# Federated Learning with Assured Privacy and Reputation-Driven Incentives for Internet of Vehicles

## TL;DR

This paper introduces FLARE, a secure and efficient system for vehicle data collaboration that ensures privacy and motivates participation through smart incentives.

## Contribution

FLARE integrates cryptographic security and mechanism design to address privacy and incentive challenges in federated learning for the Internet of Vehicles.

## Key findings

- FLARE enhances node participation and contribution quality without sacrificing model accuracy.
- SafeGrad protocol defends against gradient inversion attacks using homomorphic encryption and zero-knowledge proofs.
- EconChain provides real-time micro-rewards and dynamic reputation modeling for sustainable incentives.

## Abstract

Cross-domain data collaboration is a core requirement for the intelligent development of critical areas such as the Internet of Vehicles and intelligent transportation systems. In this scenario, vehicles and various sensors deployed roadside continuously generate massive amounts of time-series data, yet this data often forms “data silos” due to privacy regulations and a lack of trust between collaborating entities. Existing integrated schemes combining “Federated Learning + Blockchain” have achieved a certain degree of process traceability and automated payments, but risks of gradient-level privacy leakage persist, and inflexible and delayed incentive mechanisms result in low participation quality. To systematically address these bottlenecks, this paper proposes the Federated Learning with Assured Privacy and Reputation-Driven Incentives (FLARE) architecture, whose core innovation lies in the native integration of cryptographic security and mechanism design theory. It includes the Secure and Faithfully Executed Gradient aggregation (SafeGrad) protocol, which integrates partial homomorphic encryption and zero-knowledge proofs to provide verifiable privacy guarantees for gradient contributions while enabling efficient secure aggregation, defending against inversion attacks at the source; alongside this, it includes the Economy-on-Chain incentive (EconChain) mechanism, which designs an on-chain economic system based on blockchain, achieving precise measurement and sustainable incentivization of training process contributions through fine-grained instant micro-rewards and a dynamic reputation model. Experiments show that, compared to baseline schemes, FLARE can effectively enhance node participation enthusiasm and contribution quality without compromising model accuracy, providing a new paradigm with both strong security and high vitality for the trusted and efficient circulation of data.