Honeypot: Is a software application that pretends to be a server
on a network and is not set up to protect itself from hackers & crackers. Rather, it works as a decoy system that lures hackers to break-in. The more a honeypot is targeted, the more it is valuable.

Honeynet: Is a network of honeypots that simulates a network. Hackers
tend to attack the honeynet, and it allows investigators to watch their activities.

The purpose of Honeypots/ honeynets is that the information collected
about the attacks on Honeypots/ honeynets are used fix vulnerabilities on company’s live network.