**4.3 Choosing a blockchain**

To overcome the lack of scalability of BCs, as pointed out in previous studies, this study recommends the adoption of the Avalanche protocol (**Table 5**) proposed by Rocket 2019 [20].

The Avalanche protocol is one of the most promising platforms for BCs because of its scalability, ease of use, flexibility, and proper governance. Avalanche was initially built to serve the financial markets (cryptocurrency AVAX), but it is interoperable with both public and permitted BC. Therefore, it can be adopted by other industries in addition to finance. Avalanche is also capable of combining public and private BCs. Compared with the existing Classical and Nakamoto protocols, the BFT-based Avalanche protocol is very efficient and robust, and can also achieve high productivity and fast finality. While traditional protocols require any given node to communicate with all other nodes, the Avalanche protocol communicates with a small subset (validators), which dramatically reduces the latency to 1/3600 compared with Bitcoin (**Table 6**). As a result, Avalanche is able to achieve a performance of 7100 transactions per second, compared with 5 transactions per second for Bitcoin, the Nakamoto protocol equivalent.

We recommend a small-scale Proof of Value (PoV) to be executed. In the PoV, a small-scale PI network will be constructed by implementing the Avalanche protocol, which is small scale and scalable, in order to connect with the existing logistics


*1 Finality means that the amount of money is certain to be obtained as expected. The Bank of Japan lists the following specific conditions for a finalized settlement: (1) The money received will not later be turned into scrap paper or disappear, and (2) the settlement made will never be reversed later.*

*2 A 51% attack is the control of 51% (more than 50%) of the hash rate of the entire network by a malicious group or individual to perform fraudulent transactions.*

*Source: Prepared by the author based on Sirer 2020 [13].*

#### **Table 5.**

*Comparison of BC protocols.*


#### **Table 6.**

*Comparison of performance.*

network and using BC technology, the collected big data will be analyzed for optimization, etc., using AI while ensuring its confidentiality. The results will be used for management decisions and environmental protection measures. This positive cycle will dramatically improve the efficiency of logistics and promote sustainable development. It will also be possible to measure and optimize the contribution of innovative technologies to the sustainable development of logistics and the SDGs. For example, it will be possible to quantify how much waste in loading and waiting for pickup is eliminated by the use of PI-containers, and how much congestion is eliminated by optimization at ports. Or how much truck driver time was saved by reducing waiting time, or how much CO2 emissions were reduced, such measurements could be automatically recorded and measured on a reliable BC. The combination of Avalanche and PI in the logistic industry will drive logistics digitalization to a global scale.

#### **4.4 Summary and future prospects**

In this chapter, we have overviewed the international efforts for innovation in automation and digitalization for the realization of the Smart Port, including the development of technologies and demonstration experiments for their diffusion. It is necessary not only to automate cargo handling at the terminal, but also to share information in real time regarding pre-and post-processes, such as the arrival and departure of ships and the waiting status of vehicles, in cooperation with various IoT devices, and to prepare in advance based on predictive information using AI. It is expected to establish a de facto standard on a global scale by promoting the packaging of port handling machinery combining hardware and software. On the other hand, the international standardization for automated ships is being discussed internationally mainly by initiated by IMO as de jure standard. In addition, it will be necessary to share real-time information on the movements of ships using AIS and IoT and to make comprehensive efforts in cooperation with port infrastructures, such as coordinated operation with work vessels such as tugboats and refueling vessels, and automatic mooring at the wharf. In August 2020, MASSPorts, a framework for international collaboration on the operation of Maritime Autonomous Surface Ships (MASS) in ports, will be launched to establish guidelines for demonstration operations and to study interoperability in multiple ports around the world.

From the research and development stage to the full-scale deployment of new technologies, it is necessary to consider not only the individual optimization of ports and ships but also the overall optimization involving the ocean, ports, and the inland hinterland. As the need for mutual cooperation between ports and ships increases, new infrastructures, systems, laws and regulations, and international standardization need to be discussed. In addition, it is necessary to address not only the safety and cost

#### *Shipping Digitalization and Automation for the Smart Port DOI: http://dx.doi.org/10.5772/intechopen.102015*

aspects of installation and operation, but also cyber security, environmental aspects including renewable energy and electrification, and social acceptability. In order to enhance social acceptability, it is important to build a relationship of trust so that not only the port and maritime industries but also the general public can feel secure.

Furthermore, in this chapter, we have proposed PiChain, a framework for creating a sustainable, next-generation maritime logistics system, by applying PI to digitize maritime logistics networks and BC technology for secure information exchange to improve the overall efficiency of maritime logistics, at ports. The following three effects can be expected from the adoption of PiChain.

#### *4.4.1 Strengthening supply chain resilience*

Recently, there have been many disruptions in the supply chain due to unexpected circumstances such as bad weather, cyber-attacks, and port congestion. In particular, the covid-19 pandemic that began in early 2020 led to travel restrictions and border closures in some countries, which in turn caused disruptions in sea, land, and air logistics. The disruption of logistics also resulted in stagnant production in many countries. The framework proposed in this chapter, PiChain, is useful for supply chain management during emergencies and early recovery from disasters, as the BC-based platform provides real-time information and visualization of the entire delivery process, which in return enables quick response to unexpected delays. In addition, since PI containers can be freely combined or split, switching parts of cargo to alternative modes of transportation can be done flexibly when needed. Furthermore, the application of automated delivery methods, such as drones, will make it possible to deliver even in the middle of the night or in hazardous environments. In conclusion, PiChain can strengthen the resilience of the supply chain while managing a wide range of unknown risks.

In addition, cyber-attacks in the supply chain have been dramatically increasing in recent years. With risks increasing day by day, a high level of cybersecurity is vital for supply chain resilience. The PiChain framework uses BC technology to make the entire network highly resistant to cyber-attacks. Even in the event of being attacked, the stolen data are a hash value generated by BC, so it is difficult to recover the original data from the hash value, which significantly reduces the risk of information leakage. In addition, since the data are stored in a distributed manner in the cloud, it can be recovered quickly after an attack.

#### *4.4.2 Port sustainability*

Regarding the establishment of a sustainable supply chain within the framework of PiChain, the following three points can be summarized.

First, realizing the SDG Goals. Visualizing, measuring, and optimizing GHG emissions will help to minimize their negative impact on the environment. This will contribute to the realization of SDG Goal 13: Take urgent action to combat climate change and its impacts.

Second, improvement of working conditions. In the framework of PiChain, it is expected to improve the working conditions of workers. For example, AI-guided optimal delivery routes will shorten waiting time hence reducing stress for drivers. In addition, logistics workers will be able to enjoy the benefits of advanced visibility and perform their daily work in a more independent way. This will contribute to SDG Goal 8: Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

Third, improvement of service quality. Visible logistics management with PiChain will make just-in-time delivery easier. The deployment of drones will also make nighttime delivery possible. This will help improve the quality of logistic operations by enabling a quick response to any unforeseen circumstances that may arise.
