Inventory management

When completing a bridge-out, there are different ways possible to choose which bitcoin UTXOs in the Spiderchain to take. These different options share similarities with inventory management. There is LIFO (Last In First Out) and FIFO (First In First Out) and various hybrid solutions. Each of the three have benefits and cons. In the case of FIFO the coins are refreshed the fastest, and any potential malicious adversary will have to wait a certain amount before the coins are turned around and the forward security of the spiderchain is lost.

LIFO on the other hand will ensure the oldest coins are secured by the oldest orchestrators, therefore giving a malicious adversary no chance to gain control of these older coins.

Botanix Labs has chosen LIFO bitcoin management because of the higher security guarantees.