Ensemble Methods

Definition ∞ Ensemble methods combine predictions from multiple individual machine learning models to yield a more accurate and robust overall output. This technique reduces variance and bias, thereby improving the predictive performance and generalization capabilities of artificial intelligence systems. Common applications include fraud detection in digital transactions and predictive analytics for market movements.
Context ∞ The current application of ensemble methods in the digital asset space is primarily directed towards enhancing market prediction models and detecting anomalous trading behaviors. A key discussion point involves optimizing the selection and weighting of constituent models to maximize accuracy and minimize computational cost. Ongoing research aims to adapt these methods for real-time decentralized finance risk assessment and protocol security monitoring.