Integrating Merkle Trees with Transformer Networks for Secure Financial Computation

Abstract

In this paper, the Merkle-Transformer model is introduced as an innovative approach designed for financial data processing, which combines the data integrity verification mechanism of Merkle trees with the data processing capabilities of the Transformer model. A series of experiments on key tasks, such as financial behavior detection and stock price prediction, were conducted to validate the effectiveness of the model. The results demonstrate that the Merkle-Transformer significantly outperforms existing deep learning models (such as RoBERTa and BERT) across performance metrics, including precision, recall, accuracy, and F1 score. In particular, in the task of stock price prediction, the performance is notable, with nearly all evaluation metrics scoring above 0.9. Moreover, the performance of the model across various hardware platforms, as well as the security performance of the proposed method, were investigated. The Merkle-Transformer exhibits exceptional performance and robust data security even in resource-constrained environments across diverse hardware configurations. This research offers a new perspective, underscoring the importance of considering data security in financial data processing and confirming the superiority of integrating data verification mechanisms in deep learning models for handling financial data. The core contribution of this work is the first proposition and empirical demonstration of a financial data analysis model that fuses data integrity verification with efficient data processing, providing a novel solution for the fintech domain. It is believed that the widespread adoption and application of the Merkle-Transformer model will greatly advance innovation in the financial industry and lay a solid foundation for future research on secure financial data processing.