Investigation of financial applications with blockchain technology

Abstract

Aims: This article investigates recent advancements in machine learning and blockchain technology for cryptocurrency price prediction. The study presents a ML system using various techniques applied to six different datasets. The findings highlight that simpler models can outperform complex ones in predicting cryptocurrency prices. Methods: The methods used in this study include applying diverse ML techniques such as LSTM, CNN, SVM, KNN, XGBoost, Astro ML, LASSO, RIDGE, linear regression, DT, and GP on six cryptocurrency datasets to predict prices. Results: The research evaluated various machine learning techniques for predicting cryptocurrency prices and reported the following RMSE values: Bitcoin prediction using Nadaraya-Watson kernel regression yielded an RMSE of 0.17, while Dogecoin prediction with linear regression resulted in an RMSE of 0.032. Ethereum price prediction using Gaussian regression achieved an RMSE of 0.02. For USD Coin, a combination of XGBoost, Gaussian regression, and Ridge techniques led to an RMSE of 0.014. Binance Coin price prediction using Gaussian regression had an RMSE of 0.032, and finally, Cardano Coin prediction employing LSTM reached an RMSE of 0.059. Conclusion: This study demonstrated the effectiveness of various machine learning techniques in predicting cryptocurrency prices. It revealed that simpler models can outperform complex ones in certain cases. The research contributes valuable insights to the field and can guide future work in cryptocurrency price prediction. The proposed model achieved promising results as evaluated by the RMSE metric.