Digital forensics has been transformed by blockchain technology, providing Immutable, transparent, and auditable evidence management. Costly transaction fees and Growth potential constraints restrict extensive implementation. To resolve these difficulties, this research proposes a Cutting-edge framework that combines Decentralized Identifiers (DIDs) with a hybrid on-chain/off-chain storage framework. Forensic data management is enhanced as transaction costs are decreased by 80– 90% (from 0.005–0.01 ETH to 0.0005–0.002 ETH per transaction) while maintaining data reliability and safety. To secure data integrity, the system stores significant metadata and cryptographic hashes on-chain, while storing and organizing forensic data off-chain to minimize blockchain overload. DIDs enhance identity verification and permission management, cutting back on dependency on identity management through central authorities. Smart contracts enhance responsibility and evidence tracking by automating the chain-of-custody process. Performance efficiency is improved by 60–80% with this hybrid framework compared to fully on-chain models, and transaction duration is reduced from 5–10 seconds to 1–3 seconds. Past studies have evolved from this research, which offers an affordable and adaptable forensic framework while ensuring data protection and legal adherence. Practical forensic implementations are supported by the proposed model, which balances performance, protection, and flexibility.