Description:

Honeyd is a small daemon that creates virtual hosts on a network.
The hosts can be configured to run arbitrary services, and their
personality can be adapted so that they appear to be running
certain operating systems. Honeyd enables a single host to claim
multiple addresses - I have tested up to 65536 - on a LAN for
network simulation. Honeyd improves cyber security by providing
mechanisms for threat detection and assessment. It also deters
adversaries by hiding real systems in the middle of virtual
systems.

It is possible to ping the virtual machines, or to traceroute
them. Any type of service on the virtual machine can be simulated
according to a simple configuration file. Instead of simulating a
service, it is also possible to proxy it to another machine.