How to Create Escrows on XRPL AlphaNet: A Complete Guide

What is an Escrow?

An escrow is a secure payment mechanism on the XRPL AlphaNet. 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.
• 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 XRPL AlphaNet

💡 You can also try creating an escrow on the Testnet first, so you don’t need to lock your real funds.

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 funds can be locked in escrow.

Step 2. Enter the Amount

Specify how much XRP 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:

• 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 5. Advanced Options (for Pro Subscribers)

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 XRPL AlphaNet. You can use it for delayed or conditional payments, or safely test the feature on the testnet without risking your real funds.