Deep Neural Networks

Definition ∞ Deep neural networks are computational models with multiple layers that learn to recognize patterns in data, inspired by the human brain’s structure. These networks consist of an input layer, multiple hidden layers, and an output layer, processing complex information through hierarchical feature extraction. They are widely applied in tasks such as image recognition, natural language processing, and predictive analytics, exhibiting a capacity for learning abstract representations from large datasets. Their performance often improves with increased data and computational power.
Context ∞ Deep neural networks are increasingly employed in the digital asset space for tasks like market prediction, fraud detection, and optimizing trading strategies. Discussions often center on the interpretability of their decisions and the ethical implications of their use in financial markets. Watching their integration into automated trading systems and risk management platforms will be important for understanding market evolution.