Shortcomings have been identified in current color image encryption methods. Firstly, these methods encrypt each color channel separately, resulting in a time-consuming process and independent encrypted channels, which can make hacking easier. Secondly, the use of XOR operations between image pixel values and code values during encryption can be vulnerable. To address these issues, a novel algorithm is introduced that incorporates a new XOR operation and simultaneous encryption of color channels. This approach creates interdependence between the encrypted channels, reduces encryption time, and enhances security by introducing a more complex XOR operation. The proposed method employs a substitution technique that involves XOR operations between groups of pixels and codes, inspired by the principles of the fast Walsh-Hadamard transform algorithm. The encryption process involves several key phases that enhance the security and efficiency of the system. In the initial phase, line processing involves mixing lines from different channels and application of chaotic substitution permutation operations. Subsequently, a similar operation is applied to columns, and finally, the channels are divided into overlapping squared sub-blocks, with a newly XOR proposed chaos-based confusion operation simultaneously applied to the three-channel sub-blocks. These phases are designed to ensure interdependence between color channels and reduce encryption time, resulting in a more robust encryption method. With this method, the RGB cipher channels become mutually dependent, rendering decryption of one channel impossible without the others. The approach has been evaluated using appropriate metrics and found to be robust, efficient, and resistant to various attacks, outperforming recently published methods. It is suitable for modern image encryption applications, including those related to the Internet of Medical Things (IoMT).