Financial risk evaluation method of blockchain digital currency based on CART algorithm

Article type: Research Article

Authors: Fan, Xiuling^{a; *} | Lv, Haiyang^b

Affiliations: [a] Department of Computer Science, Yantai Nanshan University, Yantai 265713, China | [b] Engineering College of Yantai Nanshan University, Yantai 265713, China

Correspondence: [*] Corresponding author. E-mail: fangw@36haojie.com.

Abstract: In order to overcome the problems existing in traditional financial risk evaluation methods, such as high generalization error and fitting degree with actual value, this paper designs a financial risk evaluation method of blockchain digital currency based on CART algorithm. After screening and ranking the financial risk indicators of blockchain digital currency, the financial risk level of blockchain digital currency is determined by combining CART algorithm. Finally, by calculating the covariance matrix of the financial risk decision matrix, the positive ideal solution and the negative ideal solution of the financial risk are found, and then the final evaluation result is obtained by combining the progress of the financial risk. Experimental results show that the minimum generalization error of this method is only 0.021, the fitting degree of the obtained results and the actual risk can reach 98.0%, and the maximum risk accuracy can reach 0.978.

Keywords: Blockchain finance, digital currency, CART algorithm, financial risk assessment

DOI: 10.3233/WEB-210489

Journal: Web Intelligence, vol. 20, no. 2, pp. 143-151, 2022