The security, privacy and trust constraints of the traditional centralized architectures have led to a point of critical concern in digital identity management within the contemporary distributed systems. Central authorities create single points of failure, increasing the risk of full-scale data breaches and limiting users' ability to manage personal information. The paper presents a privacy-sensitive, blockchain-based identity management system that provides a means of achieving decentralized, secure, and user-centric digital identities. The system is deployed on a privately managed Ethereum blockchain using a Proof-of-Authority consensus mechanism to ensure low latency, transaction finality within seconds, and energy efficiency. Identity registration, verification, controlled updates, and revocation are automated via smart contracts, and data integrity and confidentiality are ensured by cryptographic hashing and public-private key pairs. The mechanism of a decentralized voter group is presented, which regulates the identity updates and revocations, increasing the level of transparency and trust without the assistance of a central authority. As it has been proven in experiments, the offered system can register identities in 3-4 seconds, propagate revocation in less than 5 seconds, and use a reasonable amount of gas, successfully deterring unauthorized read-only and writeonly operations and typical blockchain-based attacks. The findings prove that the proposed framework will provide a better security, scalability, and auditability beyond a traditional centralized identity system. The model of identity management based on blockchain offers a viable base of secure digital identity solutions in the fields of e-governance, finance, healthcare, and inter-organizational authentication.