[bitcoin-dev] Capital Efficient Honeypots w/ "Scorched Earth" Doublespending Protection

[Christian Decker]

On Thu, Aug 25, 2016 at 02:54:47AM +0000, James MacWhyte via bitcoin-dev wrote:
> I've always assumed honeypots were meant to look like regular, yet
> poorly-secured, assets. If the intruder could identify this as a honeypot
> by the strange setup (presigned, non-standard transactions lying around)
> and was aware that the creator intended to doublespend as soon as the
> transaction was discovered, wouldn't they instead prefer to not touch
> anything and wait for a non-bait target to appear? Is the assumption here
> that the intruder wouldn't know this is a honeypot, or that they would know
> and it's just assumed that they would rather take their chances on this
> instead of causing some other trouble?

That strongly depends on the value of the compromised machine to the
attacker. If he has syphoned all the data from it and has no further
use for it then the he will probably trip the tripwire to get the
coins even though this will make the compromise apparent. If however
he is planning to use it as a foothold to further compromise your
company, send spam or similar, he will likely try to avoid these
tripwires. In which case a classic honeypot, that attempts to look
like a regular system is what you're looking for.