The Overfitting Challenge in Blockchain Analysis

Any low complexity model- Will be prone to underfitting because of high bias and low variance. Any high complexity model(deep neural networks)- Will be prone to overfitting due to low bias and high variance. Any low complexity model- Will be prone to underfitting because of high bias and low variance. Any high complexity model(deep neural networks)- Will be prone to overfitting due to low bias and high variance. Using machine learning to analyze blockchain data is a very nascent space. As a result, most of the models are encountering the traditional challenges with machine learning applications. Overfitting is one of those omnipresent challenges in blockchain analysis fundamentally due to the lack of labeled data and trained models. There is no magic solution to fight overfitting but some of the principles outlined in this article have proven to be effective for us at IntoTheBlock.