Blockchain Papers

Follow blockchain research across journals, conferences, and preprint repositories.

846 papersLast indexed Aug 31, 2026
Search papers

Paper index

846 results · page 11 of 36

Clear filters
Mar 10, 2025·Cluster Computing 29, 418 (2026)
0 cites
Split-n-Chain: Privacy-Preserving Multi-Node Split Learning with Blockchain-Based Auditability

Mukesh Sahani, Binanda Sengupta

Deep learning, when integrated with a large amount of training data, has the potential to outperform machine learning in terms of high accuracy. Recently, privacy-preserving deep learning has drawn significant attention of the research community. Different privacy notions in deep learning include privacy of data provided by data-owners and privacy of parameters and/or hyperparameters of the underlying neural network. Federated learning is a popular privacy-preserving execution environment where data-owners participate in learning the parameters collectively without leaking their respective data to other participants. However, federated learning suffers from certain security/privacy issues. In this paper, we propose Split-n-Chain, a variant of split learning where the layers of the network are split among several distributed nodes. Split-n-Chain achieves several privacy properties: data-owners need not share their training data with other nodes, and no nodes have access to the parameters and hyperparameters of the neural network (except that of the respective layers they hold). Moreover, Split-n-Chain uses blockchain to audit the computation done by different nodes. Our experimental results show that: Split-n-Chain is efficient, in terms of time required to execute different phases, and the training loss trend is similar to that for the same neural network when implemented in a monolithic fashion.

Open access
cs.CR
cs.LG
Original source
Mar 8, 2025·arXiv
0 cites
Generation of Optimized Solidity Code for Machine Learning Models using LLMs

Nikumbh Sarthak Sham, Sandip Chakraborty, Shamik Sural

While a plethora of machine learning (ML) models are currently available, along with their implementation on disparate platforms, there is hardly any verifiable ML code which can be executed on public blockchains. We propose a novel approach named LMST that enables conversion of the inferencing path of an ML model as well as its weights trained off-chain into Solidity code using Large Language Models (LLMs). Extensive prompt engineering is done to achieve gas cost optimization beyond mere correctness of the produced code, while taking into consideration the capabilities and limitations of the Ethereum Virtual Machine. We have also developed a proof of concept decentralized application using the code so generated for verifying the accuracy claims of the underlying ML model. An extensive set of experiments demonstrate the feasibility of deploying ML models on blockchains through automated code translation using LLMs.

Open access
cs.ET
cs.LG
Original source
Mar 6, 2025·arXiv
0 cites
Slow is Fast! Dissecting Ethereum's Slow Liquidity Drain Scams

Minh Trung Tran, Nasrin Sohrabi, Zahir Tari, Qin Wang · 6 authors

We identify the slow liquidity drain (SLID) scam, an insidious and highly profitable threat to decentralized finance (DeFi), posing a large-scale, persistent, and growing risk to the ecosystem. Unlike traditional scams such as rug pulls or honeypots (USENIX Sec'19, USENIX Sec'23), SLID gradually siphons funds from liquidity pools over extended periods, making detection significantly more challenging. In this paper, we conducted the first large-scale empirical analysis of 319,166 liquidity pools across six major decentralized exchanges (DEXs) since 2018. We identified 3,117 SLID affected liquidity pools, resulting in cumulative losses of more than US$103 million. We propose a rule-based heuristic and an enhanced machine learning model for early detection. Our machine learning model achieves a detection speed 4.77 times faster than the heuristic while maintaining 95% accuracy. Our study establishes a foundation for protecting DeFi investors at an early stage and promoting transparency in the DeFi ecosystem.

Open access
cs.CR
cs.LG
Original source
Mar 4, 2025·arXiv
0 cites
A Quantum Neural Network Transfer-Learning Model for Forecasting Problems with Continuous and Discrete Variables

Ismael Abdulrahman

This study introduces simple yet effective continuous- and discrete-variable quantum neural network (QNN) models as a transfer-learning approach for forecasting tasks. The CV-QNN features a single quantum layer with two qubits to establish entanglement and utilizes a minimal set of quantum gates, including displacement, rotation, beam splitter, squeezing, and a non-Gaussian cubic-phase gate, with a maximum of eight trainable parameters. A key advantage of this model is its ability to be trained on a single dataset, after which the learned parameters can be transferred to other forecasting problems with little to no fine-tuning. Initially trained on the Kurdistan load demand dataset, the model's frozen parameters are successfully applied to various forecasting tasks, including energy consumption, traffic flow, weather conditions, and cryptocurrency price prediction, demonstrating strong performance. Furthermore, the study introduces a discrete-variable quantum model with an equivalent 2- and 4-wire configuration and presents a performance assessment, showing good but relatively lower effectiveness compared to the continuous-variable model.

Open access
cs.LG
eess.SY
quant-ph
Original source
Mar 4, 2025·arXiv
0 cites
VWAP Execution with Signature-Enhanced Transformers: A Multi-Asset Learning Approach

Remi Genet

In this paper I propose a novel approach to Volume Weighted Average Price (VWAP) execution that addresses two key practical challenges: the need for asset-specific model training and the capture of complex temporal dependencies. Building upon my recent work in dynamic VWAP execution arXiv:2502.18177, I demonstrate that a single neural network trained across multiple assets can achieve performance comparable to or better than traditional asset-specific models. The proposed architecture combines a transformer-based design inspired by arXiv:2406.02486 with path signatures for capturing geometric features of price-volume trajectories, as in arXiv:2406.17890. The empirical analysis, conducted on hourly cryptocurrency trading data from 80 trading pairs, shows that the globally-fitted model with signature features (GFT-Sig) achieves superior performance in both absolute and quadratic VWAP loss metrics compared to asset-specific approaches. Notably, these improvements persist for out-of-sample assets, demonstrating the model's ability to generalize across different market conditions. The results suggest that combining global parameter sharing with signature-based feature extraction provides a scalable and robust approach to VWAP execution, offering significant practical advantages over traditional asset-specific implementations.

Open access
q-fin.ST
cs.LG
Original source
Mar 3, 2025·arXiv
0 cites
\textsc{Perseus}: Tracing the Masterminds Behind Cryptocurrency Pump-and-Dump Schemes

Honglin Fu, Yebo Feng, Cong Wu, Jiahua Xu

Masterminds are entities organizing, coordinating, and orchestrating cryptocurrency pump-and-dump schemes, a form of trade-based manipulation undermining market integrity and causing financial losses for unwitting investors. Previous research detects pump-and-dump activities in the market, predicts the target cryptocurrency, and examines investors and \ac{osn} entities. However, these solutions do not address the root cause of the problem. There is a critical gap in identifying and tracing the masterminds involved in these schemes. In this research, we develop a detection system \textsc{Perseus}, which collects real-time data from the \acs{osn} and cryptocurrency markets. \textsc{Perseus} then constructs temporal attributed graphs that preserve the direction of information diffusion and the structure of the community while leveraging \ac{gnn} to identify the masterminds behind pump-and-dump activities. Our design of \textsc{Perseus} leads to higher F1 scores and precision than the \ac{sota} fraud detection method, achieving fast training and inferring speeds. Deployed in the real world from February 16 to October 9 2024, \textsc{Perseus} successfully detects $438$ masterminds who are efficient in the pump-and-dump information diffusion networks. \textsc{Perseus} provides regulators with an explanation of the risks of masterminds and oversight capabilities to mitigate the pump-and-dump schemes of cryptocurrency.

Open access
cs.CY
cs.LG
q-fin.TR
Original source
Mar 1, 2025·arXiv
0 cites
PINN-DT: Optimizing Energy Consumption in Smart Building Using Hybrid Physics-Informed Neural Networks and Digital Twin Framework with Blockchain Security

Hajar Kazemi Naeini, Roya Shomali, Abolhassan Pishahang, Hamidreza Hasanzadeh · 8 authors

The advancement of smart grid technologies necessitates the integration of cutting-edge computational methods to enhance predictive energy optimization. This study proposes a multi-faceted approach by incorporating (1) Deep Reinforcement Learning (DRL) agents trained using data from Digital Twins (DTs) to optimize energy consumption in real time, (2) Physics-Informed Neural Networks (PINNs) to seamlessly embed physical laws within the optimization process, ensuring model accuracy and interpretability, and (3) Blockchain (BC) technology to facilitate secure and transparent communication across the smart grid infrastructure. The model was trained and validated using comprehensive datasets, including smart meter energy consumption data, renewable energy outputs, dynamic pricing, and user preferences collected from IoT devices. The proposed framework achieved superior predictive performance with a Mean Absolute Error (MAE) of 0.237 kWh, Root Mean Square Error (RMSE) of 0.298 kWh, and an R-squared (R2) value of 0.978, indicating a 97.8% explanation of data variance. Classification metrics further demonstrated the model's robustness, achieving 97.7% accuracy, 97.8% precision, 97.6% recall, and an F1 Score of 97.7%. Comparative analysis with traditional models like Linear Regression, Random Forest, SVM, LSTM, and XGBoost revealed the superior accuracy and real-time adaptability of the proposed method. In addition to enhancing energy efficiency, the model reduced energy costs by 35%, maintained a 96% user comfort index, and increased renewable energy utilization to 40%. This study demonstrates the transformative potential of integrating PINNs, DT, and Blockchain technologies to optimize energy consumption in smart grids, paving the way for sustainable, secure, and efficient energy management systems.

Open access
cs.LG
cs.AI
Original source
Feb 25, 2025·arXiv
0 cites
Recurrent Neural Networks for Dynamic VWAP Execution: Adaptive Trading Strategies with Temporal Kolmogorov-Arnold Networks

Remi Genet

The execution of Volume Weighted Average Price (VWAP) orders remains a critical challenge in modern financial markets, particularly as trading volumes and market complexity continue to increase. In my previous work arXiv:2502.13722, I introduced a novel deep learning approach that demonstrated significant improvements over traditional VWAP execution methods by directly optimizing the execution problem rather than relying on volume curve predictions. However, that model was static because it employed the fully linear approach described in arXiv:2410.21448, which is not designed for dynamic adjustment. This paper extends that foundation by developing a dynamic neural VWAP framework that adapts to evolving market conditions in real time. We introduce two key innovations: first, the integration of recurrent neural networks to capture complex temporal dependencies in market dynamics, and second, a sophisticated dynamic adjustment mechanism that continuously optimizes execution decisions based on market feedback. The empirical analysis, conducted across five major cryptocurrency markets, demonstrates that this dynamic approach achieves substantial improvements over both traditional methods and our previous static implementation, with execution performance gains of 10 to 15% in liquid markets and consistent outperformance across varying conditions. These results suggest that adaptive neural architectures can effectively address the challenges of modern VWAP execution while maintaining computational efficiency suitable for practical deployment.

Open access
q-fin.ST
cs.LG
Original source
Feb 25, 2025·Artificial Intelligence Review
8 cites
A survey of zero-knowledge proof based verifiable machine learning

Zhizhi Peng, Chonghe Zhao, Taotao Wang, Guofu Liao · 10 authors

Abstract As machine learning technologies advance rapidly across various domains, concerns over data privacy and model security have grown significantly. These challenges are particularly pronounced when models are trained and deployed on cloud platforms or third-party servers due to the computational resource limitations of users’ end devices. In response, zero-knowledge proof (ZKP) technology has emerged as a promising solution, enabling effective validation of model performance and authenticity in both training and inference processes without disclosing sensitive data. Thus, ZKP ensures the verifiability and security of machine learning models, making it a valuable tool for privacy-preserving AI. Although some research has explored the verifiable machine learning solutions that exploit ZKP, a comprehensive survey and summary of these efforts remains absent. This survey paper aims to bridge this gap by reviewing and analyzing all the existing Zero-Knowledge Machine Learning (ZKML) research from June 2017 to August 2025. We begin by introducing the concept of ZKML and outlining its ZKP algorithmic setups under three key categories: verifiable training, verifiable inference, and verifiable testing. Next, we provide a comprehensive categorization of existing ZKML research within these categories and analyze the works in detail. Furthermore, we explore the implementation challenges faced in this field and discuss the improvement works to address these obstacles. Additionally, we highlight several commercial applications of ZKML technology. Finally, we propose promising directions for future advancements in this domain.

Open access
3 source records
Adversarial Robustness in Machine Learning
Privacy-Preserving Technologies in Data
Explainable Artificial Intelligence (XAI)
Original source
Feb 24, 2025·arXiv
0 cites
Survey on Strategic Mining in Blockchain: A Reinforcement Learning Approach

Jichen Li, Lijia Xie, Hanting Huang, Bo Zhou · 8 authors

Strategic mining attacks, such as selfish mining, exploit blockchain consensus protocols by deviating from honest behavior to maximize rewards. Markov Decision Process (MDP) analysis faces scalability challenges in modern digital economics, including blockchain. To address these limitations, reinforcement learning (RL) provides a scalable alternative, enabling adaptive strategy optimization in complex dynamic environments. In this survey, we examine RL's role in strategic mining analysis, comparing it to MDP-based approaches. We begin by reviewing foundational MDP models and their limitations, before exploring RL frameworks that can learn near-optimal strategies across various protocols. Building on this analysis, we compare RL techniques and their effectiveness in deriving security thresholds, such as the minimum attacker power required for profitable attacks. Expanding the discussion further, we classify consensus protocols and propose open challenges, such as multi-agent dynamics and real-world validation. This survey highlights the potential of reinforcement learning (RL) to address the challenges of selfish mining, including protocol design, threat detection, and security analysis, while offering a strategic roadmap for researchers in decentralized systems and AI-driven analytics.

Open access
cs.LG
cs.GT
cs.MA
Original source
Feb 24, 2025·Proceedings of the AAAI Conference on Artificial Intelligence
4 cites
MTVHunter: Smart Contracts Vulnerability Detection Based on Multi-Teacher Knowledge Translation

Sun Guokai, Yuan Zhuang, Shuo Zhang, Xiaoyu Feng · 6 authors

Smart contracts, closely intertwined with cryptocurrency transactions, have sparked widespread concerns about considerable financial losses of security issues. To counteract this, a variety of tools have been developed to identify vulnerability in smart contract. However, they fail to overcome two challenges at the same time when faced with smart contract bytecode: (i) strong interference caused by enormous non-relevant instructions; (ii) missing semantics of bytecode due to incomplete data and control flow dependencies. In this paper, we propose a multi-teacher based bytecode vulnerability detection method, namely Multi-Teacher Vulnerability Hunter (MTVHunter), which delivers effective denoising and missing semantic to bytecode under multi-teacher guidance. Specifically, we first propose an instruction denoising teacher to eliminate noise interference by abstract vulnerability pattern and further reflect in contract embeddings. Secondly, we design a novel semantic complementary teacher with neuron distillation, which effectively extracts necessary semantic from source code to replenish the bytecode. Particularly, the proposed neuron distillation accelerate this semantic filling by turning the knowledge transition into a regression task. We conduct experiments on 229,178 real-world smart contracts that concerns four types of common vulnerabilities. Extensive experiments show MTVHunter achieves significantly performance gains over state-of-the-art approaches.

Open access
2 source records
Imbalanced Data Classification Techniques
Artificial Intelligence in Law
Law, AI, and Intellectual Property
Original source
Feb 24, 2025·arXiv (Cornell University)
0 cites
GOD model: Privacy Preserved AI School for Personal Assistant

PIN AI Team, Sun, Bill, Guo, Gavin, Peng, Regan · 10 authors

Personal AI assistants (e.g., Apple Intelligence, Meta AI) offer proactive recommendations that simplify everyday tasks, but their reliance on sensitive user data raises concerns about privacy and trust. To address these challenges, we introduce the Guardian of Data (GOD), a secure, privacy-preserving framework for training and evaluating AI assistants directly on-device. Unlike traditional benchmarks, the GOD model measures how well assistants can anticipate user needs-such as suggesting gifts-while protecting user data and autonomy. Functioning like an AI school, it addresses the cold start problem by simulating user queries and employing a curriculum-based approach to refine the performance of each assistant. Running within a Trusted Execution Environment (TEE), it safeguards user data while applying reinforcement and imitation learning to refine AI recommendations. A token-based incentive system encourages users to share data securely, creating a data flywheel that drives continuous improvement. Specifically, users mine with their data, and the mining rate is determined by GOD's evaluation of how well their AI assistant understands them across categories such as shopping, social interactions, productivity, trading, and Web3. By integrating privacy, personalization, and trust, the GOD model provides a scalable, responsible path for advancing personal AI assistants. For community collaboration, part of the framework is open-sourced at https://github.com/PIN-AI/God-Model.

Open access
2 source records
AI in Service Interactions
Ethics and Social Impacts of AI
Privacy, Security, and Data Protection
Original source
Feb 23, 2025·arXiv
0 cites
TrustChain: A Blockchain Framework for Auditing and Verifying Aggregators in Decentralized Federated Learning

Ehsan Hallaji, Roozbeh Razavi-Far, Mehrdad Saif

The server-less nature of Decentralized Federated Learning (DFL) requires allocating the aggregation role to specific participants in each federated round. Current DFL architectures ensure the trustworthiness of the aggregator node upon selection. However, most of these studies overlook the possibility that the aggregating node may turn rogue and act maliciously after being nominated. To address this problem, this paper proposes a DFL structure, called TrustChain, that scores the aggregators before selection based on their past behavior and additionally audits them after the aggregation. To do this, the statistical independence between the client updates and the aggregated model is continuously monitored using the Hilbert-Schmidt Independence Criterion (HSIC). The proposed method relies on several principles, including blockchain, anomaly detection, and concept drift analysis. The designed structure is evaluated on several federated datasets and attack scenarios with different numbers of Byzantine nodes.

Open access
cs.LG
cs.AI
cs.CR
Original source
Feb 20, 2025·arXiv
10 cites
Blockchain-based Framework for Scalable and Incentivized Federated Learning

Bijun Wu, Oshani Seneviratne

Federated Learning (FL) enables collaborative model training without sharing raw data, preserving privacy while harnessing distributed datasets. However, traditional FL systems often rely on centralized aggregating mechanisms, introducing trust issues, single points of failure, and limited mechanisms for incentivizing meaningful client contributions. These challenges are exacerbated as FL scales to train resource-intensive models, such as large language models (LLMs), requiring scalable, decentralized solutions. This paper presents a blockchain-based FL framework that addresses these limitations by integrating smart contracts and a novel hybrid incentive mechanism. The framework automates critical FL tasks, including client registration, update validation, reward distribution, and maintaining a transparent global state. The hybrid incentive mechanism combines on-chain alignment-based rewards, off-chain fairness checks, and consistency multipliers to ensure fairness, transparency, and sustained engagement. We evaluate the framework through gas cost analysis, demonstrating its feasibility for different scales of federated learning scenarios.

Open access
2 source records
cs.LG
cs.DC
Privacy-Preserving Technologies in Data
Original source
Feb 19, 2025·arXiv
0 cites
Deep Learning for VWAP Execution in Crypto Markets: Beyond the Volume Curve

Remi Genet

Volume-Weighted Average Price (VWAP) is arguably the most prevalent benchmark for trade execution as it provides an unbiased standard for comparing performance across market participants. However, achieving VWAP is inherently challenging due to its dependence on two dynamic factors, volumes and prices. Traditional approaches typically focus on forecasting the market's volume curve, an assumption that may hold true under steady conditions but becomes suboptimal in more volatile environments or markets such as cryptocurrency where prediction error margins are higher. In this study, I propose a deep learning framework that directly optimizes the VWAP execution objective by bypassing the intermediate step of volume curve prediction. Leveraging automatic differentiation and custom loss functions, my method calibrates order allocation to minimize VWAP slippage, thereby fully addressing the complexities of the execution problem. My results demonstrate that this direct optimization approach consistently achieves lower VWAP slippage compared to conventional methods, even when utilizing a naive linear model presented in arXiv:2410.21448. They validate the observation that strategies optimized for VWAP performance tend to diverge from accurate volume curve predictions and thus underscore the advantage of directly modeling the execution objective. This research contributes a more efficient and robust framework for VWAP execution in volatile markets, illustrating the potential of deep learning in complex financial systems where direct objective optimization is crucial. Although my empirical analysis focuses on cryptocurrency markets, the underlying principles of the framework are readily applicable to other asset classes such as equities.

Open access
q-fin.ST
cs.LG
Original source
Feb 17, 2025·arXiv
0 cites
Market-Derived Financial Sentiment Analysis: Context-Aware Language Models for Crypto Forecasting

Hamid Moradi-Kamali, Mohammad-Hossein Rajabi-Ghozlou, Mahdi Ghazavi, Ali Soltani · 6 authors

Financial Sentiment Analysis (FSA) traditionally relies on human-annotated sentiment labels to infer investor sentiment and forecast market movements. However, inferring the potential market impact of words based on their human-perceived intentions is inherently challenging. We hypothesize that the historical market reactions to words, offer a more reliable indicator of their potential impact on markets than subjective sentiment interpretations by human annotators. To test this hypothesis, a market-derived labeling approach is proposed to assign tweet labels based on ensuing short-term price trends, enabling the language model to capture the relationship between textual signals and market dynamics directly. A domain-specific language model was fine-tuned on these labels, achieving up to an 11% improvement in short-term trend prediction accuracy over traditional sentiment-based benchmarks. Moreover, by incorporating market and temporal context through prompt-tuning, the proposed context-aware language model demonstrated an accuracy of 89.6% on a curated dataset of 227 impactful Bitcoin-related news events with significant market impacts. Aggregating daily tweet predictions into trading signals, our method outperformed traditional fusion models (which combine sentiment-based and price-based predictions). It challenged the assumption that sentiment-based signals are inferior to price-based predictions in forecasting market movements. Backtesting these signals across three distinct market regimes yielded robust Sharpe ratios of up to 5.07 in trending markets and 3.73 in neutral markets. Our findings demonstrate that language models can serve as effective short-term market predictors. This paradigm shift underscores the untapped capabilities of language models in financial decision-making and opens new avenues for market prediction applications.

Open access
cs.CE
cs.CL
cs.LG
Original source
Feb 17, 2025·arXiv
0 cites
zScore: A Universal Decentralised Reputation System for the Blockchain Economy

Himanshu Udupi, Ashutosh Sahoo, Akshay S. P., Gurukiran S. · 6 authors

Modern society functions on trust. The onchain economy, however, is built on the founding principles of trustless peer-to-peer interactions in an adversarial environment without a centralised body of trust and needs a verifiable system to quantify credibility to minimise bad economic activity. We provide a robust framework titled zScore, a core primitive for reputation derived from a wallet's onchain behaviour using state-of-the-art AI neural network models combined with real-world credentials ported onchain through zkTLS. The initial results tested on retroactive data from lending protocols establish a strong correlation between a good zScore and healthy borrowing and repayment behaviour, making it a robust and decentralised alibi for creditworthiness; we highlight significant improvements from previous attempts by protocols like Cred showcasing its robustness. We also present a list of possible applications of our system in Section 5, thereby establishing its utility in rewarding actual value creation while filtering noise and suspicious activity and flagging malicious behaviour by bad actors.

Open access
cs.CY
cs.CE
cs.DC
Original source
Feb 14, 2025·arXiv
0 cites
Federated Learning-Driven Cybersecurity Framework for IoT Networks with Privacy-Preserving and Real-Time Threat Detection Capabilities

Milad Rahmati

The rapid expansion of the Internet of Things (IoT) ecosystem has transformed various sectors but has also introduced significant cybersecurity challenges. Traditional centralized security methods often struggle to balance privacy preservation and real-time threat detection in IoT networks. To address these issues, this study proposes a Federated Learning-Driven Cybersecurity Framework designed specifically for IoT environments. The framework enables decentralized data processing by training models locally on edge devices, ensuring data privacy. Secure aggregation of these locally trained models is achieved using homomorphic encryption, allowing collaborative learning without exposing sensitive information. The proposed framework utilizes recurrent neural networks (RNNs) for anomaly detection, optimized for resource-constrained IoT networks. Experimental results demonstrate that the system effectively detects complex cyber threats, including distributed denial-of-service (DDoS) attacks, with over 98% accuracy. Additionally, it improves energy efficiency by reducing resource consumption by 20% compared to centralized approaches. This research addresses critical gaps in IoT cybersecurity by integrating federated learning with advanced threat detection techniques. The framework offers a scalable and privacy-preserving solution adaptable to various IoT applications. Future work will explore the integration of blockchain for transparent model aggregation and quantum-resistant cryptographic methods to further enhance security in evolving technological landscapes.

Open access
cs.CR
cs.LG
cs.NI
Original source
Feb 12, 2025·arXiv
0 cites
TLOB: A Novel Transformer Model with Dual Attention for Price Trend Prediction with Limit Order Book Data

Leonardo Berti, Gjergji Kasneci

Price Trend Prediction (PTP) based on Limit Order Book (LOB) data is a fundamental challenge in financial markets. Despite advances in deep learning, existing models fail to generalize across different market conditions and assets. Surprisingly, by adapting a simple MLP-based architecture to LOB, we show that we surpass SoTA performance; thus, challenging the necessity of complex architectures. Unlike past work that shows robustness issues, we propose TLOB, a transformer-based model that uses a dual attention mechanism to capture spatial and temporal dependencies in LOB data. This allows it to adaptively focus on the market microstructure, making it particularly effective for longer-horizon predictions and volatile market conditions. We also introduce a new labeling method that improves on previous ones, removing the horizon bias. We evaluate TLOB's effectiveness across four horizons, using the established FI-2010 benchmark, a NASDAQ and a Bitcoin dataset. TLOB outperforms SoTA methods in every dataset and horizon. Additionally, we empirically show how stock price predictability has declined over time, -6.68 in F1-score, highlighting the growing market efficiency. Predictability must be considered in relation to transaction costs, so we experimented with defining trends using an average spread, reflecting the primary transaction cost. The resulting performance deterioration underscores the complexity of translating trend classification into profitable trading strategies. We argue that our work provides new insights into the evolving landscape of stock price trend prediction and sets a strong foundation for future advancements in financial AI. We release the code at https://github.com/LeonardoBerti00/TLOB.

Open access
q-fin.ST
cs.AI
cs.LG
Original source
Feb 12, 2025·arXiv
0 cites
SLVR: Securely Leveraging Client Validation for Robust Federated Learning

Jihye Choi, Sai Rahul Rachuri, Ke Wang, Somesh Jha · 5 authors

Federated Learning (FL) enables collaborative model training while keeping client data private. However, exposing individual client updates makes FL vulnerable to reconstruction attacks. Secure aggregation mitigates such privacy risks but prevents the server from verifying the validity of each client update, creating a privacy-robustness tradeoff. Recent efforts attempt to address this tradeoff by enforcing checks on client updates using zero-knowledge proofs, but they support limited predicates and often depend on public validation data. We propose SLVR, a general framework that securely leverages clients' private data through secure multi-party computation. By utilizing clients' data, SLVR not only eliminates the need for public validation data, but also enables a wider range of checks for robustness, including cross-client accuracy validation. It also adapts naturally to distribution shifts in client data as it can securely refresh its validation data up-to-date. Our empirical evaluations show that SLVR improves robustness against model poisoning attacks, particularly outperforming existing methods by up to 50% under adaptive attacks. Additionally, SLVR demonstrates effective adaptability and stable convergence under various distribution shift scenarios.

Open access
cs.CR
cs.LG
Original source
Feb 10, 2025·arXiv
0 cites
Krum Federated Chain (KFC): Using blockchain to defend against adversarial attacks in Federated Learning

Mario García-Márquez, Nuria Rodríguez-Barroso, M. Victoria Luzón, Francisco Herrera

Federated Learning presents a nascent approach to machine learning, enabling collaborative model training across decentralized devices while safeguarding data privacy. However, its distributed nature renders it susceptible to adversarial attacks. Integrating blockchain technology with Federated Learning offers a promising avenue to enhance security and integrity. In this paper, we tackle the potential of blockchain in defending Federated Learning against adversarial attacks. First, we test Proof of Federated Learning, a well known consensus mechanism designed ad-hoc to federated contexts, as a defense mechanism demonstrating its efficacy against Byzantine and backdoor attacks when at least one miner remains uncompromised. Second, we propose Krum Federated Chain, a novel defense strategy combining Krum and Proof of Federated Learning, valid to defend against any configuration of Byzantine or backdoor attacks, even when all miners are compromised. Our experiments conducted on image classification datasets validate the effectiveness of our proposed approaches.

Open access
cs.LG
cs.AI
Original source
Feb 9, 2025·arXiv
0 cites
Crypto Miner Attack: GPU Remote Code Execution Attacks

Ariel Szabo, Uzy Hadad

Remote Code Execution (RCE) exploits pose a significant threat to AI and ML systems, particularly in GPU-accelerated environments where the computational power of GPUs can be misused for malicious purposes. This paper focuses on RCE attacks leveraging deserialization vulnerabilities and custom layers, such as TensorFlow Lambda layers, which are often overlooked due to the complexity of monitoring GPU workloads. These vulnerabilities enable attackers to execute arbitrary code, blending malicious activity seamlessly into expected model behavior and exploiting GPUs for unauthorized tasks such as cryptocurrency mining. Unlike traditional CPU-based attacks, the parallel processing nature of GPUs and their high resource utilization make runtime detection exceptionally challenging. In this work, we provide a comprehensive examination of RCE exploits targeting GPUs, demonstrating an attack that utilizes these vulnerabilities to deploy a crypto miner on a GPU. We highlight the technical intricacies of such attacks, emphasize their potential for significant financial and computational costs, and propose strategies for mitigation. By shedding light on this underexplored attack vector, we aim to raise awareness and encourage the adoption of robust security measures in GPU-driven AI and ML systems, with an emphasis on static and model scanning as an easier way to detect exploits.

Open access
cs.CR
cs.AI
cs.LG
Original source
Feb 6, 2025·arXiv (Cornell University)
1 cites
ExpProof : Operationalizing Explanations for Confidential Models with ZKPs

Chhavi Yadav, Evan Monroe Laufer, Dan Boneh, Kamalika Chaudhuri

In principle, explanations are intended as a way to increase trust in machine learning models and are often obligated by regulations. However, many circumstances where these are demanded are adversarial in nature, meaning the involved parties have misaligned interests and are incentivized to manipulate explanations for their purpose. As a result, explainability methods fail to be operational in such settings despite the demand \cite{bordt2022post}. In this paper, we take a step towards operationalizing explanations in adversarial scenarios with Zero-Knowledge Proofs (ZKPs), a cryptographic primitive. Specifically we explore ZKP-amenable versions of the popular explainability algorithm LIME and evaluate their performance on Neural Networks and Random Forests. Our code is publicly available at https://github.com/emlaufer/ExpProof.

Open access
2 source records
cs.LG
cs.AI
cs.CR
Original source
Feb 4, 2025·arXiv (Cornell University)
0 cites
Robust and Secure Code Watermarking for Large Language Models via ML/Crypto Codesign

Ruisi Zhang, Neusha Javidnia, Nojan Sheybani, Farinaz Koushanfar

This paper introduces RoSeMary, the first-of-its-kind ML/Crypto codesign watermarking framework that regulates LLM-generated code to avoid intellectual property rights violations and inappropriate misuse in software development. High-quality watermarks adhering to the detectability-fidelity-robustness tri-objective are limited due to codes' low-entropy nature. Watermark verification, however, often needs to reveal the signature and requires re-encoding new ones for code reuse, which potentially compromising the system's usability. To overcome these challenges, RoSeMary obtains high-quality watermarks by training the watermark insertion and extraction modules end-to-end to ensure (i) unaltered watermarked code functionality and (ii) enhanced detectability and robustness leveraging pre-trained CodeT5 as the insertion backbone to enlarge the code syntactic and variable rename transformation search space. In the deployment, RoSeMary uses zero-knowledge proofs for secure verification without revealing the underlying signatures. Extensive evaluations demonstrated RoSeMary achieves high detection accuracy while preserving the code functionality. RoSeMary is also robust against attacks and provides efficient secure watermark verification.

Open access
2 source records
cs.CR
cs.CL
cs.LG
Original source