In a federated learning setup for fraud detection, banks could add noise to model updates through Substrate pallets, with levels adjusted based on transaction sensitivity.
Federated Privacy in Financial Systems
ZKPs would verify noise applications through Substrate's verification system, ensuring trust and compliance with financial privacy standards.
For instance, a bank could contribute updates to a shared fraud detection model, with higher noise applied to updates involving high-value transactions to prevent identification, while ZKPs confirm the noise application through both EVM pallet and native Substrate verification pallets, ensuring that the aggregated model remains accurate and compliant with privacy regulations.
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