This article addresses the telecommunications industry’s priority of ensuring information security during the transition to next-generation networks. It proposes an image encryption system that combines watermarking techniques and a discrete fractional sine chaotic map. The authors also incorporate the principles of blockchain to enhance the security of transmitted and received image data. The proposed system utilizes a newly developed sine chaotic map with a fractional difference operator, exhibiting long-term chaotic dynamics. The complexity of this map is demonstrated by comparing it with three other fractional chaotic maps from existing literature, using bifurcation diagrams and the largest Lyapunov exponent. The authors also show the map’s sensitivity to changes in initial conditions through time-series diagrams. To encrypt images, the authors suggest a method involving watermarking of two secret images and encryption based on blockchain technology. The cover image is watermarked with the two hidden images using discrete wavelet transformations. Then, the image pixels undergo diffusion using a chaotic matrix generated from the discrete fractional sine chaotic map. This encryption process aims to protect the image data and make it resistant to unauthorized access. To evaluate the algorithm, the authors perform statistical analysis and critical sensitivity analysis to examine its characteristics. They also analyse different attacks to assess the algorithm’s ability to resist such threats and maintain image quality after decryption. The results demonstrate that the proposed algorithm effectively defends against attacks and ensures image security.