Fair and Efficient Federated Learning with Dynamic Rewards

Sunday 08 June 2025

Scientists have long been searching for a way to make online learning more efficient and cost-effective. Recently, researchers have made significant progress in this area by developing a new approach to federated learning.

Federated learning is a method of training artificial intelligence models on data from multiple sources without actually transferring the data itself. This is achieved by creating a shared model that can be updated with local data from individual devices or servers. The problem is that each device may have different amounts and types of data, which can lead to imbalanced training.

The new approach, called DaringFed, addresses this issue by introducing a novel incentive mechanism. In traditional federated learning, devices are incentivized to participate based on their available computational resources or network bandwidth. However, this can be unfair, as devices with more resources may have an advantage over those with fewer. DaringFed takes a different approach, offering dynamic rewards to each arriving client based on the real-time communication resources allocated by the server.

This means that clients with limited resources are encouraged to participate, while those with more abundant resources are incentivized to contribute their excess capacity. The result is a more balanced and efficient training process.

The researchers tested DaringFed on several real-world datasets, including handwritten digits, fashion images, and medical records. They found that it not only improved the accuracy of the trained models but also reduced the time required for training by up to 16%.

The implications of this discovery are significant. Federated learning has the potential to revolutionize industries such as healthcare, finance, and education, where data is often scattered across multiple sources. By making online learning more efficient and cost-effective, DaringFed could enable these industries to develop more accurate and personalized models.

Furthermore, the dynamic reward mechanism introduced by DaringFed could be applied to other areas of machine learning, such as online advertising or recommendation systems. This could lead to more targeted and effective marketing campaigns, for example.

While there is still much work to be done in refining this approach, the potential benefits are substantial. As researchers continue to develop and refine DaringFed, we can expect to see significant advances in the field of artificial intelligence and online learning.

Cite this article: “Fair and Efficient Federated Learning with Dynamic Rewards”, The Science Archive, 2025.

Federated Learning, Artificial Intelligence, Online Learning, Machine Learning, Incentive Mechanism, Dynamic Rewards, Client-Server Communication, Data Imbalance, Training Efficiency, Personalized Models

Reference: Yun Xin, Jianfeng Lu, Shuqin Cao, Gang Li, Haozhao Wang, Guanghui Wen, “DaringFed: A Dynamic Bayesian Persuasion Pricing for Online Federated Learning under Two-sided Incomplete Information” (2025).

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