What is an authorized output in Kaspa's covenant system?
An authorized output is a transaction output that a specific input has explicitly sanctioned as a valid continuation of its covenant. In Kaspa's script engine, an output earns that status only when two conditions are both true: the output carries a covenant tag that names the input in question as its authorizing input, and the input's own unspent coin (UTXO) already holds the matching covenant ID — making the output a continuation rather than an arbitrary destination. This matters for beginners because it is the mechanism Kaspa's covenant system uses to enforce where funds can travel next: an output that fails either condition simply doesn't count as authorized, so scripts can reliably constrain the entire future spending chain.