FBLearn: Decentralized Platform for Federated Learning on Blockchain

In recent years, rapid technological advancements have propelled blockchain and artificial intelligence (AI) into prominent roles within the digital industry, each having unique applications. Blockchain, recognized for its secure and transparent data storage, and AI, a powerful tool for data analysis and decision making, exhibit common features that render them complementary. At the same time, machine learning has become a robust and influential technology, adopted by many companies to address non-trivial technical problems. This adoption is fueled by the vast amounts of data generated and utilized in daily operations. An intriguing intersection of blockchain and AI occurs in the realm of federated learning, a distributed approach allowing multiple parties to collaboratively train a shared model without centralizing data. This paper presents a decentralized platform FBLearn for the implementation of federated learning in blockchain, which enables us to harness the benefits of federated learning without the necessity of exchanging sensitive customer or product data, thereby fostering trustless collaboration. As the decentralized blockchain network is introduced in the distributed model training to replace the centralized server, global model aggregation approaches have to be utilized. This paper investigates several techniques for model aggregation based on the local model average and ensemble using either local or globally distributed validation data for model evaluation. The suggested aggregation approaches are experimentally evaluated based on two use cases of the FBLearn platform: credit risk scoring using a random forest classifier and credit card fraud detection using a logistic regression. The experimental results confirm that the suggested adaptive weight calculation and ensemble techniques based on the quality of local training data enhance the robustness of the global model. The performance evaluation metrics and ROC curves prove that the aggregation strategies successfully isolate the influence of the low-quality models on the final model. The proposed system’s ability to outperform models created with separate datasets underscores its potential to enhance collaborative efforts and to improve the accuracy of the final global model compared to each of the local models. Integrating blockchain and federated learning presents a forward-looking approach to data collaboration while addressing privacy concerns.