossification by figures like Michael Saylor. Covenants aim to allow users to impose future spending restrictions on coins, a feature absent in current Bitcoin Script.
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Cointelegraph