Machine Learning for Anomaly Detection in Blockchain: A Critical Analysis, Empirical Validation, and Future Outlook

Abstract

Blockchain technology has transformed how data are stored and transactions are processed in a distributed environment. Blockchain assures data integrity by validating transactions through the consensus of a distributed ledger involving several miners as validators. Although blockchain provides multiple advantages, it has also been subject to some malicious attacks, such as a 51% attack, which is considered a potential risk to data integrity. These attacks can be detected by analyzing the anomalous node behavior of miner nodes in the network, and data analysis plays a vital role in detecting and overcoming these attacks to make a secure blockchain. Integrating machine learning algorithms with blockchain has become a significant approach to detecting anomalies such as a 51% attack and double spending. This study comprehensively analyzes various machine learning (ML) methods to detect anomalies in blockchain networks. It presents a Systematic Literature Review (SLR) and a classification to explore the integration of blockchain and ML for anomaly detection in blockchain networks. We implemented Random Forest, AdaBoost, XGBoost, K-means, and Isolation Forest ML models to evaluate their performance in detecting Blockchain anomalies, such as a 51% attack. Additionally, we identified future research directions, including challenges related to scalability, network latency, imbalanced datasets, the dynamic nature of anomalies, and the lack of standardization in blockchain protocols. This study acts as a benchmark for additional research on how ML algorithms identify anomalies in blockchain technology and aids ongoing studies in this rapidly evolving field.