Domain name front running is the practice whereby a
domain name registrar
A domain name registrar is a company, person, or office that manages the reservation of Internet domain names.
A domain name registrar must be accredited by a generic top-level domain (gTLD) Domain name registry, registry or a country code top-l ...
uses insider information to register domains for the purpose of re-selling them or earning revenue via ads placed on the domain's landing page. By registering the domains, the registrar locks out other potential registrars from selling the domain to a customer. The registrar typically takes advantage of the five-day "
domain tasting" trial period, where the domain can be locked without payment.
The term was coined by domain investor and retired stockbroker Daniel Stager.
ICANN
The Internet Corporation for Assigned Names and Numbers (ICANN ) is a global multistakeholder group and nonprofit organization headquartered in the United States responsible for coordinating the maintenance and procedures of several dat ...
"likens this activity to
front running
Front running, also known as tailgating, is the practice of entering into an equity (stock) trade, option, futures contract, derivative, or security-based swap to capitalize on advance, nonpublic knowledge of a large ("block") pending transactio ...
in stock and commodities markets and calls this behavior domain name front running. ... There does not appear to be a strong set of standards and practices to conclude whether monitoring availability checks is an acceptable or unacceptable practice."
In January 2008, it was reported that
Network Solutions
Network Solutions, LLC, formerly Web.com, is an American-based technology company and a subsidiary of Web.com, the 4th-largest .com domain name registrar, with over 6.7 million registrations as of August 2018. In addition to being a domain name ...
uses data collected from their web-based
WHOIS
WHOIS (pronounced as the phrase "who is") is a query and response protocol that is used for querying databases that store an Internet resource's registered users or assignees. These resources include domain names, IP address blocks and autonomo ...
search to register every domain that users check for availability. Although the practice forces users to register the searched-for domains from Network Solutions, Network Solutions defends the practice, claiming that "This protection measure provides our customers the opportunity to register domains they have previously searched without the fear that the name will be already taken through Front Running." However, during the four-day period, the domain is still up for sale to the general public solely through Network Solutions and is not, in fact, reserved for a specific person at all.
In June 2008, Network Solutions proposed a small fee for domain tasting, in part to end the practice of domain name front running.
See also
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Drop registrar
A drop registrar is a domain name registrar who registers expiring Internet domain names immediately after they expire and are deleted by the domain name registry. A drop registrar will typically use automated software to send up to 250 simult ...
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Principal–agent problem
The principal–agent problem refers to the conflict in interests and priorities that arises when one person or entity (the " agent") takes actions on behalf of another person or entity (the " principal"). The problem worsens when there is a gr ...
(An economic theory applicable to front running, where domain registrars are agents, and domain name users are principals)
References
{{Domain parking
Internet ethics