How to Create Escrows on {explorerName}: A Complete Guide
+What is an Escrow?
++ An escrow is a secure payment mechanism on the {explorerName}. Instead of sending funds directly, the sender + places them into escrow with specific release conditions. The funds remain locked on the blockchain until: +
+-
+
- + a certain date and time has passed (time-based escrow), or + + +
- + a cryptographic condition is fulfilled (condition-based escrow). + +
+ If the conditions are not met and a cancelAfter time is set, the escrow can be canceled + after that time, and the funds are returned to the sender. If there is no cancelAfter time, + the escrow cannot be canceled and will remain locked forever unless the condition is fulfilled. This ensures + that funds are safe, transparent, and trustless—no third party is required to hold or + manage them.{' '} +
+ +Why use Escrows?
++ Escrows are widely used in blockchain payments because they add an extra layer of security and automation. +
++ Common use cases include: +
+-
+
- + Delayed or scheduled payments – for example, releasing funds to a freelancer or business + partner only after a project milestone is reached. + +
- + Conditional transactions – payments that only go through if a certain condition is met, + such as providing a password, secret, or proof of delivery. + +
- + Escrowed fundraising – where funds are locked until a campaign succeeds. + + {xahauNetwork && ( + <> +
- + Automated financial agreements – combining escrows with smart contracts (like Hooks + on Xahau) for complex logic. + + + )} +
- + Trustless trades – enabling secure transfers between parties without relying on + intermediaries. + +
+ Because escrows are enforced by the blockchain itself, neither the sender nor the recipient can change the + rules once the escrow is created. This makes them a reliable tool for both business and personal + transactions. +
+How to Create an Escrow on {explorerName}
++ + 👉 Go to + {' '} + Create An Escrow Page +
+💡 You can also try creating an escrow on the Testnet first, so you don’t need to lock your real funds.
+-
+
- + Unlock after — when the funds can be released. + +
- + Cancel after — after that time, the funds can be returned to you (the escrow can be + canceled). + +
+ Step 1. Enter the Recipient Address +
+Fill in the destination wallet address.
++ 👉 Avoid sending funds to exchange or service addresses—if the address changes or the exchange shuts down, + the escrow may never reach the recipient. +
++ Step 2. Enter the Amount +
+Specify how much {nativeCurrency} you want to lock in escrow.
+ Step 3. Add a Memo (Optional) +You can include a memo. Keep in mind that it will be public on the blockchain.
++ Step 4. Set the Escrow Conditions +
+Choose one or both options:
+-
+
+ If you are a Bithomp Pro subscriber, you can access additional features like{' '} + Cryptographic condition (PREIMAGE-SHA-256). This means you generate a random secret + (preimage), hash it, and store the hash in the escrow. +
++ ⚠️ Keep the secret (fullfillment) securely yourself — WE DO NOT store it. If you lose the + secret and there is no cancelAfter time set,{' '} + the escrowed funds will be locked forever and cannot be released or canceled. + The condition hash is public and is stored directly in the escrow on the blockchain. You will see it in + the escrow transaction details +
+ Step 6. Confirm and Create the Escrow ++ Tick the box to agree with the terms and conditions. Click Create Escrow. Sign the transaction using your + wallet (Xaman, Ledger, MetaMask, Gem Wallet, etc.). Once signed, the escrow will be created and appear in + your transaction history. +
+Who can cancel an escrow
++ {' '} + After the cancelAfter time has passed, the escrow does not expire or return funds automatically —{' '} + any account may submit an EscrowCancel transaction to return the funds to the escrow + sender. On our website you can perform this from the Account Page by selecting + the escrow and signing a cancel transaction with your wallet.{' '} +
++ {' '} + We make it simple and secure to create escrows on {explorerName}. You can use it for delayed or conditional + payments, or safely test the feature on the testnet without risking your real funds. +
+