This paper reconceptualizes digital heritage through the framework of the Living Archive—a participatory, adaptive, and ethically informed platform for cultural memory. In contrast to conventional digital archives that prioritize static preservation, the Living Archive promotes co-creation, iterative interpretation, and the incorporation of diverse perspectives. To implement this model, we suggest embracing agile methodologies, which place iterative development, stakeholder collaboration, and transparency at the core of digital heritage efforts. We analyze the architecture of the Living Archive across five interdependent layers—content, semantic, interaction, curation, and provenance—and demonstrate how each layer benefits from agile workflows. The Living Archive stands as a next-generation framework for preserving and activating memory in the digital age by embedding ethical verification, cultural sensitivity, and technological accountability into its design.