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How to escrow your XRPs

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The current implementation of conditionals (PREIMAGE-SHA-256) allows for some secret to be used to release the escrowed amount of money. So basically we have 

  • secret A: gives access to account A
  • secret B: gives access to account B
  • secret E: the escrow secret, will release the escrowed amount to account B

Assume secret A is owned by yourself, secret B and E are owned by the bank. In that case if you let the bank not take any action the escrow will expire and the amount will be sent back to account A. If you think account A has been compromised (that is the catch of course, how will you know for sure), you will have the bank finish the escrow, so that the amount will be sent to account B. The bank can then safely send the amount to another account that you will provide.

But imagine in this case if the bank would have secret E compromised and secret B also compromised. The bank would be in trouble. The most preferred case for the bank would be not risking loosing the amount and hence not to own secret B, but only secret E. But in that case you are yourself still responsible for both secret A and B and as @at3n mentions, if they are compromised we are back to square one.

My best take would still be multi-sig and no escrow: (a minimum of) 2 banks or institutes, that - together with you - set up a 2 out of 3 multi-sig, where you own a secret and both banks own a secret. You need 1 bank to release the funds. In case you loose your key, the 2 banks can release it for you. If you don't trust banks, then replace bank with an entity you do trust.

  

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I just uploaded a simple and secure open-source XRP escrow tool to github:

https://github.com/payam54/XRP-Escrow-Client

This tool is all client-based. meaning you won't need to risk exposing your secret key to third parties.

It's super easy to use and doesn't need any special knowledge. Just download the html files and open them in a modern browser (I prefer chrome), preferably in private mode, then follow the instructions.

Viva XRP :)

 

Edited by payam_prz
more clarification

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10 hours ago, payam_prz said:

I just uploaded a simple and secure open-source XRP escrow tool to github:

https://github.com/payam54/XRP-Escrow-Client

This tool is all client-based. meaning you won't need to risk exposing your secret key to third parties.

It's super easy to use and doesn't need any special knowledge. Just download the html files and open them in a modern browser (I prefer chrome), preferably in private mode, then follow the instructions.

Viva XRP :)

 

This is great. is there a way to finish an Escrow when the destination Wallet is a Nano S, which doesn't tell you the Secret Key, please?? 

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6 hours ago, Jannercobbler said:

This is great. is there a way to finish an Escrow when the destination Wallet is a Nano S, which doesn't tell you the Secret Key, please?? 

Of course, destination wallet doesn't need secret keys. All you need it to put the destination wallet address in "Create Escrow" tool, and leave the tag as is zero. I've tried it many times.

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6 hours ago, payam_prz said:

Of course, destination wallet doesn't need secret keys. All you need it to put the destination wallet address in "Create Escrow" tool, and leave the tag as is zero. I've tried it many times.

What about when you want to finish Escrow?  Ledger Nano S doesn't tell you the Secret Key :(

Edited by Jannercobbler

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Just now, Jannercobbler said:

WHat about when you want to finish Escrow?  Ledger Nano S doesn't tell you the Secret Key :(

For both create and finish, only the secret key of the owner (escrow creator) is used. You only need to have full control over source, not destination.

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7 hours ago, payam_prz said:

For both create and finish, only the secret key of the owner (escrow creator) is used. You only need to have full control over source, not destination.

I have tested this and it is a  truly awesome thing,

I can now Escrow my XRPs using my RippleX Wallet as the creator (and Releaser) of the Escrow and have the Destination as my Nano S Wallet. :big_boss::JC_hurrah:

Shared this also on Twitter!!!!

Do u have a @xrptipbot account??  

Edited by Jannercobbler

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On 3/31/2018 at 8:05 PM, Jannercobbler said:

I have tested this and it is a  truly awesome thing,

I can now Escrow my XRPs using my RippleX Wallet as the creator (and Releaser) of the Escrow and have the Destination as my Nano S Wallet. :big_boss::JC_hurrah:

Shared this also on Twitter!!!!

Do u have a @xrptipbot account??  

Glad you liked it! sure, it's my twitter account: payam_prz

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On 31/03/2018 at 9:31 PM, payam_prz said:

For both create and finish, only the secret key of the owner (escrow creator) is used. You only need to have full control over source, not destination.

Finished Escrows that have been released are still shown when looking at Escrow list? :(

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On 4/2/2018 at 8:56 PM, Jannercobbler said:

Finished Escrows that have been released are still shown when looking at Escrow list? :(

Yes, for more accurate list, I'd need to add a bit more code. Currently it shows all created escrows but you can search for transaction ID that you saved during escrow creation.

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