Instagram has begun testing a decentralized identity verification system built on blockchain technology that would allow users to prove their identity without sharing personal documents with the platform. The pilot program is running in select markets across Europe and North America.

The system uses verifiable credentials issued by trusted identity providers, stored in users' digital wallets. Once verified, users receive a verification badge without Instagram retaining copies of identity documents, reducing data breach risks.

Privacy experts have expressed cautious optimism about the approach, noting it represents a significant improvement over current centralized verification methods. However, some worry about the complexity of the system for less technically savvy users.