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In today’s digital age, ensuring the secure transmission of confidential data through various means of communication is crucial. Protecting the data from malicious attacks during transmission poses a significant challenge. To achieve this, reversible data hiding (RDH) and encryption methods are often used in combination to safeguard confidential data from intruders. However, existing secure reversible hybrid hiding techniques are facing challenges related to low data embedding capacity. To address these challenges, the proposed research presents a solution that utilizes block-wise encryption and a two-layer embedding scheme to enhance the embedding capacity of the cover image. Additionally, this technique incorporates a blockchain-enabled RDH method to ensure traceability and integrity by storing confidential data alongside the hash value of the stego image. The proposed work is divided into three phases. First, the cover image is encrypted. Second, the data are embedded in the encrypted cover image using a two-layer embedding scheme. Finally, the stego image along with the hash value are deployed through blockchain technology. The proposed method reduces challenges associated with traceability and integrity while increasing the embedding capacity of images compared to traditional methods.