A Lifecycle Cost Analysis of Smart-Contract-Coordinated Federated Learning Marketplaces
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Abstract (arXiv)
Blockchain-enabled Federated Learning (FL) marketplaces enable collaborative model training among mutually distrustful participants through smart contracts. Although numerous architectures exist, their economic evaluation is typically limited to isolated blockchain operations rather than the complete marketplace lifecycle. Consequently, it remains unclear whether operational costs depend on operating at scale. This paper presents an experimental study of the operational cost of a DAO-governed marketplace. Our evaluation decomposes the gas consumption of every blockchain operation throughout the contract lifecycle, performs ablation experiments to isolate the impact of on-chain coordination and IPFS storage on federated training, and derives an analytical model describing the amortization of deployment costs. Results show the lifecycle of a single training task consumes approximately 3.8 million gas units per hired trainer. The average cost per training round reaches its amortization knee - defined as twice the asymptotic recurring cost - after approximately 20 communication rounds. Moreover, integrating smart contracts and IPFS preserves model performance, achieving accuracy comparable to conventional FL deployments. These findings demonstrate that smart-contract-coordinated FL marketplaces exhibit an amortizing cost structure not because on-chain operations are inexpensive, but because recurring costs are one to two orders of magnitude smaller than fixed deployment costs, thereby diluting over the federation's lifetime.
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References · 14
- 2016Communication-Efficient Learning of Deep Networks from Decentralized Datacited by 7,669
- 2020Flower: A Friendly Federated Learning Research Frameworkcited by 455
- 2018Blockchained On-Device Federated Learningcited by 106
- 2014IPFS - Content Addressed, Versioned, P2P File Systemcited by 70
- 2020FedCoin: A Peer-to-Peer Payment System for Federated Learningcited by 39
- 2020When Federated Learning Meets Blockchain: A New Distributed Learning Paradigmcited by 31
- 2023Smart Policy Control for Securing Federated Learning Management Systemcited by 8
- 2021FLoBC: A Decentralized Blockchain-Based Federated Learning Frameworkcited by 5
- 2023Blockchain-Based Federated Learning: Incentivizing Data Sharing and Penalizing Dishonest Behaviorcited by 5
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- 2025PQS-BFL: A Post-Quantum Secure Blockchain-based Federated Learning Frameworkcited by 4
- 2025Blockchain-based Framework for Scalable and Incentivized Federated Learningcited by 3
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