This research investigates privacy protection mechanisms and data security policy optimization for blockchain-based digital rights management platforms to balance transparency with robust privacy protection. A comprehensive experimental framework was developed, integrating advanced cryptographic techniques with intelligent policy management systems. A multi-layered validation methodology employed formal verification, black-box/white-box testing, and stress tests to validate performance across security, efficiency, and usability dimensions. The implemented solution provided 99.99% security assurance while achieving a 47% improvement in processing efficiency through zero-knowledge proofs and homomorphic encryption. Transaction processing reached 3,750 TPS (peaking at 4,200 TPS), with 99.8% regulatory compliance and 99.9% automated policy conflict resolution. The research demonstrates significant advancements in blockchain-based privacy protection through novel cryptographic implementation and automated policy management, establishing a robust framework for secure digital rights management. This solution offers substantial value for content delivery networks, digital asset management systems, financial institutions, and government services where the balance between transparency and privacy is critical, while reducing compliance management costs.