The present disclosure generally relates to a system for data seclusion in image & audio files comprises a data processing unit for receiving input signals and converting into digitized image and audio data; a compressor unit for reducing size of the digitized image and audio data using a j-bit encoding at a variable rate; an encryption unit for encrypting the compressed digitized image and audio data using an advanced encryption standard (AES); a control unit for stripping the encrypted compressed digitized image and audio data into a plurality of portions, wherein the control unit generates a cryptographic key for decrypting every encrypted image and audio data; and a blockchain database configured with a cloud server for receiving the portions of the encrypted compressed digitized image and audio data and proportionately storing the portions of the encrypted compressed digitized image and audio data onto a plurality of storage media.