This paper demonstrates, network-level performance analysis and implementation of smart city Internet of Things (IoT) system with Infrastructure as a Service (IaaS) level cloud computing architecture. The smart city IoT network topology performance is analyzed at the simulation level using the NS3 simulator by extracting most of the performance-deciding parameters. The performance-enhanced smart city topology is practically implemented in IaaS level architecture. The intended smart city IoT system can monitor the principal parameters like video surveillance with a thermal camera (to identify the virus-like COVID-19 infected people), transport, water quality, solar radiation, sound pollution, air quality (O3, NO2, CO, Particles), parking zones, iconic places, E-suggestions, PRO information over low power wide area network in 61.88 km × 61.88 km range. Primarily we have addressed the IoT network-level routing and quality of service (QoS) challenges and implementation level security challenges. The simulation level network topology analysis is performed to improve the routing and QoS. Blockchain technology-based decentralization is adopted to enrich the IoT system performance in terms of security.