A Honey-Pot is a machine/server that acts like a decoy. This server pretends to store valuable information making it an interesting target to crackers. If a honey-pot is perfectly implemented, crackers won't even know that they are caught in a trap.
With the help of this server, network administrators can monitor and study a cracker's dirty work so that they can identify holes and design a more secure system. Also, administrators can easily detect and stop a cracker who is trying to enter the root system.
In a honeypot server, admins can implement different layers of logs. Most of the time they log the ip of the cracker, keystrokes, commands, system activities, etc... These logs will give administrators an idea what to do next.
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