Backorder (Drop-Catching)

A backorder is a request placed with a service to grab a domain the moment it drops — the instant an unrenewed name is released back to the public. Because many parties may want the same expiring name, drop-catching is a speed game: providers fire registration attempts in the milliseconds after release, and when more than one backorder competes for the same domain it often goes to a private auction among the interested buyers. Backorders are how investors target good names already taken by someone who let them expire. It is a play on the traditional registration system; once caught, such a name can then be tokenized and held in a wallet like any other. Source: NameBio domain sales data.