This research introduces a novel framework that integrates graphical password mechanisms with blockchain technology to improve both security and usability in user authentication and secure document sharing. Traditional password-based systems often face security and usability challenges, which leads to frequent breaches of information. In the proposed system, images are segmented into parts, each associated with a distinct block of text. As the users choose their segments, a cryptographic hash is generated to enable dynamic and personalized authentication. The blockchain technology is used for decentralized and immutable ledgers to ensure security of authentication records. File segments are further encrypted using AES keys issued by the blockchain, ensuring data confidentiality and integrity. The results of the experiment indicate that the system is strong and efficient with a false acceptance rate (FAR) and false rejection rate (FRR) of 0.0, thus showing perfect authentication. In addition, there are no hash collisions for the system, and thus, the SHA-256 hashing algorithm is safe. Authentication times for both strong and simple passwords are incredibly fast with almost negligible performance difference. Moreover, the Layer-2 scaling solutions integration shows that it reduces blockchain latency by up to 53.06%. This, therefore, improves scalability and transaction speed in these blockchains. This establishes the possibility of offering a secure and efficient means of authenticating digital environments, coupled with improved performance on the blockchain networks.