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arXiv · 2610.39132

DICE: Decentralized Incentive-driven Federated Learning for Efficient & Scalable Customization of Pretrained Models in Web3

Hong Lin·Zhongle Xie·Lidan Shou·Ke Chen·Gang Chen
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Abstract

Customizing Pretrained Models (PMs) for downstream tasks demands task-specific data, which burgeoning Web3 applications provide abundantly. Blockchain-powered federated learning (BCFL) offers a secure and privacy-preserving paradigm to customize PMs among self-interested and untrusted Web3 participants. Yet, existing BCFL algorithms face severe efficiency and scalability challenges when applied to large PMs, due to their substantial computational and memory requirements and the hardware constraints of many participants. This paper introduces DICE, a novel BCFL algorithm that addresses the efficiency and scalability challenges of customizing large PMs in Web3 via two sets of synergistic techniques: (i) a dynamic progressive learning scheme and a model slice verification scheme to enable a wider range of honest participants, including those unable to deploy the full model, to engage in customizing PMs, while preserving model utility; (ii) a tree-structured committee consensus protocol and an efficiency-driven incentive scheme to address the dominant bottleneck that hinders existing BCFL algorithms from scaling to a larger number of data holders for customizing data-hungry large PMs, while maintaining security. Theoretical analysis and extensive experimental results on customizing vision and language PMs demonstrate DICE's efficiency, effectiveness, and security.

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Hong Lin, Zhongle Xie, Lidan Shou, Ke Chen, Gang Chen. 2026-10-29. DICE: Decentralized Incentive-driven Federated Learning for Efficient & Scalable Customization of Pretrained Models in Web3. https://doi.org/10.1145/3799682.3840574

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