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A modified adaptive noise cancelling (ANC) hybrid algorithm incorporating techniques of optimal wideband FIR filtering operation and the trimmed mean (TM)-levelization, a dynamic level-based thresholding process, is described in this paper for wideband active sonar echolocation system. This novel technique performs effective suppression of unwanted part of the training data thus localizing potentials of target returns. Furthermore, due to a massive parallelism in the system although the current electronic processing units such as GPU (graphic processing unit) and GPGPU (general-purpose GPU) work well, we propose the concept of smart-pixel (SP) as a possible solution towards hardware implementation of the above algorithm. In this architecture of parallelism, an array of optical devices is integrated onto one chip and then utilized as a computational cell to provide an alternative solution towards parallel implementation of the ANC hybrid algorithm.