Abstract: This article proposes a new digital watermarking mechanism based on the Ethereum blockchain, Smart Contract, and Interplanetary File System (IPFS), with an enhanced Fast Walsh Hadamard Transform (FWHT) algorithm for watermark embedding and extraction. The proposed scheme aims to address the limitations of existing digital watermarking techniques, such as dependence on third-party platforms, by leveraging the decentralization feature of blockchain. The Smart Contract is used to manage the transaction between the parties involved in the watermarking process, while IPFS is used to store the watermark data. The enhanced FWHT algorithm is used to embed the watermark into the host image without affecting its visual quality. The results show that the proposed scheme outperforms the state-of-the-art algorithms in terms of both imperceptibility and robustness. Additionally, it demonstrates that our scheme can effectively resist various attacks. Therefore, our scheme can be a promising solution for image copyright protection, authentication applications, and image trading.