Overview
A tarpit is a service on a computer system (usually a server) that purposely delays incoming connections. The technique was developed as a defense against a computer worm, and the idea is that network abuses such as spamming or broad scanning are less effective, and therefore less attractive, if they take too long. The concept is analogous with a tar pit, in which animals can get bogged down and slowly sink under the surface, like in a swamp.
The original tarpit idea
Tom Liston developed the original tarpitting program LaBrea. It can protect an entire network with a tarpit run on a single machine.
The machine listens for Address Resolution Protocol requests that go unanswered (indicating unused addresses), then replies to those requests, receives the initial SYN packet of the scanner and sends a SYN/ACK in response. It does not open a socket or prepare a connection, in fact it can forget all about the connection after sending the SYN/ACK. However, the remote site sends its ACK (which gets ignored) and believes the 3-way-handshake to be complete. Then it starts to send data, which never reaches a destination. The connection will time out after a while, but since the system believes it is dealing with a live (established) connection, it is conservative in timing it out and will instead try to retransmit, back-off, retransmit, etc. for quite a while.
From Wikipedia (CC BY-SA 4.0).