Abstract
This paper presents the value proposition of blockchain for Port Community Systems (PCS) by dissecting the business processes in port logistics and unfolding functionalities of blockchain in lowering the transaction cost. This paper contributes to the research by a detailed technical assessment of the plethora of currently available blockchain platforms and consensus mechanisms, against the identified requirements in this specific use case. The results of this technical assessment highlight the central value proposition of blockchain for landlord ports, which is independency from a central authority as the controlling agent. Bridging between two research domains of Information Technology and Logistics, this paper proposes the preferred architectural design requirements of a blockchain-based PCS, including provisioning private sidechains, modular design with inter-chain interoperability, and encrypted off-chain data storage. Availability—the readiness for correct service, and reliability—the continuity of correct service, are heavily reliant on the right choice being made for blockchain design for such a complex use case. A preliminary comparative analysis among different decentralisation levels in this paper suggests that a permissioned public blockchain offers the best trade-off in performance measures for this use case. This technical review identifies six research agenda from a design perspective.
Highlights
The international trade and supply chain, deluged by a growing complexity of information and physical transactions, face critical challenges such as compliance, traceability, governance, higher transaction costs, and security [1]
This paper aims to fill this gap by a thorough investigation of the existing blockchain platforms, reviewing the technical properties and challenges in the port logistics
It is important to consider the rationale for embracing it as there are many questions that need to be legal risk in both national and international shipping law
Summary
The international trade and supply chain, deluged by a growing complexity of information and physical transactions, face critical challenges such as compliance, traceability, governance, higher transaction costs, and security [1]. Nine shipping lines and terminal operators announced their ‘declaration of intent’ to form a blockchain consortium as the Global Shipping Business Network (GSBN) and shareholders of CargoSmart Limited—a blockchain-based logistics initiative (https://www.maritime-executive.com/art icle/nine-companies-sign-up-for-global-shipping-business-network). These pilot projects have deployed various blockchain platforms with different architectural designs. The third contribution involves cross-validating the system attributes of these platforms with the business requirements in the port logistics Based upon this cross-validation, recommendations of the architectural design requirements are made with the aim of lowering transaction costs.
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