WiMi Developed a Trimmed K-Means Algorithm to Detect Crypto Wallet Fraud on the Bitcoin Network

Beijing, Jan. 18, 2024 (GLOBE NEWSWIRE) — WiMi Hologram Cloud Inc. (NASDAQ: WIMI) (“WiMi” or the “Company”), a leading global Hologram Augmented Reality (“AR”) Technology provider, today announced a Trimmed K-Means algorithm for detecting crypto-wallet fraud on the Bitcoin network. It combines symmetry and asymmetry in computer and engineering sciences to provide a novel solution for crypto-wallet fraud on the Bitcoin network. The technology not only improves detection efficiency but also identifies anomalous behavior more accurately, providing a more secure trading environment for Bitcoin investors.

This algorithm has a wide range of potential for practical applications. First, through the collective anomaly detection method, anomalous behaviors can be identified more efficiently on the Bitcoin network, improving the overall security of the network. Second, the Trimmed K-Means algorithm is used to reduce the processing cost of feature extraction, making it more practical. In addition, the algorithm not only detects fraudulent behavior but also provides a more reliable trading environment for Bitcoin investment.

The core of WiMi’s Trimmed K-Means algorithm is the symmetry and asymmetry of the blockchain. Symmetry, which means that a complete record of transactions is kept at each node, ensures decentralization. Asymmetry, on the other hand, manifests itself in the relative anonymity of each transaction participant, which provides potential room for fraudsters to hide. The algorithm better identifies anomalous behavior by analyzing the overall behavior of the user community.

Second, collective anomaly detection methods are used to detect anomalous behavior on the Bitcoin network more efficiently. Collective anomaly detection is a method that identifies anomalies in individual behaviors by analyzing overall behavioral patterns. On the Bitcoin network, it is relatively common for users to have multiple wallets, and fraudulent behavior is often reflected in the behavioral patterns of an entire group of users. Unlike traditional single-address and wallet anomaly detection methods, this algorithm captures potential crypto-wallet fraud more comprehensively by focusing on users’ anomalous behaviors. This approach not only improves detection accuracy, but also reduces false reports.

In order to better distinguish user groups, the Trimmed K-Means algorithm is used for cluster analysis. The K-means algorithm is usually widely used in cluster analysis, but it is easily disturbed when dealing with data containing outliers. The Trimmed K-Means algorithm improves the accuracy of clustering by removing outliers from the dataset, making the differentiation of user groups more The Trimmed K-Means algorithm improves the accuracy of clustering by removing outliers from the data set, making the distinction between user groups more refined. This algorithm is more suitable for the complex and variable user data on the Bitcoin network, further improving detection efficiency and accuracy. The workflow of the algorithm can be summarized in the following steps:

Data acquisition and pre-processing: Acquire user transaction data from the Bitcoin network and pre-process the data, including removing outliers data.

Collective anomaly detection: By analyzing the overall behavioral patterns of the user population, collective anomaly detection methods are used to identify anomalies in the overall behavior, rather than focusing only on anomalies in individual addresses or wallets.

Cluster analysis: Clustering users with abnormal behavior using the Trimmed K-Means algorithm to better distinguish different user groups and improve the differentiation of abnormal behavior.

Result output: Output detection results to present potential crypto wallet fraud to system administrators or users for real-time warning.

Fraud in crypto wallets on the Bitcoin network has long been a concern in the industry, and the successful development of WiMi, an anomaly detection algorithm, provides a new way to address this issue. As the Bitcoin network continues to grow and the cryptocurrency market continues to expand, the need for fraud prevention will continue to increase, and WiMi’s Trimmed K-Means algorithm provides strong support for cryptocurrency security, and is expected to be used in many more areas in the future. WiMi’s technical team will continue to optimize and upgrade the algorithm in order to cope with escalating fraudulent methods and contribute to the healthy development of the Bitcoin network.

About WIMI Hologram Cloud
WIMI Hologram Cloud, Inc. (NASDAQ:WIMI) is a holographic cloud comprehensive technical solution provider that focuses on professional areas including holographic AR automotive HUD software, 3D holographic pulse LiDAR, head-mounted light field holographic equipment, holographic semiconductor, holographic cloud software, holographic car navigation and others. Its services and holographic AR technologies include holographic AR automotive application, 3D holographic pulse LiDAR technology, holographic vision semiconductor technology, holographic software development, holographic AR advertising technology, holographic AR entertainment technology, holographic ARSDK payment, interactive holographic communication and other holographic AR technologies.

Safe Harbor Statements
This press release contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Among other things, the business outlook and quotations from management in this press release and the Company’s strategic and operational plans contain forward−looking statements. The Company may also make written or oral forward−looking statements in its periodic reports to the US Securities and Exchange Commission (“SEC”) on Forms 20−F and 6−K, in its annual report to shareholders, in press releases, and other written materials, and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. Several factors could cause actual results to differ materially from those contained in any forward−looking statement, including but not limited to the following: the Company’s goals and strategies; the Company’s future business development, financial condition, and results of operations; the expected growth of the AR holographic industry; and the Company’s expectations regarding demand for and market acceptance of its products and services.

Further information regarding these and other risks is included in the Company’s annual report on Form 20-F and the current report on Form 6-K and other documents filed with the SEC. All information provided in this press release is as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement except as required under applicable laws.

WIMI Hologram Cloud Inc.
Email: pr@wimiar.com
TEL: 010-53384913

Robin Yang
Tel: +1 (646) 975-9495
Email: wimi@icrinc.com

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