| Summary: | The Swedish fund market plays a vital part in the financial sector asit directly finances several parts of the economy. The infrastructurearound fund trading is, however, fragmented with outdated manual paperdriven processes and several intermediaries involved. Issues arisingare high fund distribution cost and increased operational risk.Blockchain has been proposed as the technology that can tackle theseissues. Fund trading requires a private permissioned blockchain whereparticipants need to be authenticated before joining a network andwhere there is control over who can read and write to the blockchaindatabase. This study evaluates Chain Core and Hyperledger Fabric, twopermissioned blockchain platforms with different architectural designsto assess which type that is favourable for the Swedish fund market.The study compares the platforms in terms of performance, privacy andcofidentiality, scalability, and security. The study is done for KPMGin collaboration with Nasdaq, which leads a blockchain project that isused as a case study. The comparative study is based on a literaturestudy and interviews with experts on blockchain and the fund industry.The study shows that the design of Chain Core prevents it fromguaranteeing enough privacy and confidentiality. Also, it follows thestate-machine replication approach, limiting the blockchain in terms ofperformance, privacy, scalability and security. Hyperledger Fabric hasa "channel" design, which provides privacy and confidentiality of usersand transactions, offers high performance in throughput of transactionsand potential for scalability
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