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To avoid the authentication-related security issues in the smart IoT networks, blockchain technology is deployed to allow smooth and secure key management features and blockchain parameter updates. The proposed system has been designed for light-weight IoT devices with additional security measures provided by deploying difficulty parameters. This paper examines the hash mining procedure along with the application of proposed solution implemented in java programming language. Also the paper examines deploying different hashing algorithms in the proposed solution and compares their processing time. The higher difficulty parameters combined with faster hashing algorithms provides the most suitable solution for IoT devices with less computational power and memory requirements.