I see. Thanks. But what can i do after that? It seems like I'll only have a few good developing moves and im forced to sac some pawns for a breakthrough
How to counter this stupid attack
This takes me back to the year 1974 when a friend played something like that against me. (I think he left the a- and e-pawns at home.) He called it "The Dragon". I also knew it must be wrong but couldn't beat it at the time. Just move the f3-knight planning 10.Qh5+, e.g. 9.Nd2. If 9...h5 then 10.Bxg8 Rxg8 11.Qxh5+. Even 9.Nxe5!? is probably winning, but there's no need to sacrifice. Or move the c3-knight, e.g. 9.Nd5, planning c2-c3 and d3-d4 or c2-c3 and b2-b4, your choice of break. Once you open a file for your rooks black is toast.
You can apply some pressure with something like Nb5 or Nd5 and develop c3 and b4 for example. Your pieces are well developed and further in development . Join an attack with h3 g4 or Be5 and even retreating a bit with nb1 pushing c3, punishing his poor development and actively shuffling pieces into sharper lines
Just do not play stereotypically. The final position is winning for you, as Black has destroyed his light squares all over the board, but after 5...b6 it was not difficult to spot the simple 6.Bd5, which wins material for free. And this is just one chance to win out of several.
How does Bd5 win material for free? I fork the rook and the knight but the rook on a8 can simply move and the knight is protected by the h rook.
OPTION 1: Different opening:
2. Nf3 and if f6 3. Nxe5! (wins)
OPTION 2: Using the hole on h5:
7. Nxg5 fxg5 8. Qh5+ (Ke7 Qf7#) Kd7 9. Bxg5 (two pawns for a piece, but lots of iniative)
OPTION 3: Using the hole on d5:
7. Bd5 (wins the rook, very simple)
OPTION 4: Using the hole on b5 h h5:
7. Bb5+ Bd7 8. Nxg5 (Bxb5 Qh5+ Ke7 Qf7#) fxg5 9. Qh5+ Ke7 10. Bxg5+ (wins the queen I think or gets some checkmate or something)
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So 4 ways to punish that horrible structure. Your development is great, but there are exceptions to the rules of development (when your opponent only doesn't keep up you can sacrifice and get mate). I also do coaching if you want more help.

In the initial game, 5. - b6 is a definite blunder, 6. Bd5 wins at least a piece. One move later 6. Bd5 still wins a piece, Nxg5 (followed by Qh5+ and Bxg5) might even be better.
One of the key elements of playing good chess is that you have to be alert and look for opportunities to win material. Don't just make random developing moves without thinking.
One more thing: there is a small magnifying glass icon at the bottom left corner of the diagram, it leads you to engine analysis.

In general, after developing you usually want to open the centre with something like d4, and/or attack on the light squares. Due to f6 and Bc4, Black will not be able to 0-0. Also keep an eye on tactical possibilities, as has pointed out before...

Just do not play stereotypically. The final position is winning for you, as Black has destroyed his light squares all over the board, but after 5...b6 it was not difficult to spot the simple 6.Bd5, which wins material for free. And this is just one chance to win out of several.
How does Bd5 win material for free? I fork the rook and the knight but the rook on a8 can simply move and the knight is protected by the h rook.
Ah, I see... my mistake.
Kindly show me where Black will move his rook?
Black has a way to save the Rook.
6...Nc6 (blocks the Bishop from taking the Rook)
7.Bxc6+ (Forking the Rook and King)
7...Qd7 (Blocking the check)
And now, Black can keep his Rook as Quite frankly, if my choice is a free Rook or a Queen in return for my Bishop, provided no immediate tactic, give me the Queen for the Bishop.
THERE! Black saved his Rook! LOL!
Yeah I think OP was more interested in how to make progress from the final position (or similar), which black could have reached in various ways. Some of those ways don't lose instantly to Bd5 or Ng5 or whatever. But the advice to remain alert is sensible. When pfren suggested "6.Bd5", OP probably was looking at "9.Bd5".
- On the one hand -- By placing all pawns on dark squares, black is just begging white to sacrifice and start hounding the king. It might be helpful to play over some classic examples from Greco's ancient book because they basically all ended that way. (By the way, placing all pawns on light squares would also be horrible but might take a few moves longer before white is ready to sacrifice.)
- On the other hand -- By not developing any pieces, not controlling the center, not castling, et cetera, black is just waiting for white to make a pawn break, open some lines, and invade down the lines to conquer some weak point. The undeveloped black forces could only make a pitiful resistance.
Both methods are effective. Try both and see which one makes black give up the "formation". I think most good players would prefer method B in a practical game, because not much thinking is required. Then they would go home and analyze method A, because it's fun to sacrifice (especially when there's zero risk like in analysis). Then be ready to seriously punish black if they dared to repeat the opening.

In addition to winning pieces later, you can punish him on move 4. He has no pieces developed and is several moves from castling, so the immediate 4. d4 would force matters rather quickly (though Bc4 is likely just as strong, but does allow him to "reinforce" is center with c5). If you play 4. d4 and he does not take, you take on e5 and he either opens up the diagonal on his kingside or opens up the d-file allowing you to trade queens and prevent him from ever castling. With queens off the board, it will be extremely difficult for him to defend all his over-extended pawns.

In addition to winning pieces later, you can punish him on move 4. He has no pieces developed and is several moves from castling, so the immediate 4. d4 would force matters rather quickly (though Bc4 is likely just as strong, but does allow him to "reinforce" is center with c5). If you play 4. d4 and he does not take, you take on e5 and he either opens up the diagonal on his kingside or opens up the d-file allowing you to trade queens and prevent him from ever castling. With queens off the board, it will be extremely difficult for him to defend all his over-extended pawns.
4 was a good move by him though
I said as much in my comment. My point was when you have a lead in development, you can often exploit it by opening up the position, which d4 would have allowed him to do.

Yeah but he played bishop and it was even worse what his opponent played he let him come to him with his pawns. Arent you supposed to leave the pawn tension anyways?
You break the pawn tension when it benefits you. In this case, breaking the tension would allow him to open lines towards the rather exposed Black king.

I was playing a game of chess with my friend and he did this opening:
I was playing as white while he was playing as black
Is there any way to punish/counter this attack?
Thanks
You can move the knight just about anywhere; an especially clever tactic would be to move it to a square where it can be captured, such as d4. If they do capture, after Qh5+, black is in big trouble, and must be very careful to avoid being checkmated. Just don't play Nxg5, since hxg5 will open the rook's view of the h5 square.
I was playing a game of chess with my friend and he did this opening:
I was playing as white while he was playing as black
Is there any way to punish/counter this attack?
Thanks