Definition ∞ Proximal Policy Optimization (PPO) is a reinforcement learning algorithm used to train agents to make better decisions in complex environments. PPO seeks to improve a policy by taking small, conservative steps, preventing large policy changes that could destabilize the learning process. It balances ease of implementation with strong performance, making it a popular choice for training agents in various simulation and real-world control tasks. The algorithm optimizes an agent’s actions by maximizing expected rewards within certain constraints.
Context ∞ Proximal Policy Optimization has potential applications in optimizing decentralized finance (DeFi) strategies, managing blockchain network resources, and developing autonomous trading bots. The current research involves adapting PPO to the unique challenges of decentralized systems, such as handling dynamic market conditions and unpredictable network states. Future advancements may see PPO integrated into self-governing protocols for enhanced operational efficiency.