Digital identity management is a critical challenge in the digital age due to growing privacy and security concerns. To address this challenge, this paper proposes DAPI-Py, a novel decentralized digital identity management system that integrates blockchain and edge computing technologies by using a public-permissioned blockchain platform and a lightweight device such as a Raspberry Pi. The proposal has three-fold purpose: improving privacy and security by using smart contracts to manage digital identities, integrating blockchain with edge computing to reduce latency and increase data processing efficiency, and using the Alastria hybrid public-private platform to optimize identity management. The DAPI-Py system allows users to securely register and manage their identities through a Metamask-friendly interface implemented in Python. The results demonstrate that DAPI-Py provides a robust and efficient alternative to traditional digital identity management systems, significantly improving security and efficiency.