Federated Learning Systems

Definition ∞ Federated Learning Systems represent a distributed machine learning approach where multiple participants collaboratively train a shared global model without exchanging their raw data. Instead, local models are trained on individual datasets, and only the aggregated model updates are sent to a central server. This method enhances data privacy and security by keeping sensitive information localized. It allows for the creation of robust models from diverse data sources.
Context ∞ In the context of blockchain and digital assets, federated learning systems are gaining attention for their potential to address data privacy concerns in decentralized applications. The situation involves exploring how these systems can enable collaborative AI model training on sensitive financial data or personal user information without compromising privacy. A key discussion point centers on integrating federated learning with blockchain for verifiable model updates and incentive mechanisms. Future developments aim to apply this technology to improve fraud detection, credit scoring, and personalized financial services within a secure, decentralized framework.