Question : Oracle database password file

In the password file, for the password parameter we need to give the sys user password or else we can give any other password name

Answer : Oracle database password file

The value you specified during passwordfile creation is use to login as sysdba and/or sysoper user.

for example you give password "Oracle" during password file creation then,

sql>sys/oracle as sysdba (will work)
sql>sys/oracle1 as sysdba (Will not)

Now later on you grant sysdba privs to user XYZ with password abc
so
sql>XYZ/abc (Will connect  to schema XYZ)
sql>XYZ/Oracle as sysdba (will connect to schema SYS)

I hope this make sense now