The rise of technology has resulted in the evolution of data generation at a rapid speed. With the high increase in the volume of data, it has become necessary to store it using reliable and scalable data management systems. Blockchain offers a storage structure that ensures the security and reliability of the stored data. Smart contracts further enhance the technology by enforcing more stringent record management activities. In recent times, there has been widespread utilization of IPFS in conjunction with blockchain technology. This utilization facilitates the establishment of decentralized and distributed data storage, as well as the connection of blockchain transactions to external data, thereby enhancing scalability and reducing storage expenses within blockchain applications. This paper introduces an effective collaborative ecosystem called SSE_CIB, where images undergo multiple operations including quantization before getting uploaded to IPFS. The image‐related details are stored in the blockchain to keep track of record entries. In our approach, a watermarking process has also been included to ensure the protection of copyright. Further, the images undergo block‐wise rotation based on a secret key and bit‐wise operation with a key image for enhanced security and protection. The work is implemented and tested using real‐life images in an Ethereum environment incorporated with a smart contract that enables proper execution of transactions.