Federated Learning Architecture: Data Privacy and System Security Approaches

Abstract

This study explores the integration of homomorphic encryption and differential privacy techniques to enhance data privacy and security in Federated Learning (FL) systems. FL allows data to remain on local devices, eliminating the need for centralized data collection; however, sensitive information may still be leaked during model updates. To address this issue, homomorphic encryption enables computations on encrypted data, while differential privacy prevents the extraction of individual information through statistical techniques applied to model outputs. The proposed architecture was tested on the Framingham, Pima Indians Diabetes, and Bank Marketing datasets, revealing that enhanced privacy can be achieved without significantly compromising model accuracy. Furthermore, the impact of data heterogeneity among clients on model performance was analyzed, and it was concluded that strategies such as the careful selection of differential privacy parameters and training settings, along with the use of larger datasets, can improve the efficiency of FL. The findings demonstrate that privacy-preserving and high-performance artificial intelligence systems can be securely applied in sensitive domains such as healthcare and finance.