Pattern Recognition in Blockchain Networks: Using Deep Learning for Fraud Detection and Prevention

Abstract

Blockchain technology has decentralized, secure and transparent systems to deal with digital transaction frauds or any theft like a double-spending attack and phishing attack but it is prone to fraud. With the increase in the use of blockchain, these fraudulent activities are difficult to mention. It encompasses deep learning, primarily convolutional neural networks (CNNs), recurrent neural networks (RNNs) and autoencoders, which could be used in detecting fraud based on transaction data to detect abnormalities. According to the paper, deep learning for fraud detection in blockchain networks has been explained and its efficiency in terms of security and implementation challenges were known. It also covers the prospects of the deep learning in future to revamp the block chain security.