diff --git a/backend/cache.py b/backend/cache.py
index 3f2bebf2..0e372a52 100644
--- a/backend/cache.py
+++ b/backend/cache.py
@@ -156,3 +156,6 @@ def invalidate(self):
 recent_issues_cache = ThreadSafeCache(ttl=300, max_size=20)  # 5 minutes TTL, max 20 entries
 nearby_issues_cache = ThreadSafeCache(ttl=60, max_size=100)  # 1 minute TTL, max 100 entries
 user_upload_cache = ThreadSafeCache(ttl=3600, max_size=1000)  # 1 hour TTL for upload limits
+
+# Blockchain optimization: cache the most recent integrity hash to avoid redundant DB queries during chaining
+blockchain_last_hash_cache = ThreadSafeCache(ttl=3600, max_size=1)
diff --git a/backend/init_db.py b/backend/init_db.py
index 8021447a..0c308a8b 100644
--- a/backend/init_db.py
+++ b/backend/init_db.py
@@ -70,7 +70,7 @@ def index_exists(table, index_name):
                     logger.info("Added integrity_hash column to issues")
 
                 if not column_exists("issues", "previous_integrity_hash"):
-                    conn.execute(text("ALTER TABLE issues ADD COLUMN previous_integrity_hash VARCHAR"))
+                    conn.execute(text("ALTER TABLE issues ADD COLUMN previous_integrity_hash VARCHAR(255)"))
                     logger.info("Added previous_integrity_hash column to issues")
 
                 # Indexes (using IF NOT EXISTS syntax where supported or check first)
@@ -95,6 +95,9 @@ def index_exists(table, index_name):
                 if not index_exists("issues", "ix_issues_user_email"):
                     conn.execute(text("CREATE INDEX IF NOT EXISTS ix_issues_user_email ON issues (user_email)"))
 
+                if not index_exists("issues", "ix_issues_previous_integrity_hash"):
+                    conn.execute(text("CREATE INDEX IF NOT EXISTS ix_issues_previous_integrity_hash ON issues (previous_integrity_hash)"))
+
                 # Voice and Language Support Columns (Issue #291)
                 if not column_exists("issues", "submission_type"):
                     conn.execute(text("ALTER TABLE issues ADD COLUMN submission_type VARCHAR DEFAULT 'text'"))
diff --git a/backend/models.py b/backend/models.py
index 8b9020de..f8d85007 100644
--- a/backend/models.py
+++ b/backend/models.py
@@ -149,6 +149,7 @@ class Issue(Base):
     location = Column(String, nullable=True)
     action_plan = Column(JSON, nullable=True)
     integrity_hash = Column(String, nullable=True)  # Blockchain integrity seal
+    previous_integrity_hash = Column(String, nullable=True, index=True)  # Link to previous block for faster verification
     
     # Voice and Language Support (Issue #291)
     submission_type = Column(String, default="text")  # 'text', 'voice'
diff --git a/backend/routers/issues.py b/backend/routers/issues.py
index 9cc304ee..460fc1af 100644
--- a/backend/routers/issues.py
+++ b/backend/routers/issues.py
@@ -30,7 +30,7 @@
     send_status_notification
 )
 from backend.spatial_utils import get_bounding_box, find_nearby_issues
-from backend.cache import recent_issues_cache, nearby_issues_cache
+from backend.cache import recent_issues_cache, nearby_issues_cache, blockchain_last_hash_cache
 from backend.hf_api_service import verify_resolution_vqa
 from backend.dependencies import get_http_client
 from backend.rag_service import rag_service
@@ -172,13 +172,18 @@ async def create_issue(
         # Save to DB only if no nearby issues found or deduplication failed
         if deduplication_info is None or not deduplication_info.has_nearby_issues:
             # Blockchain feature: calculate integrity hash for the report
-            # Optimization: Fetch only the last hash to maintain the chain with minimal overhead
-            prev_issue = await run_in_threadpool(
-                lambda: db.query(Issue.integrity_hash).order_by(Issue.id.desc()).first()
-            )
-            prev_hash = prev_issue[0] if prev_issue and prev_issue[0] else ""
+            # Optimization: Use cache for the last hash to maintain the chain with near-zero overhead
+            prev_hash = blockchain_last_hash_cache.get("last_integrity_hash")
+
+            if prev_hash is None:
+                # Cache miss: Fetch only the last hash from DB
+                prev_issue = await run_in_threadpool(
+                    lambda: db.query(Issue.integrity_hash).order_by(Issue.id.desc()).first()
+                )
+                prev_hash = prev_issue[0] if prev_issue and prev_issue[0] else ""
+                blockchain_last_hash_cache.set(data=prev_hash, key="last_integrity_hash")
 
-# Simple but effective SHA-256 chaining
+            # Simple but effective SHA-256 chaining
             hash_content = f"{description}|{category}|{prev_hash}"
             integrity_hash = hashlib.sha256(hash_content.encode()).hexdigest()
 
@@ -199,11 +204,15 @@ async def create_issue(
                 longitude=longitude,
                 location=location,
                 action_plan=initial_action_plan,
-                integrity_hash=integrity_hash
+                integrity_hash=integrity_hash,
+                previous_integrity_hash=prev_hash
             )
 
             # Offload blocking DB operations to threadpool
             await run_in_threadpool(save_issue_db, db, new_issue)
+
+            # Update last hash cache
+            blockchain_last_hash_cache.set(data=integrity_hash, key="last_integrity_hash")
         else:
             # Don't create new issue, just return deduplication info
             new_issue = None
@@ -620,24 +629,28 @@ def get_user_issues(
 async def verify_blockchain_integrity(issue_id: int, db: Session = Depends(get_db)):
     """
     Verify the cryptographic integrity of a report using the blockchain-style chaining.
-    Optimized: Uses column projection to fetch only needed data.
+    Optimized: Uses stored previous hash to eliminate redundant lookup for the parent record.
     """
     # Fetch current issue data
+    # Optimization: Include previous_integrity_hash to verify the chain in one step
     current_issue = await run_in_threadpool(
         lambda: db.query(
-            Issue.id, Issue.description, Issue.category, Issue.integrity_hash
+            Issue.id, Issue.description, Issue.category, Issue.integrity_hash, Issue.previous_integrity_hash
         ).filter(Issue.id == issue_id).first()
     )
 
     if not current_issue:
         raise HTTPException(status_code=404, detail="Issue not found")
 
-    # Fetch previous issue's integrity hash to verify the chain
-    prev_issue_hash = await run_in_threadpool(
-        lambda: db.query(Issue.integrity_hash).filter(Issue.id < issue_id).order_by(Issue.id.desc()).first()
-    )
-
-    prev_hash = prev_issue_hash[0] if prev_issue_hash and prev_issue_hash[0] else ""
+    # Use stored previous hash if available, otherwise fall back to DB lookup (for legacy records)
+    if current_issue.previous_integrity_hash is not None:
+        prev_hash = current_issue.previous_integrity_hash
+    else:
+        # Fallback for legacy records without previous_integrity_hash column populated
+        prev_issue_hash = await run_in_threadpool(
+            lambda: db.query(Issue.integrity_hash).filter(Issue.id < issue_id).order_by(Issue.id.desc()).first()
+        )
+        prev_hash = prev_issue_hash[0] if prev_issue_hash and prev_issue_hash[0] else ""
 
     # Recompute hash based on current data and previous hash
     # Chaining logic: hash(description|category|prev_hash)
diff --git a/tests/test_blockchain.py b/tests/test_blockchain.py
index 341ecf49..3dca5583 100644
--- a/tests/test_blockchain.py
+++ b/tests/test_blockchain.py
@@ -29,7 +29,8 @@ def test_blockchain_verification_success(client, db_session):
     issue1 = Issue(
         description="First issue",
         category="Road",
-        integrity_hash=hash1
+        integrity_hash=hash1,
+        previous_integrity_hash=""
     )
     db_session.add(issue1)
     db_session.commit()
@@ -42,7 +43,8 @@ def test_blockchain_verification_success(client, db_session):
     issue2 = Issue(
         description="Second issue",
         category="Garbage",
-        integrity_hash=hash2
+        integrity_hash=hash2,
+        previous_integrity_hash=hash1
     )
     db_session.add(issue2)
     db_session.commit()
@@ -62,6 +64,41 @@ def test_blockchain_verification_success(client, db_session):
     assert data["is_valid"] == True
     assert data["current_hash"] == hash2
 
+def test_blockchain_previous_hash_stored(client, db_session):
+    # Create first issue
+    hash1 = hashlib.sha256(b"First").hexdigest()
+    issue1 = Issue(description="First", category="Road", integrity_hash=hash1)
+    db_session.add(issue1)
+    db_session.commit()
+
+    # Create second issue via API (to test logic in create_issue)
+    # Mocking background tasks to avoid errors
+    from unittest.mock import patch
+    with patch("backend.routers.issues.process_action_plan_background"), \
+         patch("backend.routers.issues.create_grievance_from_issue_background"):
+        response = client.post(
+            "/api/issues",
+            data={
+                "description": "Second issue description",
+                "category": "Garbage",
+                "latitude": 10.0,
+                "longitude": 20.0
+            }
+        )
+
+    assert response.status_code == 201
+    issue_id = response.json()["id"]
+
+    # Verify issue in DB has previous_integrity_hash
+    issue2 = db_session.query(Issue).filter(Issue.id == issue_id).first()
+    assert issue2.previous_integrity_hash == hash1
+
+    # Verify blockchain-verify endpoint uses the stored hash
+    # (Implicitly tested if it returns is_valid=True and we know we didn't mock the internal DB query in the router)
+    response = client.get(f"/api/issues/{issue_id}/blockchain-verify")
+    assert response.status_code == 200
+    assert response.json()["is_valid"] == True
+
 def test_blockchain_verification_failure(client, db_session):
     # Create issue with tampered hash
     issue = Issue(