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            Preserving privacy in machine learning on multi-party data is of importance to many domains. In practice, existing solutions suffer from several critical limitations, such as significantly reduced utility under privacy constraints or excessive communication burden between the information fusion center and local data providers. In this paper, we propose and implement a new distributed deep learning framework that addresses these shortcomings and preserves privacy more efficiently than previous methods. During the stochastic gradient descent training of a deep neural network, we focus on the parameters with large absolute gradients in order to save privacy budget consumption. We adopt a generalization of the Report-Noisy-Max algorithm in differential privacy to select these gradients and prove its privacy guarantee rigorously. Inspired by the recent novel idea of Terngrad, we also quantize the released gradients to ternary levels {-B, 0, B}, where B is the bound of gradient clipping. Applying Terngrad can significantly reduce the communication cost without incurring severe accuracy loss. Furthermore, we evaluate the performance of our method on a real-world credit card fraud detection data set consisting of millions of transactions.more » « less
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