What is escrow?

Escrow is money held until a condition is met, then released to one party or returned to the other. Marketplaces, property, and payroll all use it. In a ledger, escrow is a balance with a hold, not a different kind of currency.

How does escrow work in a ledger?

The payer’s funds move into an escrow balance when the deal starts. They stay there while work happens. On success they move to the payee. On failure they move back. Until then, neither party should spend them. The condition lives in your app. The hold lives in the book.

Escrow vs inflight

Inflight is a hold on a single transfer until you commit or void. Escrow is a balance that may sit for days and then move in a second transfer. You can implement escrow with inflight if the hold is short. You use a dedicated balance when many events can happen while the money waits.

What happens if you skip the escrow balance?

You leave the money in the payer’s wallet and promise not to touch it. A payout, a fee, or an overdraft will touch it. A named escrow balance makes that promise visible in the book.

In Blnk, escrow is a balance on the map. You move funds in with a transaction, hold further movement with inflight or with product rules, then post the release or the return. Overdraft should be off on that balance if the escrow must never go negative.