Blockchain and Machine Learning: Transforming Financial Security and Efficiency
DOI:
https://doi.org/10.70112/ajcst-2025.14.2.4342Keywords:
Blockchain, Machine Learning, Financial Security, Fraud Detection, Data PrivacyAbstract
The advancement of technology has positioned blockchain and machine learning (ML) as transformative forces in finance. Blockchain’s decentralized structure ensures secure and transparent transactions, while ML processes vast data to identify patterns and enhance decision-making. Their integration offers significant potential for fraud detection, risk assessment, and transaction optimization. Blockchain provides a tamper-proof environment, ensuring data integrity and reducing fraud. Meanwhile, ML detects anomalies, predicts market trends, and automates processes, improving financial security and efficiency. However, challenges such as scalability, computational demands, and data privacy hinder widespread adoption. Blockchain struggles with high costs and limited throughput, while ML requires significant resources and quality data. Emerging solutions like federated learning for privacy-preserving ML, zero-knowledge proofs for secure transactions, and hybrid blockchain models for scalability aim to address these challenges. Overcoming these barriers will enable a more secure, efficient, and data-driven financial ecosystem.
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